International Journal of Euro-Mediterranean Studies issn 1855-3362 (printed) issn 2232-6022 (online) The aim of the International Journal of Euro-Mediterranean Studies is to promote intercultural dialogue and exchanges between societies, develop human resources, and to assure greater mutual understanding in the Euro-Mediterranean region. L’objectif de la revue internationale d’etudes Euro-Méditerranéennes est de promouvoir le dialogue interculturel et les échanges entre les sociétés, développer les ressources humaines et assurer une compréhension mutuelle de qualité au sein de la région euro-méditerranéenne. Namen Mednarodne revije za evro­mediteranske študije je spodbujanje medkulturnega dialoga in izmenjav, razvoj cloveških virov in zagotavljanje boljšega medsebojnega razumevanja v evro-mediteranski regiji. ijems is indexed in Scopus, International Bibliography of the Social Sciences, Directory of Open Access Journals, Index Islamicus, oclc, and Summon by Serial Solutions. editor-in-chief Jaka Vadnjal, Euro-Mediterranean University, Slovenia, editor.ijems@emuni.si associate editors Barbara Gornik, Science and Research Centre Koper, Slovenia Karim Moustagh.r, Al Akhawayn University, Morocco Chahir Zaki, Cairo University, Egypt editorial advisory board Abeer Refky, Arab Academy for Science, Technology and Maritime Transport, Egypt Francesco Martinico, University of Catania, Italy Mona Esam Othman Fayed, University of Cairo, Egypt Claudio Cressati, University of Udine, Italy Lola Bañon Castellón, University of Valencia, Spain Nataša Uroševic, Juraj Dobrila University of Pula, Croatia Boštjan Udovic, University of Ljubljana, Slovenia Maysoun Ibrahim, Palestinian Syndicate for Information Sciences and Technology, Palestine Péter Kacziba, University of Pécs, Hungary Lot. Ben Romdhane, University of Sousse, Tunisia Mejjad Nezha, UniversityHassan ii of Casablanca, Morocco International Journal of Euro-Mediterranean Studies Table of Contents 191 Insights into Socioeconomic and Political Transformations in the Euro-Mediterranean Region Jaka Vadnjal 195 Innovative Marketing Approaches and Transformation of Slovenian Consumer Behavior During the covid-19Pandemic Maja Pucelj, Muhammad Naeem Shahid, Regalla Ravikanth, Samah Adel Ibrahim Mohammed Radwan, Muhammad Malik, and Anthony K. Hunt 235 Integrating Spirituality and Politics: Insights from Islam and Christianity on Religiosity and Governance in Contemporary Society Othman Sqalli Houssaini 259Democratization in Tunisia: Negotiating the Interplay of Policy and Economic Development Noureddine Selmi 283 The Impact of the Audit Committee on Financial Performance in Moroccan smes: An Empirical Examination Hanae Laaroussi, Mohamed Amine Tbatou, and Aziz Babounia 313 The Impact of Tourism, Foreign Direct Investment, Trade, Economic Growth, and Renewable Energy on Carbon Emissions: The Case of Mediterranean Countries Younesse El Menyari 339Emotional and Social Intelligence and its Impact on the Business Success of Bulgarian Digital Entrepreneurs Ana Todorova and Irina Kostadinova 363 Résumés 369Povzetki 373 ã 377 Empowering the Mediterranean: emuni’s Journey of Growth and Innovation information for authors Manuscripts are accepted on the understanding that they are original and not under simultaneous consideration by any other publication. Submitted manuscripts may be subject to checks in order to detect instances of plagiarism. All manuscripts are double-blind peer reviewed. Manuscripts should be prepared following The Chicago Manual of Style. For submissions and detailed instructions about the style and content of papers, please see https://ijems.emuni.si. copyright notice The International Journal of Euro-Mediterranean Studies is an Open Access Journal distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License. Copyright for all articles published in ijems is held by individual authors. No author fees are charged. published by Euro-Mediterranean University Trevisini Palace Kidricevo nabrežje 2 si-6330 Piran, Slovenia https://ijems.emuni.si ijems@emuni.si Print run: 200. Printed in Slovenia by Demat d.o.o., Ljubljana Mednarodna revija za evro-mediteranske študije je namenjena mednarodni znanstveni in strokovni javnosti; izhaja v anglešcini s povzetki v slovenšcini, francošcini in arabšcini. Izid je .nancno podprla Javna agencija za znanstvenoraziskovalno in inovacijsko dejavnost Republike Slovenije iz sredstev državnega proracuna iz naslova razpisa za so.nanciranje domacih znanstvenih periodicnih publikacij. Revija je brezplacna. Insights into Socioeconomic and Political Transformations in the Euro-Mediterranean Region jaka vadnjal Euro-Mediterranean University, Slovenia jaka.vadnjal@emuni.si © 2024 Jaka Vadnjal https://doi.org/10.70908/2232-6022/17.191-193 The International Journal of Euro-Mediterranean Studies is proud to present a diverse collection of articles that address pressing issues shaping the socioeconomic, political, and cultural landscapes of the Euro-Mediterranean region. From the evolving consumer behaviours driven by global crises to the interplay of politics, religion, and eco­nomic development, this issue highlights critical research that con­tributes to our understanding of a region characterized by both its historical richness and contemporary challenges. ‘Innovative Marketing Approaches and Transformation of Slovenian Consumer Behaviour During the covid-19Pandemic.’ Pucelj et al. provide a timely and insightful analysis of consumer behaviour in Slovenia during the covid-19pandemic. The study explores innova­tive marketing strategies that emerged as businesses adapted to un­precedented disruptions. The authors emphasize how digital transfor­mation and creative engagement strategies reshaped consumer habits and preferences. By identifying key behavioural shifts and adaptive practices, this research o.ers valuable lessons for businesses navigat­ing post-pandemic recovery. Importantly, the study situates Slovenia’s experience within a broader global context, demonstrating how agile marketing approaches can foster resilience during periods of economic uncertainty. ‘Integrating Spirituality and Politics: Insights from the Moroccan Model of Religiosity and Governance in Contemporary Society.’ Houssaini’s exploration of Morocco’s unique model of religiosity and governance is a signi.cant contribution to the study of politics and spirituality in the region. The article delves into the integration of religious values within Morocco’s political framework, o.ering a nuanced understanding of how spirituality shapes governance. By analysing Morocco’s approach, the study underscores the potential for coexistence between modern [192] political systems and traditional religious structures. This insightful work not only advances scholarly discussions on religion and politics but also highlights Morocco as a model of stability and innovation in the Arab world. ‘Democratization in Tunisia: Negotiating the Interplay of Policy and Economic Development.’ Selmi’s article examines the complex rela­tionship between policy and economic development during Tunisia’s democratic transition. Tunisia’s experience as a post-Arab Spring na­tion is marked by both hope and challenges, as the study reveals. Selmi highlights the policy debates that have emerged in the wake of Tunisia’s democratization, particularly those related to economic reforms and growth. The article sheds light on the controversies surrounding gov­ernance, policy implementation, and socioeconomic disparities, o.er­ing critical re.ections on the successes and shortcomings of Tunisia’s transitional journey. This work is essential for policymakers and schol­ars seeking to understand the intricate dynamics of democratization and economic transformation. ‘The Impact of the Audit Committee on Financial Performance in Mo­roccan smes: An Empirical Examination.’ In their empirical study, Laaroussi et al. investigate the role of audit committees in enhancing the .nancial performance of Moroccan small and medium-sized enter­prises (smes). The research underscores the importance of strong cor­porate governance mechanisms in fostering transparency, accountabil­ity, and .nancial stability. By examining Moroccan smes, the study provides robust evidence that e.ective audit committees contribute signi.cantly to improved .nancial outcomes. The .ndings are particu­larly relevant for emerging economies, where smes play a vital role in economic growth and employment. This article makes a valuable con­tribution to the discourse on corporate governance and its impact on business success in the Euro-Mediterranean context. ‘The Impact of Tourism, Foreign Direct Investment, Trade, Economic Growth, and Renewable Energy on Carbon Emission.’ El Menyari’s re­search addresses one of the most pressing global challenges: the rela­tionship between economic growth and environmental sustainability. Focusing on tourism, foreign direct investment, trade, and renewable energy, the study examines their collective impact on carbon emis­sions. Using case-speci.c analysis, the author highlights the delicate balance between fostering economic growth and mitigating environ-[193] mental harm. This research is particularly timely as nations across the Euro-Mediterranean region grapple with sustainable development goals. By emphasizing the role of renewable energy, the study provides actionable insights for policymakers seeking to align economic strate­gies with environmental priorities. ‘Emotional and Social Intelligence and Its Impact on the Business Suc­cess of Bulgarian Enterprises.’ Todorova et al. explore the critical role of emotional and social intelligence in driving business success in Bul­garia. The study highlights how leaders’ emotional awareness, empa­thy, and interpersonal skills contribute to organizational performance and competitiveness. By analysing Bulgarian enterprises, the authors demonstrate that emotional and social intelligence are not merely soft skills but strategic assets that foster employee engagement, innova­tion, and business growth. This research bridges the gap between psy­chology and business studies, o.ering practical implications for leaders and managers aiming to enhance organizational outcomes. The articles featured in this issue collectively re.ect the diverse and dy­namic challenges facing the Euro-Mediterranean region. Whether ad­dressing economic resilience, governance, democratization, or environ­mental sustainability, each study contributes valuable insights that ad­vance our understanding of this multifaceted region. By examining case studies from Slovenia, Morocco, Tunisia, and Bulgaria, the authors pro­vide both localized and globally relevant perspectives. We hope that this issue inspires further research and dialogue among scholars, policymakers, and practitioners committed to fos­tering progress in the Euro-Mediterranean space. As we navigate the complexities of a rapidly changing world, the knowledge shared in these articles serves as a foundation for informed decision-making and in­novative solutions. Innovative Marketing Approaches and Transformation of Slovenian Consumer Behavior During the covid-19 Pandemic maja pucelj samah adel ibrahim emuni University, Slovenia mohammed radwan maja.pucelj@emuni.si Kafrelsheikh University, Egypt up788296@myport.ac.uk muhammad naeem shahid muhammad malik Cholistan University Kunming University of Science of Veterinary and Animal and Technology, China Sciences, Pakistan malik5.kiu@gmail.com naeemshahid@cuvas.edu.pk anthony k. hunt regalla ravikanth The University of Texas VishwaVishwaniInstituteof atAustin, usa Systems and Management, India tonykhunt@utexas.edu ravikanth@vishwavishwani.ac.in The covid-19pandemic has presented unparalleled di.culties, re­quiring .exible and adaptive responses from both societies and en­terprises. This study aims to analyze new marketing techniques and operational adjustments that have emerged in response to the global crisis, focusing on their impact on customer behavior and purchase choices. Utilizing an abductive paradigm with a sequential exploratory design, we combined qualitative and quantitative research approaches. We gathered data from a sample of 204 Slovenian respondents through an online survey, which underwent rigorous examination using struc­tural equation modeling (sem). This study is based on consumer be­havior theory and frameworks innovation marketing. Our .ndings reveal signi.cant shifts in customer behavior, notably a transition to­wards online retail platforms. Education also appears to play a crucial role in in.uencing consumer behavior changes, especially within the pandemic’s complex context. Additionally, changes in income distri­bution directly a.ect product demand dynamics in the market. The practical signi.cance of this study is emphasized by the actionable suggestions it provides to policymakers and organizations. These rec­ommendations equip them with the necessary understanding to e.ec­tively adjust their strategies to meet the changing demands and pref­erences of customers to prepare for future possible crises. Key Words: covid-19pandemic, consumer behavior, online shopping, education, structural modeling equation (sem) © 2024 Maja Pucelj, Muhammad Naeem Shahid, Regalla Ravikanth, Samah Adel Ibrahim Mohammed Radwan, [196] Muhammad Malik,and Anthony K.Hunt https://doi.org/10.70908/2232-6022/17.195-234 introduction The covid-19pandemic has led to unprecedented global challenges that have transformed numerous aspects of daily life and exerted a signi.cant in.uence on business operations across multiple industries and markets (Vadnjal 2024). In this environment, our study examines the novel marketing strategies and corporate advancements that have emerged as a result of the pandemic. Our goal is to thoroughly exam­ ine the impact of these factors on consumer behavior and purchasing decisions in particular. To do so, we employed both theoretical models and empirical evidence to assess the extent of their impact. Retailing has long been an important subject of economic and mar­keting studies. The academic pursuit and curiosity to understand con­sumerbehaviorcan be traced back to the1930sand 1940s(Schwarzkopf 2015). The retail industry has changed signi.cantly in recent years, especially in the 21st century. These changes include the rise of non­traditional retail options, the growth of e-commerce, and the emer­gence of a digital marketing revolution (Rita, Oliveira, and Farisa 2019). Nevertheless, the retail industry has experienced signi.cant and profound change due to the unexpected and far-reaching impact of the global covid-19pandemic. Thecurrentcrisishasnotonlybroughtsig­ni.cant health and economic di.culties but also triggered profound changes in consumer behavior. Previous studies have recognized the transition from o.ine to online shopping, exacerbated by various psy­chological stressors that contribute to compulsive buying tendencies. However, there is currently a lack of comprehensive research in this speci.c area. Choura and Abou Jeb (2021) identi.ed a gap in the aca­demic literature and emphasized the need to examine changes in con­sumer behavior resulting from the epidemic. This study aims to .ll the existing knowledge gap by investigating the impact of the pandemic on consumer behavior, focusing speci.cally on changes in consumer channel preferences associated with the crisis. In addition, we aim to clarify consumer criticisms and provide sugges­tions that can guide companies facing similar problems in the future. literature review and hypotheses development [197] Consumers’ Behavior in Pandemic Periods Throughout history, infectious diseases with pandemic potential have emerged and dissipated. The transition from hunter-gatherer cultures to agricultural cultures has led to an increasing spread of infectious viruses in human societies (Dobson and Carper 1996). Extensive com­merce and trade relationships across various geographic regions have accelerated and intensi.ed human-animal interactions, leading to the widespread transmission of contagious animal diseases to humans, in­cluding plague, cholera, in.uenza, and pandemics (Lindahl and Grace 2015). covid-19was a profoundly disruptive pandemic that deeply harm­ed all countries and their economies globally (Barai and Dhar 2024; Rop 2024). Consequently, e-commerce has surged, with consumers increas­ingly buying goods online. As a result, it is critical to identify and as­sess the impact of these behavioral changes. According to Fihartini et al. (2021), health risk was found to be more important in triggering on-line purchasing behavior than elements related to the ethics of online retailing; therefore, consumers are more concerned about their health when making purchases. Laato et al. (2020) argued that the business environment changed signi.cantly after the pandemic outbreak. Due to the impact of this pandemic on online retailing and the current eco­nomic climate, customers’ purchasing habits have changed. Accordingtothe .ndingsofKajzer(2020), theoutbreak ofthe pan­demic in the second quarter of 2020 caused a sharp decline in economic activity despite stringent measures to contain it. While many countries implemented measures to preserve jobs, companies also responded by downsizing their workforce, especially temporary workers, and greatly increased the number of workers dispatched by companies to wait for work temporarily. These measures have largely cushioned the impact of the decline in economic activity on the fall in employment and the rise in unemployment. At the beginning of the pandemic, young and less educated people, especially women, were most a.ected. Young people are more likely than other age groups to be a.ected by temporary employment, which is particularly the case in Slovenia (student employment). The greater vulnerability of the less educated is also in.uenced by the high pro­portion of workers with low education in the sectors of activity that were most a.ected by the restrictive measures (Kajzer 2020). Thus, in [198] this study, we contend that di.erences in consumers’ educational lev­els have resulted in di.erences in their feelings and perceptions of the impacts of the pandemic on their spending decisions. During the pandemic, people’s behavior also changed – they social­ized less, avoided physical contact, and their mental health deterio­rated. All of this, along with country-imposed restrictions on move­ment, alsoled to changesin consumer spendingpatterns. Before the pandemic, consumers physically traveled to do their grocery shopping, bought clothes in stores, and ate in cafés and restaurants. During the pandemic, global populations experienced and endured months of lock-downs and extreme social distancing measures, resulting in decreased accessibility to physical stores and heightened consumer health con­cerns. Consequently, people began to alter their spending habits, prior­itizing essential purchases and transitioning from traditional in-store shopping routines of Slovenian consumers to online shopping and or­dering take-outs. The fact that the pandemic is forcing consumers to store di.erently and swap the check-out line for online shopping more than ever before has also been noted by various researchers such as J.P. Morgan (2020a), Barua (2021), Gu et al. (2021), Das, Sarkar, and Debroy (2022), and Tymkiw (2022). This is also re.ected in data from the Statis­tical O.ce of the Republic of Slovenia (2021), which admits that one of the main e.ects of the pandemic on the spending habits of Slovenian consumers is the signi.cant increase in online shopping. They also note that, according to their 2021 data, the share of e-shoppers has increased in most age groups – most among 65–74-year-olds (to 37.; 22. in 2020) and least among 16–24-year-olds (to 87.; 84. in 2020). There were 86. of e-purchasers among 25–34-year-olds (88. in 2020), 90. among 35– 44-year-olds (80. in 2020), 77. among 45–54-year-olds (64. in 2020), and 53. among 55–64-year-olds (40. in 2020) (Statistical O.ce of the Republic of Slovenia 2021). This is consistent with the .ndings of Pan­tano et al. (2020), who found that older consumers who are less com­puter literate also use online shopping because it gives them a greater sense of security. In a research study by Morales (2021) about pandemic consumer behavior towards e-commerce and retail stores in the United States, individuals aged 70 and older exhibited a notable decrease in online shopping preferences. This shift can be attributed to the chal­lenges they face in using electronic devices and in navigating online shopping platforms and networks. Therefore, this paper argues that the pandemic and its associated precautionary measures have shifted consumer purchasing behavior – from traditional physical shopping to [199] online shopping – regardless of the literacy and preferences of older consumers towards such changes. Travel restrictions, social isolation, limitations on the sale of partic­ular commodities, and customers cutting costs and postponing projects severely impacted global sales. This dramatic drop in sales has made it challenging for retail businesses to recover, especially with .xed ex­penses remaining unchanged amid stagnant income growth. According to data from the .nancial accounts at jpmorgan Chase (jpmc), small business revenues fell by 30–50. at the end of March and the begin­ning of April, and by 40. in May 2020 (Farrell, Wheat, and Mac 2020; Kim, Parker, and Schoar 2020). As governments worldwide mandated con.nement measures and signi.cantly reduced in-person customer interactions in stores, the retail sector has been particularly adversely a.ected. This has necessitated a signi.cant shift in how consumers live and interact with businesses. Some small .rms were able to transition to alternate channels, such as online platforms, and many were able to cut expenses to o.set revenue loss. The accessibility of online mar­keting played a crucial role in driving sales, as advertisements could be designed and customized to suit consumer preferences based on ac­tivities, age, education, and geographic location. A study conducted in India by Murugan et al. (2020) revealed that the pandemic has led to signi.cant lifestyle changes for everyone. Anxiety about the future is widespread, with particular concerns focused on family, friends, festi­vals, and society as a whole. As a result, people make an e.ort to accli­matize to the new normal. Because they are all more worried about the e.ects of the pandemic, the pandemic outbreak has forced them out of their daily routines and disrupted their way of life from an economic and health outlook. The coronavirus epidemic has caused customers to change how they behave in terms of their purchasing habits. Con­sumers panicked as a result of the unexpected shutdown and hurried to stock up on necessities. It has altered both the custom and practice of shopping in a basket. Previous studies have found that the pandemic evoked a range of psychological and emotional responses among consumers, such as fear of contracting the virus from others, anxiety related to unvaccinated or ill individuals, uncertainty of income generation due to economic insta­bility, and fear of job loss, all of which are factors that have in.uenced consumer spending habits to varying degrees (Di Crosta et al. 2021). [200] An Indian research study done by Jamunadevi et al. (2021) underlined that in termsofage group, consumersbetween the ages of 21 and 30 are the ones who purchase online the most. A connection exists between the age of the respondent, shopping cart activity, and product buying criteria. Lenka Svajdova (2021) has demonstrated in her research study how restrictions imposed during the pandemic have altered consumer behavior in the Czech Republic. Through Internet platforms, sales vol­umes have expanded in a variety of industries, including the food and drugstore industries. According to the Nielsen Company’s study, the spread of the pandemic led to a globally manifested change in spending levels in relation to consumer behavior (Nielsen 2020; Di Crosta et al. 2021). Various studies, including those by Burroughs and Rind.eisch (2002) and Duhachek (2005), have highlighted that stress can trigger active responses, potentially increasing impulsive spending behavior. The ‘E-Commerce Report 2022’ (Heureka!group 2022) shows a signif­icant increase in the frequency of online shopping in Slovenia, with 76. of respondents regularly shopping online. According to the mentioned research, the majority of online buyers are members of Generation X, i.e. those over 45 years old, and they most often buy clothes, footwear, and fashion accessories. An increase in the average purchase value, which is currently e100, was noted. The shift towards online shopping can largely be attributed to restrictions that hindered physical store visits, prompting many businesses to o.er online shopping services to adapt to the evolving environment. Consequently, the pandemic has spurred digital transformation in shaping Slovenian consumers’ spending habits, resulting in increased reliance on online platforms. This shift is evident in changes to purchasing channels and changes in consumer preferences, as highlighted in the ‘E-Commerce Report 2022’ (Heureka!group 2022). The report reveals that in 2022, Slovenians made the most online purchases in categories such as clothing and footwear, electronics, and home and garden products. Electronics and home and garden items maintained their top positions in terms of value in on-line shopping. This reveals that Slovenian consumers increased their purchases of convenience items during the pandemic; with reduced mobility, consumers sought products that facilitated their daily activi­ties. Di Crosta et al. (2021) found a di.erent pattern emerge in Italy, as they observed a rising trend in the sales of essential items. They high­lighted that consumer priorities shifted towards basic needs such as food, hygiene, and cleaning products. Additionally, unlike the .ndings in Slovenia, the pandemic led to decreased sales in certain product cate-[201] gories (e.g., clothing) and increased sales in others (e.g., entertainment products) in Italy. The ‘E-Commerce Report 2022’ (Heureka!group 2022) also high­lighted that the pandemic had a lasting impact on the behavior of online shoppers. During the pandemic, covid-19measures brought domestic online consumers closer to local online stores. This shift is re­.ected in the declining share of purchases from foreign stores: in 2019, 36. of purchases were made from foreign stores, decreasing to 26. in 2020, 16. in 2021, and further dropping to only 14. in 2022. Although online shopping was already a signi.cant alternative before the pan­demic and emerged as the most signi.cant substitute, it now plays an even larger role in our daily lives. Youn, Lee, and Ha-Brookshire (2021) claimed that consumers have been looking for alternate methods of acquiring goods and services in order to protect themselves and their families from contracting the coronavirus. According to J.P. Morgan’s (2020a) research, consumer spending habits during the pandemic have undergone signi.cant changes. Health considerations have become paramount, leading to increased sales of household cleaners and disin­fectant products like Dettol and Lysol. With work shifting online and restaurants and cafés closed, sales of co.ee and other food items have also surged. Conversely, sales of hair color, moisturizers, sun creams, and cosmetics have seen double-digit declines. Another major change in Slovenian consumers’ spending habits is the increased demand for take-out food services. Due to the shutdown of cafés and restaurants, people searched for a way to ensure the en­joyment of their favorite dishes, which manifested in a surge of deliv­ery services such as E-Food (Slov. E-hrana), Wolt and Glovo, which was con.rmed also by sta (2020) and Meden (2020). Also, many cafés and restaurants were o.ering take-out options, which allowed customers to enjoy their meals without leaving their homes, which was con.rmed also by Rabuza (2020). In summary, research suggests that the pandemic and its related precautionary measures had a lasting e.ect on altering consumers’ spending habits. Some studies show that consumer spending focused primarily on essential items such as food, hygiene products, cleaning supplies, and disinfectants. This shift is attributed to job losses, re­duced income, and lower levels of well-being. Conversely, an alternative perspective suggests that the pandemic and its associated precaution­ [202] ary measures, including social isolation, prolonged periods spent at home, and the curtailment of life events and celebrations, have shifted consumer spending habits towards increased expenditures on conve­nience products that facilitate daily activities. Based on the preced­ing academic discussion, we aim to address the central question about how retail organizations implemented innovative marketing strategies to cater to diverse demographic groups of Slovenian consumers dur­ing the covid-19pandemic. To explore this, two research questions emerged as follows: rq1 How did the pandemic crisis and its associated precautious mea­sures transform Slovenian consumer spending habits? rq2 How did Slovenian consumers’ educational level in.uence their shopping habits during the pandemic period? Innovative Marketing in Crisis Periods In this section, we review relevant literature to establish a theoreti­cal foundation for understanding the relationships among innovation, marketing, and consumer behavior, particularly during times of crisis likethe covid-19pandemic. Despitethesigni.cantdisruptioncaused by the covid-19pandemic to the global economy, Slovenia has been acknowledged for its resilience, both during the pandemic and in its post-pandemic recovery e.orts (Rostan and Rostan 2024). A central feature of resilience is innovation, which is widely regarded as a critical driver of organizational success (Nouairi et al. 2024). Com­petitive advantage, manifested through factors like pro.tability, cost e.ciency, and human and structural capital, often hinges on innova­tion (Jeong and Chung 2023). In today’s rapidly evolving business en­vironment, innovation is not merely an option but a necessity. Innova­tion is essential for an organization’s adaptation to external pressures and competition, and a means to achieve a competitive edge and foster success. Historically, crises such as .nancial recessions, health emergencies, and natural disasters have spurred signi.cant innovations that bene­ .t humanity (Phillips, Roehrich, and Kapletia 2023). Examples range from vaccines for infectious diseases to gps technology and antibi­otics like penicillin. However, crises also pose immediate challenges to businesses, including cash .ow issues, supply chain disruptions, and the need for branch closures. Therefore, companies must incor­porate innovation into their operations, especially in marketing, to en-[203] sure their survival (Jeong and Chung 2023). During crises, a customer-centric approach becomes paramount. Pilukiene and Spudiené (2022) stress the importance of focusing on customer needs and desires, as customer-centric businesses are better equipped to ensure satisfaction and loyalty. Innovative marketing approaches that prioritize customer­centricity can signi.cantly impact consumer behavior and purchasing decisions. Businesses responded to the covid-19pandemic with innovative marketing approaches and business innovations, and these adapta­tions in.uenced consumer choices (Di Crosta et al. 2021). Virtual ex­periences, in particular, emerged as a creative and e.ective way for businesses to connect with consumers, while adhering to social dis­tancing and safety measures. Virtual events and experiences provide interactive and immersive opportunities for consumers to engage with brands and products (Jamunadevi et al. 2021). For example, a fashion retailer could organize a virtual fashion show, allowing customers to ex­plore clothing lines and accessories from the comfort of their homes. Similarly, sports teams hosted virtual fan nights that facilitated inter­actions between fans and players, coaches, and team personnel. These virtual experiences not only maintained brand engagement but also provided innovative ways for consumers to interact with products and services. According to the ‘E-Commerce Report 2022’ by Heureka!group (2022), during the covid-19epidemic, health concerns made physical shop­ping restricted or less desirable. Consequently, many consumers turned to online platforms to meet their shopping needs, necessitating the development of user-friendly and e.ective e-commerce solutions. As a way to cater to changing consumer behavior, businesses employed var­ious strategies in e-commerce. Companies improved their e-commerce platforms to ensure a seamless shopping experience, incorporating fea­tures like user-friendly interfaces, secure payment options, and com­prehensive product information. Businesses leveraged multiple chan­nels, including social media and email campaigns, to reach a broader audience of potential customers and inform them about their online o.erings. Companies adapted their product o.erings to align with shifting consumer preferences, focusing on items suitable for home use, such as home .tness equipment, furnishings, and home o.ce supplies. E-commerce innovations played a pivotal role in reshaping [204] consumer shopping habits during the pandemic, as convenience and safety became paramount considerations for consumers. Data-driven marketing strategies gained prominence during the pandemic, as businesses sought to make the most of the customer data at their disposal. Leveraging customer data allowed companies to cre­ate more targeted and personalized marketing messages, improving the overall consumer experience. According to J.P. Morgan’s research (2020b), businesses tailored their o.ers based on individual customer preferences, thereby ensuring that consumers received promotions and discounts relevant to their interests. Data analysis enabled companies to recommend relevant content to consumers, such as product rec­ommendations, articles, or videos, enhancing their engagement with the brand. Pricing strategies were adjusted dynamically based on fac­tors like demand, inventory levels, and consumer behavior, optimizing pricing for both the business and the consumer. Gathering feedback from customers provided valuable insights for product and service en­hancements, ensuring that businesses met evolving consumer needs e.ectively. Data-driven marketing not only in.uenced immediate purchas­ing decisions by presenting tailored and relevant o.ers but also con­tributed to long-term customer loyalty and retention. To further in­vestigate the impact of innovative marketing approaches and business innovations during the covid-19pandemic, we analyzed statistical data and research .ndings. This empirical evidence provides insights into how these innovations in.uenced consumer behavior and pur­chasing decisions. Analysis of data from the Statistical O.ce of the Republic of Slovenia (Statisticni urad Republike Slovenije 2023) sheds light on changes in business expenditures related to marketing, inno­vation, and research and development (r&d) during the pandemic. Innovative marketing approaches and business innovations signif­icantly impacted consumer behavior and purchasing decisions during the covid-19pandemic. Virtual experiences provide businesses with a unique opportunity to maintain consumer engagement and in.uence purchasing decisions. By o.ering immersive and interactive events, companies could bridge the gap created by restrictions on physical gath­erings. According to Youn, Lee, and Ha-Brookshire (2021), consumer feedback and engagement metrics indicated that virtual experiences positively in.uenced purchasing decisions. Attendees of virtual events often reported an increased desire to purchase products or services showcased during the experience. This illustrates the power of virtual [205] engagement in shaping consumer behavior and driving sales. The accel­erated adoption of e-commerce during the pandemic signi.cantly re­shaped consumer shopping habits. With physical shopping becoming less accessible or desirable due to safety concerns, consumers turned to online platforms for their shopping needs. Data-driven marketing strategies, including personalized o.ers and content recommendations, played a pivotal role in in.uencing con­sumer behavior. By leveraging customer data, businesses could target their marketing messages more e.ectively and create better experi­encesforcustomers(sta 2020;Meden2020).Innovativemarketingap­proaches and business innovations proved crucial for the survival and resilience of businesses during the pandemic. Companies that adapted quickly to changing circumstances and consumer behavior were better positioned to weather the crisis. Customer-centric innovations were key to enhancing business re­silience. Companies that prioritized customer safety and satisfaction by implementing safety measures, contactless deliveries, and respon­sive customer support were viewed favorably by consumers. These customer-centric innovations not only retained existing customers but also attracted new ones, contributing to business resilience and growth. Consumers appreciated businesses that demonstrated empathy and re­sponsiveness during uncertain times. The covid-19pandemicunderscoredthecriticalroleofinnovation in business survival and success. Businesses that adapted and embraced innovative marketing approaches not only navigated the crisis e.ec­tively but also shaped consumer behavior in ways that will likely have lasting impacts on the business landscape (Rabuza 2020). These lessons in innovation and consumer-centricity provide valuable insights for businesses preparing for an uncertain future. In this study, we explored how innovative marketing approaches,including virtualexperiences,e­commerce, and data-driven marketing, in.uenced consumer behavior and purchasing decisions during the covid-19pandemic. Our analy­sis of empirical evidence, theoretical insights, and consumer feedback revealed that these innovations played a pivotal role in shaping con-sumer choices and driving business survival and resilience. Theoreti­cal foundations highlighted the importance of innovation as a driver of competitive advantage and success, especially during crises. Innova­tions that prioritize customer-centricity were shown to be particularly [206] e.ective in in.uencing consumer behavior positively. Hypotheses Based on the theoretical .ndings, we formulated two hypotheses to guide our study: h1 The pandemic transformed Slovenian consumers’ spending habits. h2 Education is positively correlated with the pandemic e.ect on Slove­nian consumers’ shopping habits. methodology The methodology employed in this research is crucial for ensuring the validity, reliability, and relevance of the study’s .ndings. It in­ volves quantitative data collection and analysis methods, as well as rigorous validation procedures. Below is an overview of the key as­ pects of the methodology. This study utilizes a quantitative research approach, which emphasizes the use of numerical data to draw con­ clusions. Quantitative research is systematic and objective, making it suitable for investigating the in.uence of innovations on diversi.ed businesses during the covid-19pandemic on consumers’ purchase decisions. This approach enables researchers to generalize .ndings to a larger population based on a carefully selected sample. The research began with the development of a questionnaire. This questionnaire was crafted after an extensive review of existing scienti.c and professional literature. By aligning the questions with existing knowledge and the­ ory, the questionnaire ensures that data collection is focused on rele­ vant variables and constructs. Before administering the main survey, the research team rigorously tested the questionnaire to ensure its va­ lidity and reliability. Measurement Scales The scales used in the study were adapted from previously validated in­struments, which measured consumer behavior in times of crisis (e.g. Laato et al. 2020). We modi.ed mentioned instruments to .t the spe­ci.ccontextofthe covid-19pandemicandSlovenianconsumers,like the addition of items related to health concerns, online shopping pref­erences and pandemic-related restrictions. The scale was pre-tested to ensure its reliability and validity. Cronbach’s alpha for each construct was above 0.76, indicating strong internal consistency. Cronbach’s alpha is a statistical measure that assesses the internal [207] consistency of a questionnaire. It checks if the questions in the survey are measuring the same construct. A high Cronbach’s alpha value in­dicates good reliability. In this study, Cronbach’s alpha was employed to ensure that the questions consistently measured the intended vari­ables. Factor analysis is a statistical technique used to identify under­lying factors or dimensions within a set of variables. This step helped determine if the questions in the questionnaire aligned with the re­search objectives. It also identi.ed any variables that might need to be excluded. Sample Size The sample size of 206 participants was determined with the aim of ensuring robust and reliable results based on both practical and theo­retical considerations. Although a minimum number of 65 respondents would have been su.cient for a study with 13 questions, we opted for a signi.cantly larger sample size in accordance with the guideline for a 5 to 1 ratio to increase the con.dence level of 80. in our analysis. Furthermore, it is generally accepted that a minimum sample size of 200 respondents is recommended for Pearson correlation analyses and structural equation modeling (sem) to obtain stable and generalizable results. By recruiting 206 participants, we ensured that we both met the required minimum sample size and exceeded the 5 to 1 ratio, which ensures greater reliability of the results. Participants were recruited via online platforms (such as Facebook and Instagram) and email distribution lists. Although a random sam­ple was used due to time and resource constraints, it was veri.ed that the sample was representative of the Slovenian population in terms of gender and age distribution, which was con.rmed by chi-square tests. The primary data collection method used in this research was an on-line survey conducted via the 1ka survey tool. The online platform of­fered respondents anonymity, encouraging candid responses. The sur­vey was executed over a substantial period, running from October 26, 2022, to January 20, 2023, to allow for a diverse range of participants to contribute. Convenience sampling was employed to select survey participants. This non-probability sampling technique involves select­ing participants based on their accessibility or availability. The research team distributed the survey through multiple channels, including so­cial media platforms (such as Facebook), emails, pre-existing groups [208] (e.g., college student organizations a.liated with the Faculty of Or­ganization Studies), and in-person recruitment by students in various Slovenian cities (Ljubljana, Maribor, Koper, and Kranj). While this ap­proach limits the generalizability of the results to the broader popu­lation, an analysis comparing the sample to the population was con­ducted to assess representativeness. The research team determined the sample size based on statistical calculations. The aim was to achieve a con.dence level of 80., requir­ing a minimum of 164 respondents to ensure that the actual values fell within ±5. of the surveyed values. Kaiser-Meyer-Olkin (kmo) mea­sure assesses the sampling adequacy for factor analysis. A high kmo value (closer to 1) indicates that the data is suitable for factor analysis. In this study, the kmo measure produced a value of 0.729, con.rming the appropriateness of the data. Bartlett Test of Sphericity test deter­mines whether the correlation matrix is an identity matrix, indicating that factors are uncorrelated. A signi.cance level of less than 0.05 sug­gests that the data is suitable for factor analysis. The Bartlett test pro­duced a signi.cant result, further con.rming the suitability of the data. results The chi-square test regarding gender did not yield any statistically sig­ ni.cant results (p > 0.05), indicating that the observed sample values do not signi.cantly deviate from the predicted population values. As shown in table 1, males constitute 51.5. of the sample, compared to 50.2. of the overall population. Meanwhile, females make up 48.5. of the sample, versus 49.8. of the population. Thus, the sample data ap­ pears to be consistent with the demographic distribution of the Slove­ nian population. The chi-square test results for age were not statistically signi.cant (p > 0.05), as indicated in table 2. This suggests that there is no notice­able di.erence between the observed values in the sample and the ex­pected values in the population. According to the data, 8.3. of respon­dents are aged between 20 and 24, slightly higher than the correspond­ing .gure in the general population, which is 8.2.. Similarly, 10.3. of respondents fall between the ages of 30 and 34, just under the 10.4. table 1 Gender Comparison table 2 Age Comparison between between the Sample and the the Sample and the Populat. Population Gender Sample Population Male .... .... Female .... .... Total ..... ..... notes In percent. .2 =0.018, p =0.893. Age Sample Population ..–.. ..–.. ... ... ... ... [209] ..–.. .... .... ..–.. .... .... ..–.. .... .... ..–.. .... .... ..–.. .... .... ..–.. .... .... ..–.. .... .... Total ..... ..... notes Inpercent. .2 =3.706, p = 0.883. observed in the general population. Moreover, a higher proportion of respondents (11.8.) compared to the general population (11.7.) are in the age group of 35 to 39years old. In the sample, 12.7. of individuals are between the ages of 40 and 44, which closely matches the 12.9. in the overall population for this age group. Similarly, the sample includes 12.3. of individuals aged 45 to 49, compared to 12.4. in the population. Both the sample and the population have 11.8. of individuals aged 50 to 54. This pattern continues for individuals aged 55 to 59, with 12.3. in both the sample and the population. Additionally, 11.8. of the sample’s participants are aged 35 to 39, slightly higher than the 11.5. observed in the entire population for this age group. Based on the sample data, it can be inferred that the demographic distribution among Slovenian citizens is re.ective of the broader population. The reliability of the entire questionnaire can be determined from table 3, which indicates exceptionally high reliability. This is evident from the Cronbach’s alpha value of 0.951. The Cronbach’s alpha coef­.cient was calculated for each construct and shows a satisfactory level of reliability (a > 0.76) for all constructs. h1 The pandemic transformed Slovenian consumers’ spending habits. The suitability of the data for factor analysis is con.rmed by the kmo measure (0.710) and Bartlett’s test for sphericity (sig. < 0.05), as shown in table 4. The strategy used in our study involved the use of pri­mary axis factorization followed by varimax rotation with Kaiser nor- Variables a N How the pandemic transformed Slovenian consumer’s spending habits? ..... .. [210] E.ect of the pandemic on consumers’ shopping habits E.ect of pandemic on more frequent purchases of sports, leisure, electronics, and home goods ..... ..... . .. E.ect of pandemic measurements (like mask usage, disinfecting and the vaccination, testing or recovery proof) on consumers’ shopping habits ..... .. E.ect of retail sale and consumer services on consumers’ shopping habits during the pandemic ..... . table 4 kmo and Bartlett’s Test Kaiser-Meyer-Olkin measure of sampling adequacy Bartlett’s test of sphericity Approx. .2 df ..... ........ ... Sig. ..... malization. All observed variables have a correlation coe.cient greater than 0.2, indicating that they jointly contribute to the understanding of the phenomenon under study and that none of the variables need to be excluded from the analysis. According to the .ndings presented in table 5, spss recommends excluding four factors due to their values above 1. In a similar vein, it can be observed that four factors account for approximately 60.174. of the shared variance. • Factor 1: E.ect of retail sales and consumer services on con- table 5 Total Variance Explained Factor Initial Eigenvalues Extraction sums of squared loadings Rotation sums of squared loadings (.) (.) (.) (.) (.) (.) (.) (.) (.) . ...... ...... ...... ...... ...... ...... ..... ...... ...... . ..... ...... ...... ..... ...... ...... ..... ...... ...... . ..... ..... ...... ..... ..... ...... ..... ...... ...... . ..... ..... ...... ..... ..... ...... ..... ..... ...... notes Column headings are as follows: (1) total, (2) percentage of variance, (3) cu­mulative percentage. sumers’ shopping habits during the pandemic (Sale o.er, A more diverse online selection of goods and services; Food and drink; Personal hygiene products; Cosmetics; Clothing and footwear; Technical products; Kids products; Health products and food sup­plements; Advertising increased during the pandemic in com-[211] parison to the time before the pandemic; The communication from the goods and services providers was more e.ective; The company o.ers were wider; Accessibility to goods and services providers was better; The pandemic has permanently changed my shopping habits). • Factor 2: E.ect of the pandemic on consumers’ shopping habits (I have been shopping less often during the pandemic; I have avoided visiting physical shop locations during the pandemic; I have visibly altered my shopping habits during the pandemic; I have paid for products and services during the pandemic, which I wouldn’t have paid for normally; I have used a credit card for payments instead of cash during the pandemic; I have been shop­ping online more frequently during the pandemic; In my opinion, the pandemic has altered the habits of goods and services con­sumers; Health care; Fear of infection; Fear of relatives getting infected; Product price; Availability of goods; Other). • Factor 3: E.ect of pandemic on more frequent purchases of sports, leisure, electronics, and home goods (Furniture; Home appliances; Gardening products; Computing; Sports and leisure). • Factor 4: E.ect of pandemic measurements (like mask usage, dis­infecting and the vaccination, testing or recovery proof) on con­sumers’ shopping habits (Face mask usage; Use of disinfectants; Proof of vaccination, testing or recovery). It can be concluded that the questionnaire ensures appropriate va­lidity and is therefore suitable for conducting the survey. The statis­tical signi.cance of the Kolmogorov-Smirnov and Shapiro-Wilk tests (sig. < 0.05) indicates that the variables considered are not normally distributed. Therefore, we used nonparametric tests in our analysis. The results from table 6 indicate that gender di.erences were sta­tistically signi.cant for several statements in the Mann-Whitney test. Women tended to agree more with statements about avoiding physical stores, using credit cards instead of cash during the pandemic, and ex­pressing fear of infecting relatives. In contrast, men showed stronger Item Gender (.) (.) (.) [212] I have avoided visiting physical shop locations during the pandemic Male Female Total ... .. ... ..... ...... ....,... (.....) Female .. ..... Total ... I have used a credit card for payments instead of cash during the pandemic Male Female Total Female Total ... .. ... .. ... ..... ...... ...... ....,... (.....) Fear of relatives getting infected Male Female Total Female Total ... .. ... .. ... ..... ...... ..... ....,... (.....) Accessibility to goods and services providers was better Male Female Total Female Total ... .. ... .. ... ...... ..... ...... ....,... (.....) notes Columnheadingsareasfollows:(1) N, (2) mean rank, (3) Mann-Whitney test (sig.). agreement with the statement about better accessibility to goods and services providers. Other statements did not show statistically signi.­cant di.erences based on gender (sig. > 0.05). The .ndings from table 7 show that the Kruskal-Wallis test revealed statistically signi.cant di.erences (sig. < 0.05) for several statements related to age. Respondents aged 30 to 34 were more likely to agree with statements about avoiding physical stores and fearing infecting relatives, while those aged 20 to 24 were least likely to agree with these statements. Those aged 50 to 54 were most inclined to use credit cards instead of cash during the pandemic, whereas those aged 60 to 64 were least likely. Respondents aged 55 to 59were most likely to express fear of infection, with those aged 20 to 24 showing the least concern. Ad­ditionally, respondents aged 45 to 49were most likely to agree that the pandemic permanently changed their shopping habits, compared table 7 Kruskal-Wallis Test Item Age (.) (.) (.) I have avoided visiting physical shop ..–.. .. ..... ..,... locations during the pandemic ..–.. .. ..... (.....) ..–.. .. ...... [213] ..–.. .. ..... ..–.. .. ..... ..–.. .. ...... ..–.. .. ..... ..–.. .. ...... ..–.. .. ..... Total ... I have used a credit card for payments ..–.. .. ..... ..,... instead of cash during the pandemic ..–.. .. ...... (.....) ..–.. .. ...... ..–.. .. ..... ..–.. .. ...... ..–.. .. ...... ..–.. .. ...... ..–.. .. ..... ..–.. .. ..... Total ... Continued on the next page to thoseaged 50to54, whowere least likely to agree withthisstate­ment. Other statements did not show statistically signi.cant di.er­ences based on age (sig. > 0.05). The Kruskal-Wallis test indicated signi.cant di.erences (sig. < 0.05) in respondents’ agreement with several statements based on their for­mal education, particularly regarding avoidance of physical spaces dur­ing the pandemic, belief that the pandemic has permanently altered consumers’ behaviors of acquiring goods and services, health care, fear of becoming sick, fear of infecting relatives, and perceptions about the increased e.cacy of advertising and communication e.orts. Re­spondents with the sok Level 10: Doctoral Education most agreed with the statements about avoiding physical stores, health care, and fear of becoming sick, while respondents with the sok Level 2: Ele­mentary Education least agreed with those same statements. Respon­dentswith sok Level3:Graduation Certi.cateagreedthe most with Item Age (.) (.) (.) Fear of infection ..–.. .. ..... ..,... ..–.. .. ...... (.....) [214] ..–.. .. ...... ..–.. .. ...... ..–.. .. ..... ..–.. .. ...... ..–.. .. ..... ..–.. .. ...... ..–.. .. ...... Total ... The pandemic has permanently changed my ..–.. .. ...... ..,... shopping habits ..–.. .. ..... (.....) ..–.. .. ...... ..–.. .. ..... ..–.. .. ...... ..–.. .. ...... ..–.. .. ..... ..–.. .. ...... ..–.. .. ..... Total ... notes Column headings are as follows: (1) N, (2) mean rank, (3) Kruskal-Wallis test (sig.). statements about ongoing changes to consumer behavior and perceiv­ing an increase in advertising during the pandemic. Respondents with sok Level9:Specializationdiplomaafteracademic/professionalhigher education; research master’s degree most strongly agreed statements about fear of infecting relatives, while respondents with sok Level 2: Elementary Education were least likely to agree. The Kruskal-Wallis test did not show statistically signi.cant di.erences for other statements (sig. > 0.05), indicating no signi.cant di.erences based on formal edu­cation for those speci.c statements. Descriptive statistics data indicate that respondents agree (m = 3.8; sd = 0.975) with the statement that the pandemic has a.ected the change in consumer buying habits of products and services, while they also agree (m = 3.6; sd = 1.21) with the statement that they paid with a credit card instead of cash during the pandemic (m = 3.8; sd = 1.15) in.uenced consumer’s [215] shopping habits during the pandemic f igure 1 The Factors That Have In.uenced Consumer’s Shopping Habits during the Pandemic and they shopped online more often during the pandemic (m = 3.6; sd = 1.3). Respondents also agreed that the factors that in.uenced their shopping habits during the pandemic were fear of infecting relatives (m = 3.8; sd = 1.17) and health care (m = 3.7; sd = 1.06). The lowest level of agreement among respondents was the statement that they bought products and services during the pandemic they would not have bought otherwise(m =2.3; sd =1.01).Thefactorsthatin.uencedthepurchas­ing habits of Slovenian consumers during the pandemic are shown in .gure 1, which shows that fear of infecting relatives had the greatest in­.uence on Slovenian consumers’ shopping habits during the pandemic, followed by health care, fear of contracting the disease themselves, and availability of products. The Spearman correlation test in table 8 shows that respondents have permanently made signi.cant changes with their shopping habits (sig. < 0.05), including shopping less often, avoiding physical locations, shopping online more frequently, and belief that the pandemic has led to long-lasting changes in their consumer habits. As shown in table 9, the coe.cient of determination (R2)is32.3., which means that the independent variables have a fairly strong in­.uence on the dependent variable (The pandemic has permanently changed my shopping habits.). A statistically signi.cant (sig. < 0.05) in­.uence is present for the variables: ‘I have visibly altered my shopping habits during the pandemic,’ ‘I have used a credit card for payments in­stead of cash during the pandemic,’ ‘I have been shopping online more frequently during the pandemic,’ and ‘In my opinion, the pandemic has altered the habits of goods and services consumers.’ The beta coef­.cient is positive for the variables, ‘I have visibly altered my shopping table 8 Spearman’s Correlation Coe.cient (The Pandemic Has Permanently Changed My Shopping Habits) I have been shopping less often during the pandemic R .....** Sig. ..... [216] N ... I have avoided visiting physical shop locations during R .....** the pandemic Sig. ..... N ... I have visibly altered my shopping habits during the pandemic R Sig. N .....** ..... ... I have paid for products and services during the pandemic, which I wouldn’t have paid for normally R Sig. N .....* ..... ... I have used a credit card for payments instead of cash during the pandemic R Sig. N .....** ..... ... I have been shopping online more frequently during the pandemic R Sig. N .....** ..... ... In my opinion, the pandemic has altered the habits of goods and services consumers R Sig. N .....** ..... ... notes **Correlationissigni.cantatthe0.01level(2-tailed). *Correlationissignif­icant at the 0.05 level (2-tailed). habits during the pandemic’ (ß = 0.228), ‘I have been shopping online more frequently during the pandemic’ (ß = 0.292) and ‘In my opinion, the pandemic has altered the habits of goods and services consumers’ (ß = 0.208), indicating a positive in.uence, and negative for the vari­able: ‘I have used a credit card for payments instead of cash during the pandemic’ (ß = –0.146), indicating a negative in.uence. The Spearman correlation test presented in table 10 indicates that nearly all pairs of factors – Factor 1 (impact of vendors on consumer purchases), Factor 2 (impact of the pandemic on shopping habits), Fac­tor 3 (more frequent purchases of sporting, recreational, electronic, and household goods), and Factor 4 (impact of the use of masks, disinfec­tion, and vaccination, test, or recovery certi.cate on shopping) – are signi.cantly (sig. < 0.05) positively correlated. However, there is no sta­ table 9Linear Regression Item B ß Sig. The pandemic has permanently changed my shopping ..... ..... habits I have been shopping less often during the pandemic –..... –..... ..... [217] I have avoided visiting physical shop locations during the ..... ..... ..... pandemic I have visibly altered my shopping habits during the pan­ ..... ..... ..... demic I have paid for products and services during the pan­ ..... ..... ..... demic, which I wouldn’t have paid for normally I have used a credit card for payments instead of cash –..... –..... ..... during the pandemic I have been shopping online more frequently during the ..... ..... ..... pandemic In my opinion, the pandemic has altered the habits of ..... ..... ..... goods and services consumers notes R2 =0.323. table 10 Spearman’s Correlation Coe.cient Factor (.) (.) (.) (.) (.) E.ect of sellers on your r ..... .....* .....** .....* shopping during the pandemic Sig. – ..... ..... ..... N ... .. ... ... (.) E.ect of the pandemic on your r .....* ..... ..... .....** shopping habits Sig. ..... – ..... ..... N .. .. .. .. (.) More frequent purchases of r .....** ..... ..... .....* sports, leisure, electronics and home goods Sig. N ..... ... ..... .. – ... ..... ... (.) E.ect of mask usage, disinfecting r .....* .....** .....* ..... and the vaccination, testing or recovery proof on shopping Sig. N ..... ... ..... .. ..... ... – ... notes **Correlationissigni.cantatthe0.01level(2-tailed). *Correlationissignif­icant at the 0.05 level (2-tailed). tistically signi.cant correlation between Factor 2 (impact of the pan­demic on shopping habits) and Factor 3 (more frequent purchases of sporting, recreational, electronic, and household goods) (sig. > 0.05). As re.ected in table 11, the coe.cient of determination (R2)is35.0., Factor B ß Sig. (.) E.ect of the pandemic on your shopping habits ..... .,... [218] (.) E.ect of sellers on your shopping during the pan­demic (.) More frequent purchases of sports, leisure, electron­ics and home goods ..... –..... ..... –..... ..... ..... (.) E.ect of mask usage, disinfecting and the vaccina­tion, testing or recovery proof on shopping ..... ..... ..... notes R2 = 0.350. table 12 Revenue from the Sale of Goods in Retail Stores in Slovenia Category .... .... .... .... .... .... Companies ....... ....... ....... ....... ....... ....... and other organisations End con-....... ........ ........ ........ ........ ........ sumers Total ........ ........ ........ ........ ........ ........ notes In1000eur.BasedondatafromStatisticalO.ceoftheRepublicofSlovenia (https://www.stat.si/StatWeb/en). which means that the independent variables have a fairly strong in.u­ence on the dependent variable (factor 2: e.ect of the pandemic on shopping habits). A statistically signi.cant (sig. < 0.05) in.uence is present for the variable: ‘Factor 4: Impact of the use of masks, disin­fection and the vaccination, testing or recovery certi.cate on shopping habits.’ The beta coe.cient is positive (ß = 0.422), indicating a positive in.uence. The observed positive correlation between the intensity and direc­tion of the latent variables suggests that Hypothesis 1 is somewhat sup­ported. Our research .ndings suggest that the shopping behavior of Slovenian consumers was indeed a.ected by the pandemic, albeit tem­porarily. However, it is important to note that this impact was not sig­ni.cant or permanent. Statistical data in Slovenia show a remarkable observation when examining the distribution of revenue from the sale ofgoodsinaretailstore(measuredin1000 eur),asshownintable12. In particular, a decrease in revenue was observed in 2020, which can be attributed to the impact of the pandemic. This decrease deviates from the previously observed trend of steady revenue growth in the sale of table 13 Increase of Revenue from the Sale of Goods by Product Group in Retail Trade in Slovenia Item .... .... .... . (.) .... Food, beverages, and to­ .,...,... .,...,... .,...,... .... .,...,... bacco products [219] Furniture, lighting, carpets, ...,... ...,... ...,... .... ...,... and .oor coverings Household appliances and ...,... ...,... ...,... .... ...,... electrical devices for per­ sonal care Computer, telecommunica­ ...,... ...,... ...,... ..... ...,... tions, audio, video devices Games and toys ..,... ..,... ..,... .... ...,... Gardening equipment, ...,... ...,... ...,... ..... ...,... seeds, seedlings, .owers, small animals Cosmetic products and toi­ ...,... ...,... ...,... .... ...,... letries Items for personal use ..,... ..,... ..,... ..... ...,... Construction and installa­ ...,... ...,... ...,... ..... ...,... tion materials Home maintenance and re­ ...,... ...,... ...,... .... ...,... pair products Tools and equipment for ...,... ...,... ...,... .... ...,... home and garden notes In1000eur. BasedondatafromStatisticalO.ceoftheRepublicofSlovenia (https://www.stat.si/StatWeb/en). goods in retail stores, as shown by a comparison with data from previ­ous years. As re.ected in table 13, the biggest increase in revenue from the sale of goods by product group in retail trade in Slovenia in the year 2020, compared to the year 2019, can be noted in product group com­puter, telecommunications, audio, video devices (18,27.), items for personal use (such as watches, alarm clocks, jewelry, precious stones, travel cases, bags, wallets, baby carriages, car seats, umbrellas, sun­glasses, wall thermometers, etc.) (16,13.), gardening equipment, seeds, seedlings, .owers, small animals (15,97.) and also in purchase of con­struction and installation materials (10,53.). h2 Education is positively correlated with the pandemic e.ect on Slove­nian consumers’ shopping habits. I have been shopping less often during the pandemic r .....* Sig. ..... N ... [220] I have avoided visiting physical shop locations during r .....** the pandemic Sig. ..... N ... I have visibly altered my shopping habits during the pandemic r .....** Sig. ..... N ... I have paid for products and services during the r ..... pandemic, which I wouldn’t have paid for normally Sig. ..... N ... I have used a credit card for payments instead of cash during the pandemic r Sig. N .....** ..... ... I have been shopping online more frequently during the pandemic r Sig. N .....** ..... ... In my opinion, the pandemic has altered the habits of goods and services consumers r Sig. N .....** ..... ... notes **Correlationissigni.cantatthe0.01level(2-tailed). *Correlationissignif­icant at the 0.05 level (2-tailed). The Spearman correlation test, as shown in table 14, indicates a sta­tistically signi.cant positive correlation (sig. < 0.05) between Slovenian customers’ shopping behavior and their level of formal education. No statistically signi.cant correlation was found between formal educa­tion and the statement ‘I have paid for products and services during the pandemic which I wouldn’t have paid for normally’ (p >0.05). We chose structural equation modelling (sem) because it is able to test complex relationships between multiple dependent and indepen­dent variables simultaneously. sem also allows the integration of la­tent variables, like changes in consumer behavior and marketing strate­gies, which cannot be directly observed but are inferred from the data. sem can also provide a comprehensive overview of how di.erent fac­tors, like income and education, interact to in.uence consumer deci­sions. Results of the Structural Equation Modeling (sem) A .exible statistical technique called structural equation modeling (sem) makes it possible to investigate complex correlations between numerous variables. The result of this analysis consists of several signi.cant parts, each of which o.ers insightful information on the goodness-of-.t of the model, correlations among latent variables and parameter estimation. The sem analysis is thoroughly examined, with a detailed explanation of its sections, results, and implications, as shown in .gure 2. The investigation begins with a close examination of three di.erent factors related to demographic traits in the demographic section. The underlying distributional assumption of the data is evaluated using the Mardia test, a multivariate normality test. The distribution of the data is asymmetric, as evidenced by the skewness test score of 9.9064. The p-value (0.4487) indicates that this skewness is not statistically signif­icant despite its size. Similar to this, the distribution’s peakedness is measured by the kurtosis test statistic, which is –3.9154. The p-value as­sociated with this statistic is 0.0001, indicating signi.cant kurtosis. As a result, it can be inferred that this demographic dataset violates the multivariate normality assumption. Each variable is subjected to the Shapiro-Wilk test in order to further investigate univariate normality. Age, Gender, and Education all have p-values of 0, which denote a de­parture from the normality assumption. This section begins an investigation into the connections between [222] the many variables covered. The evaluation demonstrates high skew­ness (3650.8784) and kurtosis (23.9004) using the Mardia test. Both skewness and kurtosis’ corresponding p-values of 0 signify signi.cant departures from normality. The 22 variables are subsequently subjected to univariate Shapiro-Wilk tests, and in every case, the p-values are recorded as 0, supporting the non-normal distribution. Using the Mardia test once more, signi.cant deviations from nor­mality are shown by strong skewness (4438.2873) and kurtosis (30.2513), both of which have p-values of 0. This section begins an investigation into the connections between the many variables covered. The evalu­ation demonstrates high skewness (3650.8784) and kurtosis (23.9004) using the Mardia test. Both skewness and kurtosis’ corresponding p-values of 0 signify signi.cant departures from normalcy. The 22 vari­ables from Article 1 are subsequently subjected to univariate Shapiro-Wilk tests, and in every case, the p-values are recorded as 0, supporting the non-normal distribution. Using the Mardia test once more, signi.cant deviations from nor­mality are shown by strong skewness (4438.2873) and kurtosis (30.2513), both of which have p-valuesof0.Avarietyof.tindices are shown, serving as metrics to assess the agreement between the model and the patterns in the data that have been observed. The degree to which the model accurately reproduces the observed covariance patterns is indi­cated by the Comparative Fit Index (cfi) and Tucker-Lewis Index (tli). Both indices have low values, which could be interpreted as a sign that the model and the data don’t .t together well. The model provides rela­tively high values of 0.180 and 0.159for the Root Mean Square Error of Approximation (rmsea), which measures how accurately the covari­ance patterns in thedataare reproduced. Thesenumbers areoutside the range that a strong model .t requires. The strong rmsea values, which are over the advised cut-o. point of 0.176, support the idea of poor model .t. Estimates of the associations between latent and observable vari­ables are provided by this aspect. Despite not being observable, latent variables are inferred from several observed variables. The parameter estimates, shown as standardized coe.cients, explain the strength and pattern of the relationships between the variables. These coe.cients represent the expected change in the dependent variable that results from a change of one unit in the independent variable. Theresultsofthis sem analysishighlighttwokeyissues:poormodel .t and violations of normality assumptions. The dataset does not con-[223] form to the assumptions of a normal distribution, as shown by the results of the Mardia test, which highlights signi.cant skewness and kurtosis, as well as the univariate Shapiro-Wilk tests, which consis­tently demonstrate non-normality. This .nding raises questions about whether it is appropriate to use parametric procedures that are based on these presumptions. The results of the model .t indices con.rm that the proposed struc­tural equation model and the patterns of the observed data do not .t together satisfactorily. A poor alignment between the model and the actual data is suggested by low cfi and tli values along with high rmsea values, highlighting the potential distortion of underlying re­lationships between variables. Although useful, the parameter estima­tions should be used with caution due to the model’s poor normality and .t. These estimates’ validity couldbecalledintoquestion, andtheir interpretation might not accurately re.ect the true relationships in the population. Exploratory factor analysis (efa) was conducted to deter­mine the underlying structure of the consumer behavior variables, de­spite the relatively small number of items, and to ensure that the scales measuring di.erent aspects of consumer behavior (e.g. online shop­ping, health issues, etc.) were unique and valid. This step was crucial for validating the constructs before testing the structural relationships with sem. Although the sample size of 204 may be considered small for some typesofstudies, sem canstillbeusede.ectivelywhenpairedwith efa to identify latent factors. Previous research has shown that even a sam­plesizeof150canprovidereliable sem results,especiallywhenthedata have clear factor structures, as con.rmed by the Kaiser-Meyer-Olkin measure and Bartlett’s test in this study. This approach allowed us to re.ne the factor structure with efa before testing the relationships with sem to ensure a robust analysis despite the limited sample size. Inconclusion,our sem studyhighlightssigni.cantissuescausedby non-normality assumptions and poor model .t. Careful consideration is required due to the obvious non-normal distribution, which is high­lighted by the Mardia and Shapiro-Wilk tests, as well as the poor model .t, which is shown by the .t indices. To .nd more precise underlying patterns in the data, alternative analytical techniques that might in­clude non-parametric methodologies should be explored. It is crucial to provide a thoughtful interpretation that recognizes the restrictions im­ [224] posed by non-normality and poor model .t on the conclusions drawn from the research and accounts for these constraints. Conceptual Model We relied on the conceptual model shown in .gure 3 as the primary framework for our research. A conceptual framework serves as the fun­damental basis for the entire research project. In this study, a concep­tual model is proposed to shed light on the factors that in.uence cus­tomers’ buying behaviors when deciding between online and brick-and­mortar stores. The model was developed by drawing on relevant theo­ries, concepts, and empirical .ndings from surveys. A conceptual model from .gure 3 has elaborated the practicability of factors a.ecting consumer behavior. On the one hand, the suggested factors have frequently been identi.ed by earlier studies concerned with the in.uencing factors on consumer purchasing behavior; how­ever, the combined .ndings of the earlier studies have built the signif­icant cornerstones on which the analysis of the empirical results has been based. However, the factors addressed in the conceptual model are supported by the survey results in the suggested conceptual model utilizing two separate methods. The .rst strategy entails directly en­dorsing a factor that has been addressed. This was done by employing one or more survey statements that did so. For instance, it has been notedinsurveys that making o.inepurchases canbeanentertain- O.ine sources: stress release, product experience, entertainment Online sources: timesaving Internal factors: wide range, easy to search, cheaper option figure 3 Conceptual Model ing pastime for some people, as the survey comments have explicitly supported this .nding. Shopping is a social activity because people go shopping for fun and to hang out with friends, and this statement was supported by 39participants. The second statement, that people typically go shopping alone for [225] entertainment and to observe people around them, was supported by 17 participants. In that, the addressed factors are supported by com­ments that would indirectly con.rm the factors, the second technique is somewhat comparable to the .rst way in terms of directly verifying the elements. It is possible to indirectly a.rm a component that has been addressed by employing assertions that exile a factor that lies on the other extreme from the treated factor. People may prefer making of­.ine purchases since they can physically experience the product, as was directly supported by 58 participants who stated that they shop o.ine so they can physically inspect and test the products. However, the is­sue was indirectly supported by 66 of the participants who stated that they would not make an online purchase if they could not physically touch and examine the object. Based on the .ndings of these surveys, researchers were able to develop this conceptual model. Therefore, this model will help researchers gain in-depth knowledge about in.uencing consumer behavior under pandemic situations. Theoretical Foundation of Conceptual Research Model The theoretical framework of this study is based on the theory of con­sumer behavior and innovation marketing. In particular, the theoreti­cal foundations relating to the impact of a pandemic on consumer and retailer decision-making form the basis for the conceptual model. Pre­vious research, such as that by Schwarzkopf (2015) and Rita, Oliveira, and Farisa (2019), shows that consumer behavior in times of crisis is in.uenced by psychological stress and economic changes. In addition, innovation theory, as discussed by Phillips, Roehrich, and Kapletia (2023), provides a framework for understanding the role of innovative marketing approaches in times of disruption. This theoretical work guided us in developing our hypotheses, which focused on how the covid-19pandemic changed the behavior of Slovenian consumers. discussion The covid-19pandemic has resulted in signi.cant changes in con­sumer behavior and retail sales patterns, necessitating a thorough ex-amination and comprehension of these changes. This discourse aims to provide a more comprehensive analysis of our empirical results, elu­cidating the intricate complexities and consequences inherent in the observed phenomena. The research conducted revealed a notable dis­ [226] parity in sales patterns across many product categories throughout the pandemic. In the .scal year of 2020, several sectors such as com­puters, telecommunications equipment, gardening tools, and personal use products demonstrated a notable increase in revenue. Conversely, other sectors encountered a fall in sales during this period. The ob­served patterns align with prior research, particularly in contrast to the results reported by Vukasovic (2020), which indicated a substan­tial increase in food expenditures during the pandemic. It is of utmost importance to acknowledge that the e.ects of the pandemic on sales went beyond the immediate health crisis, embracing other dimensions like economic, social, and behavioral aspects (Vukasovic 2020). The gender disparities in consumer behavior identi.ed in our study are consistent with larger societal trends. Females demonstrated a heightened propensity to refrain from visiting brick-and-mortar es­tablishments, preferred credit card transactions, and voiced appre­hensions over the transmission of infection to their family members. The aforementioned .ndings are consistent with prior studies that have demonstrated women’s tendency to perceive health hazards with greater severity and exhibit higher levels of compliance with preven­tative actions (Tan et al. 2022; Moran and Del Valle 2016; Muto et al. 2020). Recognizing and understanding these gender distinctions is cru­cial for organizations seeking to customize their strategy to e.ectively address the varied requirements and concerns of their consumer base. Age-related variations have been identi.ed as an essential factor in­.uencing consumer behavior in the context of the pandemic. The age cohort ranging from 30 to 34 years demonstrated the highest level of concurrence about statements about the avoidance of stores and con­cerns about transmitting the infection to their family members. In con­trast, 20–24-year-olds exhibited reduced concurrence with these asser­tions. The discrepancy in preferences about cash and credit card pay­ments was also observed among individuals belonging to di.erent age groups. The observed variation in behavior related to age is consistent with prior studies that have shown older persons, especially those who are more susceptible to risks, tend to exhibit more cautious and risk-averse behaviors in times of health crisis (Bruine de Bruin 2020). More­over, the inclination towards digital payment methods among younger participants re.ects the societal transition towards technologically ad­vanced payment options, as noted by Iftode (2019). The study conducted by our research has revealed the signi.cant in­.uence of educational level on customer behavior in the context of the [227] ongoing pandemic. There was a positive correlation observed between those possessing advanced educational credentials, speci.cally doctor­ates, and their inclination to endorse comments about store avoidance, health care concerns, and fear of infection. On the other hand, individ­uals who possessed secondary school certi.cates demonstrated a de­creased level of concurrence with these propositions. Bruine de Bruin (2020) asserts that the impact of external variables on consumer be­havior is signi.cantly in.uenced by one’s educational degree. The characteristics that have been found as crucial in altering shop­ping habits during the epidemic align with previous research .ndings. Prominent factors motivating individuals include apprehension re­garding the transmission of the virus to their family members, con­cerns about overall health, personal anxieties around infection, and the availability of essential products (Vukasovic 2020). The aforemen­tioned .ndings highlight the persistent importance of psychologi­cal and health-related elements in the process of consumer decision-making amidst periods of crises. Gaining comprehension of these fac­tors enables .rms to acquire the necessary knowledge for developing messaging and strategies that are in line with consumer attitudes and priorities. Our research has broad implications for the fashion retail indus­try and potentially other sectors, encompassing more than just under­standing the e.ects of the pandemic on consumer behavior. Moreover, the .ndings of this study have direct implications for the fashion in­dustry, particularly regarding the shift towards e-commerce and on-line consumption. The rise in online shopping during the pandemic, as evidenced by a signi.cant increase in purchases of clothing and acces­sories via online platforms, emphasizes the need for fashion retailers to improve their digital presence. In addition, virtual experiences such as online fashion shows and augmented reality .tting rooms can bridge the gap created by the closure of physical shops. By adapting to these changes, fashion businesses can not only survive but thrive in a post-pandemic retail landscape. Organizations, speci.cally those operating within the fashion retail industry, have the opportunity to utilize this valuable information to customize their product o.erings, marketing approaches, and opera­tional frameworks to align with an altered market environment. In the context of the post-pandemic period, it is crucial to prioritize adaptabil­ [228] ity and responsiveness to e.ectively address the changing preferences of consumers. Organizations that acknowledge these transformations and adjust their strategies accordingly are well-positioned to .ourish in a context marked by unpredictability and swift alterations (Vukasovic 2020). conclusion The two hypotheses of this study are closely linked to the central re­ search objectives, namely understanding the change in consumer be­ havior and the adoption of innovative marketing strategies during the covid-19pandemic. Hypothesis 1 examines how the pandemic has fundamentally changed the consumption habits of Slovenian con­ sumers, which is key to identifying shifts in market dynamics. Hypoth­ esis 2 focuses on the role of education and hypothesis that higher levels of education are positively correlated with behavioral changes. Both hypotheses contribute to the overall goal of identifying key factors in­ .uencing consumer decisions and the e.ectiveness of new marketing techniques during the global crisis. Based on the extensive research and empirical observations of the comprehensive study, it is evident that the covid-19pandemic re­sulted in signi.cant changes in consumer behavior. The complex chan­ges, which are closely tied to the structure of our society, are supported by a variety of important elements such as gender, age, education, and various contextual circumstances. Changes in consumer behavior have, therefore, a.ected purchasing habits and shed light on the complex in­terplay of sociological, economic, and health-related factors. This study makes a signi.cant contribution to the current scienti.c debate on the signi.cant impact of the pandemic on (Slovenian) consumer behavior. It successfully combines theoretical concepts with their practical impli­cations in the real world. The study’s observations and conclusions of­fer important recommendations for businesses and policymakers and provide a comprehensive understanding of the complex processes that drive consumer behavior in times of crisis. The covid-19pandemic exerted a notable in.uence on the height­ened adoption of virtual commerce within the context of Slovenia. As a result of the constrained accessibility of physical retail establishments and growing apprehensions regarding the welfare and security of cus­tomers, there has been a discernible surge in the utilization of online platforms by consumers to conduct their purchases. The observed shift in consumer purchase patterns was marked by a transition from discre-[229] tionary items to critical daily necessities, as well as goods related to pro­fessional needs and home entertainment. In addition, the crisis led to a signi.cant change in consumer support for local businesses. Slovenian consumers showed a collective sense of solidarity with the local econ­omy, clearly tending to favor local businesses as opposed to their online counterparts from abroad. The study provides a compelling argument that challenges the widely held assumption that people with higher lev­els of education would change their purchasing behavior more signi.­cantly in times of crisis. This observation underscores the need for fur­ther research to examine additional elements that may have an impact on consumer behavior during times of turmoil. The multi-layered na­ture of individual psychology requires the inclusion of sensory compo­nents in the context of the shopping experience. An in-depth examination of gender discrepancies found that women spend a greater proportion of their expenditures on health and pro­tection items such as masks, hand sanitizers, and disinfectants com­pared to men. This discrepancy highlights women’s higher awareness of risk and their propensity to implement health protection measures with greater care. The in.uence of age on consumer behavior during the pandemic was identi.ed as an important factor. Signi.cant di.erences in behavior were found across age groups, including 30-to 34-year-olds and 20-to 24-year-olds, in terms of store avoidance and concern about disease transmission to family members. One notable observation con­cerned the divergent propensity to use credit cards as opposed to cash (digital payments), with Generation Z proving more .exible on this point than older customers. Individuals’ education levels were identi.ed as an important ele­ment in shaping consumer responses to the epidemic. Individuals with higher levels of education, particularly those with doctoral degrees, tended to agree more with statements related to avoiding business, concern about health care, and fear of infection. On the other hand, respondents with secondary education were least likely to agree with the above statements. Signi.cantly, respondents with master’s degrees agreed more strongly with concerns about infecting their families com-pared to their peers. This comprehensive study categorizes the factors a.ecting consumer spending during the pandemic into four di.erent dimensions. These dimensions include the impact of retail and con­sumer services on consumer spending behavior during the pandemic; [230] the impact of the pandemic itself on consumer spending behavior; the impact of the pandemic on increased purchases of various goods such as sporting, recreational, electronic, and household goods; and the im­pact of pandemic measures such as the use of masks, disinfection pro­tocols, vaccination e.orts, testing procedures, and recovery evidence on consumer spending behavior. In summary, this study illuminates various aspects of consumer behavior during the covid-19epidemic in Slovenia. With these sci­enti.c insights, companies and policymakers can adeptly respond to evolving consumer demands in the post-pandemic period. However, it is crucial to acknowledge limitations stemming from our study, such as its regional focus and data collection timeframe. A more extensive study spanning multiple countries/continents and a longer duration, accounting for di.erent pandemic phases, could o.er broader insights. Our .ndings serve as a practical foundation for companies to adjust their strategic plans, especially in digital marketing and consumer en­gagement. This study contributes to existing literature by theoretically analyzing how health, economic, and sociological factors interact to shape consumer behavior during crises. Rigorous statistical methods ensure the robustness of our .ndings, alongside adherence to ethical standards for participant anonymity and informed consent. Connect­ing our .ndings with current research through insightful data visual­izations aims to foster a coherent understanding. Addressing the pro­found implications of global crises requires thorough, detailed assess­ments by scientists, businesses, and governments alike. Therefore, our study could in.uence future research e.orts aiming to further under­stand consumer behavior amidst the evolving post-covid landscape. references Barua, S. 2021. ‘Understanding Coronanomics: The Economic Implica­tionsofthe Coronavirus(covid-19) Pandemic.’ The Journal of De­veloping Areas 55 (3): 435–50. Barai, M. K., and S. Dhar. 2024. ‘covid-19Pandemic: In.icted Costs andSome Emerging GlobalIssues.’ Global Business Review 25 (3): 812–31. Bruine de Bruin, W., and D. Bennett. 2020. ‘Relationships Between Ini­ tial covid-19Risk Perceptions and Protective Health Behaviors: A National Survey.’ American Journal of Preventive Medicine 59(2): 157– 67. Burroughs, J. E., and A. Rind.eisch. 2002. ‘Materialism and Well-being: A Con.icting Values Perspective.’ Journal of Consumer Research 29 [231] (3): 348–70. Choura, A., and S. Abou Jeb. 2021. ‘The Impact of Covid-19on the Change of Customer Buying Behavior: A Study on the Change of Swedish Millennials’ Buying Behaviour for Fashion Products with Respects to Selecting between Online and O.ine Retail Channels.’ Unpublished Master Thesis, Jönköping University. Das,D.,A. Sarkar,andA. Debroy. 2022. ‘Impactof covid-19onChang­ing Consumer Behavior: Lessons from an Emerging Economy.’ Inter­national Journal of Consumer Studies 46 (3): 692–715. Di Crosta, A., I. Ceccato, D. Marchetti, P.LaMalva,R. Maiella,L.Can­nito, M. Cipi, N. Mammarella, R. Palumbo, M. C. Verrocchio, and A. Di Domenico. 2021. ‘Psychological Factors and Consumer Behavior During the covid-19Pandemic.’ plos One 16 (8): e0256095. Dobson, A.P., and E.R.Carper. 1996. ‘Infectious Diseases and Human Population History: Throughout History the Establishment of Dis­ease Has Been a Side E.ect of the Growth of Civilization.’ Bioscience 46 (2): 115–26. Duhachek A. 2005. ‘Coping: A Multidimensional, Hierarchical Frame­work of Responses to Stressful Consumption Episodes.’ Journal of Consumer Research 32 (1): 41–53. Farrell, D., C. Wheat, and C. Mac. 2020. ‘Small Business Financial Out­comes during the Onset of covid-19.’ jpmorgan Chase Institute, June. https://www.jpmorganchase.com/institute/all-topics /business-growth-and-entrepreneurship/small-business-.nancial -outcomes-during-the-onset-of-covid-19 Fihartini, Y., Helmi, A., Hassan, M., and Oesman Y. M. 2021. ‘Perceived Health Risk, Online Retail Ethics, and Consumer Behavior within Online Shopping During the covid-19Pandemic.’ Innovating Mar­keting 17 (3): 17–29. Gu, S., B. Slusarczyk, S. Hajizada, I. Kovalyova, and A. Sakhbieva. 2021. ‘Impact of the covid-19Pandemic on Online Consumer Purchas­ing.’ Journal of Theoretical and Applied Electronic Commerce Research 16 (6): 2263–81. Heureka!group. 2022. ‘E-Commerce Report 2022: Increase in the Fre­quency and Value of Online Purchases in Slovenia.’ https://heureka .group/cz-en/about-us/group-news/press-releases/e-commerce -report-2022-increase-in-the-frequency-and-value-of-online -purchases-in-slovenia/ [232] Iftode, D. 2019. ‘Generation Z and Learning Styles.’ se a – Practical Ap­plication of Science 7 (21): 255–62. J.P.Morgan.2020a. ‘How covid-19HasTransformedConsumerSpend­ing Habits.’ J.P. Morgan, 23 November. https://www.jpmorgan.com /insights/current-events/covid-19/covid-spending-habits ———. 2020b. ‘Life in Lockdown: What Did Consumers Buy?’ J.P. Mor­gan, 23 November. https://www.jpmorgan.com/insights /research/covid-spending-habits Jamunadevi, C., Deepa, S. Kalaiselvi, K. T., Suguna R., and Dharshini, A. 2021. ‘An Empirical Research on Consumer Online Buying Behav­iorDuringthe covid-19Pandemic.’ iop ConferenceSeries:Materials Science and Engineering 1055:012114. Jeong, S. W., and J.-E. Chung. 2023. ‘Enhancing Competitive Advantage and Financial Performance of Consumer-Goods smes in Export Markets: How Do Social Capital and Marketing Innovation Matter?’ Asia Paci.c Journal of Marketing and Logistics 35 (1): 74–89. Kajzer, A. 2020. Vpliv epidemije na trg dela. Kratke analize, december 2020. umar. https://www.umar.gov.si/.leadmin/user_upload /publikacije/kratke_analize/2020_12_Vpliv_epidemije_na_trg _dela/Vpliv_epidemije_na_trg_dela_v_EU_Kajzer_01.pdf Kim, O. S.,J. A.Parker, andA.Schoar. 2020. ‘Revenue Collapses andthe Consumption of Small Business Owners in the Early Stages of the covid-19Pandemic.’ nber WorkingPapers28151.NationalBureau of Economic Research, Cambridge, ma. Laato, S.,A. N.Islam,A.Farooq,and A. Dhir. 2020. ‘Unusual Purchas­ing Behavior During the Early Stages of the covid-19Pandemic: The Stimulus-Organism-Response Approach.’ Journal of Retailing and Consumer Services 57:102224. Lenk, S. 2021. ‘Consumer Behavior During the Pandemic of Covid-19.’ Journal of International Business Research and Marketing 6(3):34–7. Lindahl, J. F., and D. Grace. 2015. ‘The Consequences of Human Actions on Risks for Infectious Diseases: A Review.’ Infection Ecology & Epi­demiology 5(1): 30048. Meden, G. 2020. ‘Wolt: v manj kot letu podvojili število ponudnikov.’ Marketing magazin, 26 November. https://www.marketingmagazin .si/aktualno/wolt-v-manj-kot-letu-podvojili-stevilo-ponudnikov Morales, M. 2021. ‘Post-pandemic Consumer Behavior Towards E-Com­merce and Retail Stores in the United States.’ Revista Venezolana de Gerencia 26 (6): 47–64. Moran, K. R., and S. Y. Del Valle. 2016. ‘A Meta-Analysis of the Associa­tion between Gender and Protective Behaviors in Response to Res­piratory Epidemics and Pandemics.’ plos One 11 (10): e0164541. Murugan, S., S. Rajavel, A. K. Aggarwal, and A. Singh. 2020. ’Volatility, Uncertainty, Complexity and Ambiguity (vuca) in Context of the covid-19Pandemic: Challenges and Way Forward.’ International Journal of Health Systems and Implementation Research 4 (2): 1–16. Muto, K., I. Yamamoto, M. Nagasu, M. Tanaka, and K. Wada. 2020. [233] ‘Japanese Citizens’ Behavioral Changes and Preparedness Against covid-19: An Online Survey During the Early Phase of the Pan­demic.’ plos One 15 (6): e0234292. Nielsen. 2020. ‘Key Consumer Behavior Thresholds Identi.ed as the Coronavirus Outbreak Evolves.’ Nielsen, 18 March. https://www .nielsen.com/us/en/insights/article/2020/key-consumer-behavior -thresholds-identi.ed-as-the-coronavirus-outbreak-evolves/?utm _source=sfmc&utm_medium=email&utm_campaign=newswire &utm_content=3-18-2020 Nouairi, J.,A. A.atati, G.Rivoira,S. R.Albaina, and M. Ghribi. 2024. ‘Case Studies of covid-19Pandemic A.ecting Early-Career Scien­tists’ Mobility within the Mediterranean Blue Economy Sector.’ In­ternational Journal of Euro-Mediterranean Studies 17 (1): 87–113. Pantano, E., G. Pizzi, D. Scarpi, and C. Dennis. 2020. ‘Competing During aPandemic? Retailers’ Upsand DownsDuringthe covid-19Out­break.’ Journal of Business Research 116:209–13. Phillips, W., Roehrich, J. K., and Kapletia, D. 2021. ‘Responding to Infor­mation Asymmetry in Crisis Situations: Innovation in the Time of the covid-19Pandemic.’ Public Management Review 25 (1): 175–98. Pilukiene, L., and I. Spudiené. 2022. ‘Relation Between Customer-Focus­ed Corporate Social Responsibility Initiatives and Customer Loyalty Intentions in the Context of the covid-19Pandemic.’ Advances in Business Related Scienti.c Research Journal 13 (1): 51–67. Rabuza, M. 2020. ‘Dostave: nakolesu tudi 80 kilometrov, trgovci z 20­krat vec narocili.’ Siol. https://siol.net/posel-danes/novice/dostave­na-kolesu-tudi-80-kilometrov-trgovci-z-20-krat-vec-narocili-537559 Rita,P., Oliveira,T., andFarisa, A. 2019.‘The Impact of E-ServiceQuality and Customer Satisfaction on Customer Behavior in Online Shop­ping.’ Heliyon 5(10): e02690. Rop, A. 2024. ‘The E.ects of Job Retention Schemes on Employment Preservation during the covid-19Epidemic in Euro Area Coun­tries.’ International Journal of Euro-Mediterranean Studies 17 (1): 115– 40. Rostan, P., and A. Rostan. 2024. ‘The Positive Impact of the covid-19 Pandemic on the Slovenian Economy.’ International Journal of Euro-Mediterranean Studies 17 (1): 141–69. Schwarzkopf, S. 2015. ‘Marketing History from Below: Towards a Par- [234] adigm Shift in Marketing Historical Research.’ Journal of Historical Research in Marketing 7 (3): 295–309. sta. 2020. ‘Dostava hrane na dom zaradi covida-19in hladnega vre­menacveti.’ sta,2November. https://www.sta.si/2826464/dostava -hrane-na-dom-zaradi-covida-19-in-hladnega-vremena-cveti Statistical O.ceofthe Republic ofSlovenia. 2021.‘Goods Most Fre­quently Purchased Online in Slovenia Are Clothes and Shoes.’ https://www.stat.si/StatWeb/en/news/Index/9841 Statisticni urad Republike Slovenije. 2023. ‘Prihodek od prodaje blaga v trgovini na drobno (1000 eur) po: vrste kupcev, leto.’ https:// pxweb.stat.si/SiStatData/pxweb/sl/Data/-/2001402S.px/table /tableViewLayout2/ Svajdova,L.2021. ‘ConsumerBehaviour during Pandemic of covid-19.’ Journal of International Business Research and Marketing 6(3):34–7. Tan, J.,Y. Yoshida,K. Sheng-Kai Ma,F. Mauvais-Jarvis, F., and C.-C. Lee. 2022. ‘Gender Di.erences in Health Protective Behaviors and its Implications for the covid-19Pandemic in Taiwan: A Population-Based Study.’ bmc Public Health 22:1900. Tymkiw,C.2022. ‘HowShoppingHabitsChangedDueto covid-19.’ In­vestopedia. https://www.investopedia.com/how-shopping-habits -changed-due-to-covid-5186278US&mid=.2Fm.2F02j71&gl =US&ceid=US.3Aen Vadnjal, J. 2024. ‘Navigating Global Disruptions: Migration, Education, and Labor Markets in a Post-Pandemic World.’ International Journal of Euro-Mediterranean Studies 17 (1): 5–8. Vukasovic, T. 2020. ‘Covid-19in njegov vpliv na nakupno vedenje potroš­nikov.’ doba znanja, 23. junij. https://www.fakulteta.doba.si/doba -znanja/red-prof-dr-tina-vukasovic-spremembe-v-nakupnem -vedenju-potrosnikov-v-novi-realnosti Youn,S., Lee, J. E.,and Ha-Brookshire, J. 2021.‘FashionConsumers’ Channel Switching Behavior During the covid-19: Protection Mo­tivation Theory in the Extended Planned Behavior Framework.’ Clothing and Textiles Research Journal 39(2): 139–56. Integrating Spirituality and Politics: Insights from Islam and Christianity on Religiosity and Governance in Contemporary Society othman sqalli houssaini Euromediterranean University of Fez, Morocco o.sqallihoussaini@ueuromed.org The purpose of this paper is to explore the relationship between the spiritual and the political in contemporary times through an analy­sis of two contrasting approaches linking the spiritual and political spheres. This is achieved through an examination of religious values, spiritual beliefs, political objectives, and an exploration of Su.sm’s in­terconnectedness between the spiritual and political realms. The study also examines the religious foundations of the Moroccan model of re­ligiosity characterized by the institution of the Commandery of the Faithful and its principles in modern governance, with a focus on in­tegrating spiritual values into leadership for societal harmony. The .ndings of this research, based on an analytical study of literary the­ories and a comparative study of governance and spirituality in Islam and Christianity, underscore the crucial importance of balancing spir­ituality and politics to address modern socio-economic and environ­mental challenges. The study also emphasizes the signi.cance of bal­anced governance that respects religious diversity spiritual insights, and value-driven leadership for societal well-being. Key Words: leadership, politics, spiritual, Su.sm, Commandery of the Faithful, Vatican © 2024 Othman Sqalli Houssaini https://doi.org/10.70908/2232-6022/17.235-258 introduction This scienti.c paper addresses the relationship between the spiritual and the political in our contemporary era through two distinct ap­ proaches: linking the spiritual and the political spheres and examining religious values, spiritual beliefs, and political objectives. Additionally, it explores Su.sm’s interconnectedness between the spiritual and the political. The study explores the spread of Su. culture through a distinctive logic grounded in timeless principles. This cultural framework evolves by adapting to the shifting spiritual needs of di.erent eras. Histori­cally, Su.sm has served as a remedy for clan con.icts and a catalyst for [236] the progressive development of individuals and societies, embodying a fundamentalaspectof whatisknown as Muslim civilization. To deepen this examination, the study includes a comparative anal­ysis with the Vatican system. In this context, the research aims to delve into the core principles of the Moroccan model of religiosity, epito­mized by the Commandery of the Faithful, and its application in mod­ern governance. The focus is on how spiritual values are integrated into leadership to foster societal harmony and cohesion. The question is particularly pressing: Should we politicize the spiri­tual or spiritualize the political? Which path o.ers the necessary wis­dom to guide our contemporary societies? In this context, infused with spirituality and deep re.ection, we are called to carefully examine the implications of this question for our contemporary society based on an analytical study of literary theories, emphasizing the crucial impor­tance of balancing spirituality and politics in addressing modern socio­economic and environmental challenges. The .rst approach, politicizing the spiritual, involves using religious values and spiritual beliefs for political purposes. This can take various forms, from using religious rhetoric to justify political actions to ex­ploiting religious sentiments to mobilize voters. However, this politi­cization can lead to situations where spiritual principles are distorted or manipulated to serve partisan interests, risking division rather than unity (Mubarak 2009). In contrast, the path of spiritualizing politics proposes an approach where spiritual and ethical values guide political decision-making. This involves integrating principles such as justice, compassion, solidarity, and respect for human dignity into public policies. It means placing human beings and societal well-being at the heart of political actions, based on deep ethical foundations. Spiritual governance aims to promote spiritual stability, a crucial as­pect of societal well-being due to its deep connection to the nations’ be­liefs and convictions. Spiritual stability is fundamental because it not only shapes but also represents the identity and character of societies. Any shortcomings in spiritual stability can lead to behavioral and so­cial de.ciencies, which may subsequently manifest as acts of violence and extremism. This underscores the profound impact of spiritual gov­ernance on maintaining societal harmony and stability. To deepen the theoretical exploration of spiritual governance and ethical leadership, this research adopts an interdisciplinary framework, incorporating perspectives from sociology, political science, and phi-[237] losophy. From a sociological perspective, spiritual values are critical in shaping social cohesion and impacting organizational behavior. Polit­ical science o.ers the structural context within which political values are legitimized, reinforcing the legitimacy of governance systems. In parallel, philosophical analysis of morality provides the foundation for the moral principles that guide leadership practices (Kim 2018). The research uses both theoretical frameworks and empirical case studies to illustrate how modern governance models, such as the Mo­roccan model, can be practically applied through the integration of spir­itual values. This study concludes with a comparative analysis between the Commandery of the Faithful in Morocco and the Vatican’s system to illustrate how spiritual leadership can signi.cantly impact political governance and societal progress. By combining spirituality with political theory, this study o.ers a forward-looking perspective on spiritual governance, highlighting its essential role in peacebuilding and fostering the development of con­temporary societies. spiritual governance and ethical leadership The intersection of spirituality, governance, ethics and leadership sug­gests that speci.c values and mindsets can signi.cantly impact how a leader interacts with and guides their followers. Within this scope, we can mention values of tolerance, solidarity, respect, coexistence and forgiveness. The concept of spiritual leadership theory provides insights into how an individual’s inner life and personal beliefs shape their e.ectiveness in leading others (Samul 2020). This theory plays a crucial role for leaders who aim to guide people and foster a sustainable work environment within a community or an organization. In an era marked by constant .uctuation, leaders must cultivate stability and security to navigate external challenges e.ec­tively. Therefore, spiritual Governance is essential to cultivate a strong sense of identity among followers, understand the deeper signi.cance of events and situations, and align the community’s values with a co­herent and purposeful vision (Samul 2020). The social values distinguishing right from wrong form the core of organizational behavior and establish the basis upon which leaders guide employees toward achieving organizational goals. Ethical lead­ership involves in.uencing employees through a framework of values, [238] principles, and beliefs that align with the established norms of orga­nizational conduct. These elements collectively de.ne the essence of ethical leadership (Alshammari, Almutairi, and Thuwaini 2015). Ethical leadership has emerged from the con.uence of complex and extensive challenges that have shaped leadership research. The devel­opment of leadership concepts and the impact of globalization have signi.cantly in.uenced the evolution of ethical leadership, moving be­yond traditional leadership models. Thus, the normative inquiry into what de.nes a good leader highlights the importance of value-based leadership in enhancing contemporary organizational performance. Consequently, the theoretical exploration of ethics and leadership has become a foundational principle for various organizations and .elds. This emphasis on ethical considerations has led to a focus on charis­matic, transformational, and visionary leadership as essential elements of e.ective leadership within ethical frameworks (Alshammari, Almu­tairi, and Thuwaini 2015). Throughout history, many scholars and philosophers have re.ected on the complex relationship between the political and the spiritual. Their teachings and writings have enriched our understanding of these two spheres of human life and their interaction. Among these thinkers, several .gures stand out for their signi.cant contributions to this mul­tidimensional re.ection. Paul Thibaud, the French philosopher and writer, addressed the re­lationship between the political and the spiritual by emphasizing their complementary roles in the shared pursuit of hope. For him, the po­litical and the spiritual should not be opposed or separated but rather interconnected and cooperative in striving for the ideal of a more just and humane society (Thibaud 2014, 3). Thibaud posits that politics addresses practical and material aspects of societal life, such as political, economic, and social organization, re­source management, and con.ict resolution. The spiritual, on the other hand, concerns questions of meaning, values, transcendence, and hu­man destiny. Both dimensions are essential as they address fundamen­tal human needs that are both material and spiritual (Thibaud 2014, 3). Thibaud insists that politics should be driven by spiritual values such as justice, solidarity, compassion, and respect for human dignity. Sim­ilarly, spirituality should not remain abstract; it must be actualized in concrete actions to transform society and improve human conditions. He considers the political and the spiritual to be interdependent and advocates for their collaboration to promote hope by building a better [239] world where the material and spiritual dimensions of human existence are balanced and harmonious (Thibaud 1978). Plato, a prominent .gure in ancient Greek philosophy, profoundly re.ected on the relationship between the political and the spiritual in his dialogues. His work, notably in dialogues such as The Republic and The Laws, explores the ethical and spiritual foundations of political gov­ernance to guide the establishment of a just and balanced society. For Plato, harmony between spiritual wisdom and political governance is essential for creating an ideal society. He believes that political leaders should be philosophers or wise individuals imbued with moral and spir­itual values, capable of guiding society toward the common good. In The Republic, he describes the philosopher as one who has access to truth and knowledge of the ideal forms, enabling him to have an enlightened vision for governance (Lane 2023). Plato also highlights the importance of education in shaping leaders and citizens. For him, education should aim to cultivate virtue, wisdom, and justice, values that transcend the political domain, and are rooted in the spiritual realm. He proposes an educational system in which phi­losophy plays a central role, allowing individuals to develop their rea­soning and moral sense (Plato 1998). In his dialogues, Plato warns against the excesses of unenlightened political power, emphasizing the risks of corruption and injustice when governance is not guided by ethical and spiritual principles. He invites deep re.ection on the nature of justice, virtue, and the concept of good, each of which has both political and spiritual dimensions (Plato 1998). Aristotle, as Plato’s disciple, further explored these re.ections by examining the ethical and political virtues necessary for just gover­nance while recognizing the importance of spiritual values in shaping the character of individuals and leaders (Maurya 2021). Ibn Khaldun, the renowned 14th-century Arab historian, sociolo­gist, and philosopher, made a signi.cant contribution to the discussion on the relationship between political power and religion in his works, notably in his monumental work Al-Muqaddima, where he explored the complex dynamics that emerge when political power and religion in-teract within a society. He points out that these two spheres are closely linked and can exert reciprocal in.uence, but notes that this relation­ship can also be a source of tension and con.ict if not managed in a balanced way (Marouani 2017). [240] Ibn Khaldun observes that when political power is closely tied to re­ligious authority, it can gain increased legitimacy from the population by relying on spiritual and moral principles to justify its actions. How­ever, he warns against the potential abuses of this relationship, em­phasizing that the mixture of political and religious power can lead to authoritarianism and fanaticism that are detrimental to society (Pišev 2019). Furthermore, Ibn Khaldun acknowledges the importance of religion in social and political life as a source of values, norms, and social cohe­sion. He notes that societies often need an ethical and moral framework provided by religion to maintain order and stability (Garisson 2012). However, Ibn Khaldun also cautions against the risk of political ma­nipulation of religion, where leaders may exploit religious beliefs for power and control. He calls for a clear separation between spiritual and political institutions while recognizing the importance of a construc­tive dialogue between these two spheres to promote societal well-being. Ibn Khaldun highlights the nuances and challenges of the relationship between political power and religion, emphasizing both the potential bene.ts of a balanced collaboration and the dangers of the abusive in­strumentalization of religion for political purposes. His analyses con­tinue to inspire re.ection on these crucial questions in the contempo­rary world (Pišev 2019). Saint Augustine, in the Christian tradition, developed a theory of the relationship between the City of God and the earthly city, o.ering a profound perspective on the relationship between the political and the spiritual. He emphasized that just and enlightened governance must be rooted in moral and spiritual values to address humanity’s deepest needs and aspirations (Tornau 2024). These thinkers share a common concern for the importance of spir­itual and ethical values in political governance. They all recognize that religion can play a crucial role in social and political life, providing a moral and ethical framework for society. However, their perspectives di.er on the modalities and practical implications of this relationship. While Plato insists on the idea of an ideal harmony between the po­litical and the spiritual, Saint Augustine underscores the necessity of aligning political governance with spiritual values. Ibn Khaldun, for his part, warns against the potential abuses of this relationship and advo­cates for a clear separation between religious and political institutions while recognizing their interdependence. Although these thinkers share common concerns about the relation-[241] ship between the political and the spiritual, their perspectives vary ac­cording to their speci.c historical and philosophical contexts, o.ering a diversity of analyses and approaches to understanding this complex issue (Peccoud 2004). integration of spiritual values into political leadership Spirituality can be e.ectively integrated into the workplace without re­sorting to proselytism or pressure. True leadership often re.ects spir­itual principles through actions rather than mere rhetoric, emphasiz­ing qualities like integrity and behaviors that convey authentic empa­thy and support. Core spiritual values, including integrity, honesty, and humility, are consistently identi.ed as crucial factors that contribute to successful leadership (Reave 2005). In the context of politics, spiritual values have a signi.cant impact when they shape individuals’ worldviews, in.uence their assessment of conditions, and guide their actions. When individuals view democratic processes positively, recognize their e.ectiveness, and engage actively to support their institutions, these spiritual values enhance their sup­port for the fundamentals of democracy (Kim 2008). Religious beliefs can signi.cantly bene.t individuals by o.ering clarity in an unpredictable world, enhancing social cohesion, and shield­ing them from perceived threats. However, if devout practitioners of mosques, churches, or other religious institutions interpret di.culties as divine punishment, rely on exclusive religious a.liations, and adopt defensive stances towards marginalized groups, their commitment to democratic values may weaken. Although spiritual values can provide personal meaning and a sense of solidarity, they might have a reduced impact on nurturing democratic attitudes, especially in more industri­alized societies (Kim 2008). From a religious perspective, the monotheistic religions – Islam, Christianity, and Judaism – have addressed various aspects of the rela­tionship between the political and the spiritual, each providing its own teachings and perspectives (Firestone 2005). In Islam, the Quran and the teachings of the Prophet Muhammad emphasize justice, equality, compassion, and respect for human rights. Muslim leaders are called to govern with fairness and to protect the rights of citizens, following the principles of Sharia (Ebrahimi and Yus­ [242] sof 2017). In Christianity, Jesus Christ taught principles such as love for one’s neighbor, forgiveness, and the importance of justice and peace. Chris­tians are called to be witnesses to these values in society, including in the political domain (Ponti.cal Council for Justice and Peace 2005). In Judaism, the Torah and its teachings o.er guidelines for just and ethical governance. Concepts such as social justice, the protection of the vulnerable, and the responsibility of leaders before God are recur­ring themes in Jewish texts (Rosen 2022). These religions share common values such as justice, compassion, and moral responsibility, which are fundamental to political gover­nance. They also emphasize the importance of ethical governance that respects human dignity and the rights of all individuals (Gilabert 2018). The values and teachings of monotheistic religions provide a cru­cial source of inspiration that guides political choices and promotes the overall well-being of society. They highlight fundamental principles such as justice, equity, compassion, and solidarity, which are essential for ensuring just and inclusive governance (Niazi 2023). Even in secular countries, where there is a strict separation between religious institutions and the state, promoting religious neutrality in public a.airs, it is still valuable to examine the individual and spiritual dimension through the experiences of everyone (Martínez-Torrón and Durham 2014). These values can guide political decisions by encouraging equitable resource distribution, protecting the rights of all citizens, and imple­menting social policies that foster inclusion and support marginal­ized populations. Additionally, they promote the peaceful resolution of con.icts, interfaith dialogue, and cooperation between di.erent re­ligious communities to enhance mutual understanding, respect for di­versity, and the construction of more harmonious and resilient soci­eties (United Nations 2008). By emphasizing these values in our political actions, we can cre­ate environments where everyone feels valued, where diversity is cel­ebrated as a richness, and where decisions are made with a spirit of goodwill and collaboration for the common good. sufi’s interconnectedness between the spiritual and the political Su.sm, a mystical tradition of Islam, addresses the relationship be­tween the political and the spiritual in a unique way by teaching that the essence of all existence is a divine unity, where the spiritual and the [243] political are merely di.erent aspects of a broader reality. Thus, in the Su. vision, there is no absolute separation between these two spheres, but rather a complementarity in the pursuit of truth and perfection (Bilqies 2014). Su.sm emphasizes teaching ethical values such as compassion, tol­erance, and kindness towards all human beings. This ethical approach guides the conduct of Su.s in all spheres of life, including the politi­cal realm, aiming to promote balance and harmony between the inner and outer aspects of human existence. This means that the spiritual quest should not be separated from responsibilities and commitments in the material world, including political, economic, and social domains (Thibdeau 2021). It also encourages the pursuit of inner truth and self-knowledge. Applied to the political realm, this means an awareness of the deep motivations behind political actions, fostering more authentic governance aligned with spiritual values. In this perspective, we can mention Ibn Arabi, one of the most in.u­ential Su. thinkers in history. He delved deeply into the spiritual and metaphysical dimensions of existence, and his writings often carry an implicit political scope by emphasizing the importance of ethics and wisdom in managing human a.airs. His teachings inspired a holistic approach where spirituality and ethical conduct are closely linked, of­fering valuable perspectives for governance and social life (Thibdeau 2021). Al-Ghazali, a prominent Su. of the 11th century, profoundly re­.ected on the relationship between religious faith, morality, and po­litical governance. His writings highlight the paramount importance of just and ethical governance founded on spiritual principles. For Al-Ghazali, public a.airs should be guided by the pursuit of justice, com­passion, and integrity – essential values that emanate from the spiri­tual dimension of human life (Alavi 2010). Jalal ad-Din Rumi, although primarily known for his mystical po­etry, also addressed political and social themes in his writings. He pro­moted compassion, universal love, and the quest for truth as funda­mental values to guide human relations, including those in the political domain. For Rumi, public a.airs should be conducted with compassion and tolerance, enabling peaceful and harmonious coexistence among individuals and communities, regardless of religious, cultural, or polit­ical di.erences (Cihan-Artun 2016). [244] After exploring the teachings of religions and thinkers on the re­lationship between the political and the spiritual, let us now consider how these ideas resonate in our present time. In our era, marked by the complexity of social, economic, and en­vironmental challenges, the path of spiritualizing politics seems to of­fer valuable wisdom. By integrating spiritual values into our decision-making processes, we can aspire to governance that is more just, equi­table, and respectful of human diversity. Historically, it is known that all Su. orders in Western Africa, and more broadly in the Islamic world, originated from Morocco. Since the 15th century, Africa has been a major hub for Su. orders. The impact of Su. orders on African countries is signi.cant, starting with the spread of Islam and the establishment of numerous educational institutions. Furthermore, these Su. orders have had a profound in.uence on the political and economic management of certain African countries, even before European colonialism (Davis 2020). Despite colonial interventions that led to Christianization and West­ernization in many African regions, and the ideological in.uence of various political systems, Su. orders have maintained a strong in.u­ence on the political and economic spheres of Muslim-majority African countries, and even those with smaller Muslim communities (Clarke 2005). Su.sm is founded on the principles of loyalty and obedience to the ‘Sheikh,’ who serves as the spiritual leader. Given that many of these ‘Sheikhs’ hail from Morocco, this allegiance extends to their country of origin as well. As a result, Morocco has developed strong cultural and economic connections with African nations where Su. traditions are in.uential. This relationship fosters a sense of interconnectedness and mutual support between Morocco and these countries (Abdul Jalil 2019). In Su.sm, the focus is on collective spiritual development rather than individual self-improvement. Followers, or ‘Al-Murids,’ are nur­tured and educated under the guidance of a ‘Su. Sheikh,’ preparing them to become imams and reformers. This approach contrasts with solitary practices and emphasizes community, spiritual brotherhood, ‘Dhikr’ (remembrance of God), and worship. This collective spiritual ed­ucation has led to the formation of mausoleums, which are centers of spiritual, educational, social, and political reform. These centers def­initely play a crucial role in shaping and guiding the Su. community (Abdul Jalil 2019). [245] Su.s have consistently respected the legitimacy of existing political authorities, which, in turn, have not sought to hinder their religious practices. Moroccan Su. teachings have even spread to other regions, mainly sub-Saharan Africa and other countries in North Africa. Today, Su.sm continues to invigorate traditions of mercy, love, and openness in Morocco, particularly towards Mediterranean countries, with which Moroccans have historically maintained bonds of friendship, mutual respect, and cooperation (Sbai El Idrissi 2005). The Su. in.uence is evident in Morocco’s social relations, explain­ing the country’s enduring traditions of openness, moderation, and tol­erance. These traditions prevent the exploitation of religion for pur­poses other than its intended spiritual role and reject the use of vio­lence to impose ideas or doctrines foreign to Moroccan society. Since the Berbers, or Amazighs, appointed Moulay Driss, a descendant of the Prophet, as their leader twelve centuries ago, Su. teachings have helped integrate the spiritual and temporal aspects of life in Morocco. This in­tegration has made Morocco a notable example of how spirituality and governance can coexist harmoniously (Sbai El Idrissi 2005). The enduring in.uence of Su. orders like the Tijani, Qadiri, and Mourids has profoundly shaped the relationship between Morocco and other African countries. Presently, any interaction – whether politi­cal, economic, cultural, or religious – between Morocco and those na­tions, mainly in West Africa, is framed by a common narrative: their centuries-old religious connections have established a bond so deep that they consider each other not merely as ‘friends’ but as ‘brothers’ (Lanza 2015). the commandery of the faithful: the moroccan model of religiosity and harmonious governance The experience of the Commandery of the Faithful ‘Imarat Al Moumi­nine’ in the Kingdom of Morocco, embodied by ‘Amir Al Mouminine’ whoisalsothe King of the country, o.ers an insightful perspective on this issue. By safeguarding spiritual values while maintaining a clear separation between the spiritual and the political, this approach demonstrates that it is possible to harmonize these two spheres in a balanced and bene.cial way for society (Mbaye 2021). The vision of the Commandery of the Faithful, embodied by King [246] Mohammed vi of Morocco, o.ers an enlightening perspective on this issue. Amir Al Mouminine, meaning ‘Commander of the Faithful,’ is a historical title in Islam that acknowledges the spiritual and moral re­sponsibility of the leader towards the Muslim community (Triantaphyl­lidu and Magazzini 2021). As Commander of the Faithful, the King of Morocco enjoys both re­ligious and political legitimacy, as speci.ed by the 2011 Constitution. This dual legitimacy allows him to serve as a link between the spiritual and the political, thus contributing to stable governance that respects religious values (Tou.q 2022). The Commandery of the Faithful ensures the protection of spiri­tual values by integrating the ethical and moral principles of Islam into political governance. This ensures that political decisions and public policies are aligned with spiritual values and the precepts of theology ‘Sharia’ (Abdul Jalil 2019). Furthermore, the Commandery of the Faithful fosters dialogue and harmony between the di.erent components of Moroccan society, in­cluding religious and political institutions, while ensuring the protec­tion and respect for religious institutions in Morocco, allowing them to ful.ll their role in society while maintaining a clear separation be­tween religious and political domains. This constructive dialogue cre­ates a harmonious collaboration for the well-being of society as a whole (Tou.q 2022). By harmoniously integrating the spiritual and the political, the Commandery of the Faithful contributes to social and political stability in Morocco. This approach fosters trust in institutions and strengthens the social fabric of the nation. Given its roles and missions, the insti­tution of the Commandery of the Faithful is the most solid guarantee of freedom of religion, since the King of Morocco, in his capacity as the Commander of the Faithful, is commander of all believers – Mus­lims, Christians, and Jews. He is therefore the guarantor who ensures that all followers of the three monotheistic religions have the right to practice their religious rituals freely. This is, therefore, one of the most important and distinctive features of Morocco’s Islamic identity, which combines divine right and true human rights (Tou.q 2022). Moreover, the Commandery of the Faithful guarantees all people the opportunity to exercise their religious rights and fully live their faith in African communities, their hearts brimming with spiritual peace and tranquility (Ministry of Foreign A.airs, African Coopera­tion and Moroccan Expatriates 2023). To promote stability and counteract extremist threats, the Com-[247] mandery of the Faithful can assume various roles. It can function as a political entity, enabling the King, in his capacity of religious leader and head of state, to make political and strategic decisions. Addition­ally, the system can serve as a religious framework for social purposes or as a religious role engaged within speci.c religious contexts depend­ing on the global vision of the state (Rachik 2016). These are immutable religious values commonly embraced by Mo­rocco and the rest of Africa. They can be consolidated only through the achievement of spiritual security in African societies, by transforming human behavior, adhering to divine prescriptions, and upholding the everlasting Message of the revealed religions, under the auspices of the institution of the of the Commandery of the Faithful (Hminmat 2024). These incontrovertible values are based on the behavioral principles fostered by the theology of Su. orders and religious prescriptions. The Commandery of the Faithful allows the King to reference the sacred beyond legal norms to structure the political realm. This institu­tion acts as a lever for peacebuilding and addressing other sacred con­cepts. The King’s preeminence is not merely about referring to the sa­cred,asseeninsomeWestern monarchies(Rachik 2016). This spiritual system also includes the freedom to reference the sa­cred at will, invoke tradition at any time, and interpret it for political purposes. Through the Commandery of the Faithful, the King can en­force political and social order while asserting himself as a supreme nor­mative authority and an agent of constraint (Rachik 2016). The vision of the Commandery of the Faithful insists on the neces­sity of not politicizing the spiritual. This involves respecting religious freedom and spiritual diversity, refraining from using religion for par­tisan political purposes, and maintaining spirituality as a source of in­spiration and guidance for ethical conduct in all aspects of life. vatican’s authority: the intersection of religious leadership and political sovereignty To understand how spiritual values shape governance, it is insightful to examine the Vatican’s approach to leadership and Christianity. The Vatican, as the heart of Christian spirituality, provides a unique per­spective on how spiritual beliefs can in.uence political stability, insti­tutional development, and social harmony (Altmann, Bunta, and Maz­impaka 2012). [248] This study aims to explore how Christian principles and spiritual leadership impact governance in this theocratic setting. By examining the strengths and challenges of this model, we gain a clearer picture of how spiritual values a.ect political and social outcomes in di.erent contexts (Altmann, Bunta, and Mazimpaka 2012). The Vatican captivates both Catholics and non-Catholics with its his­torical depth and ongoing in.uence. This storied institution continues to capture public attention as it strives to guide the Catholic Church and shape global events according to its distinct vision (Reese 2003). Over the past two millennia, the role of Christians in various as­pects of life has undergone signi.cant transformation. One notable di­mension of this involvement is their participation in political activi­ties. The Church celebrates numerous saints who devoted their lives to active rolesinpoliticsand governance.Among these .gures isSaint Thomas More, recognized as the Patron Saint of Statesmen and Politi­cians (Ratzinger and Bertone 2002). His martyrdom underscored the ‘inalienable dignity of the human conscience.’ Despite facing severe psychological pressure, Saint Thomas More remained resolute, demonstrating unwavering commitment to legitimate authority and institutions. His life and death illustrate the inseparable link between faith and morality (Ratzinger and Bertone 2002). In modern democratic societies, it is commendable that individuals, regardless of their religious beliefs, have the opportunity to engage in shaping political life. These democratic settings require varied and en­riched forms of participation from both Christian and non-Christian citizens. Every person can contribute to the formulation of policies and legislative decisions that, in their view, promote the common good. The health of a democracy relies on the active, responsible, and generous involvement of all its members, encompassing a diverse range of roles, levels of responsibility, tasks, and duties (Ratzinger and Bertone 2002). Leadership doesn’t follow a one-size-.ts-all model, but a notable di.erence often emerges between leaders driven by personal ambition and those guided by a deeper sense of purpose. Leaders motivated by personal gain tend to view their wealth, positions, and relationships as their own possessions. In contrast, those who lead with a sense of call­ing see everything they have as a gift from God. They recognize God as the Creator and understand that all things are under His will (Marek 2015). For Catholic leaders, God plays a central role in their lives, shaping [249] their work, decisions, and actions. They see their e.orts not just as a path to personal or worldly success but as part of a larger mission to advance God’s Kingdom. This mindset leads them to approach their responsibilities with a spirit of stewardship, viewing their resources and roles as something entrusted to them temporarily. Like the Biblical parable of the talents in Matthew 25:14, they are expected to manage these gifts wisely and return them with added value (Marek 2015). In the realm of papal leadership, the Vatican adheres to the principle of papal primacy, which underscores the pope’s superior role within the Church. This principle means that the pope, as the bishop of Rome, is considered the universal shepherd and the ultimate authority in the Catholic Church. He possesses comprehensive, supreme, immediate, and global authority to direct the Church (Trigilio 2013). Christian leaders across the globe increasingly agree on the crucial role of the pope, and there are three main reasons for this. First, look­ing at history, Christianity was originally organized with major apos­tolic sees, with the see of Rome occupying the top of the hierarchy. Sec­ond, from an ecclesiological perspective, discussions have highlighted the need for both primacy and synodality at every level of the Church’s structure – local, regional, and global (De Senneville 2024). In Catholic social teaching, the common good stands as a central value. Consequently, Catholic leaders are expected to prioritize the well-being of all in their organization over personal bene.ts. Their goal should be to bring their team together in pursuit of the organization’s mission, thereby supporting the growth and prosperity of the Chris­tian community. By focusing on these collective e.orts, leaders help advance broader societal progress and contribute to global develop­ment (Marek 2015). findings It is undeniable that religion profoundly impacts the development of individuals, societies, and nations. Max Weber highlighted the role of cultural in.uences rooted in religion as a key factor in the emergence of capitalism. Today, it is noteworthy that many secular organizations and governments engaged in humanitarian and development work in­ creasingly acknowledge the crucial role of spirituality (Hitzler 2015). Religion shapes not only individual and societal values but also guides social attitudes, economic activities, and political engagement. [250] In many ancient cultures, religion was not merely a distinct aspect of life but, in fact, served as the central organizing principle. Unlike the contemporary understanding of religion as something separate from daily life, in these societies, it was intertwined with every aspect of ex­istence. The belief in god was integral to the framework through which reality was understood and navigated (Hitzler 2015). A fundamental distinction between these two approaches lies in their treatment of spirituality and politics. In the religious framework, authority is anchored in divine laws that are considered immutable and not subject to human modi.cation. In contrast, the pragmatic po­litical approach advocates for societal evolution, encouraging adapta­tion and change in response to emerging challenges and circumstances (Mubarak 2009). Indeed,itmust besaidthatthe wisdom forour time lies in balanc­ing the political and the spiritual, aiming to spiritualize governance through ethical values while respecting religious diversity and avoid­ing con.icts motivated by religion. This requires a commitment to in­terfaith dialogue, the promotion of universal values, and the pursuit of inclusive and equitable solutions for all (Schoenberger 2024). It is essential to spiritualize the political sphere while preserving the integrity of the spiritual domain, thereby avoiding any instrumental­ization for political or self-serving ends. This approach emphasizes that the spiritual dimension should illuminate and enrich political conduct rather than be exploited for partisan interests. It thus underscores the importance of maintaining a clear distinction between the practical as­pects of social a.airs, which belong to politics, and the values, morals, and quest for meaning inherent in the spiritual domain. By infusing the political with a spiritual dimension, we seek to in­corporate ethical principles, moral values, and spiritual teachings into the decisions and actions of political leaders and citizens. This implies a governance approach founded on justice, compassion, solidarity, and respect for human dignity, inspired by religious or philosophical teach­ings. The Commandery of the Faithful is an element seen as instrumental in fostering progress and prosperity and in nurturing African societies that are capable of rising to future challenges, with a forward-looking vision that considers development needs. The dissemination of Su. culture follows a distinctive logic ground­ed in timeless principles. This cultural framework evolves to meet the changing spiritual needs of di.erent periods. Historically, Su.sm has [251] acted as a remedy for clan con.icts and a catalyst for the positive and progressive development of individuals and societies, serving as a cru­cial component of what is recognized as Islamic civilization. In Morocco, the Commandery of the Faithful represents a distinc­tive blend of spiritual and political authority. The King, who holds the titles of Commander of the Faithful and Head of State, combines re­ligious and political roles into a uni.ed form of legitimacy (Trianta­phyllidu and Magazzini 2021). This fusion ensures that governance is closely aligned with Islamic principles and spiritual values, creating a stable and cohesive political environment. By integrating these roles, Morocco aims to harmonize spiritual security and political governance, and to foster social stability and coherence (Abdul Jalil 2019). The Moroccan system emphasizes the importance of dialogue be­tween religious and political institutions to enhance social harmony. The King’s dual role acts as a conduit between spiritual and political spheres, promoting collaboration for the common good. This approach helps manage societal diversity and maintains stability by aligning var­ious aspects of Moroccan society (Tou.q 2022). The Commandery of the Faithful integrates Islamic ethical and moral principles into its governance framework. This integration in.u­ences public policies and societal norms, ensuring they are consistent with spiritual values. Such alignment of governance with spiritual and ethical principles contributes to a stable and cohesive political system (Abdul Jalil 2019). The Vatican similarly merges spiritual and political authority through the role of the Pope. As the supreme leader of the Catholic Church, the Pope holds signi.cant in.uence both within the Church and in global a.airs. This integration of spiritual and political dimensions allows the Pope to shape Church doctrine and in.uence international relations, demonstrating how spiritual leadership can a.ect political and social spheres (Trigilio 2013). The Vatican prioritizes social harmony through its moral teachings and social doctrines, aiming to promote peace, justice, and communal welfare on a global scale. By advocating for social justice and ethical gov-ernance, the Vatican’s in.uence extends to shaping societal develop­ment and fostering global cohesion (Ponti.cal Council for Justice and Peace 2005). Similarly, the Vatican’s impact on governance is signi.cant, though [252] it operates through a di.erent mechanism. Papal teachings and so­cial doctrines guide both Church and secular leaders in making ethi­cal decisions and shaping governance. The Vatican’s authority extends into ethical governance, in.uencing policies and societal development through its moral and doctrinal teachings (Seidler 1986). Based on our comparative study, it is evident that the Comman­dery of the Faithful and the Vatican system exemplify how spiritual authority can shape political governance and societal development. Both demonstrate similarities in combining political and spiritual au­thority, promoting social cohesion, and guiding leadership with ethical and moral principles. However, their methodologies and contexts dif­fer, highlighting the unique integration of spirituality and politics (Fry 2005). The Moroccan model centers around the King’s dual role within an Islamic framework, primarily in.uencing a predominantly Islamic pop­ulation. In contrast, the Vatican’s approach is rooted in the global tra­dition of the Pope’s in.uence over the Catholic Church. Understanding these di.erences and similarities o.ers valuable insights into how spir­itual and political roles can be e.ectively integrated in contemporary societies (Nejjar 2018). It becomes evident that the mission of both models is to spread val­ues of peace and coexistence. This commitment drives religious lead­ers, both Muslims and Christians, to ardently stand up for the world’s spiritual security, preserving and protecting it from any .aw or weak­ness that may lead to vulnerability, division, strife, confusion, or dis­pute over immutable religious values or doctrinal choices. The study of spirituality and politics explores how religious perspec­tives shape development processes. Its unique contribution lies in its focus not just on religious institutions and organizations, but on the ideas and beliefs within religions. Religion plays a crucial role in fos­tering social trust and cohesion, which are essential for development. In communities where religious belief is deeply ingrained in daily life, religion serves as a signi.cant asset. It can be harnessed for various purposes, whether by those seeking to dismantle societal structures or by those aiming to construct and improve them (Haar 2011). Spirituality naturally invokes feelings of goodness, kindness, love, and peace – toward oneself, others, and the divine. It serves as a pow­erful tool for cultivating integrity within society. In contrast, politics encompasses the activities of gaining and exercising power in public life, including the ability to in.uence decisions that a.ect the commu-[253] nity. The connection between politics and religion is profound, as there is often an intersection where they converge (Olumide 2021). Integrity is central to this study; it is highlighted when both spir­ituality and politics exemplify it as they support and advance demo­cratic principles. This is done by promoting and upholding values such as tolerance, coexistence, justice, and freedom. Despite various devel­opment strategies and e.orts by religious and political leaders to foster integrity, many initiatives aimed at achieving signi.cant development and integrity have often proven ine.ective (Olumide 2021). Religious beliefs and political leadership are deeply interconnected. Achieving political success is often seen as a sign of divine favor or spiritual blessing. Many religious traditions hold that a leader’s e.ec­tiveness and legitimacy are re.ected in how well their actions align with spiritual principles. This perception suggests that political achieve­ments can be interpreted as endorsements of one’s adherence to re­ligiousvalues(Serrano 2023). However, focusing solely on religious aspects without considering political realities can undermine e.ective governance. Leaders who concentrate only on religious practices may .nd it challenging to ad­dress practical political and social needs, which can a.ect their e.ec­tiveness. To govern successfully, leaders must balance their spiritual values with the practical demands of politics (McKay and Whitehouse 2015). Belonging to a religion can encourage leaders to integrate sacred principles into their political decision-making. This integration can sig­ni.cantly in.uence how public a.airs are managed. E.ective political leadership involves not only tangible achievements but also alignment with ethical and spiritual values. In other words, successful governance should re.ect a harmony between spiritual values and political deci­sions, fostering a cycle where spiritual principles guide policy-making, and political outcomes, in turn, support religious practices (Fernando and Jackson 2006). From a social standpoint, religion and faith continue to serve as vi­tal sources of inspiration and motivation, particularly in the context of welfare and humanitarian e.orts. Many religious communities lever­age their beliefs as a foundation for advocating justice and equitable living. Religion remains a potent tool for mobilizing people against cul­tural abuses and excesses that marginalize and oppress others. Thus, it [254] is evident that religious ideas, institutions, and practices play a crucial role in achieving the comprehensive and meaningful life that individu­als and societies strive for (Mtata 2015). Policymakers must implement principles that encompass universal social and human values, particularly equality, tolerance, and ethics, ensuring their integration across all sectors of governance. These poli­cies should be carefully tailored to meet the diverse needs of society, allowing for the expression of individual identities and beliefs while safeguarding against the misuse of spirituality for political ends. In conclusion, the spiritual and political realms share a common vi­sion for society, one that prioritizes human well-being, collective pros­perity, and social harmony. This convergence is rooted in the belief that moral, political, social, and economic dimensions should be integrated into a cohesive system, where each aspect supports the others to pro­mote sustainable development and a high quality of life for all. The creation of clear and focused policies that uphold universal val­ues, such as equality, tolerance, and ethics, is essential for their e.ec­tive application in governance. These policies must be responsive to the speci.c needs of society, respecting diverse identities and beliefs, and preventing the exploitation of spirituality for political purposes. The adoption of a multidimensional approach that covers social, eco­nomic, political and spiritual aspects serves contemporary society in accordance with the values of a national governance system that prior­itizes citizens’ well-being, social cohesion, and harmony. The results of this study ought to be a wellspring of inspiration and motivation for regional and international organizations, governments, policymakers and religious leaders, anthropologists, and cultural ex­perts to deepen their analysis, collaborate, and consider the correla­tion between the political and the spiritual in contemporary society within their projects and decisions, while balancing their values in gov­ernance and considering religious values. Dialogue, in this case, will be the only facilitator of preserving respect and promoting communica­tion through the involvement of both political and spiritual actors. Within the scope of this study, it should be noted that the ideas expressed in this paper result from well-supported opinions based on thorough re.ections and research. It is essential to continue exploring and debating these questions with an open mind and mutual respect in order to promote inclusive societies that respect the spiritual diversity of everyone. references [255] AbdulJalil,A.T.2019.‘FunctionsofImaratAlMouminine in thePreser­vation of the Religion’s Universals and Values.’ Mohammed vi Foun­dation of African Oulema, 24 June. https://www.fm6oa.org/en /functions-of-imarat-al-mouminine-in-the-preservation-of-the -religions-universals-and-values/ Alavi, H. R. 2010. ‘Al-Ghazali¯ on Moral Education.’ Journal of Moral Ed­ucation, Islamic Values and Moral Education 36 (3): 309–19. Alshammari, A., N. Almutairi, and S. F. Thuwaini. 2015. ‘Ethical Leader­ship: The E.ect on Employees.’ International Journal of Business and Management 10 (3). https://doi.org/10.5539/ijbm.v10n3p108. Altmann, M., A. Bunta, and O. Mazimpaka. 2012. ‘Religion & Sustain­ability: The Contribution of Religious Belief in Moving Society To­wards Sustainability.’ Masters thesis, Blekinge Institute of Technol­ogy. Bilqies, S. 2014. ‘Understanding the Concept of Islamic Su.sm.’ Journal of Education & Social Policy 1 (1): 55–72. Cihan-Artun, F. B. 2016. ‘Rumi, the Poet of Universal Love: The Poli­tics of Rumi’s Appropriation in the West Appropriation in the West.’ Doctoral dissertation, University of Massachusetts Amherst. Clarke, K. M., ed. 2005. ‘Local Practices, Global Controversies: Islam in Sub-Saharan African Contexts.’ The MacMillan Center Working Pa­per Series, The Macmillan Centre, New Haven, ct. Ebrahimi, M., and K. Yuso.. 2017. ‘Islamic Identity, Ethical Principles and Human Values.’ European Journal of Multidisciplinary Studies 2 (6): 326–37. Davis, B. 2020. ‘Educator of the Faithful: The Power of Moroccan Islam.’ Hudson Institute, 27 January. https://www.hudson.org/national -security-defense/educator-of-the-faithful-the-power-of-moroccan -islam. De Senneville, L. B. 2024. ‘Vatican Revives Re.ection on Pope’s Role among Other Christians.’ La Croix International, 14 June. https:// international.la-croix.com/religion/vatican-revives-re.ection -on-popes-role-among-other-christians Fernando, M., and B. Jackson. 2006. ‘The In.uence of Religion-Based Workplace Spirituality on Business Leaders’ Decision-Making: An Inter-Faith Study.’ Journal of Management & Organization 12(1). https://doi.org/10.5172/jmo.2006.12.1.23. Firestone, R. 2005. ‘A Problem with Monotheism: Judaism, Christian- [256] ity, and Islam in Dialogue and Dissent.’ In Hiers of Abraham: The Fu­ture of Muslims, Jewish, and Christian Relations, edited by B. E. Hinze, and I. A. Omar, 20–40. New York: Orbis Books. Fry, L. 2005. ‘Toward a Theory of Ethical and Spiritual Well-Being, and Corporate Social Responsibility through Spiritual Leadership.’ In Positive Psychology in Business Ethics and Corporate Responsibility, eitedby R. A.Giacalone,C.L. Jurkiewicz, andC.Dunn, 47–83. Char­lotte, nc: Information Age Publishing. Garrison, D. 2012.‘IbnKhaldunand theModernSocialSciences: A Com­parative Theoretical Inquiry into Society, the State, and Revolution.’ Masters thesis, University of Denver. Gilabert,P.2018. Human Dignity and Human Rights. Oxford: Oxford Aca­demic. Haar,G.T. 2011. Religion and Development: Ways of Transforming the World. New York: Columbia University Press. Hitzler, E. 2015. ‘Opening Remarks.’ In Religion: Help or Hindrance to De­velopment, edited by K. Mtata, 13–7. Geneva: Lutheran University Press. Hmimnat, S. 2024. ‘Morocco’s Religious “Soft Power” in Africa: As a Strategy Supporting Morocco’s Stretching in Africa.’ Moroccan In­stitute for Policy Analysis, 6 June. https://mipa.institute/en/5642. Kim, M. 2008. ‘Spiritual Values, Religious Practices, and Democratic At­titudes.’ Politics and Religions 1 (2): 216–36. Lane, M. 2023. ‘Ancient Political Philosophy.’ In Stanford Encyclopedia of Philosophy, edited by E. N. Zalta and U. Nodelman. https://plato .stanford.edu/entries/ancient-political/. Lanza, N. 2015. ‘Quelques Enjeux Du Sou.sme Au Maroc: Le Tourisme Religieux Sénégalais et La Construction d’un Imaginaire Sur l’amitié.’ In Migrants Au Maroc, edited by N. Khrouz and N. Lanza. Rabat: Centre Jacques-Berque. https://books.openedition.org/cjb/883. Marek, A. 2015. ‘Leadership in Catholic Social Teaching.’ Annales Etyka wzyciu gospodarczym 18 (4): 27–38. Marouani, A. 2017. ‘L’apport d’Ibn Khaldûn à La Pensée Économique: Essai de Réévaluation Critique.’ Critique Économique, no. 35, 81–101. Maurya, S. K. 2021. ‘The Concept of Justice in Reference with Philoso­phies of Plato and Aristotle: A Critical Study.’ Journal of Liberty and International A.airs 7 (3): 250–66. Mbaye, R. 2021. ‘Shared Religious Constants: A Factor of Unity be­tween Morocco and African Countries.’ Mohammed vi Foundation of African Oulema, 9January. https://www.fm6oa.org/en/shared -religious-constants-a-factor-of-unity-between-morocco-and -african-countries/. McKay, R., and H. Whitehouse. 215. ‘Religion and Morality.’ Psychologi­cal Bulletin 141 (2): 447–73. Ministry of Foreign A.airs, African Cooperation and Moroccan Expa­triates. 2023.‘hm KingMohammed vi,CommanderoftheFaithful, Addressed a Message to Participants in the Colloquium Organized [257] on the Theme of “Fatwa Rules in the African Context”.’ Ministry of Foreign A.airs, African Cooperation and Moroccan Expatriates, 8 July. https://diplomatie.ma/en/hm-king-mohammed-vi -commander-faithful-addressed-message-participants -colloquium-organized-theme-fatwa-rules-african-context Mtata, K. 2015. Religion and Development: Friends or Foes? Geneva: The Lutheran World Federation. Mubarak, A. 2009. ‘Religion and Politics: Integration, Separation and Con.ict; Relations to Power of Religion and Politics.’ https://www .irenees.net/bdf_.che-analyse-884_en.html. Nejjar, S. 2018. ‘Morocco’s Political Use of Islam and Its Religious Diplo­macy.’ Euro Mesco Policy Brief, no. 86. Niazi, Z. 2023. ‘Role of Inter-Religious Harmony in Peaceful Society.’ https://doi.org/10.20944/preprints202311.0473.v1. Olumide, E. 2021. ‘An Evaluation of the Impacts of Religion and Politics in Developing Nigeria Towards Integrity.’ Nigerian Journal of Chris­tian Studies 4(2):105–18. Peccoud, D., ed. Philosophical and Spiritual Perspectives on Decent Work. Geneva: International Labour Organization. Pišev, M. ‘Anthropological Aspects of Ibn Khaldun’s Muqaddimah: A Critical Examination.’ Encyclopédie internationale des histoires de l’anthropologie. https://www.berose.fr/article1777.html Plato. 1998. The Republic. Translated by B. Jowett. https://www .gutenberg.org/.les/1497/1497-h/1497-h.htm. Ponti.cal Council for Justice and Peace. 2004. Compendium of the Social Doctrine of the Church. Vatican: Libreria Editrice Vaticana. Rachik,H.2016. L’esprit du terrain: etudes anthropologiques au Maroc. Ra­bat: Centre Jacques-Berque. Ratzinger, J. C., and T. Bertone. 2002. Congregation for the Doctrine of the Faith: Doctrinal Note on the Participation of Catholics in Political Life. Vatican: O.ces of the Congregation for the Doctrine of the Faith. Reave, L. 2005. ‘Spiritual Values and Practices Related to Leadership Ef­fectiveness.’ The Leadership Quarterly 16 (5): 655–87. Reese, T. 2003. Inside the Vatican: The Politics and Organization of the Catholic Church. Cambridge, ma: Harvard University Press. Rosen, R. D. 2022. ‘What Does Judaism Say about the Economy and So­cial Justice?’ Council for Inclusive Capitalism, 3 October. https:// [258] www.inclusivecapitalism.com/news-insights/what-does-judaism -say-about-the-economy-and-social-justice/. Samul, J. 2020. ‘Spiritual Leadership: Meaning in the Sustainable Work­place.’ Sustainibility 12 (1): 267. Sbai El Idrissi, L. 2005. ‘Sou.sme et développement économique: les leçons du Maroc.’ Finance & Bien Commun 22 (2): 99–112. Schoenberger, S. 2024. ‘The Importance of Interfaith Dialogue.’ Religion and Peace, 23 May. https://blog.hartfordinternational.edu/2024/05 /23/importance-of-interfaith-dialogue/. Seidler, J. 1986. ‘Contested Accommodation: The Catholic Church as a Special Case of Social Change.’ Social Forces 64 (4): 847–74. Serrano, J. A. 2023. ‘Divine Democracy: Examining the Intersection of Religion and Politics in Civil Religion.’ Masters thesis, Claremont Graduate University. Thibdeau, J. 2021. ‘Su.sm in Moroccan Public Life: Teaching Ethics and Performing Piety.’ Doctoral dissertation, University of California. Thibaud,P. 1978. ‘Sectes,Politique et Religion.’ Esprit, no. 13: 48–52. ———. 2014. ‘Religion et Politique, Interférences Modernes.’ Transver­salités 131 (3): 133–48. Tornau, C. 2024. ‘Augustine of Hippo.’ In Stanford Encyclopedia of Philos­ophy, edited by E. N. Zalta and U. Nodelman. https://plato.stanford .edu/entries/augustine/. Martínez-Torrón, J. M., and C. Durham, eds. 2014. Religion and the Sec­ular State. Washington: Brigham Young University; Madrid: Com­plutense University of Madrid. Tou.q, A. 2022. ‘The “Commandership of the Faithful” Institution in Morocco: Pertinent Points for the Debate on the Caliphate (the Khil¯ afah).’ Hespéris-Tamuda 57 (1): 175–94. Triantaphyllidu, A., and T. Magazzini. 2021. Routledge Handbook on the Governance of Religious Diversity. London: Routledge. Trigilio, J. 2013. ‘What Is Papal Primacy?’ Legatus, 2 May. https://legatus .org/news/what-is-papal-primacy. United Nations. 2008. ‘Adopting Consensus Resolution, General As­sembly A.rms Mutual Understanding, Interreligious Dialogue As Important Dimensions of Culture of Peace.’ United Nations, 13 November. https://press.un.org/en/2008/ga10784.doc.htm. Democratization in Tunisia: Negotiating the Interplay of Policy and Economic Development noureddine selmi Doha Institute for Graduate Studies, Qatar noureddine.selmi@dohainstitute.edu.qa This study examines the implications of the Tunisian revolution in 2011 and its subsequent democratic evolution within the context of prerequisites for democratic transition during the Arab Spring. The in­quiry delves into two primary dimensions: .rstly, an exploration of the objective rationales and contributing factors leading to the imped­iments in Tunisia’s democratic metamorphosis. This involves identi­fying the elements of foreign intervention and the political and social forces that have played a role in the setback, with speci.c emphasis on entities such as the Tunisian General Labor Union (ugtt), me­dia outlets, civil society organizations, and in.uential entities within the bureaucratic administration. Secondly, the study seeks to assess the economic advancements that have fallen short of anticipated out­comes, evident in the decline across various economic indicators and the deteriorating socioeconomic landscape, foreshadowing an immi­nent economic crisis with profound social and security implications. The research contends that attributing the developmental setbacks, economic downturn, and insu.cient economic progress alone cannot be solely accountable for impeding the trajectory of democratic trans­formation in Tunisia. It is imperative to also comprehend the pivotal role played by ideological con.icts and the inadequate consolidation of democratic culture. Key Words: democratization, economic development, Middle East, North Africa, Arab spring, Tunisia © 2024 Noureddine Selmi https://doi.org/10.70908/2232-6022/17.259-282 introduction Scholars have extensively examined the pivotal role of democratic tran­ sitions in reshaping societies (Wang and Lo 2021). The dissolution of authoritarian regimes presents formidable challenges (Lachapelle and Hellmeier 2024). However, the attainment of democracy mirrors soci­etal aspirations and facilitates more inclusive governance structures (Yerkes 2023). Furthermore, scholarly discourse continues to under­score the intricate relationship between democratic transitions and a [260] nation’s economic well-being and income levels (Epstein et al. 2006; Acemoglu et al. 2019). This relationship was established, in 1959 by Lipset, who proposed a link between democracy and economic devel­opment. Despite recent empirical studies, from post-Arab Spring con­texts to experiences in South Africa, Pakistan, Poland, Spain, Portugal, Greece, Latin America, Indonesia, Malaysia, and beyond, which under­score the importance of economic dynamics in democratic transitions (Holmes 2023; Yerkes 2023; Langston 2023; Oztig 2023; Papadogiannis and Ramos Pinto 2023; Ufen 2023; Saidin and Storm 2024), this domain warrants further scholarly inquiry. Additional research is needed to elu­cidate nuanced aspects. This article seeks to bridge existing research gaps y scrutinizing the nexus between democratic transition and economic development (Kabir and Alam 2021). Theoretically, it aims to elucidate the catalytic role of economic achievements in facilitating successful democratic transitions. Empirically, it examines the determinants underlying the democratic regression in Tunisia, with a particular emphasis on eco­nomic factors. Through a meticulous examination of Tunisia’s post-revolutionary landscape, this study enhances our comprehension of democratization processes and their multifaceted nature. Additionally, this research, alongside its scrutiny of internal determinants, explores the impact of external actors in shaping a nation’s political (Krüger and Stahl 2016; Maryon 2023), economic, and social trajectories during democratic transitions (Fentahun 2023). According to House (2020), Tunisia is the only free country in the Arab world. Thus, the Tunisian case study o.ers valuable insights into promoting democratic gover­nance and fostering economic development, especially within the Arab world and other developing regions. literature review The Determinants of Successful Democratization Researchers have identi.ed several essential conditions necessary for successful democratic transitions (Marzo 2020). The extensive litera­ture on this topic categorizes these factors into three main groups: so­cial and economic factors, political and institutional factors, and demo­graphic, cultural, and international factors (Rød, Knutsen, and Hegre 2020). Key elements in driving democratization include grassroots mo­bilization, e.ective interactions among political parties and .gures, and the socio-economic structure (Langston 2023; Teorell 2010). In addition to this general classi.cation, long-term autocratic re-[261] gimes are less likely to be overthrown, which a.ects democratic tran­sition (Rød, Knutsen, and Hegre 2020). Successful democratization often requires exploiting divisions within the authoritarian regime, as confronting a strong, uni.ed autocratic regime is more di.cult (O’Donnell, Schmitter, and Whitehead 2013). Moreover, exploiting di­visions within the incumbent regime is considered one of the condi­tions for establishing democracy (Teorell 2010), and democratic forces must carefully understand these divisions (Lowenthal and Bitar 2016) and interact accordingly. Opposition political elites and civil society must identify and col­laborate with regime insiders who support change (Henneberg 2024). Building bridges with these individuals is crucial for developing a shared vision for transition (O’Donnell, Schmitter, and Whitehead 2013). However, this collaboration requires assurances that the rights and possessions of regime supporters will be protected under the rule of law (Lowenthal and Bitar 2016). E.ective negotiation skills are es­sential for democratic elites (Hassan, Lorch, and Ranko 2020), who must also resist public demands for radical measures against former regime members (Teorell 2010; Lowenthal and Bitar 2016). Managing relationships with security services and armed forces is another critical task for reformers. Successful democratization hinges on placing the armed forces under democratic civilian control, which requires consen­sus among civilian elites and e.ective oversight mechanisms (Hassan, Lorch, and Ranko 2020; McCarthy 2023; Mietzner 2014). Reformers should respect military leaders, protect them, and provide necessary resources to ensure their roles are ful.lled e.ectively (Lowenthal and Bitar 2016). The political environment during the transition is a signi.cant de­terminant of democratization success (Holmes 2023; Langston 2023). Political parties and elites must be willing and able to engage e.ec­tively with the autocratic regime. Pro-democracy forces should remain united and pragmatic, avoiding internal con.icts and building coali­tions to focus on governance fundamentals (Lachapelle and Hellmeier 2024; Lowenthal and Bitar 2016; Mietzner 2014). Post-transition, po­litical and civil society actors must assess the performance of new of­.cials while considering inherited corruption and ine.ciencies (Yom 2005). Disruptive behavior and negative attitudes from these groups can pose threats to democracy (Holmes 2023; Lowenthal and Bitar [262] 2016; Albrecht et al. 2021). The form of government adopted post-democratization, whether presidential or parliamentary, can signi.­cantly in.uence the success of the transition (Cheibub 2007). The ef­fectiveness of a democratic government hinges on its capacity to deliver top-notch public services, gather political backing, and demonstrate ro­bust public sector capabilities (Fukuyama 2014). Well-organized demo­cratic political parties that represent the needs of all social classes are essential for e.ective mobilization and support (Lowenthal and Bitar 2016). The media play a crucial role in democratization (Rennick 2023). Es­tablishing press freedom is vital, as the media serve as a guardian of democracy and can mobilize peaceful demonstrations (Teorell 2010). However, violent opposition can undermine democratization e.orts by legitimizing regime suppression. International factors, including the support of democratic countries and organizations, are crucial for suc­cessful transitions (Teorell 2010). The breakdown of autocratic regimes often leads to new autocracies rather than democracies, making the interplay of these factors vital (Narayan, Narayan, and Smyth 2011; Lachapelle and Hellmeier, 2024). Economic factors also signi.cantly in­.uence democratic transitions. The availability of natural resources can reduce society’s inclination toward political change, even under author­itarian regimes (Rød, Knutsen, and Hegre 2020). Economic growth and in.ation can adversely a.ect democracies (Kennedy 2010). Democratization and Economic Development Empirical studies exploring the link between economic development and democracy o.er diverse viewpoints but fail to establish a consen­sus (Pelke 2023; Mohammadi, Boccia, and Tohidi 2023). Despite ex­tensive theoretical and empirical literature, results cannot be univer­sally applied to all situations worldwide (Doucouliagos and Ulubasoglu 2008). The main viewpoints on this relationship include the compati­bility view, con.ict view, skeptical view (Carbone, Memoli, and Quar­tapelle 2016), and curvilinear view (Mohammadi, Boccia, and Tohidi 2023). The compatibility view suggests mutual reinforcement between democracy and economic development. Studies indicate that democra­tization episodes can result in up to 15 per cent higher gdp per capita (Pelke 2023). The transition to permanent democracy has the potential to yield a signi.cant 31 percent rise in income per capita (Acemoglu et al. 2019). However, the impact varies across di.erent stages of demo­cratic transition (Colagrossi, Rossignoli, and Maggioni 2020; Krieger [263] 2022). The con.ict view sees a negative relationship between democracy and economic performance. For example, strengthening democracy has been found to negatively in.uence real incomes in Gabon and Sierra Leone (Narayan, Narayan, and Smyth 2011). The skeptical view acknowledges that while democracy and economic development can be compatible, this is not universally applicable. The curvilinear view posits that democracy initially harms economic development in low-income countries but bene.ts it in high-income ones. Arguments sup­porting the positive impact of democracy on economic development are numerous. Democracy is associated with political and social ben­e.ts as well as economic gains, with slower economic development observed in the absence of democratic governance (Papaioannou and Siourounis 2008). Democracy establishes reliable accountability mech­anisms, motivating governments to maintain high levels of economic performance (Carbone, Memoli, and Quartapelle 2016). It also fosters political stability and the rule of law, which are crucial for attracting investors and enhancing economic growth rates. The least-developed countriesare advisedtoimprove democratic practicestospureconomic development (Kabir and Alam 2021). However, some studies argue that democracy does not directly af­fect economic development, as various factors in.uence economic per­formance regardless of regime type, including cultural, social, politi­cal, and structural factors (Knutsen 2012; Imai, Kim, and Wang 2023; Murtin and Wacziarg 2014). Early studies found no signi.cant rela­tionship between democracy and growth (Helliwell 1994). The rela­tionship, if it exists, is often non-linear (Barro 1996; Minier 1998). Research from the 2000s generally supports the idea that democracy promotes economic development (Baum and Lake 2003). Giavazzi and Tabellini (2005) acknowledge the fragility of this relationship. Cross-national studies .nd no signi.cant di.erences in development asso­ciated with democracy but note decreases in economic volatility (Ro­drik and Wacziarg 2005). Doucouliagos and Ulubasoglu (2008) infer that democracy in.uences economic growth indirectly via elevated hu­ man capital, reduced in.ation, diminished political instability, and in­ creased economic freedom. Democracy’s indirect e.ects on economic development are explored through various channels. It can establish crucial institutions and [264] structures that enhance economic progress (Govantes and Hernando de Larramendi 2023; Mohammadi, Boccia, and Tohidi 2023) and cre­ate environments conducive to collaborative economic e.orts (Nosier and El-Karamani 2018). Wealthier nations are more likely to sustain democratic regimes (Przeworski et al. 2000), and economic growth re­duces poverty and inequality, fostering a more favorable environment for democracy (Boix and Stokes 2003). These indirect e.ects include higher political stability, reduced in.ation, increased human capital, and greater economic freedom (Doucouliagos and Ulubasoglu 2008). Several determinants in.uence democracy’s e.ects on economic development. One determinant is the stage of democracy. Initially, growth might proceed at asluggishpace, yetitstabilizesatelevated rates over the medium and long term (Papaioannou and Siourounis 2008; Densumite 2022). Another determinant is the quality of democ­racy; high-quality democracies are more stable and less economically volatile than fragile democracies (Epstein et al. 2006). Country char­acteristics also play a role, with regional, cultural, and social struc­tures a.ecting how democracy in.uences growth. In poor countries, democracy a.ects economic growth negatively, while in rich ones, the e.ect is positive (Elsässer and Schäfer 2023; Nosier and El-Karamani 2018). Literature discusses democratization’s e.ects on economic devel­opment from two viewpoints: bene.cial and detrimental. Some schol­ars argue that democratization in poor developing countries might lead to political instability and poor economic performance (Rodrik and Wacziarg 2005). However, successful democratic transitions typ­ically result in resumed economic growth (Papaioannou and Siourou­nis 2008), enhancing democratic consolidation and moving away from autocracies (Epstein et al. 2006). The economic costs and bene.ts of democratization vary according to the stage of democratic transforma­tion, with short-term costs potentially giving way to long-term growth (Papaioannou and Siourounis 2008; Densumite 2022). Studies show mixed results, with some countries experiencing economic growth af­ter democratization, while others face initial economic decline (Knut­sen 2012; Acemoglu et al. 2019). Achieving successful democratization involves navigating a com­plex interplay of structural and institutional factors (Marzo 2020; Rød, Knutsen, and Hegre 2020; Govantes and Hernando de Larramendi 2023). Managing these dynamics e.ectively is pivotal for support­ing democratic transitions (Holmes 2023; Pelke 2023; Lachapelle and [265] Hellmeier 2024). A recurring inquiry in this realm, particularly post-Arab Spring, concerns the nature of the relationship between democ­racy and economic growth (Densumite 2022; Krieger 2022). Scholars continue to debate whether this connection is robust and direct, and whether its impact is short or long term (Hayek 1960; Helliwell 1994; Barro 1996; Minier 1998; Baum and Lake 2003; Giavazzi and Tabellini 2005; Rodrik and Wacziarg 2005; Doucouliagos and Ulubasoglu 2008; Tang and Yung 2008; Imai, Kim, and Wang 2023). Some studies suggest that sustained economic growth hinges on the enduring protection of civil and political liberties (Papaioannou and Siourounis 2008; Rachdi and Saidi 2015). Clearly, the relationship between democratization and economic development is intricate and multifaceted, shaped by diverse factors and developmental stages. A nuanced understanding of these dynamics is essential for policymakers and scholars alike, striving to foster both democratic governance and economic prosperity. These questions are more pertinent to the case of Tunisia than to other countries for several reasons. First, it was the Tunisian people who initiated the Arab Spring at the end of 2010 and the beginning of 2011. Additionally, Tunisia has the most successful democratization ex­perience among all the Arab Spring countries. Recently, however, the Tunisian case has resurfaced with questions about the failure of its transition following the coup d’état by Kais Saied. TunisiaisanArabMuslimcountry,aswellasaNorthAfrican one. Its location in the Mediterranean, very close to Europe, gives it a strategic position despite its small size compared to its North African neighbors, Algeria and Libya. The Tunisian people are known for their openness, culture, and level of education. Political life in Tunisia was dynamic even during Ben Ali’s dictatorship, characterized by active political par­ties and a vibrant civil society (Khakee and Weilandt 2021; Weilandt 2021). Despite di.culties, the Tunisian economy was diverse and took advantage of the country’s geographical location to strengthen cooper­ation with foreign countries, particularly Europe (Mouhib 2014; Krüger and Stahl, 2016; Khakee and Weilandt, 2021). It developed sectors of high added value and foreign exchange earners, such as the export of agricultural products (olive oil, dates, citrus fruits), services (it, con­ sulting), and tourism. In the few years following the 2011 revolution, there was almost a consensus that Tunisia would succeed in its democratic transition; with [266] all signs indicating it could overcome obstacles. However, the current political, economic, and social situation is alarming. Some observers say Tunisia has returned to the conditions present at the end of Ben Ali’s era, 20 years ago. This invites us to focus on the case of Tunisia to better understand the process of democratization and the dialectic between politics and economics in its experience. methodology Our research methodology rested on three key foundations. The .rst pillar involved participant observation conducted by the researcher, who is a Tunisian politician with substantial experience in various Tunisian governments following the 2011 revolution. With roles ex­ tending from governmental positions to board memberships in .nan­ cial institutions, the researcher’s tenure from 2012 to 2020 provided unique insights for both participant observation and a detailed case study. This research adopted a participant observation methodology (Kurz 1983; Philip and Lambelet 2014) alongside a case study approach (Yin 2014) to address our research inquiries. The second pillar consisted of a secondary study that relied on re­ports and o.cial publications from national institutions such as the Tunisian Central Bank and the National Institute of Statistics, as well as internationalorganizationsincludingtheWorldBank, imf,and oecd. The third pillar involved semi-structured interviews conducted with a select group of high-ranking government o.cials, many of whom had served as ministers in various post-revolutionary governments. These interviews, totaling nine, were conducted in person between March and May 2024, including six former ministers, one deputy minister, and two governors. Most participants were directly engaged in economic and developmental issues across multiple ministries. These interviews were essential for providing nuanced insights into our study. Interviews were conducted face-to-face with .ve participants (three in Paris and two in Doha), while the remaining four were conducted re­motely. Interview durations varied from 45 minutes to two and a half hours. While participants declined to be audio-rcorded, detailed notes were meticulously taken to accurately capture the discussions. The semi-structured interview protocol covered key topics relevant to our research objectives, such as the democratic transition in Arab Spring countries, internal (economic and other) and external (international context) challenges faced by governments, and the role of economic achievements in the success or failure of democratic transitions. [267] This study sought to o.er a comprehensive understanding of the trajectory of Tunisian democracy by integrating .ndings from partici­pant observation, interviews, and secondary data sources. This analysis contributed to existing literature on democratization and added to on­going discussions concerning the interplay between democratic change and economic development. findings This section presents the principal .ndings of our study on Tunisia’s democratic transition, examining the country’s journey since the coup d’état by Kais Saied. Drawing on participant bservation, empirical evi­dence, and insights from high-level government o.cials, our research provided a comprehensive analysis of Tunisia’s democratic evolution during the Arab Spring era. We uncovered a nuanced narrative that ex­plored achievements, challenges, and the intricate interplay between political and economic dynamics. Despite signi.cant hurdles, Tunisia demonstrated notable progress, evidenced by its rise in global democracy rankings from 56th to 35th place between 2011–2012 and 2014–2015, respectively. By 2020, Tunisia had stood out as the sole democratic Arab nation within the top 100 of the Democracy Index, prior to Kais Saied’s coup. Our study underscored the expansive scope for freedoms and robust civic participation, high­lighting successful transitions of power and responsibilities through various elections. While acknowledging these achievements, our research critically examined the major challenges encountered in Tunisia’s democratic trajectory, particularly within the economic dimension. We explored whether democracy catalyzed economic development in a nascent democratic state, emphasizing the equitable distribution of power and economic resources as pivotal. The study delved into the consolidation of power by democratically elected leaders, analyzing opposition to democratic transition from in.uential entities such as the Tunisian General Labor Union, media owned by business .gures, and internal bureaucratic centers of power. Additionally, we assessed external in.uences on Tunisia’s democratic path, attributing resistance to democratic principles to political forces and elites within the country (Fentahun 2023). Furthermore, our research identi.ed and analyzed four key factors [268] that had impeded Tunisia’s democratic experience: shortcomings in transitional justice and reconciliation processes, challenges in estab­lishing constitutional courts and addressing constitutional issues, the limited roles played by civil society in the democratic transition, and the emergence of populist rhetoric (Lakhal 2022; Khaddar 2023). In summary, this academic inquiry contributed a nuanced under­standing of Tunisia’s democratic experiment to the .elds of political science and international relations. Grounded in empirical evidence and theoretical frameworks, it o.ered insights into the complex dy­namics shaping Tunisia’s democratic journey and enriched global dis­course. Particularly signi.cant was our examination of internal fac­tors in.uencing democratic transitions, including the roles of political forces, the Tunisian General Labor Union (ugtt), media, civil society organizations, and bureaucratic structures. Moreover, we critically as­sessed factors related to transitional justice, the establishment of con­stitutional institutions, populism, and economic achievements (Lakhal 2022; Khaddar 2023). Our study also provided valuable insights for international relations by contrasting Tunisia’s democratization experience with that of East­ern European countries, which received robust Western support dur­ing the 1990s. Tunisia’s unique geopolitical challenges during its demo­cratic transition underscore its distinctive path. Elite Failures, Union Power, and Media Meddling The responsibility for obstructing democratic transition in Tunisia pri­marily lies with the political elite and various parties (Hassan, Lorch, and Ranko 2020; Govantes and Hernando de Larramendi 2023), who have failed to e.ectively engage and redirect forces opposed to demo­cratic principles. Historical analysis reveals that during President Ben Ali’s tenure, challenges faced by the opposition were exacerbated by party and ideological divisions, which impeded progress toward democ­racy. We do not condemn the opposition political parties and elites during the Ben Ali era, as they were engaged in a continuous struggle against an authoritarian regime heavily reliant on security forces and the ruling political party, the rcd, which dominated all levels of the state and administration (Maryon 2023). Ben Ali himself, with a background in security and having previously served as Minister of the Interior before his coup d’état in 1987, bolstered his rule through the Ministry of the Interior’s security apparatus. Similar to Bourguiba, Ben Ali distrusted [269] the military, leading to their marginalization under his regime, along with the Ministry of Defense. The systematic occupation of administrative positions by the rcd was a deliberate strategy of the Ben Ali regime. Following a widespread security crackdown on Islamists in the early 1990s, the regime swiftly consolidated control over public administration and various sectors of the economy within a few years. This prolonged control over the ad­ministration for more than two decades allowed the Ben Ali regime to establish a deep state, which obstructed Tunisia’s democratic transition following the revolution. In contrast to previous periods under Presidents Bourguiba and Ben Ali, where the Tunisian General Labor Union (ugtt) showed limited activism with notable exceptions like the 1978 confrontations and a brief strike in 2011, recent years have witnessed a surge in strikes, ex­ceeding 35,000 in 2012 and 2013 alone. These strikes, notably a.ecting education, health, transportation, and phosphate production, under­score the ugtt’s powerful in.uence despite its participation in post­2011 governments. However, as con.rmed by Weipert-Fenner (2023), following the bloody repression of the 1978 general strike, the ugtt became increasingly obedient to the ruling elite at the national level. Nevertheless, after the revolution, instead of supporting the demo­cratic transition, it often played a role of social, economic, and political blockage. Several leftist parties, including the Popular Front, often aligned with the ugtt, have been accused of hindering governmental e.orts since Ben Ali’s departure. Scholars like Netterstrøm (2016) argue that the ugtt’srolehasbeencounterproductivetodemocraticideals,echo­ing Prime Minister Youssef Chahed’s accusations in 2018. Yerkes (2023) contends that the ugtt’s historical alignment with regimes, exempli­.ed by its avoidance of involvement in the 2008 Gafsa protests, illus­trates its non-revolutionary stance. Media outlets owned by .gures with corruption allegations also played a signi.cant role in undermining Tunisia’s democratic transi­tion, perpetuating anti-democratic sentiments and disparaging elected o.cials. Despite the establishment of the Higher Authority for Audio­visual Communication (haica), intended to regulate media impar­tially, its failures allowed media manipulation to .ourish, in.uencing public opinion and favoring counter-revolutionary factions (Albrecht [270] et al. 2021). Our .ndings corroborate those of several other studies on the Tunisian context regarding the negative role played by the media in the democratic transition. Contrary to their assumed role as a catalyst for democracy, our research supports the conclusions of Lynch (2013), Karolak (2020), and Rennick (2023): the media have promoted social division, fostered uncertainty, and ampli.ed frustration during the transition. As Rennick (2023) elucidates, the media primarily assumed this negative role through manipulation by political parties from the radical left or remnants of the former Ben Ali regime. Administrative resistance to reform within the Tunisian govern­ment further complicated democratic progress. The persistence of bureaucratic inertia and loyalty to past regimes hindered ministe­rial initiatives, perpetuating ine.ciencies and obstructing meaning­ful change (Söyler 2013). Moreover, international indi.erence toward Tunisia’s democratic struggles, in stark contrast to support extended to other post-revolutionary movements, exacerbated internal challenges. The broader regional context, including the 2013 military coup in Egypt led by Abdel Fattah Al-Sissi on July 3, and ongoing crises in Libya, has also impacted Tunisia’s democratic trajectory, with Algeria adopt­ing a cautious stance towards its neighbor. These external factors, com­bined with internal challenges, have tested Tunisia’s resilience and its commitment to democratic ideals amidst political, economic, and secu­rity uncertainties (Maryon 2023). While our research addressed the issue of external actors and delved into interviews, the .ndings remain inconclusive, lacking clarity for de.nitive conclusions. Participants acknowledged the signi.cance of foreign intervention but expressed ambiguity rather than certainty. They emphasized the positive impact of direct involvement from of­.cial channels like ambassadors and o.cial delegations, who showed sympathy and support for Tunisia’s emerging democracy. However, dis­cussions also revealed concerns about indirect impacts, including dis­trust from certain countries toward the Tunisian revolution (such as France, the uae, Saudi Arabia) and issues related to ngos and civil society in relation to donors or foreign actors (Krüger and Stahl 2016; Weilandt 2021). Despite the clearly negative perceptions of these latter actors, itisnoteworthythatmany respondents maintained cautious reservations, particularly concerning potential implications in the ter­rorist attacks or riots. In conclusion, Tunisia’s path to democratic consolidation remains fraught with internal and external challenges, necessitating compre-[271] hensive reforms, robust institutional frameworks, and international support to safeguard its democratic gains and foster sustainable devel­opment. This version aligns with the style and structure typically found in academic journals, emphasizing citations and objective analysis of events and scholarly perspectives. Political Failures and Populist Obstructions In addition to the main entities that were presented in the previous paragraph and which hindered the democratic process in Tunisia, sev­eral critical factors linked to the political trajectory also played an im­portant role. Previous research emphasizes comprehensive and inclu­sive reconciliation as essential for a successful democratic transition (Je.ery 2021). This reconciliation process should encompass a national dialogue, compensation for victims, accountability for those involved in the previous regime’s abuses, and comprehensive institutional re­forms. However, Tunisia has failed to implement these measures. The absence of reconciliation e.orts will not only have adverse conse­quences for the current democratic transition but will also leave unre­solved grievances for a.ected individuals and their families, potentially for decades (Albrecht et al. 2021). There exists a signi.cant gap between theory and reality in Tunisia concerning dialogue, reconciliation, and the outcomes of the demo­cratic transition. This paradox becomes more pronounced when we ex­amine the sociological characteristics of Tunisians and the events that have transpired during the democratization process. Tunisia, known for its tourism and strategic geographic location, is a crossroads of diverse cultures. Tunisians are generally welcom­ing, open, cultured, and tolerant. Historical experience shows that Tunisians favor dialogue over violence, resolving successive crises thro­ugh discussion. However, despite these attributes, Tunisians have struggled to achieve true reconciliation, remaining distinctly divided. This division can be attributed to enduring ideological con.icts among political parties, which have deep roots. Many of today’s po­litical leaders were rivals or even enemies during their university years. For decades, Tunisian universities were frontlines for di.erent politi­cal and ideological factions, particularly between Islamists and leftists. The overwhelming in.uence of ideology has hindered reconciliation, fostering a climate of distrust and even hatred. This environment ulti­ [272] mately facilitated the rise of Kais Saied, who exploited these divisions for his own ends. We agree with Govantes and Hernando de Larramendi (2023), one of the critical missteps during Tunisia’s democratic transition was the failure to establish a functional Constitutional Court and to consoli­date other constitutional bodies. Despite signi.cant progress in setting up various institutions and judicial bodies, their operations have been plagued by controversies and con.icts. These issues have allowed anti-revolutionary forces to undermine and, in some cases, terminate the functions of these bodies. Several entities have utilized populist rhetoric to disrupt the demo­cratic process (Lakhal 2022; Khaddar 2023). Following the 2014 elec­tions, anti-democratic factions such as the Free Constitutional Party emerged. This party, supportive of the old regime, dedicated itself to obstructing parliamentary sessions and discrediting the legitimacy of the democratically elected parliament. Funded by various anti-revo­lutionary forces, these groups exploited their resources to destabilize Tunisia’s political landscape, contributing to the current state of a.airs. The lack of neutrality among many civil society organizations has prevented them from fostering dialogue or national consensus on democratic principles, including the acceptance of election results (Ufen 2023). The retreat of most civil society components from the protest scene after July 25, 2021, is therefore unsurprising (Yom 2005). The politicization, ideological alignment, and pursuit of self-interest by entities like the Tunisian General Labor Union, the Tunisian Con­federation of Industry, Trade, and Handicrafts, the National Bar Asso­ciation, the Tunisian League for Human Rights, the National Union of Tunisian Women, and the National Union of Tunisian Journalists have hindered their endorsement of democratic transformation. This bias has profoundly negatively a.ected Tunisia’s democratic transition, as civil society is fundamentally required to monitor and defend human rights and freedoms (Juan and Stepan 1996; Henneberg 2024). In conclusion, these factors, alongside the obstructive actions of key entities, have signi.cantly hindered Tunisia’s progress toward a stable and functional democracy. The interplay of political missteps, lack of reconciliation, and the detrimental role of both populist and civil so­ciety organizations underscore the complexity of achieving democratic consolidation in Tunisia (Lakhal 2022; Khaddar 2023). Post-Revolution Economic Trials: Missed Opportunities [273] and Structural Pitfalls Despite the talk of the Tunisian economic miracle that we heard during the Ben Ali era, several unfavorable factors a.ected the revolution, in­cluding unemployment, social injustice, regional imbalances and nepo­tism, corruption, and bribery. In 2011, under Prime Minister Beji Caid Essebsi, over 200,000 new employees were recruited into the public sec­tor, mainly in the Ministry of the Interior. Additionally, about 40,000 individuals with questionable legal statuses were regularized. Appoint­ments also included bene.ciaries of the general legislative amnesty (5,850), and the martyrs and wounded of the revolution (2,480). This increased the number of government employees from around 450,000 to 650,000. Political parties lacked precise economic programs and a clear vision for reform. Opposition parties, primarily focused on rights and free­doms against the Ben Ali regime, were unprepared to formulate eco­nomic policies. Consequently, economic policymaking was entrusted to individuals from the previous regime and unelected experts with no party a.liations. This lack of alternative visions led to a continuation of the previous regime’s approach. Despite the revolution and global fas­cination with it, signi.cant opportunities for Tunisia’s economy were squandered locally and regionally (Selmi and Dornier 2017). Engaging with international institutions such as the International Monetary Fund (imf) and the World Bank was deemed essential, but these interactions frequently compromised Tunisia’s sovereignty. For example, the imf had access to detailed information through inter­views with o.cials in state institutions, which weakened the state and all parties involved in governance. To address urgent demands and continuous pressure on govern­ments, there was a notable inclination toward borrowing and favor­ing a market economy without adequate controls (Govantes and Her­nando de Larramendi 2023). Many loans intended for investment were redirected to other purposes, such as salary increases or general con­sumption. This led to a gradual erosion of transparency, increased cor­ruption, tax evasion, and the shadow economy. Business leaders and wealth owners were criticized for not showing enthusiasm for addi­tional investment. Some in.uential families continued to dominate the country’s economy (Statement by Patrick Bargamini, European Union Ambassador to Tunisia, to Le Monde on July 9, 2019). Government le­ [274] niency toward corruption encouraged many businesspeople to in.l­trate media and politics, establish parties, and run for elections, leading to ine.ciency. Public institutions in Tunisia face complex economic challenges, in­cluding precarious .nancial situations, poor management, and perfor­mance issues. Many public sector institutions are led by directors who were chosen without consideration of their competence. As a result, they are unable to implement e.ective strategies for improving perfor­mance and are often overwhelmed by union pressures, leading some institutions to bankruptcy. The large-scale disarray after the revolution had severe negative repercussions on the Tunisian economy. For exam­ple, the phosphate sector, a signi.cant source of hard currency income, was almost entirely halted due to union demands and protests by resi­dents around production sites. Inconsistent policies of successive governments after the revolution detrimentally a.ected both the economy and the social situation of cit­izens. Continuous wage increases led to in.ation rates exceeding 10 per cent for the .rst time, resulting in a deterioration of individual income levels and purchasing power. Despite growing debt, funding for many projects without thorough feasibility studies was justi.ed by popular pressures or electoral objectives. Frequent changes in govern­ment created signi.cant performance confusion, worsening economic conditions. Successive governments were weak against business lead­ers who exerted pressure on ministers, administration, and parliament for more bene.ts and favorable policies. Tax evasion was one of the most complex issues, with little progress made towards tax reform by various sectors. Governments were unable to resolve the subsidy issue, with much of it not reaching its intended recipients (electricity, fuels, and consumer goods). This created a suitable environment for smug­gling and exploitation by many foreign companies, leading to Tunisia being listed on the European Council’s ‘tax havens’ list in 2017. The vol­ume of commercial fraud from invoice manipulation presented to cus­toms authorities by importers and exporters was estimated to be $374 million in 2021. Certainly, the Tunisian economy faced numerous structural prob­ lems during the post-revolution period (Selmi 2017). However, al­though economic achievements did not meet the aspirations of weaker social classes, there were bright spots. One example is the decrease in the poverty index during the Arab Spring period (2011–2020), or before and after 2014. Measures to improve economic reality for indi-[275] viduals included the requirement to declare assets to a constitutional authority, an important step toward transparency and combating illicit wealth (House 2020). Additionally, the establishment of a Higher Ju­dicial Council sent a strong message to reassure investors. Several laws considered pillars for a sound national economy were approved, such as the Public Procurement Regulation Act, the Public Institutions Re­form Act, the Investment Climate Improvement Act, and the Startup Act Tunisia. However, time and conditions were insu.cient for their e.ective implementation or for achieving tangible and visible goals. discussion and conclusion Popular expectations naturally run high after a revolution. However, these expectations can also hinder the democratic transition (Holmes 2023). High levels of disappointment, anger, feelings of deprivation, and resentment toward politicians provide fertile ground for counter­revolutionary forces aiming to undermine emerging democracies. These forces succeed in obstructing the democratic transition, not merely due to economic challenges, but also by leveraging these issues to attack the democratic process and negate its accomplishments. Many economists and researchers argue that years of democratic transition often coincide with challenging economic conditions, with growth rates hovering around zero. Acemoglu et al. (2019) examined 164 countries between 1960 and 2010, .nding that achieving democ­racy after non-democratic rule can result in a 20 percent increase in gross national income over the next thirty years following the transi­tion. Despite potential negative economic indicators during the transi­tion, research con.rms signi.cant economic improvement within ten years of democratization. The results of our study support those of Acemoglu et al. (2019), who emphasize that democracy involves more than institutions and free elections; a robust democratic culture and stakeholder unity are cru­cial. Our study also supports the .ndings of Yin (2014), who argues that democracy cannot be stable in a society divided into two large blocs, each seeing the other’s victory as a signi.cant threat to its core val-ues. Mexhuani (2024) concurs, noting that ideological con.icts do not constitute democratic pluralism but rather lead to a zero-sum game. He concludes that democratic transition requires a consensus among change forces for its success, commitment to democratic procedures, [276] and prioritization of these over their di.erences. Consensus is not the sole path to democratic transition. The example of Tunisia and the coup d’état by Kais Saied highlights the critical role of institutions. This sup­ports the conclusion of Weipert-Fenner (2023), who emphasizes that while consensus is vital for democratization, the development of insti­tutions that manage con.icts constructively signi.cantly impacts both the experiences within and the expectations of the new political sys­tem. Hinnebusch (2024) believes that the political economy in the Middle East and North Africa is unsuitable for democracy. He argues that while Tunisia and Egypt have the best prospects for democracy, revolutions often fail because of the control some families have over the economy. These powerful families need guarantees before accepting coexistence with democracy. Neglecting social and economic priorities, and turning political competition into cultural wars over identity – such as con.icts between secularists and Islamists – leads to destabilization. The return of the old elites in Tunisia’s October 2014 elections is a natural result of such ideological wars. Our examination of the Tunisian case yields .ndings that challenge the recommendations of Lowenthal and Bitar (2016), who advocate for extensive collaboration with supporters of the old regime to reassure them and safeguard all their rights and assets. The outcomes of our interviews align with those of Teorell (2010), who stipulates that the success of democratization in the presence of elements from the old regime hinges on a speci.c set of skills that democratic elites must possess notably strong negotiation abilities. Furthermore, Tunisian politicians have fallen into the same trap highlighted by McCarthy (2023), failing to subject the security forces and armed forces to demo­cratic civilian oversight. The Tunisian case underscores the assertions of Mietzner (2014), illustrating how political party con.icts provided an opening for Kais Saied to declare an almost military regime. The absence of genuine coalitions and the con.icts characterizing political life and interactions among democratic factions played a pivotal role in halting the democratic transition in Tunisia (Lachapelle and Hellmeier 2024; Lowenthal and Bitar 2016). The media’s in.uence emerges as an­other crucial determinant of a successful transition to democracy (Teo­rell 2010). Additionally, certain civil society organizations have posed substantial threats to democracy by adopting disruptive or even de­structive stances (Lowenthal and Bitar 2016; Henneberg 2024). In conclusion, our examination of Tunisia’s democratic transition [277] and economic progress indicates that the primary setback is not solely economic but also stems from ideological con.icts and counter-rev­olutionary forces. These forces, backed by radical left-wing political parties and associations, adeptly utilized the media, civil society, the ugtt, and the deep state to their advantage. Understanding the rela­tionship between democracy and economic growth has the potential to enhance forecasting precision, aiding non-democratic nations in har­nessing democratic mechanisms to e.ectively combat poverty. Future research should expand the sample size of interviewees and include more Arab Spring countries to better generalize the .ndings. Lastly, if scholars like Marc Lynch (2013) have previously forecasted the resur­gence of repressive Arab regimes, drawing from past mistakes, we, in turn, assert that despite the failed democratic transition in Tunisia, the elites still possess the capacity to navigate toward democracy if they glean insights from historical errors. references Acemoglu,D., S. Naidu, P. Restrepo,and J. A. Robinson.2019. ‘Democ­racy Does Cause Growth.’ Journal of Political Economy 127 (1): 47–100. Albrecht, H., D. Bishara, M. Bufano, and K. Koehler. 2021. ‘Popular Sup­port for Military Intervention and Anti-Establishment Alternatives in Tunisia: Appraising Outsider Eclecticism.’ Mediterranean Politics 28 (3): 492–516. Barro, R. J. 1996. ‘Democracy and Growth.’ Journal of Economic Growth 1(1): 1–27. Baum,M.A., andD. A.Lake. 2003. ‘The Political Economy of Growth: Democracy and Human Capital.’ American Journal of Political Science 47 (2): 333–47. Boix, C., and S. C. Stokes. 2003. ‘Endogenous Democratization.’ World Politics 55 (4): 517–49. Carbone, G. M., V. Memoli, and L. Quartapelle. 2016. ‘Are Lions Dem­ocrats? The Impact of Democratization on Economic Growth in Africa, 1980–2010.’ Democratization 23 (1): 27–48. Cheibub, J. A. 2007. Presidentialism, Parliamentarism, and Democracy. Cambridge: Cambridge University Press. [278] Colagrossi, M., D. Rossignoli, and M. A. Maggioni. 2020. ‘Does Democ­racy Cause Growth? A Meta-Analysis (of 2000 Regressions).’ Euro­pean Journal of Political Economy 61:101824. Densumite, S. 2022. ‘The Relationship between Democracy and Eco­nomic Growth: An Empirical Analysis.’ Asia Social Issues 16 (1): e254430. Doucouliagos, H., and M. A. Ulubasoglu. 2008. ‘Democracy and Eco­nomic Growth: A Meta-Analysis.’ American Journal of Political Science 52 (1): 61–83. Elsässer, L., and A. Schäfer. 2023. ‘Political Inequality in Rich Democra­cies.’ Annual Review of Political Science 26:469–87. Epstein, D. L.,R.Bates, J. Goldstone,I.Kristensen, andS.O’Halloran. 2006. ‘Democratic Transitions.’ American Journal of Political Science 50 (3): 551–69. Fentahun, G. 2023. ‘Foreign Aid in the Post-Colonial Africa: Means for Building Democracy or Ensuring Western Domination?’ Cogent So­cial Sciences 9(1): 2241257. Fukuyama, F. 2014. Political Order and Political Decay: From the Industrial Revolution to the Globalization of Democracy. London: Macmillan. Giavazzi, F., and G. Tabellini. 2005. ‘Economic and Political Liberaliza­tions.’ Journal of Monetary Economics 52 (7): 1297–330. Govantes, B., and M. Hernando de Larramendi. 2023. ‘The Tunisian Transition: A Winding Road to Democracy.’ The Journal of North African Studies 28 (2): 419–53. Hassan, M., J. Lorch, and A. Ranko. 2019. ‘Explaining Divergent Trans­formation Paths in Tunisia and Egypt: The Role of Inter-Elite Trust.’ Mediterranean Politics 25 (5): 553–78. Hayek, F. A. 1960. The Constitution of Liberty. Chicago: University of Chicago Press. Helliwell, J. F. 1994. ‘Empirical Linkages between Democracy and Eco­nomic Growth.’ British Journal of Political Science 24 (2): 225–48. Henneberg, S. 2024. ‘Civil Society’s Development in Tunisia’s Democra­tization Process, 2011–2021.’ Mediterranean Politics. https://doi.org /10.1080/13629395.2024.2361601. Hinnebusch, R. 2024. ‘Egypt and Syria: The Authoritarian Republics of the Middle East.’ In Research Handbook on Authoritarianism, edited by N. Lindstaedt andJ.J.Van den Bosch,370–85. Cheltenham:Ed­ward Elgar. Holmes, C. E. 2023. ‘What Went Right? South African Democracy and the Study of Political Science.’ Political Science Quarterly 138 (4): 563– 73. House, F. 2020. Freedom in the World 2020: A Leaderless Struggle for De­mocracy. Washington, dc: Freedom House. Imai, K., I. S. Kim, and E. Wang. 2023. ‘Matching Methods for Causal Inference with Time-Series Cross-Section Data.’ American Journal of Political Science 67 (3): 587–605. Je.ery, R. 2021. ‘Truth Commissions and Democratic Transitions: Nei­ther Truth and Reconciliation Nor Democratization in Nepal.’ Jour­ [279] nal of Human Rights 20 (3): 318–38. Juan, L., and A. Stepan. 1996. Problems of Democratic Transition and Con­solidation: Southern Europe, South America, and Post-Communist Eu­rope. Baltimore, md: jhu Press. Kabir, M. A., and N. Alam. 2021. ‘The E.cacy of Democracy and Free­dom in Fostering Economic Growth.’ Emerging Economy Studies 7(1): 76–93. Karolak, M. 2020. ‘Social Media in Democratic Transitions and Consol­idations: What Can We Learn from the Case of Tunisia?’ The Journal of North African Studies 25 (1): 8–33. Kennedy, R. 2010. ‘The Contradiction of Modernization: A Conditional Model of Endogenous Democratization.’ The Journal of Politics 72 (3): 785–98. Khaddar, M. 2023. ‘Tunisian Democratisation: Dashed Hopes between 2010 and 2022.’ The Journal of North African Studies 28 (6): 1324–44. Khakee, A., and R. Weilandt. 2021. ‘Supporting Democratic Partici­pation beyond Democracy Promotion? eu Relations with Moroc­can and Tunisian Civil Society in the Areas of Trade and Anti-Corruption.’ Mediterranean Politics 27 (4): 456–82. Knutsen, C. H. 2012. ‘Democracy and Economic Growth: A Survey of Ar­guments and Results.’ International Area Studies Review 15 (4): 393– 415. Krieger, T. 2022. ‘Democracy and the Quality of Economic Institutions: Theory and Evidence.’ Public Choice 192 (3): 357–76. Krüger,L.T., andB.Stahl. 2016. ‘The FrenchForeign Policy U-Turn in the Arab Spring: The Case of Tunisia.’ Mediterranean Politics 23 (2): 197–222. Kurz,D.E.1983. ‘The UseofParticipant Observation inEvaluation Re­search.’ Evaluation and Program Planning 6 (2): 93–102. Lachapelle, J., and S. Hellmeier. 2024. ‘Pathways to Democracy after Authoritarian Breakdown: Comparative Case Selection and Lessons from the Past.’ International Political Science Review 45 (1): 123–43. Lakhal, M. 2022. ‘The Ghost People and Populism from Above: The Kais Saied Case.’ Arab Reform Initiative, 23 March. https://www.arab -reform.net/publication/the-ghost-people-and-populism-from -above-the-kais-saied-case/ Langston,J.K.2023. ‘Democracy andBad Government in Latin Amer­ica.’ Latin American Research Review 58 (2): 299–325. [280] Le Monde. 2019. ‘Face aux turbulences régionales, l’Europe ne veut pas perdre le soldat Tunisie.’ 9July. https://www.lemonde.fr/afrique /article/2019/07/09/face-aux-turbulences-regionales-l-europe-ne -veut-pas-perdre-le-soldat-tunisie_5487381_3212.html Lipset,S.M.1959.‘Some Social Requisites of Democracy: Economic De­velopment and Political Legitimacy.’ The American Political Science Review 53 (1): 69–105. Lowenthal, A. F., and S. Bitar. 2016. ‘Getting to Democracy: Lessons from Successful Transitions.’ Foreign A.airs 95(1):134–44. Lynch, M. 2013. The Arab Uprising: The Un.nished Revolutions of the New Middle East. New York: PublicA.airs. Maryon, R. 2023. ‘The Role of Security Assistance in Recon.guring Tunisia’s Transition.’ Mediterranean Politics 29(4): 478–500. Marzo, P., 2020. ‘International Democracy Promoters and Transitional Elites: Favourable Conditions for Successful Partnership: Evidence from Tunisia’s Democratization.’ Cambridge Review of International A.airs 33 (3): 307–29. McCarthy, R. 2023. ‘Autonomous Activism and Accountability in a Democratic Transition: Evidence from Tunisia.’ Democratization 30 (5): 875–93. Mexhuani, B. 2024. Ideology and Identity in Kosovo’s Political Landscape: Analyzing the Interplay between Ideological Goals and Governance Re­alities. Cham: Springer Nature. Mietzner,M.2014. ‘Successful andFailedDemocraticTransitions from Military Rule in Majority Muslim Societies: The Cases of Indonesia and Egypt.’ Contemporary Politics 20 (4): 435–52. Minier, J. A. 1998. ‘Democracy and Growth: Alternative Approaches.’ Journal of Economic Growth 3 (3): 241–66. Mohammadi, H., F. Boccia, and A. Tohidi. 2023. ‘The Relationship be­tween Democracy and Economic Growth in the Path of Sustainable Development.’ Sustainability 15 (12): 9607. Mouhib, L. 2014. ‘eu Democracy Promotion in Tunisia and Morocco: Between Contextual Changes and Structural Continuity.’ Mediter­ranean Politics 19(3): 351–72. Murtin, F., and R. Wacziarg. 2014. ‘The Democratic Transition.’ Journal of Economic Growth 19(2): 141–81. Narayan, P. K., S. Narayan, and R. Smyth. 2011. ‘Does Democracy Facili­tate Economic Growth Or Does Economic Growth Facilitate Democ­racy? An Empirical Study of Sub-Saharan Africa.’ Economic Modelling 28 (3): 900–10. Netterstrøm, K. L. 2016. ‘The Tunisian General Labor Union and the Advent of Democracy.’ Middle East Journal 70 (3): 383–98. Nosier,S., andA.El-Karamani. 2018. ‘TheIndirect E.ect of Democracy on Economic Growth in the mena Region (1990–2015).’ Economies 6(4): 61. O’Donnell, G.,P.C. Schmitter,and L. Whitehead. 2013. Transitions from Authoritarian Rule: Tentative Conclusions about Uncertain Democra­ [281] cies. Baltimore, md: jhu Press. Oztig, L. 2023. ‘Tunisia, Egypt, and Libya After the Arab Spring.’ Middle East Policy 30 (1): 137–56. Papadogiannis, N., and P. R. Pinto. 2023. ‘Social Change, Protest and Participation in Greece, Portugal and Spain.’ Mélanges de la Casa de Velázquez 53 (1). https://doi.org/10.4000/mcv.18689. Papaioannou, E., and G. Siourounis. 2008. ‘Democratization and Growth.’ The Economic Journal 118 (532): 1520–51. Pelke, L. 2023. ‘Reanalysing the Link between Democracy and Economic Development.’ International Area Studies Review 26 (4): 361–83. Philip, B., and A. Lambelet. 2014. ‘Participant Observation.’ In Method­ological Practices in Social Movement Research, edited by D. della Porta, 144–72. Oxford: Oxford Academic. Przeworski, A. 2000. ‘Democracy and Economic Development.’ In Polit­ical Science and the Public Interest, edited by E. D. Mans.eld and R. Sisson, 300–24. Columbus, oh: Ohio State University Press. Rachdi, H., and H. Saidi. 2015. ‘Democracy and Economic Growth: Ev­idence in mena Countries.’ Procedia: Social and Behavioral Sciences 191:616–21. Rennick, S. A. 2023. ‘Losing Support to Democracy: Political Socializa­tion, Popular Conceptualizations, and the Formation of Political Grievances among Marginalized Youth in Tunisia.’ Mediterranean Politics. https://doi.org/10.1080/13629395.2023.2297119 Rød, E. G.,C.H.Knutsen, and H. Hegre. 2020. ‘The Determinants of Democracy: A Sensitivity Analysis.’ Public Choice 185 (1): 87–111. Rodrik, D., and R. Wacziarg. 2005. ‘Do Democratic Transitions Produce Bad Economic Outcomes?’ American Economic Review 95(2):50–5. Saidin, M.I.S., andL. Storm.2024. ‘The Challenges of Regime Change and Political Transition in Egypt and Libya after the Arab Uprisings: Critical Reviews of Factors and Implications.’ Cogent Arts and Hu­manities 11 (1): 2335771. Selmi, N. 2017. ‘Tunisian Tourism: At the Eye of an Arab Spring Storm.’ In Tourism in the Arab World: An Industry Perspective, edited by H. Almuhrzi, H. Alriyami, and N. Scott, 145–60. Bristol: Channel View Publications. Selmi, N., and R. Dornier. 2017. ‘Perspectives on the Destination Image of Tunisia.’ Worldwide Hospitality and Tourism Themes 9(5): 564–9. [282] Söyler, M. 2013. ‘Informal Institutions, Forms of State and Democracy: The Turkish Deep State.’ Democratization 20 (2): 310–34. Tang,S.H.K., andL.C. W.Yung. 2008. ‘Does RapidEconomic Growth Enhance Democratization? Time-Series Evidence from High Per­forming Asian Economics.’ Journal ofAsian Economics 19:244–53. Teorell, J. 2010. Determinants of Democratization: Explaining Regime Change in the World, 1972–2006. Cambridge: Cambridge University Press. Ufen, A. 2023. ‘Civil Society and E.orts at Regime Change in Southeast Asia.’ In Routledge Handbook of Civil and Uncivil Society in Southeast Asia, edited by E. Hansson and M. L. Weiss, 101–17. London: Rout-ledge. Wang,X., andK.Lo. 2021. ‘Just Transition:A Conceptual Review.’ En­ergy Research and Social Science 82:10229. Weilandt,R.2021. ‘eu Democracy Projection in Tunisia: The Case of Civil Society Consultations.’ Mediterranean Politics 27 (4): 483–504. Weipert-Fenner, I. 2023. ‘Budget Politics and Democratization in Tuni­sia: The Loss of Consensus and the Erosion of Trust.’ Mediterranean Politics. https://doi.org/10.1080/13629395.2023.2207429. Yerkes,S.E.2023. ‘The BestChancefor Democratic Success: The Roleof Well-Organized Actors and External Support.’ Political Science Quar­terly 139(4): 635–46. Yin, R. K. 2014. Case Study Research Design and Methods. 5th ed. Thou­sand Oaks, ca: Sage. Yom, S. 2005. ‘Civil Society and Democratization in the Arab world.’ Middle East 9(4): 15–32. The Impact of the Audit Committee on Financial Performance in Moroccan smes: An Empirical Examination hanae la aroussi aziz babounia Ibn Tofail University, Morocco Ibn Tofail University, Morocco hanae_laaroussi@yahoo.com a_babounia@yahoo.fr mohamed amine tbatou Ibn Tofail University, Morocco mohamedaminetbatou@gmail.com This study investigates the impact of audit committees on the .nan­cial performance of Moroccan smes, emphasizing the signi.cance of context and its added value. Additionally, it examines the gover­nance system’s in.uence on audit committee independence and ex­plores variables related to audit committee characteristics. Drawing from a sample of 58 Moroccan smes, the study spans a 4-year period from 2018 to 2022. Through the utilization of regression analysis, .nd­ings reveal challenges to the audit committee’s total independence, at­tributed to a dual system and limited committee size. Consequently, Moroccan smes audit committees face constraints in ful.lling their responsibilities, particularly in .nancial statement review, potentially impeding smes .nancial performance and growth. This research con­tributes to the understanding of governance dynamics within Moroc­can smes, highlighting the importance of context and o.ering in­sights into the complexities of audit committees. Key Words: audit committee, .nancial performance, Moroccan smes, audit quality © 2024 Hanae Laaroussi, Mohamed Amine Tbatou, and Aziz Babounia https://doi.org/10.70908/2232-6022/17.283-312 introduction In recent times, .nancial authorities and specialists have focused their emphasis on auditing as one of the greatest corporate governance mea­sures. The management and .nancial tools that companies employ to keep an eye on top management in order to protect stakeholder and owner investments and draw in further foreign capital are all included in auditing (Ghazali 2010; Rustam and Rashid 2013). Put di.erently, there is a prevalent assertion that the oversight function of audit com­mittees plays a crucial part in corporate governance, helping in the reg­ulation and observation of managers’ actions (Turetken, Jethefer, and [284] Ozkan 2020). Additionally, it’s thought that audit committees can en­hance .nancial reporting quality and lower audit risk, which will en­hance reported pro.ts quality (Contessotto and Moroney 2014). According to these assertions, audit committees are crucial to reg­ulating and supervising a business’s management in order to protect the owners’ assets and interests (Kallamu and Saat 2015). The selection and replacement of external auditors is one of the audit committees’ main duties and responsibilities. Their responsibilities are broader and include reviewing the internal control system of the business and keep­ing an eye on management (Aldamen et al. 2012). The number, indepen­dence, and level of experience or knowledge possessed by audit com­mittee members are all crucial components of the committee’s e.cacy. Numerous studies have suggested that having these kinds of qualities on the audit committee improves its e.cacy, which in turn improves the organization’s performance (Carcello and Neal 2005; Rustam and Rashid 2013). Numerous studies have been carried out to empirically evaluate the impact of audit committee characteristics on organizational perfor­mance, based on the assumption that these characteristics have a sig­ni.cant impact (Mohammed 2018; Amer, Ragab, and Shehata 2014; Al-Matari 2013). While some studies have established a favorable associ­ation between the qualities of the audit committee and organizational performance, others have not, despite the fact that the relationship is considerable. Consequently, the relationship is still unclear and contin­uestopique the interestofscholars. The audit committee’s role in Moroccan smes is crucial for vali­dating .nancial and accounting records produced by internal audits. Often, the involvement of directors with vested interests complicates transparency and objectivity in .nancial reporting, necessitating more rigorous internal audit mechanisms (Musallam 2020). The complexity is further exacerbated by information asymmetry and heightened de­fault risks, highlighting the need for e.ective audit committees. This study aims to assess the impact of audit committees on the .­nancialperformanceofMoroccan smes.Byexaminingtheroleofaudit committees through the lens of contractual .nance theories, including property rights, agency, and transaction cost theories, we seek to eluci­date the relationship between internal audit and corporate governance in Moroccan smes. In the framework of this research, it seemed essential to establish an audit committee in Moroccan smes in order to authenticate the .-[285] nancial and accounting records established by the internal audit. Due to the fact that the director, who is often the owner, attempted to dis­tort facts that may have allowed him to gain a more lucrative advantage, it was impossible to know about it beforehand. It seems to be the case when Julien, Blili, and Chicha (1997, 215) noted that ‘not only the accru­ing default risk but also and especially the information asymmetry and theopportunityrisks,moreelevatedin sme,leadthebankstodemand more guarantees and increase the costs of the loan.’ In this sense, the research’s central question is posed as follows: What e.ects do the audit committee have on the .nancial performance of Moroccan smes? In this context, it is advisable to interpret, in accordance with the literature, the role of the audit committee through perfomance theo­ries. The theories of pro.t maximization, agency, and Resource-Based View describe di.erent perspectives on how audit committees can en­hance organizational performance and governance (Smith 1776; Jensen and Meckling 1976; Barney 1991). Pro.t maximization theory focuses on aligning audit committee actions with maximizing shareholder wealth through e.ective .nancial oversight. Agency theory empha­sizes monitoring and mitigating con.icts of interest between managers and shareholders, ensuring accountability and transparency. Resource-Based View theory suggests that audit committees should leverage in­ternal resources and capabilities to improve strategic decision-making and sustainable competitive advantage. Integrating these theories pro­vides a comprehensive framework for understanding the multifaceted role of audit committees in organizational success. Our research methodology is based on a positivist positionnement that is employed to satisfy the requirements of our research work. In order to accomplish our goal, a hypothetically deductive approach has been taken. Furthermore, the structure is as follows: the second section com­prises theoretical background, literature review and hypotheses devel­opment. The third section explains the research methodology, includ­ing the empirical study’s approach and data analysis. The fourth section presents the results of the study derived from descriptive statistics and regression analyses. The .fth section o.ers a discussion of the .ndings and implications, while the sixth section contains concluding remarks and suggestions for further research. [286] literature review and development of hypotheses Based on the evolving theoretical discourse surrounding audit com­mittees and their impact on .nancial performance, it becomes evident from the literature that de.ning their precise function remains a chal­lenge within the realm of management sciences. This challenge stems from the multidisciplinary nature of audit committee roles, which draw from diverse .elds to explain their critical role in enhancing corporate growth. Amidst varying perceptions, substantial discrepancies emerge when considering the array of .nancial theories that attempt to delin­eate the internal audit function’s strategic signi.cance and its direct in.uence on .nancial performance. Researchers encounter signi.cant challenges in delineating the comprehensive impact of audit commit­tees on .nancial performance, given their dual mandate of ensuring .nancial probity and bolstering overall company e.ectiveness. Overview of the Regulatory Framework for the Audit Committee in Morocco The regulatory landscape governing the audit committee practices in Morocco is multifaceted and subject to various legal and governance provisions. The Moroccan Code of Corporate Governance Practice¹ ad­vises organizations to establish specialized committees, including audit committees, to enhance governance structures. These committees are entrusted with responsibilities such as overseeing .nancial reporting integrity, assessing risk management processes, and providing recom­mendations for improving management e.ectiveness. However, the audit committee, as outlined in the governance rec­ ommendations, is required to comprise non-executive members or ex­ perts with expertise in accounting and .nance. Its mandate includes ¹ Moroccan Code of Corporate Governance Practices for Companies and Public Institu­tions was developed and launched by the National Commission for Corporate Gover­nance in March 2008; this Commission also created and launched speci.c appendices for small and medium-sized enterprises (smes) in December 2008. convening meetings regularly to review internal and external audit re­ ports, ensuring the integrity of .nancial information, and actively par­ ticipating in the selection of auditors or statutory auditors. In the realm of Moroccan governance, Ministerial Decree No. 1549­ 05 of December 20, 2005² establishes the requisite management instru-[287] ments for private companies subject to accompanying control. This de­ cree mandates the establishment of internal audit departments within organizations deemed signi.cant enough, emphasizing the crucial role of internal audit in ensuring compliance with policies, management rules, procedures, and laws. Speci.cally, Article 17 of Law No. 69-00³ outlines the obligations for organizations to facilitate internal audit functions, including providing necessary information and enabling the conduct of various control activities. The decree underscores the im­ portance of internal audit as a cornerstone of governance and control mechanisms within Moroccan private companies, reinforcing princi­ ples of transparency, accountability, and regulatory adherence. Furthermore, the audit committee plays an integral role in Moroc­ can corporate governance. It is tasked with overseeing the internal au­ dit process and ensuring the e.ectiveness of internal controls. The au­ dit committee is responsible for reviewing the internal audit reports and recommendations, thus acting as a critical link between the audi­ tors and the management board. This committee’s functions extend to supervising .nancial reporting and ensuring the independence and ob­ jectivity of external auditors. By ful.lling these duties, the audit com­ mittee helps in mitigating risks and enhancing the overall governance framework within Moroccan companies, thereby bolstering investor con.dence and safeguarding stakeholder interests. In this section, we examined the relevant laws, regulations, codes, and circulars governing the audit committee in Morocco. These include legal frameworks related to .nancial control, public procurement, cor­ porate governance, and internal control in .nancial institutions. By ex­ ploring these regulatory documents, we gain a deeper understanding of the legal obligations and standards that shape internal audit operations ² Minister of Finance and Privatization OrderNo. 1549-05of 20December2005,estab­ lishing the management instruments for eligible public institutions subject to accom­ panying control. ³ Law No. 69-00 of 11 November 2003 concerning the .nancial control of the State over public enterprises and other organizations). in Morocco. Overall, this overview underscores the signi.cance of the regulatory framework in shaping internal audit practices within Mo­roccan organizations. It highlights the importance of compliance with legal requirements and adherence to governance guidelines to ensure [288] the e.ectiveness and integrity of internal audit processes. Global Performance Performance has long been reduced to its .nancial aspect. This perfor­mance involved achieving the desired rentability for the investors while maintaining the company’s sustainability with the sales and market-share. However, over the past few years, we have conceptually moved away from a .nancial representation of success toward more compre­hensive approaches that take into account social and environmental factors. Other actors – referred to as stakeholders – have made their appearance, and the concept of performance has seen a resurgence in use (Aboushady 2022) Currently, the durability of businesses depends not only on the .­nancial aspect of their operations but also on how they function. As a result, the scope of an organization’s responsibility expands to include more stakeholders (associations, ngos, syndicates, clients, suppliers, etc.). These new actors demand to be heard, and the e.ectiveness and longevity of businesses depend on their ability to do so (Amer and Sel­waness 2022). The notion of global performance .rst appears in this context. Enterprise performance is a key concept in management sciences. Numerous researchers havebeenworking to de.neitsince the1980s (Bouquin 1986;Bescosetal. 1993).And more recently,thisideahas been used in managerial literature to assess how well the company has im­plemented its announced sustainable development strategies (Capron and Quairel-Lanoizelee 2006). Performance has always been an ambiguous concept in the business world, as it is rarely explicitly de.ned. We will return to Bourguignon’s (2000) de.nition explain the performance since it combines the three senses listed above and explicitly acknowledges its polysemous charac­ter. Therefore, performance can be de.ned as ‘achieving organizational goals, regardless of the type or variety of those goals. This accomplish­ment can be understood in two ways: strictly (as a result or an out­come), or broadly (as the process leading to the result or an action)’ (p. 934). According to Lebas (1995), performance only exists if it can be mea­sured, and this measurement can never be restricted to the knowledge of a result. Therefore, the results achieved are evaluated by comparing them to the desired results or to test results (Bouquin 2004). [289] Theories on Performance and Theoretical Foundations The study of performance has evolved signi.cantly over the years, en­compassing various dimensions beyond mere .nancial metrics. Several theoretical frameworks have been developed to understand and mea­sure organizational performance comprehensively. This section delves into some of the prominent theories on performance, highlighting their core principles and implications for modern businesses. Triple Bottom Line (tbl) Theory The Triple Bottom Line (tbl) theory, introduced by John Elkington in 1994, argues that companies should commit to focusing on social and environmental concernsjustastheydoonpro.ts. tbl expands the traditional .nancial performance framework to include three dimen­sions: people, planet, and pro.t. The ‘people’ dimension covers social performance aspects such as fair labor practices, community engagement, and societal bene.ts. The ‘planet’ dimension focuses on environmental performance, empha­sizing sustainable resource use, reducing carbon footprints, and en­vironmental stewardship. Lastly, the ‘pro.t’ dimension still considers economic performance, including .nancial pro.tability and economic growth(Willard2012). tbl shiftsthefocusfrom.nancialperformance alone to a broader spectrum of corporate responsibility, emphasiz­ing that long-term business success depends on a balanced approach that respects social and environmental imperatives alongside economic goals. Stakeholder Theory Proposed by R. Edward Freeman, stakeholder theory posits that busi­nesses should create value for all stakeholders, not just shareholders. This theory broadens the de.nition of performance to include both internal and external stakeholders (Freeman and al. 2010). Internal stakeholders encompass employees, managers, and owners, while ex­ternal stakeholders include customers, suppliers, community mem­bers, and even the environment. Stakeholder theory suggests that un­derstanding and addressing the needs and expectations of all these groups is crucial for achieving sustainable performance (Stieb 2009). It highlights the importance of dialogue and engagement with diverse groups to ensure their interests are considered in decision-making pro­ [290] cesses. Balanced Scorecard (bsc) Developed by RobertS.Kaplanand David P.Nortonin 1992, theBal­ anced Scorecard (bsc) provides a framework for measuring perfor­ mance from four perspectives: .nancial, customer, internal processes, and learning and growth (Kaplan and Norton 1992). The .nancial per­ spective includes traditional metrics like pro.t margins, return on in­ vestment, and economic value added. The customer perspective mea­ sures customer satisfaction, retention, and market share. The internal processes perspective assesses the e.ciency and e.ectiveness of busi­ ness operations (Kaplan 2009). The learning and growth perspective focuses on employee training, development, and innovation. The bsc approach integrates these di­verse performance indicators into a coherent strategy, allowing orga­nizations to align business activities with their vision and strategy, improve internal and external communications, and monitor perfor­mance against strategic goals. Theories on Financial Performance Financial performance has traditionally been a primary focus in eval­uating the success and viability of businesses. Several theories have been developed to understand, measure, and improve .nancial perfor­mance, each providing di.erent insights and frameworks. Below are some key theories related to .nancial performance: Pro.t Maximization Theory Pro.t maximization has long been regarded as the principal goal of a .rm. This theory posits that the primary objective of a business is to maximize its pro.ts by increasing revenue and minimizing costs. The roots of this theory can be traced back to classical economic theories and the works of early economists like Adam Smith (1776). The the­ ory suggests that by focusing on pro.t maximization, .rms can ensure their sustainability and growth, thereby providing returns to share­ holders. Agency Theory Agency theory explores the relationship between principals (owners or shareholders) and agents (managers), where the latter are responsible for making decisions that a.ect the .rm’s .nancial performance. It ad­dresses the con.icts of interest that arise when managers do not act [291] in the best interests of shareholders. Jensen and Meckling (1976) for­mulated this theory, emphasizing the need for mechanisms to align the interests of managers with those of shareholders, such as performance-based incentives. Resource-Based View (rbv) The Resource-Based View (rbv) posits that a .rm’s sustainable com­petitive advantage and .nancial performance are largely determined by its internal resources and capabilities. rbv argues that resources that are valuable, rare, inimitable, and non-substitutable (vrin) en­able .rms to achieve superior .nancial performance. This theory shifts the focus from external market conditions to internal strengths as key drivers of .nancial success. The Role of the Audit Committee in Company Performance In the context of corporate governance, the audit committee has been de.ned in several ways. For instance, Arens, Elder, and Beasley (2014, p. 135) de.ne an audit committee as ‘a chosen number of board members of a company whose duties include assisting auditors to stay indepen­dent of management.’ The primary function of the audit committee is to provide recommendations for the selection and appointment of the external auditor. It also encompasses broader responsibilities, includ­ing overseeing management and the company’s internal control system (Aldamen et al. 2012). Most audit committees consist of board mem­bers who are not part of the company’s executive management (Arens, Elder, and Beasley 2014). Additionally, audit committees enhance the quality of .nancial reporting and reduce audit risk (Contessotto and Moroney 2014). Therefore, they play a crucial role in supervising com­pany management to protect the interests of shareholders (Kallamu and Saat 2015). It is quite clear that the audit committee supports the executive board through its monitoring and participation in strategic business decisions. In this context, the e.ectiveness of both internal and exter­nal audits, as well as the authenticity of .nancial statements, are regu­lated by the audit committee. In order to ensure the quality of the inter­nal audit and .nancial reporting, it appeared that the involvement of the audit committee in the process was essential for the e.ective oper­ation of the governance system (Turetken, Jethefer, and Ozkan 2020). [292] The audit committee has been understood and de.ned in a variety of ways and situations. The following de.nition is provided by the law sox (Loi Sarbanes-Oxley): The term ‘audit committee’ refers to a com­mittee that the executive board established with the goal of supervising the emitter’s accounting and .nancial information processes as well as the .nancial state veri.cations. According to the Ministry of Finance, the audit committee is a con­trol body. It helps with the supervision of the .nancial report compli­ance rules, the observance of legal and regulatory requirements, as well as the quali.cation, independence, and actions of external auditors. According to the Moroccan legal framework and regulations govern­ing the operation and role of the audit committee, and in accordance with the requirements of Article 14 of the Dahir No. 1-03-195 of Novem­ber 16, 2003 and which led to the promulgation of Law No. 69-00, the audit committee is in charge of three parts: internal audit, internal con­trol audit, and external audit. First and foremost, the committee is in charge of monitoring inter­nal audit activities while ensuring their objectivity and independence from management. In this regard, it is the responsibility of the commit­tee to review and debate the reports and recommendations provided by the internal audit. Consequently, the committee recognized the chart, the internal audit cycle, and the annual plan of the internal audit de­partment. Second, the audit committee needs to pay attention to the internal control system. It reviews the e.ectiveness and e.ciency of the laws, policies, and procedures currently in place. Last but not least, the external audit’s function is signi.cantly in­.uenced by the audit committee. Depending on their progress and the e.ectiveness of their work, the committee decides how much to pay the external auditors. In doing so, the committee conducts an evalua­tion of the performance, independence, and objectivity as attested by the external auditors. Jensen and Mackling (1976) argued that separating ownership from management creates several issues, with agency con.ict being one of the most severe, especially when executives act against the interests of owners. Agency theory suggests that a better-governed company should have better performance and valuation due to reduced agency costs. Therefore, the audit committee can control or mitigate these con­.icts (Mohammed 2018). Beasley et al. (2009) identi.ed key features of an e.ective audit committee, such as having knowledgeable, powerful, and independent members to ensure honest and accurate .nancial re-[293] porting, enabling stakeholders to make prudent and informed business decisions. Numerous studies globally have examined the characteristics and roles of audit committees. These studies often highlight features like size, independence, .nancial or industry expertise, stock owner­ship by committee members, and meeting frequency. Hence, it is ex­pected that audit committees focus on maximizing shareholder wealth and preventing executives from prioritizing their interests (Bansal and Sharma 2016). Interest in the role of audit committees has increased in recent years as they are seen as a crucial corporate governance tool that enhances board management’s interrogation (Hamdan and Mushtaha 2011). An e.ective audit committee aims to improve a company’s e.ciency and competitiveness, particularly in a dynamic business environment be­yond the company’s control (Herdjiono and Sari 2017). It has been sug­gested that knowledgeable audit committees contribute to improved company performance, with excellent audit committee characteristics correlating with superior company outcomes (Zabri, Ahmad, and Wah 2016). In Morocco, the corporate environment has faced many challenges, with instances of fraud and malpractices a.ecting investor con.dence. E.ective audit committees have played a crucial role in restoring in­vestor trust in the business environment through their autonomous oversight of the annual corporate reporting process. Therefore, exam­ining the association between audit committee mechanisms and com­pany performance is vital. This study contributes to the literature by highlighting the role of audit committee mechanisms – such as size, independence, .nancial expertise, and stock ownership by members – in in.uencing .rm per­formance. Previous studies in Morocco have examined the e.ect of au­dit committees on .rm performance within speci.c sectors. The aim of the present study is to explore the impact of audit committees on per­formanceacrossallsectorsoftheMoroccan smes,including.nancial, service, and industrial sectors. Good audit committee mechanisms are expected to positively a.ect .rm performance. Research Hypotheses The literature has consistently emphasized the signi.cance and the im­pact of the audit committee on the .nancial performance of the busi­ness. However, although being positive, this in.uence continues to be [294] impacted by numerous internal and external factors. The internal fac­tors are related to the size, composition, frequency, and skill levels of the audit committee members. The size of the audit committee is determined by how many mem­bers sit on it (Ghosh, Marra, and Moon 2010). It has been found that the size of the audit committee a.ects how well it can monitor and control the management (Vinten and Lee 1993). However, it has been noted that the size of the audit committee has generated discussion among researchers over its relationship to the performance of the company. Some claim that a smaller committee would perform worse .nan­cially, while others claim that the size of the committee has no bear­ing on performance when it comes to the study of it. According to Ghosh, Marra, and Moon (2010), audit committees with larger mem­berships perform better during the .nancial reporting process than smaller committees do. The .ndings of DeFond and Francis (2005), who came to the conclusion that a big audit committee could enhance the quality of .nancial reporting, seem to support this. On the other side, a number of authors argue that a small audit committee has a lot more advantages. h1 The size of an audit committee is negatively correlated with .nancial performance. The proportion of non-executive and executive administrators makes up the audit committee (Rahmat and Iskandar 2007). However, a sig­ ni.cant number of independent or non-executive administrators sup­ port the audit committee’s independence, transparency, and corporate responsibility (García, Barbadillo, and Pérez 2012). The advancements of Xie, Davidson, and DaDalt (2003) show that the presence of a signi.cant number of independent members en­hances the e.ectiveness of management oversight. According to Ab­bott, Park, and Parker (2000), the independence of the audit committee can deter .nancial fraud and encourage the improvement of accounting standards (Bradbury, Mak, and Tan 2006). h2 External administrators’ presence on the audit committee has a neg­ative correlation with .nancial performance. figure 1 Research Hypotheses The frequency of meetings serves as a measure of the committee’s activity. Since members of the audit committee require a su.cient amount of time to deliberate before making decisions that are e.ec­tive (Conger, Finegold, and Lawler 1998), the frequency of meetings is used to measure the committee’s activity (McMullen, Raghunandan, and Rama 1996; Abbott and Parker 2004). This frequency of meetings is related to the e.ectiveness of the audit committee (Kalbers and Fog-arty 1998),aswellas toits size. In this regard, meeting frequency increases control and, conse­quently, .nancial reporting quality (Carcello et al. 2002). For instance, Abbott and Parker (2004) state that the frequency of meetings helps the committee in understanding the internal audit and accounting prob­lems in the .rst place (Raghunandan, Rama, and Scarbrough 1998). Additionally, frequent meetings of the audit committee members in­crease the probability of .nding .nancial state errors. h3 The frequency of the audit committee’s meetings is negatively corre­lated with its .nancial performance. It is true that an increasing number of businesses are looking for pro.les of .nancial experts, specialists in accounting and management control, and legal experts in business law, national law, and interna­tional law for their boards and audit committees. This is the .rst set of skills that companies are looking for in their experts, which are now frequently provided by independent administrators. As a result, the audit committee has to include members who have expertise in accounting and auditing (DeZoort 1997). To e.ectively carry out their oversight responsibilities, the committee’s members, who have a variety of professional backgrounds and experiences, need to be pro.cient in accounting and auditing. When there are con.icts between the recommendations of the ex-ternal and internal auditors, the presence of professionals on the audit committee enhances the internal auditors’ judgment and the external auditors’ proposals (DeZoort and Salterio 2001). DeZoort and Salterio (2001) also claim that having .nancial specialists on the audit commit­ [296] tee helps all members understand the procedures and identify risks and weaknesses in the company. h4 Financial distress is negatively correlated with the .nancial exper­tise of the audit committee members. research methodology This section describes the research methodology chosen to formulate the econometric research model in order to test the hypotheses, de.ne the variables, and construct the conceptual model before identifying the data sources. Research Model In light of the goal of our approach, which is to understand the im­pact of the internal audit committee on the performance of Moroccan smes, a quantitative approach will be employed in our research. There­fore, the development of a mathematical model of linear regression pre­cedes the empirical veri.cation of the previously proposed hypotheses. The two dependent variables are the .nancial performance and the audit committee’s independence. The characteristics of the audit com­ mittee and the executive board are the independent variables. The control variables are shown in addition to the independent and dependent variables. These latter ones may a.ect the impact of inde­pendent variables on dependent variables. The studied variables are summarized in table 1. Dependent Variables The two dependent variables in this study are .nancial performance (dfin) and the independence of the audit committee (indca). • Financial Performance (dfin).Financialperformance iscrucial as it indicates how well a company is utilizing its resources to gen­erate pro.ts. According to prior research, e.ective audit com­mittees are often associated with enhanced .nancial perfor­mance due to their role in ensuring accurate .nancial reporting and robust internal controls (Klein 2002; Bedard, Chtourou, and Courteau 2004). The Impact of the Audit Committee on Financial Performance table 1 Study Variables Variables De.nitions Dependent Financial performance (dfin) Pro.tability rate = net pro.t ÷ total assets Independence of the audit com-The percentage of non-executive [297] mittee (indca) directors Independent Committee size (tcaud) The number of directors on the audit committee Composition of the committee The ratio of non-executive mem­ (ccaud) bers Frequency of meetings (fr- The number of audit committee caud) meetings held per year Financial expertise (efcaud) The number of individuals hold­ ing international certi.cations or holding at least a license in man­ agement science, including ac­ counting, .nance, or audit Control Size of the company (taille) .rm size is the natural logarithm of total assets for each year Audit quality (quaud) designation of audit .rms ‘Big .’ Industry dynamics (indust) . = Company in growth .=Company not in growth • Audit Committee Independence (indca). The independence of the audit committee is gauged by the presence of non-executive members on the committee. An independent audit committee is believed to be more e.ective in monitoring management and ensuring the integrity of .nancial reports (Abbott et al., 2004). The presence of non-executive members reduces potential con­.icts of interest and enhances the objectivity of the committee’s oversight functions (Klein 2002). Independent Variables The independent variables represent various characteristics of the au­dit committee: • Size (tcaud). The size of the audit committee, which refers to the number of members, can impact its e.ectiveness. Larger committees may bene.t from a broader range of expertise and perspectives, but they may also face challenges in coordination and decision-making (Lin, Li, and Yang 2008). • Composition (ccaud). The composition of the audit committee includes the mix of executive, non-executive, and independent members. A higher proportion of independent members is gener­ally associated with better monitoring and control (Klein 2002). • Frequency of Meetings (frcaud). The number of times the au­ [298] dit committee meets in a year can in.uence its e.ectiveness. More frequent meetings are typically associated with more dili­gent oversight and quicker response to emerging issues (Krish­nan 2005). • Members’ Financial Expertise (efcaud). The .nancial expertise of audit committee members is crucial for understanding com­plex .nancial issues and ensuring accurate .nancial reporting. Committees with members who have .nancial expertise are more likely to identify and correct .nancial misstatements (Rah­mat and Iskandar 2009). Control Variables Control variables are essential in this analysis to account for other factors that might in.uence the relationship between audit commit­tee characteristics and .nancial performance. Key control variables include: • Company Size (taille).Larger companiesoften have morecom­plex operations and may bene.t from economies of scale. Com­pany size can in.uence the e.ectiveness of the audit committee and overall .nancial performance. Prior research has shown that larger .rms aremorelikely tohavewell-structured auditcom­mittees (Lin, Li, and Yang 2008). • Audit Quality (quaud). The quality of the external audit is cru­cial for ensuring the reliability of .nancial reports. High audit quality enhances investor con.dence and can positively impact .nancial performance (DeFond and Zhang 2014). Audit quality is often proxied by the reputation of the audit .rm, such as being audited by one of the Big Four accounting .rms (Francis, May-dew, and Sparks 1999). • Industry Dynamics (indust). The industry in which a company operates can signi.cantly in.uence its pro.tability and stability. Di.erent industries face varying levels of competition, regula­tory pressures, and market dynamics, which can impact .nancial performance (Dhaliwal et al. 2012). Including industry dynamics Independent variables: thesizeofthe Audit Committee, its composition, the frequency of its meetings, the .nancial expertise of its members Dependent variables: .nancial performance, the independence of the audit committee [299] f igure 2 Conceptual Model of Research as a control variable ensures that sector-speci.c challenges are accounted for in the analysis. By exploring these variables, we aim to o.er a comprehensive un­derstanding of audit committee impacts on .nancial performance in diverse industry contexts. The study’s model, including independent, dependent, and control variables, is shown in .gure 2. Sample and Data Source The study’s sample is composed of Moroccan smes. This section gives the list of the data collection, sampling methodology, and analysis methods used to support or refute developed hypotheses. The data collection is based on the deductive approach, in which empirical data willbegatheredbytheadministrationofaquestionnaireto smes from Morocco. The sample includes participants from the administrations of 58 smes, covering the period from 2018 to 2022. The questionnaire was administered from March 2023 to August 2023 using the online survey platform Qualtrics. The questionnaire consists of four sections: • Company pro.le: Questions in this section gather basic informa­tion about the company, such as industry sector, size, age, and ownership structure. • Participant information: This section collects data on the respon­dents’ demographics, including their role in the company, years of experience, and educational background. • Audit committee characteristics: Questions here focus on the au­dit committee’s composition, size, independence, frequency of meetings, and the .nancial expertise of its members. • Company .nancial information: This section includes questions on .nancial performance indicators such as pro.tability, revenue growth, and return on assets. Sectors Observations Sectors Observations Agriculture .. Manufacturing and production .. Food industry . Hospitality sector .. [300] Insurance .. Real estate sector .. Consumption .. Pharmaceutical .. Marketing .. it sector .. Distribution and Logistics .. In targeting smes for inclusion in our study, we used a systematic sampling procedure to ensure a representative sample. First, we com­piled a comprehensive list of smes operating in the private sector in 12 di.erent activity sectors, as shown in table 2. From this list, we randomly selected 58 smes to participate in the study. To determine eligibility, we checked whether the selected smes had audit committees in place and whether they were subject to manda­tory external audit requirements. This information was crucial in en­suring that participating smes had the necessary governance struc­tures and met regulatory standards, which are an integral part of our research objective. Regarding the target respondents within the entities, we mainly aimed to engage people occupying key positions related to governance, .nance and internal controls within the organizations. These individ­uals typically included members of senior management such as ceos, cfos, internal auditors, and audit committee members. Additionally, we sought to involve individuals with relevant training and expertise in accounting, .nance or auditing to provide insightful answers aligned with the objectives of our research. Regression equations can be developed using quantitative analysis. They will operate as a mathematical model to help control facts and understand hypotheses and the interactions of variables. results In this section, a demonstration of the quantitative analysis of the data that was gathered will be introduced, starting with a detailed explana­tion of the descriptive statistics parameters shown in table 3 and fol­lowed by a presentation of the hypotheses that were put to the test using various methods (correlation and logistic regression). Descriptive Statistics Table 3 provides a comprehensive overview of the descriptive statistics for various characteristics of audit committees observed throughout thestudyperiodfrom2018to2021.Amongthesevariables, dfin,rep­resenting the pro.tability rate, exhibits a mean of 0.688, a median of [301] 0.900, and a standard deviation of 0.233, suggesting moderate data dis­persion around the mean. Similarly, indca, which measures the independence of the audit committee, shows a mean of 0.215, a median of 0.181, and a standard deviation of 0.158, indicating relatively low variability in the levels of audit committee independence within the sample. The average size of the audit committee (tcaud) is approximately 3.6 members, with a median of 3, indicating that most companies have around three members in their audit committees. The standard devia­tion suggests a slight variation in the committee sizes across di.erent companies. With an average of 0.908 and a median of 1.000 of the audit com­mittee composition (ccaud), it can be inferred that most audit com­mittees have a high level of appropriate composition, nearly reaching full compliance with the ideal composition criteria. The low standard deviation supports a homogeneous composition across .rms. The audit committees during these four years of study must have a least three members, with the majority being non-executive. Au­dit committees meet (frcaud), on average, around four times per year. The higher standard deviation indicates variability in meeting fre­quency, suggesting some committees meet signi.cantly more or less often than others. Most audit committees have at least one member table 3 Descriptive Statistics Variable Nx¯ m sd dfin .. ..... ..... ..... indca .. ..... ..... ..... tcaud .. ..... ..... ..... ccaud .. ..... ..... ..... frcaud .. ..... ..... ..... efcaud .. ..... ..... ..... taille .. ...... ...... ..... quaud .. ..... ..... ..... indust .. ..... ..... ..... with .nancial expertise (efcaud), with moderate variability, indicat­ ing that some committees may have more than one expert. The average size of the Moroccan sme (taille) is 13.679, which is the natural logarithm of the total of the active population. [302] Regardingauditquality(quaud),thedatarevealsthatthemajority (90.3.)ofMoroccan sme workwithbigaudit.rms. Thisdemonstrates thatatrendtoward goodcontrolqualitybyMoroccan sme isprobable. For thecompany growth dynamics(indust), theaverage indicates that, approximately 57. of the smes in the sample are experiencing growth. The standard deviation is 0.473, indicating variability in growth dynamics among the smes. Results of Regression Analysis This section displays the correlation matrix between independent vari­ables to see if there is a collinearity problem. The in.uence of the audit committee’s characteristics on its independence is measured using lo­gistic regression. The matrix of correlation between independent vari­ables is shown in table 4. A visual examination of table 4 reveals generally weak cross-correla­tions. For instance, the correlation between the frequency of the audit committee’s meetings (frcaud) and the size of the business (taille) is 0.233. It is vital to note that this last value is the highest correlation coe.cient that could be found in the matrix. In fact, the correlation between the frequency of meetings (frcaud) and the audit quality (quaud) is –0.007, indicating a very weak correlation. Table 5 presents the results of the logistic regression considering the following control variables: audit quality (quaud), company size (taille) and industry dynamics (indust). Five models are esti­mated, and at each step, non-signi.cant independent and/or control table 4 Matrix of Cross-Correlations between the Characteristics of the Audit Committee Variable tcaud ccaud frcaud efcaud taille quaud tcaud ..... –..... ..... ..... ..... ..... ccaud –..... ..... –..... –..... –..... ..... frcaud ..... –..... ..... –..... ..... –..... efcaud ..... –..... –..... ..... –..... ..... taille ..... –..... ..... –..... ..... ..... quaud ..... ..... –..... ..... ..... ..... table 5 Logistic Regression Model Explaining Financial Performance Based on Audit Committee Characteristics Variables Coe.cients ..... Constant ...... ..... ..... –..... ..... [303] tcaud .....** ..... ..... ccaud –..... ..... frcaud –.....** –.....*** –.....** –.....*** –.....*** efcaud –..... –..... taille –.....*** –.....*** –.....*** quaud –..... indust –..... –..... –..... Cox et Snell ..... ..... ..... ..... ..... notes *, **, and *** denote signi.cance levels of p < 0.1, 0.05, and 0.01, respectively, at two-tailed tests. variables are eliminated. Model 1 indicates that the variables ccaud, efcaud, and quaud are not signi.cant with a p-value = 0.05. Consequently, these variables are excluded from Model 2. The lat­ter shows that the variable tcaud is not signi.cant with a p-value = 0.05. Therefore, tcaud is removed from the logit model. In the subsequent analysis, Model 3 is retained. The Cox and Snell pseudo-R2 coe.cient is equal to 0.160. Thus, 16. of the variations in .nancial per­formance are explained by the frequency of audit committee meetings (frcaud)andcompanysize(taille).Additionally,thevariables fr­caud, taille and indust are individually signi.cant with p-values = 0.05. A visual inspection of table 5 reveals that the coe.cient of the vari­able frcaud is –0.593. This suggests a negative and signi.cant re­lationship between the frequency of audit committee meetings (fr­caud) and .nancial performance (dfin). Moreover, the odds ratio of the frcaud variable obtained by e-0.593 indicates that smes with a higher meeting frequency have 0.55 times the chance of experiencing .­nancial performance decline compared to less active smes. This aligns with h3. Furthermore,theresultsindicatethatcompanysize(taille) and .nancial performance (dfin) are negatively related with a signi.­cant coe.cient of –0.827, where p = 0.05. This implies that smes with increasing size have 0.44 times the chance of experiencing .nancial performance decline compared to smes with decreasing size. discussion Based on empirical .ndings, the debate will center on the committee’s characteristics and how they a.ect .nancial performance. In this re­ gard, interpretations are advanced in terms of the relationship between [304] the size of the audit committee and .nancial performance, the compo­sition of the committee and .nancial performance, the frequency of the committee meetings and .nancial performance, and .nally, the level of expertise and .nancial performance. The Connection between Financial Performance and the Size of the Audit Committee Building upon the existing literature, the discussion on the connection between the size of the audit committee and .nancial performance gains strength. The literature consistently underscores the signi.cance of the audit committee in in.uencing .nancial outcomes, albeit subject to various internal and external factors. Internal factors, including the size, composition, frequency, and skill levels of audit committee mem­bers, play a crucial role in shaping its e.ectiveness. Previous studies have highlighted divergent views regarding the re­lationship between the size of the audit committee and .nancial per­formance. While some researchers argue that larger committees o.er better oversight and control over management, others contend that smaller committees may yield superior .nancial outcomes. Ghosh, Marra, and Moon (2010) suggest that audit committees with larger memberships tend to perform better during the .nancial reporting process, potentially enhancing the quality of .nancial reporting as ev­idenced by Defond and Francis (2005). However, the current study presents a nuanced perspective by ex­aminingthecontextofMoroccan smes.Despite conventional wisdom suggesting that larger audit committees are associated with improved .nancial performance, empirical .ndings reveal a negative correlation between the size of the audit committee and .nancial success within this context. This observation underscores the need for a tailored ap­proach to governance practices within smes, taking into account their unique characteristics and challenges. Thus, the hypothesis (h1) proposing anegative correlation between the size of the audit committee and .nancial performance gains further support from both the existing literature and the empirical .ndings of this study. This highlights the importance of considering not only the size but also the composition and dynamics of the audit committee in driving e.ective governance practices and ultimately contributing to .nancial success within smes. The Composition of the Audit Committee and Financial Performance Expanding upon the discussion on the relationship between the com-[305] position of the audit committee and .nancial performance, it is evident that Moroccan smes face challenges in aligning with recommended governance practices set forth by the Ministry of Finance. Despite the importance of having a balanced composition of the audit committee, including independent non-executive members, the empirical .ndings indicate a lack of signi.cant correlation between committee composi­tion and .nancial outcomes. The existing literature provides insights into the signi.cance of hav­ing a substantial presence of independent members on the audit com­mittee. Rahmat and Iskandar (2007) highlight the pivotal role played by non-executive administrators in ensuring the independence, trans­parency, and corporate responsibility of the audit committee. Fur­thermore, studies by Xie, Davidson, and DaDalt (2003) and Abbott, Park, and Parker (2000) underscore the positive impact of independent members on enhancing management oversight and deterring .nancial fraud. However, the current study’s .ndings suggest that the presence of external administrators on the audit committee does not have a sig­ni.cant correlation with .nancial performance within the context of Moroccan smes, contrary to hypothesis h2. This discrepancy may be attributed to the challenges faced by smes in fully integrating inde­pendent members into their audit committees, potentially limiting their e.ectiveness in overseeing internal controls and improving .­nancial reporting standards. Despite the lack of empirical support for hypothesis h2, the theoretical underpinnings of the importance of in­dependent members on the audit committee remain relevant. Future research should delve deeper into the barriers hindering smes from incorporating independent members e.ectively and explore alterna­tive governance mechanisms to enhance .nancial performance and transparency within this sector. The Frequency of Audit Committee Meetings and Financial Performance Expanding upon the discussion regarding the relationship between the frequency of audit committee meetings and .nancial performance, the .ndings of the study do not demonstrate a signi.cant correlation be­tween these variables. However, it is important to acknowledge the po­tential impact of audit committee activities on sme performance, as frequent meetings can play a crucial role in e.ectively monitoring op­ [306] erations and carrying out oversight responsibilities. The literature supports the notion that the frequency of audit com­mittee meetings serves as a key indicator of committee activity and e.ectiveness. Studies by Conger, Finegold, and Lawler (1998) and Mc-Mullen, Raghunandan, and Rama (1996) highlight the importance of meeting frequency in measuring the committee’s level of engage­ment and involvement in governance processes. Moreover, research by Kalbers and Fogarty (1998) suggests that meeting frequency is posi­tively associated with the e.ectiveness of the audit committee. Furthermore, increased meeting frequency has been linked to im­provements in .nancial reporting quality and the detection of account­ing irregularities (Carcello et al. 2002; Abbott and Parker 2004). Fre­quent meetings enable committee members to gain a deeper under­standing of internal audit processes and accounting issues, thus en­hancing their ability to identify and address .nancial statement errors (Raghunandan, Rama, and Scarbrough 1998). Despite the theoretical rationale supporting hypothesis h3, which posits a negative correlation between the frequency of audit committee meetings and.nancialperformance,the empirical.ndings of thestudy do not support this assertion. However, it is important to recognize the inherent value of frequent audit committee meetings in promoting e.ective governance practices and enhancing .nancial reporting qual­ity within smes. Further research may be warranted to explore the nuanced dynamics underlying the relationship between meeting fre­quency and .nancial performance in the context of Moroccan smes. The Financial Expertise of the Audit Committee and Financial Performance Building upon the discussion concerning the relationship between the .nancial expertise of audit committee members and .nancial perfor­mance, the statistical .ndings do not support a negative correlation between these variables, thereby refuting hypothesis 4. Contrary to ex­pectations, the presence of .nancial expertise among committee mem­bers does not appear to exert a signi.cant in.uence on .nancial perfor­mance in the context of Moroccan smes. However, it is essential to recognize the importance of having at least one committee member with the requisite .nancial quali.cations, as mandated by regulatory guidelines and best practices. While the small size of audit committees may limit the number of members with specialized expertise, the inclusion of individuals possessing .nancial [307] acumen remains critical for enhancing the committee’s e.ectiveness in overseeing .nancial matters. The literature underscores the signi.cance of incorporating .nan­cial experts on audit committees to ful.ll their oversight responsibil­ities e.ectively. Businesses increasingly seek individuals with back­grounds in accounting, management control, and legal expertise to serve on their audit committees, particularly as independent directors. These professionals play a crucial role in facilitating informed decision-making and ensuring compliance with regulatory standards. Moreover, the presence of .nancial specialists on audit committees enhances the committee’s ability to understand complex .nancial pro­cedures, identify potential risks, and address weaknesses within the or­ganization (DeZoort and Salterio 2001). Their expertise contributes to informed judgments regarding con.icts between external and internal auditors’ recommendations, thereby bolstering the committee’s e.ec­tiveness in safeguarding the company’s .nancial interests. While the empirical .ndings of the study may not support hypoth­esis h4, which posits a negative correlation between .nancial distress and the .nancial expertise of audit committee members, the theoreti­cal rationale underscores the importance of expertise in enhancing the committee’s ability to ful.ll its oversight role e.ectively. conclusion In the current research work, the impact of the audit committee’s char­acteristics on the .nancial performance of Moroccan smes has been examined through the analysis of empirical .ndings. The .ndings suggest a connection between .nancial performance and the frequency of audit committee member meetings. It is impor­tant to note that, in this regard, businesses that have regular meetings of their audit committee typically do better than those that only do so occasionally. The frequency with which audit committees assemble determines their ongoing activity and serves as a measure of their ef­fectiveness in carrying out their duties, exercising their control, and preparing .nancial statements. The audit committee is also in.uenced by other independent fac­tors, such as the size, composition, and .nancial skill of the committee members. In this regard, the results show no signi.cant connection of the audit committee to the .nancial success of Moroccan smes. [308] From a theoretical viewpoint, the relevance and value of agency the­ory in studying the relationship between governance and manager/ owner is explained by the special signi.cance of information asymme­try between the two parties. The owner-manager or majority share­holder has a tendency to reduce the size of the committee or to meet the bare minimum requirements of regulations. Therefore, Moroccan smes donotalwayshavethecapacitytoproducetheinformationthat is useful and essential to make actions and perform major strategic ori­entations. As a result, the number of members who may participate at the strategic level of smes is constrained, which hinders the value of organizational learning. In fact, the organizational legitimacy and the role of the audit committee are contested in the attempt to reduce the.nancialdi.cultiesofMoroccan sme. Aspreviouslynoted,thefre­quency of meetings is adhered to by the audit committees in accordance with the laws that are currently in e.ect. In conclusion, while this study sheds light on the relationship be­tween audit committee characteristics and .nancial performance in Moroccan smes, it is important to acknowledge several limitations. Firstly, the study’s sample size may limit the generalizability of the .ndings to a broader population of smes in Morocco. Additionally, the study’s focus on speci.c audit committee characteristics may over­look other factors that could in.uence .nancial performance. Future research could address these limitations by employing larger and more diverse samples, and considering a wider range of variables. Despite these limitations, this study contributes valuable insights into the role of audit committees in enhancing .nancial performance within the context of Moroccan smes. references Abbott, L. J., Y. Park, and S. Parker. 2000. ‘The E.ects of Audit Com­mittee Activity and Independence on Corporate Fraud.’ Managerial Finance 26:55–68. Abbott,L.J., andS.Parker. 2004. ‘Audit Committee Characteristics and Restatements.’ Auditing 23:69–88. Aboushady, N. 2022. ‘Services Liberalization and Global Value Chains Participation: Evidence from Egypt.’ International Journal of Euro-Mediterranean Studies 15 (2): 245–79. Alchian, J., P.-A., ed. 1997. Les pme bilan et perspectives. 2nd ed. Paris: Economica. Aldamen, H., K. Duncan, S. Kelly, R. McNamara, and S. Nagel. 2012. [309] ‘Audit Committee Characteristics and Firm Performance During the Global Financial Crisis.’ Accounting & Finance 52 (4): 971–1000. Al-Matari, Y. A. 2013. ‘Board of Directors, Audit Committee Character­istics and Performance of Saudi Arabia Listed Companies.’ Interna­tional Review of Management and Marketing 2(4):241–51. Amer, M., A. A. Ragab, and E. S. Shehata. 2014. ‘Audit Committee Char­acteristics and Firm Performance: Evidence from Egyptian Listed Companies.’ Paper presented at the 6th Annual American Business Research Conference, New York, 9–10 June. Amer, M., and I. Selwaness. 2022. ‘Promoting sme Access to Finance: Evidence from the Manufacturing Sector in Egypt.’ International Journal of Euro-Mediterranean Studies,15(2): 217–44. Arens, A. A., R. J.Elder, andM.S.Beasley. 2014. Auditing and Assurance Services: An Integrated Approach. Upper Saddle River, nj: Pearson. Bansal,N., andA.K.Sharma. 2016. ‘Audit Committee, Corporate Gov­ernance and Firm Performance: Empirical Evidence from India.’ In­ternational Journal of Economics and Finance 8 (3): 103–16. Barney,J.1991. ‘FirmResources and Sustained Competitive Advantage.’ Journal of Management 17 (1): 99–120. Beasley, M. S.,J.V.Carcello,D.R. Hermanson, and T. L. Neal 2009. ‘The Audit Committee Oversight Process.’ Contemporary Accounting Re­search 26 (1): 65–122. Bedard, J., S. M. Chtourou, and L. Courteau. 2004. ‘The E.ect of Au­dit Committee Expertise, Independence, and Activity on Aggressive Earnings Management.’ Auditing 23 (2): 13–35. Bescos,P., P. Dobler, C.Mendoza,and G. Naulleau. 1993. Contrôle de ges­tion et management. 2nd. ed.Paris:Montchrestien. Bouquin, H. 1986. Le contrôle de gestion. Paris: PressesUniversitairesde France. ———. 2004. Le contrôle de gestion. 6th ed. Paris: Presses Universitaires de France. Bourguignon, A. 2000. ‘Performance et contrôle de gestion.’ In Ency­clopédie de Comptabilité, Contrôle de gestion et Audit, edited by B. Co­lasse, 931–41. Paris: Economica. Bradbury,M., Y. Mak, andS.Tan.2006.‘BoardCharacteristics, Audit Committee Characteristics and Abnormal Accruals.’ Paci.c Account­ing Review 18:47–68. [310] Capron, M., and F. Quairel-Lanoizelee. 2006. ‘Evaluer les stratégies de développement durable des entreprises: l’utopie mobilisatrice de la performance globale.’ Revuedel’organisation responsable 1(1):5–17. Carcello, J. V., and T. L. Neal. 2005. ‘Audit Committee Characteristics and Auditor Dismissals Following “New” Going-Concern Reports.’ The Accounting Review 78 (1): 95–117. Carcello, J. V., D. R. Hermanson, T. L. Neal, and R. A. Riley. 2002. ‘Board Characteristics and Audit Fees.’ Contemporary Accounting Research 19:365–84. Conger,J. A.,D. Finegold,andE. E. Lawler, iii. 1998. ‘AppraisingBoard­room Performance.’ Harvard Business Review 76:136–48. Contessotto, C., and R. Moroney. 2014. ‘The Association Between Audit Committee E.ectiveness and Audit Risk.’ Accounting & Finance 54 (2): 393–418. DeFond, M., and J. Francis. 2005. ‘Audit Research after Sarbanes-Oxley.’ Auditing 24 (s): 5–30. DeFond, M.L., andJ.Zhang.2014. ‘A Review of Archival Auditing Re­search.’ Journal of Accounting and Economics 58 (2–3): 275–326. Dellai, H., M. Ali, and B. Omri. 2016. ‘Factors A.ecting the Internal Au­dit E.ectiveness in Tunisian Organizations.’ Research Journal of Fi­nance and Accounting 7 (16): 2222–847. DeZoort, F. 1997. ‘An Investigation of Audit Committees’ Oversight Re­sponsibilities.’ Abacus 33: 208–27. DeZoort, T., and S. Salterio. 2001. ‘The E.ects of Corporate Governance Experience and Financial Reporting and Audit Knowledge on Audit Committee Members’ Judgments.’ Auditing 20 (2): 31–47. Dhaliwal, D., O. Z. Li, A. Tsang, and Y. G. Yang. 2012. ‘Voluntary Non-.nancial Disclosure and the Cost of Equity Capital.’ The Accounting Review 86 (1): 59–100. Elkington, J. 1994. ‘Towards the Sustainable Corporation: Win-Win-Win Business Strategies for Sustainable Development.’ California Management Review 36 (2): 90–100. Francis, J. R.,E.L.Maydew, andH. C.Sparks. 1999.‘The Role of Big 6 Auditors in the Credible Reporting of Accruals.’ Auditing 18 (2): 17– 34. Freeman, R. E., J. S. Harrison, A. C. Wicks, B. L. Parmar, and S. De Colle. 2010. Stakeholder Theory: The State of the Art. Cambridge: Cambridge University Press. García, L. S., E. R. Barbadillo, and M. O. Pérez. 2012. ‘Audit Committee and Internal Audit and the Quality of Earnings: Empirical Evidence from Spanish Companies.’ Journal of Management & Governance 16 (2): 305–31. Ghazali, A. M. N. 2010. ‘Ownership Structure, Corporate Governance and Corporate Performance in Malaysia.’ International Journal of Commerce 20 (2): 109–19. Ghosh, A., A. Marra, and D. Moon. 2010. ‘Corporate Boards, Audit Com­mittees, and Earnings Management: Pre-and Post-sox Evidence.’ [311] Journal of Business Finance and Accounting 37 (9–10): 1145–76. Hamdan, A., and S. Mushtaha. 2011. ‘The Relationship Between Audit Committee Characteristics and Firm Performance: Evidence from Jordan.’ International Business Research 4(3):64–73. Herdjiono, I., and I. M. Sari. 2017. ‘The E.ect of Corporate Governance on the Performance of a Company: Some Empirical Findings from Indonesia.’ Journal of Management and Business Administration: Cen­tral Europe 25 (1): 33–52. Jensen, M., and W. Meckling. 1976. ‘Theory of the Firm: Managerial Be­havior, Agency Costs and Ownership Structure.’ Journal of Financial Economics 3 (4): 305–60. Julien, P. A., S. Blili, and J. Chicha. 1997. Les pme: bilan et perspectives. 2nd ed. Paris: Economica. Kalbers, L. P., and T. J. Fogarty. 1998. ‘Organizational and Economic Ex­planations of Audit Committee Oversight.’ Journal of Managerial Is­sues 10 (2): 129–50. Kallamu, B. S., and N. A. M. Saat. 2015. ‘Audit Committee Attributes and Firm Performance: Evidence from Malaysian Finance Companies.’ Asian Review of Accounting 23 (3): 206–31. Kaplan, R. S. 2009. ‘Conceptual Foundations of the Balanced Scorecard.’ Handbooks of Management Accounting Research 3:1253–69. Kaplan, R. S., and D. P. Norton. 1992. ‘The Balanced Scorecard: Measures That Drive Performance.’ Harvard Business Review 70 (1): 71–9. Klein, A. 2002. ‘Audit Committee, Board of Director Characteristics, and Earnings Management.’ Journal of Accounting and Economics 33 (3): 375–400. Krishnan,J.2005.‘Audit Committee Quality and Internal Control: An Empirical Analysis.’ The Accounting Review 80 (2): 649–75. Lebas, M. 1995. ‘Oui, il faut dé.nir la performance.’ Revue Française de Comptabilité, no. 269: 66–71. Lin, J. W.,J. F. Li, and J. S.Yang. 2008.‘The E.ectofAudit Commit­tee Performance on Earnings Quality.’ Managerial Auditing Journal 21 (9): 921–33. McMullen, D. A., K. Raghunandan, and D. V. Rama. 1996. ‘Internal Con­trol Reports and Financial Reporting Problem.’ Accounting Horizons 10 (12): 67–75. Mohammed, N. 2018. ‘Corporate Governance and Firm Performance: [312] The Case of Jordanian Listed Companies.’ International Journal of Business and Social Science 9(5): 173–86. Musallam,S.R. M. 2020. ‘E.ectsof Board Characteristics, AuditCom­mittee and Risk Management on Corporate Performance: Evidence from Palestinian Listed Companies.’ International Journal of Islamic and Middle Eastern Finance and Management 13 (4): 691–706. Rahmat, M.M., andT.M.Iskandar. 2007. ‘Audit Committee Charac­teristics in Financially Distressed and Non-Distressed Companies.’ Managerial Auditing Journal 24:624–38. ———. 2009. ‘Audit Committee Characteristics and Earnings Manage­ment: Evidence from Malaysia.’ Asian Review of Accounting 17 (2): 147–63. Raghunandan, K., D. V. Rama, and D. P. Scarbrough. 1998. ‘Account­ing and Auditing Knowledge Level of Canadian Audit Committees: Some Empirical Evidence.’ Journal of International Accounting, Audit­ing and Taxation 7(2):181–94. Rustam, S., and Z. Rashid. 2013. ‘The Relationship Between Audit Com­mittees, Compensation Incentives and Corporate Audit Fees in Pak­istan.’ Economic Modeling 31:697–716. Smith, A. 1776. An Inquiry into the Nature and Causes of the Wealth of Na­tions. Edinburgh. Stieb, J. A. 2009. ‘Assessing Freeman’s Stakeholder Theory.’ Journal of Business Ethics 87:401–14. Turetken, O., S. Jethefer, and B. Ozkan. 2020. ‘Internal Audit E.ective­ness: Operationalization and In.uencing Factors.’ Managerial Audit­ing Journal 35 (2): 238–71. Vinten,G., andC.Lee. 1993. ‘Audit Committees andCorporate Control.’ Managerial Auditing Journal 8 (3). https://doi.org/10.1108 /02686909310036232. Willard, B. 2012. The New Sustainability Advantage: Seven Business Case Bene.ts of a Triple Bottom Line. Gabriola: New Society Publishers. Xie, B., W. Davidson, and P. J. DaDalt. 2003. ‘Earnings Management and Corporate Governance: The Role of the Board and the Audit Com­mittee.’ Journal of Corporate Finance 9(3): 295–316. Zabri, S. M., K. Ahmad, and K. K. Wah. 2016. ‘Corporate Governance Practices and Firm Performance: Evidence from Top 100 Public Listed Companies in Malaysia.’ Procedia: Economics and Finance 35: 287–96. The Impact of Tourism, Foreign Direct Investment, Trade, Economic Growth, and Renewable Energy on Carbon Emissions: The Case of Mediterranean Countries younesse el menyari Hassan II University of Casablanca, Morocco youness.elmenyari@gmail.com In this study, we examine the in.uence of international tourism, trade, foreign direct investment, economic growth and renewable energy consumption on co2 emissions in 17 Mediterranean countries, span­ ning the period 1995–2018, by using heterogeneous panel estimation techniques. The .ndings show that economic growth has a strong im­ pact on carbon dioxide emissions. Our results are in favor of the exis­ tence of an inverted U-shaped Environmental Kuznets curve (ekc) in the Mediterranean countries. In addition, the econometric results in­ dicate that international tourism, trade openness, fdi, and renewable energy consumption have a negative impact on carbon dioxide emis­ sions. Moreover, the Dumitrescu and Hurlin panel Granger causal­ ity test suggests that there is a two-way causality between co2 emis­ sions and the other variables explored (international tourism, open­ ness, fdi, renewable energy consumption and real income) and a one- way causality running from renewable energy consumption and trade openness to real income. Therefore, the development of international trade in the .eld of renewable energies and the exploitation of these energies in the .eld of tourism and fdi can be favorable to economic growth and the reduction of carbon dioxide emissions. Key Words: tourism, trade, foreign direct investment, economic growth, renewable energy, co2 emissions © 2024 Younesse El Menyari https://doi.org/10.70908/2232-6022/17.313-337 introduction Globally, the massive increase in economic activity has caused a sharp increase in air pollutant emissions and associated mortality. From 1950 to 2019, greenhouse gas emissions increased from 16.13 billion tons to 54.82 billion tons (Jones et al. 2023) representing an average annual growth rate of 2..In2016, theWorldHealth Organization (who)esti­mated that air pollution is responsible for 4.2 million deaths worldwide. Air pollution is one of the greatest environmental health risks. It is also [314] responsible for the degradation of natural resources, deterioration of infrastructure and the reduction of the cultivated area (Shahbaz, Ti-war, and Nasir 2013). Mediterranean countries share a similar exposure to environmental risks and increasing tourism pressure. Pollution has become a grow­ing problem in several regions of the Mediterranean basin (medecc 2020; Ezzghari et al. 2023). These countries are responsible for around 6. of the world’s co2 emissions. Furthermore, the Mediterranean is the world’s leading tourism area in terms of international tourism, with more than 360 million international tourist arrivals, i.e. 27. of world tourism in 2017 (World Tourism Organisation 2019). Tourism in the Mediterranean has contributed to the creation of employment, infrastructure, the accumulation of foreign currencies, and economic growth. However, tourism activities have an impact on the environ­ment and greenhouse gas emissions (Programme des Nations Unies pour l’Environnement 2005). Furthermore, since the ‘Barcelona Pro­cess,’ which was launched in 1995, the Mediterranean countries have implemented a process of gradual dismantling of their customs tar­i.s in order to increase trade between the eu and the Mediterranean countries. Thus, trade openness facilitates the transfer and adoption of cleaner technologies and allows late industrializing countries to make techno­logical leaps (Hettige, Lucas and Wheeler 1992; Porter 1999). Moreover, the Mediterranean region is marked by the attractiveness of foreign di­rect investment (fdi). Governments have undertaken far-reaching re­forms to create more favorable investment climates. Ambitious legisla­tive and institutional reforms have been undertaken by most Mediter­ranean countries in order to attract investment with better quality. The increase in tourist .ows, trade and fdi have an impact on en­ergy demand and the environment. The Mediterranean region repre­sents 9. of global energy demand. Total energy consumption in this region is about 1000 million tons of coal equivalent (tep) in 2007 and is expected to increase to 1400 million (tep) in 2030. As for renewable energies, it should represent 11. of global demand in 2030 (Keramane 2010). Thus, the Mediterranean region remains particularly vulnerable to climate change and likely to be increasingly exposed to extreme cli­matic events. Is should be noted, all Mediterranean ecosystems (terres­trial, coastal and marine) are being impacted by climate change (Balzan et al. 2020; Hassoun et al. 2021). Moreover, Mediterranean countries [315] have made signi.cant mitigation commitments under the Paris Cli­mate Agreement (medener 2018). The purpose of this study is to investigate the relationships between co2 emissions,tradeopenness, fdi,renewableenergy,touristarrivals, and economic growth. Our objective is to make two contributions to the existing body of literature: the .rst is to assess these relation­ships in Mediterranean countries for the period 1995–2018. The sec­ond is to use several econometric techniques that take into considera­tion both cross-sectional dependence and heterogeneity such as cross-sectional augmented ips (cips) unit root tests and cross-sectional augmented Dickey-Fuller (cadf) tests and Westerlund cointegration tests, fully modi.ed ordinary least squares (fmols), dynamic ordinary least squares (dols), dynamic seemingly unrelated regression (dsur) estimators and Dumitrescu-Hurlin causality analysis. Thus, the results of this study provide a better understanding of the dynamic relation­ships between tourism, fdi, renewable energy, international trade, economic growth, and environmental quality in order to better guide policy makers in the countries around the Mediterranean. The structure of this study is as follows: a thorough literature review is presented in the second section, data and estimation techniques are introduced in the third section, empirical results and discussion are re­ported in the fourth section, and the paper concludes with policy im­plications in the .nal section. literature review Tourism and co2 Emissions The study of the relationship between tourism and the environment is expressed in terms of constraints arising from the e.ects either on tourism development due to the environment or on environmental degradation due to tourism growth. Thus, the negative environmen­tal impacts resulting from tourism are related to the construction of general infrastructure such as airports, roads and tourist facilities and to the consumption of additional energy. These impacts can lead to de­struction of the environmental resources on which tourism depends. Moreover, the environment is an important factor in tourists’ choices and therefore, in the development of a tourist destination (Galvani 1996). Several studies have sought to assess the empirical in.uence of eco­ [316] nomic expansion and tourism development on co2 emissions. A panel of 15 Mediterranean nations was examined by Balli et al. (2018) over the years 1995–2014. The .ndings indicate that tourism receipts increase co2 emissions. With the exception of Egypt, Morocco, Italy, Spain, and Turkey, the data also suggest that the tourism-led growth hypothesis (tlgh) does not hold true for the majority of the study countries. In a 2014 study, Leon et al. examined the link between tourism and co2 emissions in both less developed and developed countries from 1998 to 2006. The results demonstrate that tourism contributes to co2 emis­sions in both types of countries. The relationship between tourism, economic growth, energy con­sumption, and co2 emissions in Turkey was investigated by Eyuboglu and Uzar (2019) from 1960 to 2014. The authors concluded that tourism, growth and energy consumption have a positive e.ect on co2 emis­sions. Theyalsofoundbidirectionalcausalitybetweentourismand co2 emissions. In a sample of 18 developing economies and 26 developed economies, Paramati, Alam, and Chen (2017) examined the impact of tourism on economic development and co2 emissions for the period between 1995 and 2012. They concluded that tourism development has a positive impact on economic growth and co2 emissions. Wang and Wang (2018) investigated the e.ect of tourism on co2 emissions in oecd nations between 1995 and 2014. The .ndings indicate that there is a feedback relationship between co2 emissions and tourism devel­opment. Ozcan, Bekun, and Nazlioglu (2021) assessed the e.ects of in­creasing tourism on environmental quality for 16 Mediterranean na­tions between 1995 and 2014. In the nations with more competitive tourism industries, the results show a substantial causal association between tourism and co2 emissions; however, in other nations, the relationship is not supported. Trade and co2 Emissions In the framework of a study on 40 European nations, Jamel and Mat­souf (2017) found a causal association that operates in both directions between trade liberalization and co2 emissions. In a similar vein, Isik, Kasimati, and Ongan (2017) investigated the dynamic relationships between international trade and Greece’s co2 emissions from 1970 to 2014. They came to the conclusion that Greece’s co2 emissions in­creased as a result of trade liberalization. Jayanthakumaran, Verma, and Liu(2012) used theautoregressive distributed lag(ardl)method­ology to examine the long-and short-run relationships between trade [317] and co2 emissions in a comparative study between India and China. Regardingthee.ectoftradeintensityon co2 emissions, the empirical results were inconclusive and not signi.cant in terms of trade inten­sity’s impact on co2 emissions. Additionally, Shahbaz et al. (2013) studied the impact of trade open­ness on co2 emissions in Indonesia. The results show that trade open­ness is negatively related to co2 emissions. They concluded that inter­national trade provides developing economies with access to e.cient technologies and techniques that emit less co2.ThecaseofItaly was investigated by Bento and Moutinho (2016), who found that the impact of international trade is not signi.cant in the short term but has a pos­itive e.ect in the long term on co2 emissions, reaching a point where it a.ects pollution. Akin (2014) examined 85 nations between 1990 and 2011inordertoexaminethee.ectoftradeopennesson co2 emissions. According to the empirical .ndings, trade openness has the potential to lower co2 emissions. Ohlan(2015)used ardl modelingtoinvestigate the relationship between global trade and co2 emissions in India from 1970 to 2013, .nding that both the short and long-term e.ects are not noteworthy. Zhang, Liu, and Bae (2017) looked at the ekc hypothesis and how trade openness a.ected co2 emissions in industrialized na­tionsbetween1971and2013.The.ndingssupportthe ekc hypothesis and show that trade has a negative impact on co2 emissions. Using the pooled mean group-autoregressive Distributed Lag (pmg­ardl) approach, Essandoh, Islam, and Kakinaka (2020) examined the e.ect of trade on co2 emissions in 52 nations between 1991 and 2014. They demonstrated that while the e.ect of international openness on co2 emissions is negligible for developing nations, it has a negative ef­fect on industrialized nations. fdi and co2 Emissions InthecontextofIndia,Acharyya(2009)examinedthee.ectof fdi on co2 emissions between 1980 and 2003. The empirical .ndings demon­strated a positive e.ect of fdi on co2 emissions. Gökmenoglu and Taspinar(2015)examinedthee.ectof fdi oncarbonemissionsaswell as the ekc hypothesis, in Turkey. The .ndings indicate that fdi has a long-term positive e.ect on Turkey’s co2 emissions. The authors also discovered a bidirectional relationship between fdi and carbon emis­sions. [318] For a sample of 18 Latin American nations, Blanco, Gonzalez, and Ruiz (2013) investigated the relationship between fdi and co2 emis­sions for the years 1980–2007. The .ndings suggest that higher co2 emissions may be associated with foreign direct investment in highly polluting industries. Baksh et al. (2017) studied how environmental pol­lution in Pakistan was a.ected by fdi between 1980 and 2014. The re­sults of the investigation showed that fdi had a signi.cant e.ect on increasing co2 emissions.Usingbothlinearandnonlinear ardl mod­els, Haug and Ucal (2019) analyzed the e.ect of fdi on co2 emissions in Turkey. The .ndings suggest that there is no signi.cant relationship between fdi and carbon emissions. Demena and Afesorgbor (2019) used a meta-analysis of 65 primary papers to investigate the impact of fdi on the environment. The .nd­ings demonstrated that fdi signi.cantly lowers emissions in the en­vironment. In the case of the brics, Ra.que et al. (2020) investigated the link between fdi and carbon emissions. The authors discovered that fdi had a detrimental impact on co2 emissions using the Aug­mented MeanGroup (amg)estimate. Moreover, causality tests show a unidirectional causal link from fdi to carbon emissions. Renewable Energy and co2 Emissions Dong, Sun, and Hochman (2017) examined a panel of data from 128 countries covering the period 1990–2014 to study the relationship be­tween co2 emissions and renewable energy consumption. The empiri­cal .ndings demonstrate that, for each of the six research zones, a rise in the intensity of renewable energy is accompanied by a fall in co2 emissions. Similarly, Waheed et al. (2017) used ardl modeling to ex­amine the impact of renewable energy consumption on carbon dioxide (co2) emissions in Pakistan between 1990 and 2014. They found that using more renewable energy can lower co2 emissions over the long term. Saïdi and Omri (2020) assessed the e.ects of nuclear and renew­able energy consumption on co2 emissions in oecd countries. The .ndings of various estimates demonstrate that using nuclear and re­newable energy lowers carbon emissions. Conversely, Ben Jebli and Ben Youssef (2017) examined the dynamic causal relationships between the consumption of renewable energy and carbon dioxide emissions in North African countries from 1980 to 2011. Granger causality test re­sults show a unidirectional relationship between co2 emissions and renewable energy sources. Furthermore, the parameter estimates indi-[319] cate that a long-term increase in the use of renewable energy sources is associated with a rise in co2 emissions. In contrast to earlier research, Acheampong, Dzator, and Savage (2021) investigated the relationship between renewable energy and carbon emissions in African countries. The .ndings demonstrate that there is no connection between renew­able energy sources and carbon emissions. Tourism, Trade, fdi, re and co2 Emission Using the generalized method of moments (gmm) approach, Balogh and Jambor (2017) examined the factors in.uencing co2 emissions in a panel of 168 countries. The outcomes attest to the bene.cial contri­bution of renewable energy generation to the decrease in co2 emis­sions. Estimates have shown that the expansion of tourism and inter­national trade can hasten environmental degradation by raising atmo­spheric co2 emissions. Using the weighted-average least squares (wals) approach, Aller, Ductor, and Grechyna (2021) investigated the factors in.uencing co2 emissions for a panel of 92 countries. The .ndings indicate that income and fdi increase environmental degradation, while tourist arrivals have a negative impact on the environment. Leitão and Lorente (2020) employed three estimation methods – fmols, dols and gmm-System – to analyze the empirical relationship between tourist arrivals, trade openness, renewable energy, economic growth, and co2 emis­sions in European Union countries for the period 1995–2014. Estimates indicate that while trade openness, the amount of renewable energy consumption, and international tourist arrivals all have a negative im­pact on co2 emissions, economic growth has a positive e.ect on these emissions. Similarly, Khan and Ahmad (2021) evaluated the e.ects of tourism, international trade, fdi, and renewable energy consumption on co2 emissions in a selection of developed European countries and developing Asia-Paci.c countries between 2000 and 2020. According to estimates, trade openness and renewable energy consumption have a negative impact on carbon emissions in industrialized countries, whereas tourism and fdi have a bene.cial impact. Author(s) Country/region Period Methodology Conclusion Ben Jebli United States, ....–.... vecm and Granger co. . tourism; and Hadhri China, Turkey, Mex- causality test ap­ gdp . tourism; [320] (....) ico, Germany, Italy, Spain, France, Rus­ proach energy . tourism sian Federation and United Kingdom Dogan .. eu ....–.... Panel Granger Tourism . co.; and Aslan causality gdp . tourism (....) Zhang .. Chinese ....–.... Granger causality co. . tourism; and Zhang provinces tests gdp . tourism (....) Ravinthi­ apec region ....–.... Panel Granger Tourism . co. rakumaran causality and Ravin­ thirakuma­ ran (....) Katircioglu, Cyprus ....–.... Granger causality Tourism . co.; Feridun, tests Energy . tourism and Kilinc (....) Ben Je­ .. American coun­ ....–.... Panel Granger co. . tourism; bli, Ben tries causality Tourism . trade; Youssef, Renewable energy . and Apergis tourism; (....) FDI . tourism Akadiri et .. small island de­ ....–....Granger causality co. . tourism al. (....) veloping countries tests Balli et al. .. Mediterranean ....–....Granger causality Tourism . gdp (....) countries tests (Spain, Italy, and Egypt); Tourism . gdp (Turkey and Morocco); Tourism . co. Selvanathan, South Asia ....–....Heterogeneous gdp . tourism; Jayasinghe, panel causality test tourism . co.; and Sel­ tourism . energy; vanathan capital . tourism (....) Continued on the next page In summary, the results are generally mixed and vary according to empirical speci.cations, data used, econometric methods and coun­tries studied. This paper examines the relationships between tourism, international trade, fdi, renewable energy consumption, economic growth and co2 emissions for Mediterranean countries. The impact The Impact of Tourism, Foreign Direct Investment ... table 1 Continued from the previous page Author(s) Country/region Period Methodology Conclusion Nosheen, Asian economies ....–.... Bootstrap panel co- Tourism . co. Iqbal, and integration test Khan (....) Paramati, .. eu member ....–.... Panel Granger Tourism investment [321] Alam, and states causality . tourism revenue; Lau (....) tourism investment . co. Koçak, Ulu-.. countries ....–....Heterogeneous Tourism . co.; cak, and panel causality test Ulucak (....) El Menyari Morocco, Algeria, ....–....Heterogeneous Tourism . co.; (....) Tunisia, and Egypt panel causality test gdp . tourism; electricity consump­tion . tourism notes . unidirectional causality, . bidirectional causality. of these variables on co2 emissions and the study of causal links are rarely analyzed in the Mediterranean context. Therefore, this study contributes both to the existing literature and to the development of relevant policies for sustainable tourism, fdi, and international trade in Mediterranean countries (table 1). methodology framework Model and Data The ekc hypothesis is the theoretical framework that serves to in­vestigate how tourism, trade, fdi and renewable energy sources af­fect environmental quality. The groundbreaking study by Grossman and Krueger (1991), as well as more recent research by Muhammad et al. (2020), Dogru et al. (2020), Leitão and Lorente (2020), and Khan and Ahmad (2021), inspired the development of the ekc’s functional shape,whichanalyzesfactorsthatin.uence co2 emissions, such as the growth of tourism, fdi, trade openness, and renewable energy, inte­grated into the traditional ekc model. Therefore, this study aims to examine the following hypotheses: h1 There is an inverse U relationship between growth and carbon diox­ide emissions. h2 There is a negative relationship between tourism development and co2 emissions. h3 There is a negative relationship between fdis and co2 emissions. h4 Thereisanegativelinkbetweentradeopennessand co2 emissions. h5 Renewableenergyisexpectedtoreduce co2 emissions. Thus, the model speci.cation is presented as follows: [322] co2it = .0 + .1gdpit + .2gdpit 2 + .3tait + .4reit + .5Tradeit + .6fdiit + eit. (1) In this equation, the variables are de.ned as follows: co2 –car­bon dioxide emissions measured in metric tons per capita; gdp – real gdp per capita (represented in usd), as a measure of economic per­formance, gdp2 real gdp per capita squared to examine the ekc hy­pothesis; ta –touristarrivals,representingthenumberoftouristswho traveltoacountryotherthanwheretheyhabituallyreside; re –renew­able energy consumption, which represents total renewable electric­ity consumption, measured in billions of kilowatt hours; Trade –trade openness ratio, measured by exports plus imports of goods and services asapercentageof gdp;fdi –foreigndirectinvestment,netin.owsas apercentageof gdp. eit is the standard error term, .1,.2,.3,.4,.5 and .6 are the model parameters. The country and time dimensions are de­noted by the sub-indices i and t, respectively. Within the framework of panel data, this work examines the e.ects of fdi, tourism, income, and renewable energy consumption on envi­ronmental quality in the Mediterranean region, speci.cally in Morocco, Portugal, Greece, Spain, Albania, Croatia, Israel, Cyprus, Egypt, Algeria, Italy, Tunisia, Turkey, Lebanon, Malta, Slovenia, and France between 1995 and 2018. All data were obtained from the World Development Indicators (wdi) database, except for renewable energy consumption, which was obtained from the us Energy Information Administration database. Natural logarithms are used to express all variables. Methodological Approach We broke down the econometric estimation process into .ve parts to accomplish the study’s goals. The .rst step investigates the cross-sectional independence between the variables using the tests created by Breuschand Pagan(1980)and Pesaran(2004). The second step ex­amines the degrees of integration of the variables with the cips and cadf unit root tests of Pesaran (2007), which take into account the serial dependence and the heterogeneity of slope coe.cients in the cross-section dimension. The third step analyzes the long-term rela­tionship structure between the variables using the Westerlund (2007) cointegration test. After determining the existence of a cointegrating relationship, in the fourth step, we use the fmols, dsur and dols estimators to study the long-term e.ect of the independent variables [323] on carbon emissions. Finally, we apply the panel causality test, intro­duced by Dumitrescu and Hurlin (2012), in the .nal stage.¹ Cross-Sectional Independence Tests Because of the direct and indirect economic ties that exist between the countries in the model, a shock that a.ects one country might also af­fect other countries, which makes cross-sectional dependence a signif­icant issue in panel data models. As a result, if this dependence is ig­nored, estimates may become skewed (O’Connell 1998). We use the Lagrange multiplier (lm) test, and the cross-section de­pendence (csd) test to validate the cross-sectional dependence because the temporal dimension (T) is larger than the sample size (N). Panel Unit Root Tests Weusethe cadf and cips tests,whicharethesecond-generationunit root tests developed by Pesaran (2007), as a second stage of the empir­ical investigation. These tests account for the heterogeneity and cross-sectional dependence of the parameters. Based on the Augmented Dickey Fuller (adf) approach, the cadf test can be expressed as follows: p = ai + biyi,t-1 + ciyt-1 +  .yit dij.yt-j j=0 p  + .ij.yt-j + eit, (2) j=1 where yt is the average at time T of all the N countries. After using the cadf test, the cips test can be obtained as follows: N cips = N-1  ti(N,T), (3) i=1 where ti(N,T)isthe t-statistic in the cadf regression (Equation 2). ¹The econometric analysis was carried out using stata software. volume 17 | 2024 | number 2 Cointegration Test Panel Next, we apply Westerlund’s (2007) panel cointegration test, which al­lows us to account for the variability of cointegrating vectors and cross-sectional independence, to investigate the likelihood of a cointegration [324] relationship between the variables under study. Long-Run Estimates: fmols, dols, dsur We employ three estimation techniques to evaluate the long-term as­sociation between the variables after examining stationarity and coin­tegration. To prevent biased estimates, we use the Dynamic Seemingly Unrelated Regression (dsur) developed by Mark et al. (2005) as well as the cointegration regressions created by Pedroni (2001), which in­clude fully modi.ed ordinary least squares (fmols) and dynamic or­dinary least squares (dols) estimators. The .rst two methods make it possible to reinforce the robustness of panel data analysis results, by considering the problems of endogeneity among the repressors and the autocorrelation of errors, while the third method is robust in cases of csd andheterogeneityissues,inadditiontoitsabilitytoproducemore robust estimates when the time dimension is signi.cantly larger than the samplesize(N) (Mark et al. 2005). Dumitrescu-Hurlin Panel Causality Analysis The .nal phase is to use Dumitrescu and Hurlin’s (2012) causality test, which is regarded as an extension of the traditional Granger causality approximation, to investigate the causal interactions between the vari­ables in our model. This test accounts for cross-sectional dependence and the presence of diverse panel data. empirical results and analysis Regarding the descriptive statistics presented in table 2, we note that, withtheexceptionofthevariableof co2 emissions per capita, the oth­ ers series has signi.cant dispersion around its own average. In fact, average co2 emissions per person show an average of 4.910533 and a standard deviation of 2.368148 in the countries studied, compared to gdp (sd = 11363.87), renewable energy consumption (sd = 29.54122), tourism arrivals (sd = 29666341), trade openness (sd = 52.10496) and foreign direct investment (sd = 1.54e+10). Also, the measure of skew­ ness indicates a left-tailed distribution of the median, and therefore the distribution is right-skewed. Moreover, the measurement of kurtosis The Impact of Tourism, Foreign Direct Investment ... table 2 Descriptive Statistics co. gdp re ta Trade fdi Mean ..... ......... ...... ........ ...... ....e+. Median ..... ......... ..... ....... ...... ....e+. Maximum Minimum ..... ..... ......... ........ ....... ..... ....e+. ...... ....... ...... ....e+.. –....e+. [325] Std. dev. ..... ......... ...... ........ ...... ....e+.. Skewness ..... ..... ...... ..... ..... ..... Kurtosis ..... ..... ..... ..... ...... ...... Jarque-Bera ...... ...... ....... ....... ........ ........ Probability ........ ........ ........ ........ ........ ........ table 3 Correlation Matrix Variables co. gdp re ta Trade fdi co. ...... – gdp ...... ...... ...... – re ...... ...... ...... ...... ...... – ta ...... ...... ...... ...... ...... ...... ...... – Trade ...... ...... -...... -...... ..... ...... ...... ...... ...... – fdi ...... ...... ...... ...... –...... ...... ...... ...... ...... ...... ......– showsmixedresults;thedistribution of co2 emissions and income per capita are platykurtic (kurtosis values are lower than the normal value) while the distribution of the other variables is leptokurtotic. Similarly, the Jarque-Bera test o.ers compelling evidence against the normality of the variables under investigation. Table 3 examines the correlation matrix between the variables. The resultsshowthatthevariablesof gdp, ta, re,tradeopennessand fdi are positively correlated with co2 emissions. The variance in.ation factor (vif) and tolerance for each indepen­dent variable were calculated and are shown in table 4 to assess multi­collinearity. The outcomes of these tests indicate that there is no multi­collinearity issue because the tolerance values are not less than 0.2 and the vif valuesarelessthan5. Asaresult,allindependentvariablescan be taken into account in our econometric models. Variable gdp ta re Trade fdi Mean vif .... .... .... .... .... .... Tolerance ........ ........ ........ ........ ........ [326] table 5 Pesaran-Yamagata’s Homogeneity Test Test Delta (.) Adjusted delta Statistics ...... ...... Probability ..... ..... table 6 Cross-Sectional Dependence Test Variables co. gdp re ta Trade fdi Breusch­ ........*** ........*** ........*** ........*** ........*** ........*** Pagan lm Pesaran ......*** .......*** ......*** .......*** ......*** ......*** scaled lm Pesaran cd .....*** ......*** ......*** .......*** ......*** ......*** notes *** Signi.cance level: 1.. Table 5 displays the results of the Pesaran and Yamagata (2008) ho­mogeneity tests. These tests support the alternative hypothesis of het­erogeneity over the null hypothesis of panel homogeneity. As a result, this analysis highlights the prevalence of heterogeneity and the neces­sity of using heterogeneous panel data methodologies. The .ndings of the cross-sectional dependence test demonstrate that the probability values (p-value) are signi.cantly below the 1. threshold, indicating that the null hypothesis of independence is re­jected at that point (table 6). As a result, a shock that originates in one Mediterranean nation may spread to neighboring nations. Weconductedunitroottests,speci.callythe cips and cadf,which account for cross-sectional dependency, since the earlier results show the presence of cross-sectional dependence and the heterogeneity of table 7 cadf and cips Panel Unit Root Test Variables co. gdp re ta Trade fdi cadf (a) ..... ..... ..... ..... –..... –..... (b) –.....*** –.....*** –.....*** –.....*** –.....*** –.....*** cips (a) –..... –..... ..... –..... –..... –..... (b) –.....*** –.....*** –.....*** –.....*** –.....*** –.....*** notes Row headings are as follows: (a) level, (b) .rst di.erence. *** Signi.cance level: 1.. The Impact of Tourism, Foreign Direct Investment ... table 8 Panel Cointegration Test Pedroni Panel V-test –......*** Rho-test ......*** pp-test –......*** Group adf-test Rho-test –......** ......*** [327] pp-test –......*** adf-test –......*** Kao adf statistic –......*** Westerlund Variance ratio ......*** notes *** Signi.cance level: 1.. ** Signi.cance level: 5.. the slopes. According to table 7’s results, all of the variables have unit roots (non-stationary) at every level and are integrated of order one I(1); as a result, their linear combination needs to be a stationary pro­cess I(0). In order to investigate whether there is a long-term relation­ship between the variables, cointegration tests were carried out. We examined cointegration between variables using the Pedroni, Westerlund, and Kao tests. We infer that the variables under study are cointegrated since table 8’s results show that the tests are statistically signi.cant. Thus, panel cointegration techniques were used to evaluate the long-term relationship between the variables. Table 9reports the .ndings of the dsur, fmols and dols. Note that the methods we employed are more resilient and e.cient than the ols method (Mark et al. 2005; Ben Jebli, Ben Youssef, and Ozturk 2016; Adebayo et al. 2021; Ximei et al. 2024). These methods are the fmols, dols, and dsur methods. As a result, the .ndings indi­cate that there is a positive relationship between real income and co2, table 9Long-Run Estimation Results Indepen- Dependent Variable co. dent fmols dols dsur variables (.) (.) (.) (.) (.) (.) gdp ......*** ...... ......*** ...... ......*** ...... gdp2 –......*** ...... –......*** ...... –......*** ...... re –......*** ...... –......*** ...... –......*** ...... ta –......*** ...... –......*** ...... –...... ...... Trade –......*** ...... –......*** ...... –......*** ...... fdi –............ –......*** ...... –......*** ...... notes Column headings are as follows: (1) coe.cient, (2) probability. *** Signi.c. level: 1.. ranging from 5.16. to 6.7.. This suggests that rising per capita income inMediterraneannationsisassociatedwithrising co2 emissions. Eco­nomic growth has a signi.cant impact on co2 emissions. Moreover, our .ndings support the existence of an inverted U-shape [328] (coe.cients ß1 >0and ß2 < 0) for the Mediterranean countries, validat­ing the environmental Kuznets curve hypothesis. Our empirical .nd­ings are consistent with those of Dogan et al. (2020) and Grossman and Krueger (1991). Furthermore, the elasticity of carbon emissions, rang­ing from 0.05. to 0.10., is strongly negative in relation to re. This .nding implies that improving environmental quality is a direct e.ect of increasing the use of renewable energy sources. Consequently, sev­eral researchers have demonstrated the role of renewable energy in re­ducing carbon emissions. Indeed, the deployment of green projects and green spending can make low-carbon technologies more commercially viable and accessible to the public (Muth 2023). Similarly, there is statistical signi.cance and a negative coe.cient associated with tourist arrivals. Therefore, ceteris paribus, a 1. in­crease in tourism results in a decrease in carbon dioxide emissions per person of 0.01. to 0.05.. This .nding suggests that the Mediter­ranean region’s tourism industry may be a vital tool for reducing co2 emissions and promoting sustainable development. Previous studies of Dogan and Aslan (2017), Bella (2018), Akadiri et al. (2020) and El Menyari (2021), also found the same impact on co2 emissions. However, these studies did not integrate other variables likely to in.uence co2 emissions and were conducted with a restricted sample of countries. In addition, trade has a negative and signi.cant impact on co2 emissions. Indeed, a 1. increase in international trade, ceteris paribus, reduces carbon dioxide emissions per capita by 0.26.. This result is similar to those of several studies, such as Sinha and Shah­baz (2018), Chen, Wang, and Zhong (2019), and Leitão and Lorente (2020). However, this .nding contrasts to that of Islam et al. (2021), who found that increasing gdp increases co2 emissions in Bangla­desh. Furthermore, there is a statistically signi.cant negative relationship between fdi and co2 emissions. This outcome di.ers from the conclu­sions drawn by Ra.que et al. (2020) and Wang et al. (2022). It does not, however, align with the conclusions of Salahodjaev and Isaeva (2022) on 20 post-Soviet republics or Khan et al. (2021) in the case of 69bri countries. The Impact of Tourism, Foreign Direct Investment ... table 10 Dumitrescu and Hurlin Test h. W-Statistics Zbar-Statistics gdp does not cause co. ....... .......*** co. does not cause gdp ....... .......*** re does not cause co. ....... .......*** [329] co. does not cause re ....... .......*** ta does not cause co. ....... .......*** co. does not cause ta ....... .......*** trade does not cause co. ....... .......** co. does not cause trade ....... .......*** fdi does not cause co. ....... .......*** co. does not cause fdi ....... .......*** re does not cause gdp ....... ....... gdp does not cause re ....... .......*** ta does not cause gdp ....... .......*** gdp does not cause ta ....... .......** trade does not cause gdp ....... .......*** gdp does not cause trade ............ .. fdi does not cause gdp ....... .......* gdp does not cause fdi ....... .......*** ta does not cause re ....... .......*** re does not cause ta ....... .......** trade does not cause re ....... .......*** re does not cause trade ....... .......*** fdi does not cause re ....... –....... re does not cause fdi ....... ....... trade does not cause ta ....... –....... ta does not cause trade ....... .......*** fdi does not cause ta ....... –....... ta does not cause fdi ....... .......*** fdi does not cause trade ........ ......*** trade does not cause fdi ....... .......*** notes *** Signi.cance level: 1.. ** Signi.cance level: 5..* Signi.cance level: 10.. In order to determine the relationship between co2 emissions, re, gdp, ta,Trade,and fdi for thesamplenations,weadditionally ex­amine the Dumitrescu and Hurlin causality test. Table 10 displays the outcomes of the Dumitrescu and Hurlin causality test. We have com­pelling evidence that the other variables under study trade, fdi, re, ta, and gdp are causally related to co2 emissions in both directions. This implies that coordinated implementation of policies related to the environment, renewable energy, tourism, and economy will be neces­sary. Furthermore, there is a unidirectional causal relationship between realincomeandTradeaswellasthe re.Lastly,therewasnodiscernible causal link between fdi and re (table 10 on p. 329). [330] conclusion This study analyzes the in.uence of renewable energy consumption, tourism, international trade and foreign direct investments on co2 emissions in the presence of the ekc model in the Mediterranean countries over the period 1995–2018, by using appropriate economet­ric methods such as panel estimation techniques with cross-sectional dependence. Theresultsoftheunitroottestsinthe cadfand cips panelreveal that all the variables are not stationary in level and are integrated of order one. Westerlund’s test (2007) indicates that the variables studied are cointegrated. Thus, the results of econometric estimates show that economic growth strongly in.uences carbon emissions. Moreover, our support the existence of an inverted U-shaped for the Mediterranean countries, which con.rms the existence of the Environmental Kuznets Curve hypothesis. On the other hand, our results show that tourism, re­newableenergyconsumption,tradeopenness,and fdi haveanegative and statistically signi.cant impact on co2 emissions. In addition, the results of Dumitrescu and Hurlin test show the existence of a bidirec­tionalcausalitybetween co2 emissions and the other variables studied (gdp, re, ta,Trade, fdi)andunidirectionalcausalityrangingfrom re and Trade to real income, while no causal relationship was observed be­tween re and fdi. The empirical analysis leads to several implications. First, to sup­port sustainable development and green growth, the Mediterranean region countries must continue to advance technological innovation. Then, the negative impact of energy consumption on carbon emissions suggests that actions must be taken to reduce the .nancial cost of the transition to renewable energies through .scal and regulatory mea­sures. Finally, it would be appropriate to encourage the liberalization of trade in the .eld of renewable energies and to utilize these energies to support tourism and foreign investments at a sustainable level that can be favorable to economic growth and environmental quality. Furthermore, our results reveal that tourism can play a key role in promoting international trade, fdi, re and reducing co2 emissions in the Mediterranean region. Therefore, public authorities in Mediter­ranean countries must ensure coordination and consultation between stakeholders operating in the tourism sector to develop the infras­tructure and host a signi.cant number of business events. Similarly, sustainable tourism development and renewable energy transition re­quire awareness-raising and support actions for tourism stakehold-[331] ers by public authorities to encourage tourism that aligns with eco­nomic development, environmental preservation, and resource man­agement. Our study has some limitations. First of all, our study only samples countries around the Mediterranean, so we suggest that other researchers extend our work to other regions of the world. Second, the current study can be expanded using recent econometric tests that better capture crises and structural changes. references Acharyya, J. 2009. ‘fdi, Growth and the Environment: Evidence from Indiaon co2 Emission during the Last Two Decades.’ Journal of Eco­nomic Development 34 (1): 43. Acheampong, A.O., J. Dzator,and D. A. Savage.2021. ‘Renewable En­ergy, co2 Emissions and Economic Growth in Sub-Saharan Africa: Does Institutional Quality Matter?’ Journal of Policy Modeling 43 (5): 1070–93. Adebayo, T. S., M. Ramzan, H. A. Iqbal, A. A. Awosusi, and G. D. Akin­sola. 2021. ‘The Environmental Sustainability E.ects of Financial Development and Urbanization in Latin American Countries.’ En­vironmental Science and Pollution Research 28 (41): 57983–96. Akadiri, S. S., T. T. Lasisi, G. Uzuner, and A. C. Akadiri. 2020. ‘Ex­amining the Causal Impacts of Tourism, Globalization, Economic Growth and Carbon Emissions in Tourism Island Territories: Boot­strap Panel Granger Causality Analysis. Current Issues in Tourism 23 (4): 470–84. Akin,C.S.2014. ‘TheImpactofForeign Trade, Energy Consumptionand Incomeon co2 Emissions.’ International Journal of Energy Economics and Policy 4 (3): 465–75. Aller, C.,L.Ductor, andD. Grechyna. 2021. ‘Robust Determinants of co2 Emissions.’ Energy Economics 96:105154. Bakhsh, K., S. Rose,M.F. Ali, N.Ahmad,and M. Shahbaz. 2017. ‘Eco­nomic Growth, co2 Emissions, Renewable Waste and fdi Relation in Pakistan: New Evidences from 3sls.’ Journal of Environmental Management 196:627–32. Balli, E., C. Sigeze, M. Manga, S. Birdir, and K. Birdir. 2019. ‘The Rela­tionship between Tourism, co2 Emissions and Economic Growth: [332] A Case of Mediterranean Countries.’ Asia Paci.c Journal of Tourism Research 24 (3): 219–32. Balogh, J. M., and A. Jámbor. 2017. ‘Determinants of co2 Emission: A Global Evidence.’ Journal of Energy Economics and Policy 7 (5): 217–26. Balzan,M.V., A. E. R. Hassoun, N. Aroua, V. Baldy, M.B.Dagher, C. Branquinho, and P. Ziveri. 2020. ‘Ecosystems: Climate and Environ­mental Change in the Mediterranean Basin-Current Situation and Risks for the Future.’ In Climate and Environmental Change in the Mediterranean Basin: Current Situation and Risks for the Future; First Mediterranean Assessment Report, 323–468. Marseille: Union for the Mediterranean. Bella, G. 2018. ‘Estimating the Tourism-Induced Environmental Kuznets Curve in France.’ Journal of Sustainable Tourism 26 (12): 2043–52. Ben Jebli, M., S. Ben Youssef, and N. Apergis. 2019. ‘The Dynamic Link­agebetweenRenewableEnergy,Tourism, co2 Emissions, Economic Growth, Foreign Direct Investment, and Trade. Latin American Eco­nomic Review 28 (1): 1–19. Ben Jebli, M., and W. Hadhri. (2018). ‘The Dynamic Causal Links be­tween co2 Emissions from Transport, Real gdp, Energy Use and International Tourism.’ International Journal of Sustainable Develop­ment and World Ecology 25 (6): 568–77. Ben Jebli, M., and S. Ben Youssef. 2017. ‘The Role of Renewable En­ergy and Agriculture in Reducing co2 Emissions: Evidence for North Africa Countries.’ Ecological Indicators 74:295–301. Ben Jebli, M., S. Ben Youssef, and I. Ozturk. 2016. ‘Testing Environ­mental Kuznets Curve Hypothesis: The Role of Renewable and Non-Renewable Energy Consumption and Trade in oecd Countries.’ Ecological Indicators 60:824–31. Bento, J. P. C., and V. Moutinho. 2016. ‘co2 Emissions, Non-Renewable and Renewable Electricity Production, Economic Growth, and In­ternational Trade in Italy.’ Renewable and Sustainable Energy Reviews 55:142–55. Blanco, L., F. Gonzalez, and I. Ruiz. 2013. ‘The Impact of fdi on co2 Emissions in Latin America.’ Oxford Development Studies 41 (1): 104– 21. Breusch, T. S., and A. R. Pagan. 1980. ‘The Lagrange Multiplier Test and Its Applications to Model Speci.cation in Econometrics.’ The Review of Economic Studies 47 (1): 239–53. Chen, Y., Z. Wang, and Z. Zhong. 2019. ‘co2 Emissions, Economic Growth, Renewable and Non-Renewable Energy Production and Foreign Trade in China.’ Renewable Energy 131:208–16. Demena,B., andS.K. Afesorgbor. 2019. ‘The E.ectof fdi on Environ­ mentalEmissions:EvidencefromaMeta-Analysis.’ iss WorkingPa­per Series/General Series 650, International Institute of Social Stud­ies of Erasmus University, Rotterdam. Dogan, E., and A. Aslan. 2017. ‘Exploring the Relationship among co2 Emissions, Real gdp, Energy Consumption and Tourism in the eu [333] and Candidate Countries: Evidence from Panel Models Robust to Heterogeneity and Cross-Sectional Dependence.’ Renewable and Sus­tainable Energy Reviews 77:239–45. Dogan, E., R. Ulucak, E. Kocak, and C. Isik. 2020. ‘The Use of Ecologi­cal Footprint in Estimating the Environmental Kuznets Curve Hy­pothesisfor bricst byConsideringCross-SectionDependenceand Heterogeneity.’ Science of the Total Environment 723:138063. Dogru, T., U. Bulut, E. Kocak, C. Isik, C. Suess, and E. Sirakaya-Turk. 2020. ‘The Nexus between Tourism, Economic Growth, Renewable Energy Consumption, and Carbon Dioxide Emissions: Contempo­raryEvidencefrom oecd Countries.’ Environmental Science and Pol­lution Research 27:40930–48. Dong, K., R. Sun, and G. Hochman. 2017. ‘Do Natural Gas and Renew­able Energy Consumption Lead to Less co2 Emission? Empirical Ev­idence from a Panel of brics Countries.’ Energy 141:1466–78. Dumitrescu, E. I., and C. Hurlin. 2012. ‘Testing for Granger Non-Cau­sality in Heterogeneous Panels.’ Economicmodeling 29(4): 1450–60. El Menyari, Y. 2021. ‘The E.ects of International Tourism, Electricity Consumption, and Economic Growth on co2 Emissions in North Africa.’ Environmental Science and Pollution Research 28 (32): 44028– 38. Essandoh,O.K., M. Islam, andM.Kakinaka. 2020. ‘Linking Interna­tional Trade and Foreign Direct Investment to co2 Emissions: Any Di.erences between Developed and Developing Countries?’ Science of the Total Environment 712:136437. Eyuboglu, K., and U. Uzar. 2020. ‘The Impact of Tourism on co2 Emis­sion in Turkey.’ Current Issues in Tourism 23 (13): 1631–45. Ezzghari, Y., E. K. Cherif, A. Bnoussaad, and H. Boulaassal. 2023. ‘As­sessment of Coastal Water Quality by Testing a Linear Model Us­ing Landsat8 sst Data: Exploratory Study.’ International Journal of Euro-Mediterranean Studies 16 (2): 251–80. Galvani, A. 1996. ‘Les solutions aux exigences d’environnement sur la Riviera de Rimini (Italie).’ Méditerranée 84 (3): 23–6. Gökmenoglu,K.,andN. Taspinar. 2016. ‘TheRelationshipbetween co2 Emissions, Energy Consumption, Economic Growth and fdi: The Case of Turkey.’ The Journal of International Trade & Economic Devel­opment 25 (5): 706–23. [334] Grossman, G.M., andA.B.Krueger.1991. ‘Environmental Impacts of a North American Free Trade Agreement.’ Working Paper 3914, Na­tional Bureau of Economic Research, Cambridge, ma. Hassoun, A. E. R., J. Guiot, K. Marini, and W. Cramer. 2021. ‘The Chang­ing Mediterranean Basin through the Lens of Mediterranean Ex­perts.’ International Journal of Euro-Mediterranean Studies 13 (2): 117– 37. Haug,A.A.,andM.Ucal. 2019.‘TheRoleofTradeandfdi for co2 Emis­sions in Turkey: Nonlinear Relationships.’ Energy Economics 81:297– 307. Hettige, H., R. E. Lucas, and D. Wheeler. 1992. ‘The Toxic Intensity of In­dustrial Production: Global Patterns, Trends, and Trade Policy.’ The American Economic Review 82 (2): 478–81. Leitão, N.C., andD.B. Lorente.2020. ‘The Linkage between Economic Growth, Renewable Energy, Tourism, co2 Emissions, and Interna­tional Trade: The Evidence for the European Union.’ Energies 13 (18): 4838. Isik, C., E. Kasimati, and S. Ongan. 2017. ‘Analyzing the Causalities between Economic Growth, Financial Development, International Trade, Tourism Expenditure and/on the co2 Emissions in Greece.’ Energy Sources, Part B: Economics, Planning, and Policy 12 (7): 665–73. Islam, M. M., M. K. Khan, M. Tareque, N. Jehan, and V. Dagar. 2021. ‘ImpactofGlobalization, Foreign Direct Investment, and Energy Consumption on co2 Emissions in Bangladesh: Does Institutional Quality Matter?’ Environmental Science and Pollution Research 28 (35): 48851–71. Khan, A., Y. Chenggang, J. Hussain, and Z. Kui. 2021. ‘Impact of Tech­nological Innovation, Financial Development and Foreign Direct In­vestment on Renewable Energy, Non-Renewable Energy and the En­vironment in Belt & Road Initiative Countries.’ Renewable Energy 171:479–91. Jamel, L., and S. Maktouf. 2017. ‘The Nexus between Economic Growth, FinancialDevelopment,TradeOpenness,and co2 Emissions in Eu­ropean Countries.’ Cogent Economics & Finance 5(1): 1341456. Jayanthakumaran, K., R. Verma, and Y. Liu. 2012. ‘co2 Emissions, En­ergy Consumption, Trade and Income: A Comparative Analysis of China and India.’ Energy Policy 42:450–60. Jones, M. W.,G. P. Peters, T. Gasser, R. M. Andrew,R.M., C. Schwing­shackl, J. Gütschow, R. A. Houghton, P. Friedlingstein, J. Pongratz, and C. Le Quéré. 2023. ‘National Contributions to Climate Change Due to Historical Emissions of Carbon Dioxide, Methane, and Ni­trous Oxide since 1850.’ Scienti.c Data 10 (1): 155. Katircioglu, S. T., M. Feridun, and C. Kilinc. 2014. ‘Estimating Tourism-Induced Energy Consumption and co2 Emissions: The Case of Cy­prus.’ Renewable and Sustainable Energy Reviews 29:634–40. Keramane, A., ed. 2010. Énergies renouvelable sen Méditerranée: Un pari àgagner. Les Notes Ipemed 8. Paris: Ipemed. [335] Khan, Y. A., and M. Ahmad. 2021. ‘Investigating the Impact of Renew­able Energy, International Trade, Tourism, and Foreign Direct In­vestment on Carbon Emission in Developing as Well as Developed Countries.’ Environmental Science and Pollution Research 28:31246–55. Koçak, E., R. Ulucak, and Z. S. Ulucak. 2020. ‘The Impact of Tourism Developments on co2 Emissions: An Advanced Panel Data Estima­tion.’ Tourism Management Perspectives 33:100611. Leitão, N.C., andD.B. Lorente. 2020. ‘The Linkage betweenEconomic Growth, Renewable Energy, Tourism, co2 Emissions, and Interna­tional Trade: The Evidence for the European Union.’ Energies,13(18): 4838. Mark, N.C., M. Ogaki, andD.Sul.2005. ‘DynamicSeemingly Unre­lated Cointegrating Regressions.’ The Review of Economic Studies 72 (3): 797–820. medecc. 2020. Climate and Environmental Change in the Mediterranean Basin: Current Situation and Risks for the Future; First Mediterranean Assessment Report. Marseille: Union for the Mediterranean. medener. 2018. Les Energies Renouvelables en Méditerranée: Tendances, Perspectives et Bonnes Pratiques. Bruxelles: medener. Muhammad, S., X. Long, M. Salman, and L. Dauda. 2020. ‘E.ect of Ur­banizationandInternationalTradeon co2 Emissions across 65 Belt and Road Initiative Countries.’ Energy 196:117102. Muth, D. 2023. ‘Pathways to Stringent Carbon Pricing: Con.gurations of Political Economy Conditions and Revenue Recycling Strategies; A Comparison of Thirty National Level Policies.’ Ecological Economics 214:107995. Nosheen, M., J. Iqbal, and H. U. Khan. 2021. ‘Analyzing the Linkage among co2 Emissions, Economic Growth, Tourism, and Energy Consumption in the Asian Economies.’ Environmental Science and Pollution Research 28:16707–19. O’Connell, P. G. 1998. ‘The Overvaluation of Purchasing Power Parity.’ Journal of International Economics 44 (1): 1–19. Ohlan, R. 2015. ‘The Impact of Population Density, Energy Consump­tion, Economic Growth and Trade Openness on co2 Emissions in India.’ Natural Hazards 79:1409–28. Ozcan, C. C., F. V. Bekun, and S. Nazlioglu. 2021. ‘Tourism-Induced Pol­lutant Emissions in Mediterranean Countries: Evidence from Panel [336] Causality Analysis.’ International Social Science Journal 71 (241–2): 261–81. Paramati, S.R., M. S. Alam,and C. F. Chen.2017. ‘The E.ectsofTourism on Economic Growth and co2 Emissions: A Comparison between Developed and Developing Economies.’ Journal of Travel Research 56 (6): 712–24. Paramati, S. R., M. S. Alam, and C. K. M. Lau. 2018. ‘The E.ect of Tourism Investment on Tourism Development and co2 Emissions: Empirical Evidence from the eu Nations.’ Journal of Sustainable Tourism 26 (9):1587–607. Pedroni, P. 2001. ‘Fully Modi.ed ols for Heterogeneous Cointegrated Panels.’ In Nonstationary Panels, Panel Cointegration, and Dynamic Panels, 93–130. Advances in Econometrics 15. Bingley: Emerald. Pesaran, M. H. 2004. ‘General Diagnostic Test for Cross-Section Depen­denceinPanels.’ iza DiscussionPaper1240,InstitutefortheStudy of Labor, Bonn. ———. 2007. ‘A Simple Panel Unit Root Test in the Presence of Cross-Section Dependence.’ Journal of Applied Econometrics 22 (2): 265–312. Pesaran, M. H., and T. Yamagata. 2008. ‘Testing Slope Homogeneity in Large Panels.’ Journal of Econometrics 142 (1): 50–93. Programme des Nations Unies pour l’Environnement. 2005. Etat du re­porting sur le développement durable 2005. New York: United Nations. Porter, G. 1999. ‘Trade Competition and Pollution Standards: “Race to the Bottom” or “Stuck at the Bottom”.’ The Journal of Environment & Development 8 (2): 133–51. Ra.que, M. Z., Y. Li, A. R. Larik, and M. P. Monaheng. 2020. ‘The Ef­fects of fdi, Technological Innovation, and Financial Development on co2 Emissions: Evidence from the brics Countries.’ Environ­mental Science and Pollution Research 27:23899–913. Ravinthirakumaran, K., and N. Ravinthirakumaran, N. 2023. ‘Examin­ingtheRelationshipbetweenTourismand co2 Emissions: Evidence from apec Region.’ Anatolia 34 (3): 306–20. Saidi, K., and A. Omri. 2020. ‘Reducing co2 Emissions in oecd Coun­tries: Do Renewable and Nuclear Energy Matter?’ Progress in Nuclear Energy 126:103425. Salahodjaev, R., and A. Isaeva. 2022. ‘Post-Soviet States and co2 Emis­sions: The Role of Foreign Direct Investment.’ Post-Communist Econ­omies 34 (7): 944–65. Selvanathan, E. A., M. Jayasinghe, and S. Selvanathan. 2021. ‘Dynamic Modelling of Inter-Relationship between Tourism, Energy Con­sumption, co2 Emissions and Economic Growth in South Asia.’ International Journal of Tourism Research 23 (4): 597–610. Shahbaz, M., Q.M.A.Hye,A. K.Tiwari, andN.C. Leitão. 2013. ‘Eco­nomic Growth, Energy Consumption, Financial Development, In­ternational Trade and co2 Emissions in Indonesia.’ Renewable and Sustainable Energy Reviews 25:109–21. Shahbaz, M., A. K. Tiwari, and M. Nasir. 2013. ‘The E.ects of Finan­ [337] cial Development, Economic Growth, Coal Consumption and Trade Opennesson co2 Emissions in South Africa.’ Energy Policy 61:1452– 9. Sinha, A., and M. Shahbaz. 2018. ‘Estimation of Environmental Kuznets Curve for co2 Emission: Role of Renewable Energy Generation in India.’ Renewable Energy 119:703–11. World Tourism Organisation. 2019. International Tourism Highlights. Madrid: World Tourism Organisation. Uzuner, G., S. S. Akadiri, and T. T. Lasisi. 2020. ‘The Asymmetric Rela­tionship between Globalization, Tourism, co2 Emissions, and Eco­nomic Growth in Turkey: Implications for Environmental Policy Making.’ Environmental Science and Pollution Research 27:32742–53. Waheed, R., D. Chang, S. Sarwar, and W. Chen. 2018. ‘Forest, Agricul­ture, Renewable Energy, and co2 Emission.’ Journal of Cleaner Pro­duction 172:4231–8. Wang, M.C., andC.S.Wang. 2018. ‘Tourism, theEnvironment,and Energy Policies.’ Tourism Economics 24 (7): 821–38. Wang, Z., L. Gao, Z. Wei, A. Majeed, and I. Alam. 2022. ‘How fdi and TechnologyInnovationMitigate co2 Emissions in High-Tech Indus­tries: Evidence from Province-Level Data of China.’ Environmental Science and Pollution Research 29(3): 4641–53. Westerlund, J. 2007. ‘Testing for Error Correction in Panel Data.’ Oxford Bulletin of Economics and Statistics 69(6): 709–48. Ximei, L., Z. Latif, Z., Danish, S. Latif, and Kaif ul waraa. 2024. ‘Estimat­ing the Impact of Information Technology on Economic Growth in South Asian Countries: The Silver Lining of Education.’ Information Development 40 (1): 147–57. Zhang, S.,X.Liu,and J. Bae. 2017. ‘Does TradeOpenness A.ect co2 Emissions: Evidence from Ten Newly Industrialized Countries?’ En­vironmental Science and Pollution Research 24:17616–25. Zhang, J., and Y. Zhang. 2021. ‘Tourism, Economic Growth, Energy Con­sumption, and co2 Emissions in China.’ Tourism Economics 27 (5): 1060–80. Emotional and Social Intelligence and its Impact on the Business Success of Bulgarian Digital Entrepreneurs ana todorova irina kostadinova University of Ruse University of Ruse Angel Kanchev, Bulgaria Angel Kanchev, Bulgaria attodorova@uni-ruse.bg ikostadinova@uni-ruse.bg The rapid development of digital technologies over the past two de­cades has created a new economic environment that requires contin­uous adaptation. However, paradoxically, increasing digitisation em­phasises the importance of soft skills such as emotional and social in­telligence. The present study aims to empirically analyse the relation­ship between these skills and the success of Bulgarian digital entre­preneurs. The results show that successful entrepreneurs demonstrate higher levels of emotional and social intelligence, with all its compo­nents – self-awareness, self-control, motivation, empathy and social skills – contributing signi.cantly to entrepreneurial success. The im­portance of optimism for overcoming challenges in a dynamic digital environment is particularly emphasised. The conclusion is that, de­spite the speci.c requirements of digital business, the basic pro.le of a successful entrepreneur remains universal and is characterised by high emotional and social intelligence. Therefore, this study adds value to the literature on entrepreneurship, management, organisa­tional behaviour, and human resource management, while it can con­tribute to the development of assessment tools, as well as training and development programs for emotional and social intelligence. Key Words: emotional intelligence, digital entrepreneurship, competencies, empathy, motivation © 2024 Ana Todorova and Irina Kostadinova https://doi.org/10.70908/2232-6022/17.339-362 introduction Digital transformation and its essential manifestation – digital entre­ preneurship (de) – has brought to the fore the need to talk about and focus more actively on human relationships in the workplace. Techno­ logical globalisation has made possible the interconnectedness of in­ dividuals, organisations, markets, governments, and states (Kunev et al. 2020). It has developed our professional and personal communica­tions to unsuspected heights. Still, at the same time, it has distanced us from each other, positioning us in front of various digital devices conve­niently hidden behind monitors and emoticons. The closer we become, [340] thanks to technology, the more distant we are as individuals from each other, which inevitably a.ects – negatively or positively – our working relationships. The paradox is that the more technologically connected society is, the more emotionally distant people are from each other. Surrounded and pressed by technological progress, a person is con­stantly persuaded that, in order to be successful and to be able to adapt to the ever-changing reality, it is enough to develop his rational intel­lect primarily. Not without signi.cance is the fact that, for decades, management theory and practice have favoured a top-down approach in which all decisions are made at the highest level and communicated and implemented top-down. Although this approach ensures clarity and accountability of decisions, it a.ects the cohesion, creativity and proactivity of employees and teams (Asana 2024). The latter leads to deepening internal organisational crises, sta. turnover and loss of key employees. All this casts doubt that a manager’s success depends solely on his cognitive intelligence. Moreover, it can be con.dently asserted that anyone with even a relatively average level of intelligence can achieve signi.cant success (Vermeulen 1999), which motivates researchers to look deeper into the reasons that are a prerequisite for positive results in such endeavours. As a result, in 2020 (amid the covid pandemic, which undoubtedly accelerated digital transformation in many areas), several prestigious rankings, including the global professional network Linkedin (Ronin 2020), actively began to include emotional intelligence (ei) and its inherent competencies among the top skills needed by lead­ers of the future. Moreover, a comparison of the views of several researchers shows thattheintrinsiccompetenciesof ei areascrucialtoaperson’s success and the organisation he leads as rational intelligence. This is because emotions, not only thoughts, drive people. Only by knowing their feel­ings can they understand and e.ectively control their behaviour and, accordingly, understand the desires and needs of others. Therefore, ei is an essential ability that is necessary for an individual to achieve both personal and professional success, as well as for the organisation and its constituent teams. That is why the present study examines the problem of the level of manifestation of individual competencies of ei in digital entrepre­neurs and to what extent they can be de.ned as successfully imple­mented in the digital business environment. The object of this study is the behaviour of Bulgarian digital entrepreneurs operating in vari-[341] ous spheres. The subject that is a.ected in the development is their ei, according to Daniel Goleman’s theory. The aim is to investigate and es­tablish the role and in.uence of ei in de and, more speci.cally, on the success of Bulgarian entrepreneurs developing digital businesses. essence of emotional intelligence and digital entrepreneurship Emotional intelligence, also called emotional intelligence quotient (eq), is the point of contact between intelligence and emotions, recog­nising the latter as a valuable source of information and a social guide. One of the earliest de.nitions of ei was given by Salovey and Mayer, who consider it the ability to observe one’s and other’s emotions (Todorova 2024). Later, these two researchers expanded the concept to include four interrelated capabilities – preventing, using, under­standing, and managing emotions (Salovey and Grewal 2005). How­ever, Daniel Goleman, one of the authors most credited with popular­isingtheconceptof ei,arguesthatthereisanevenmorefamiliarterm thatcharacterisesthesetofskillsthat ei symbolises,namelythechar­acter (Kostadinova 2013, 87). This conclusion is con.rmed by a study by several authors who found that personality is an essential predic­tor of ei, de.ned as individual di.erences in characteristic patterns of thinking, feeling, and behaviour (El Othman et al. 2020). Individualswith high ei demonstrate exceptional skillsinrecognis­ing, understanding, and managing both their own emotions and the emotions of others. These skills are essential for e.ective communi­cation and building solid relationships. It is no coincidence that many studies, including those of Goleman (2017), indicate that it is ei, not just intellectual abilities, that distinguishes successful leaders. However, the ability to recognise, manage and understand one’s and others’ emotions still remains underestimated and underdeveloped. On the other hand, despite its undeniable rise, the digital economy has yet to reveal its full potential, but it already promises an exciting fu­ture (Laskova 2018). An apt summary of the current development and trends in the development of de and the ei of the leaders building the new economy are the words of Brian Solis that ‘the possibilities are only limited by our imaginations’ (2014, 190). On the other hand, Kihlstrom and Cantor (2011) de.ne social intel­ligence (si) as a complex ability that refers to an individual’s ability to [342] understand, interact and adapt to social situations and relationships. According to the authors, this competence includes: 1 Understanding Others. The ability to recognise the emotions, thoughts and intentions of other people, as well as predict their reactions. 2 Relationship Management. The ability to build, maintain and de­velop e.ective relationships with other people and to resolve con.icts. 3 Social Adaptation. The ability to adapt to di.erent social contexts and act appropriately within them. 4 Social Awareness. The knowledge of social norms, rules and expec­tations, and the ability to put this knowledge into practice. This de.nition shows the di.culty researchers face, namely distin­guishing between emotional and social intelligence. Despite the vari­ous proposed de.nitions of social intelligence, they all emphasise the importance of several speci.c requirements that are also the points of contact between ei and si: • Emotional Intelligence. The ability to recognise and manage one’s own emotions, as well as the emotions of others. • Communication Skills. The ability to express oneself clearly and ef­fectively, as well as to listen actively. • Social Skills. The ability to work in a team, resolve con.icts and build networks. Due to the enumerated requirements for si and its speci.c compo­nents coinciding to some extent with those that make up ei, the two abilities are often measured in the same way or with similar instrumen­tation. It is important to note that what distinguishes successful lead­ers from others is precisely the presence of developed emotional and so­cial intelligence. These skills allow leaders to achieve a 360-degree per­spective on their teams and identify areas for improvement. Thus, they can optimise the use of resources, drive innovation, and build highly cohesive teams, ultimately leading to higher productivity and compet­itive advantage for the organisation (Kostadinova 2013). To date, we enjoy constantly emerging and developing technologies, unlimited imagination and creative approaches in management (Dim­itrov and Venelinova 2019, 214). And what is needed to bring about real change that will make the world a better place for everyone is human­ity. It is mainly wrong to claim that the inherent creativity of humans [343] will save humankind from self-destruction, from the development and entry, threats and opportunities of supercomputers and arti.cial intel­ligence. In fact, neither rational intelligence nor creativity is the indi­vidual’s greatest asset; it is the moral choice (O’Reilly 2017, 360) that he has to make every day, and that is due to a developed and re.ned ei and social skills. Entrepreneurship, which several authors also de.ne as ‘self-employ­ment’ (Antonizzi and Smuts 2020), is recognised as fundamental for the economic growth of the European Union and for increasing the number of new jobs in Europe. A similar opinion is shared by Ljubotina and Vadnjal (2023), according to whom entrepreneurship is a crucial driver of global development, fostering innovation, creating new jobs, and contributing to societal changes. Berginc et al. (2023) argue that en­trepreneurship – as a state of mind rather than a set of speci.c skills, manifests itself in the ability to seek out new opportunities and act de­cisively in di.erent areas of life. Therefore, it is no coincidence that, along with self-employment, entrepreneurship is included in the Eu­rope 2020 strategy as a crucial element for achieving innovative, sus­tainable and inclusive growth (Pavlov et al. 2017). Digital entrepreneurship, on the other hand, refers to ‘entrepreneur­ial endeavours realised in a digital environment through digital me­dia and ict tools’ (Antonizzi and Smuts 2020). It includes all entre preneurial opportunities that are created and pursued through the use of technological platforms and other information communication equipment. As well as falling into many familiar business categories speci.c to de, as technology advances and improves, potentially new types are created. This means that entrepreneurs must acquire both business-related knowledge, skills and technical competencies. Digital entrepreneurship, according to Todorova (2024), is an inno­vative approach to business that takes place entirely or partially in the digital environment. It is not limited to creating an online business but requires innovative thinking, .exibility and continuous adaptation to the changing digital environment. This type of entrepreneurship is es­tablished as the main driver of the economy, on a par with traditional forms.Beyonditseconomicdimensions, de hasasigni.cantimpacton social interactions, self-esteem, and individual personal development, re.ecting the ever-increasing role of technology in the modern world. Rashidietal.(2013)consider de asatypeofentrepreneurshipde.n­ [344] ingitjobsbyusingittoolsandthencoveringandexecutingthemina web environment. The team predicts that, as more economies enter the information ageandtraditional jobs disappear, the development of de skills and the accumulation of knowledge and information will prove key to generating new ideas and putting them into practice. In their de­velopment, they also refer to many expert opinions, according to which ‘by 2045, 3. of employment in the world will belong to the agricultural sector, 4. to the industrial sector and 93. to the service sector.’ Con­sidering de as part of the service sector, it can be argued without a doubt that the role of these economic activities in the gross domestic product of countries will be extremely high in the coming decades. As Kotsev (2020, 11) points out, de is yet to attract research inter­est. Questions such as whether de can be seen as a component of the digital economy related to entrepreneurship or a subspecies of entre­preneurship associated with the digital economy may never receive a satisfactory and even less unequivocal answer. It is only sure that dig­ital business will inevitably lead to a change in the mission, vision and strategies that companies use to achieve their goals. Even now, the or­ganisations that dominate and essentially build the world economy are proving this is an entirely new way of doing business, not just a new tool to adapt to outdated models. The unrestrained use of digital tech­nologies requires, .rst of all, adapting the business strategy to the new realities, as well as a continuous e.ort to add value and foster relation­ships based on cooperation and empathy. Inthissense, de isnaturally ‘hungry’ foritsdigitalleaders,buttheir formation requires much more than technological and information se­curity. Leadership in a highly technological era requires a wide range of skills and competencies, including excellent communication, adapt­ability, motivation, and empathy. This is precisely what gives reason to claim that the digital transformation leaders are not necessarily the people with the highest quotient of rational intelligence but the indi­viduals with the most developed ei. From the discussion so far, it is clear that understanding the rela­tionship between ei and entrepreneurial success is vital to developing an entrepreneurial ecosystem. However, although the topic of digital entrepreneurship is not new in Bulgaria, the issue of ei and its in.u­ence on the performance and success of entrepreneurs is. There is a lack of systematic research to provide empirical evidence of this relation­ship, especially in the context of digital entrepreneurship. This moti­vated the authors of the present study to seek answers to the following [345] research questions (rq): rq1 Whatisthedegreeofmanifestationof ei amongBulgariandigital entrepreneurs? rq2 Is there a positive relationship between a high level of ei and a sense of success among Bulgarian digital entrepreneurs? rq3 Isthere apositive relationshipbetween the ei of Bulgarian digi­tal entrepreneurs and the demographic characteristics of age and gender? research methodology The methodology developed for this study is based on Daniel Goleman’s (2005) model of ei, with .ve spheres of competence included (Ordun and Acar 2014). For the research, the survey was developed using ques­tions from Professional Emotional Intelligence Tests by Robert Wood and Harry Tolley (2002). In the study, the Motivation component of Goleman’s model is divided into Self-Motivation (Optimism) and Mo­tivation, and the aim is to study the ability of Bulgarian digital entre­preneurs to motivate both themselves and others. This decision is in­.uenced by the fact that people are undoubtedly the most important resource in any organisation, and the success of the entire organisa­tion depends on how motivated they are to work and give their best (Ruskova and Ruseva 2018). Based on this, the research methodology covers the following ei components: • Self-awareness – or self-knowledge – is related to openness to dif­ferent experiences and new ideas, as well as learning from social contacts and in.uences (Craig 2019). Wood and Tolley (2002, 63) argue that good self-knowledge and the pursuit of human hap­piness are intimately linked – one follows from the other. Good self-awareness includes self-respect, a positive attitude, the abil­ity to listen to the inner voice and abstract from logic and ratio­nality, etc. • Self-regulation – or self-control – is the person’s ability to weather emotional storms (Goleman 2005, 87). Researchers claim that leaders who have e.ective self-regulation rarely allow themselves to attack others verbally, do not make hasty or emotional deci­sions, avoid stereotypes, and stick to their values (Bell 2020). • Self-motivation (Optimism) and Motivation – are crucial drivers [346] of entrepreneurial success. As Goleman (2005) suggests, opti­mism serves as an enduring source of motivation, shielding in­dividuals from negative emotions like apathy and despair. In the context of entrepreneurship, optimism can be seen as an internal drive stemming from either extrinsic rewards (e.g., .­nancial gain) or intrinsic motivations (e.g., passion for the ven­ture). While Goleman’s model of ei does not explicitly address the ability to motivate others, it highlights the importance of re­lated competencies such as self-control and empathy. These skills are essential for e.ective leadership and in.uence, especially in the digital age where motivating and inspiring individuals, both individually and collectively, is increasingly complex (Carnegie 2012). • Empathy – the ability to perceive and understand the emotions of others is a crucial skill for entrepreneurs. As Bell (2020) em­phasises, empathetic leaders can better connect with their team members and foster a supportive work environment. Addition­ally, empathy is essential for building and maintaining strong re­lationships, both personally and professionally. Albrecht (2009) highlights the importance of empathy in creating a positive team culture characterised by cooperation and understanding. • Social skills – the attitude towards others and the in.uence on them. Leaders with excellent social skills are e.ective commu­nicators who manage change and resolve con.ict (Bell 2020). It is this way because social skills are the entire application of all ei competencies: understanding and applying one’s and others’ emotions, communicating and interacting with them. This com­petence includes active listening, skilful verbal and non-verbal communication, and leadership, and is largely equivalent to si (Craig 2019). This research focuses on digital entrepreneurs based in Bulgaria who operate in diverse sectors. The target population consists of 42,238 en­terprises, with a minimum sample size of 381 at the 95. con.dence level. Conducted between January 25 and March 25, 2021, this study aims to assess the level of ei and its constituent competencies among digital entrepreneurs by determining the following: • how successful and motivated digital entrepreneurs are in their own judgment; [347] • what is the degree of manifestation of individual ei competen­cies among digital entrepreneurs. A Google Forms survey questionnaire was designed to gather the required data. The questionnaire consisted of 42 questions, mostly closed-ended, tailored to the research objectives. To maintain con.­dentiality, the survey was administered anonymously and included: •two demographic questions; • two questions relating to the digital business in which the respec­tive entrepreneur is developing; • two questions giving a subjective assessment of how successful and motivated the respective respondent-digital entrepreneur is de.ned; • thirty-six questions exploring individual ei competencies: self-awareness, self-regulation, optimism and motivation, empathy, and social skills. The survey was disseminated through various channels, including professional groups on social media platforms, direct outreach to dig­ital entrepreneurs, and collaboration with relevant organisations such as the Bulgarian Chamber of Commerce and Industry (bcci) and the Bulgarian E-Commerce Association (bea). These organisations shared the survey link with their members and followers, reaching a wider au­dience. results and discussion A total of 1,175 (N = 1175) respondents completed the survey. The sam­ple comprised 791 women (67.) and 384 men (33.). In terms of age, the majority of respondents (53.4.) were Millennials, born between 1980 and 1995. Generation X (born between 1965 and 1979) accounted for 24.9. of the sample, while Generation Z (born after 1995) repre­sented 20.9.. A small percentage (0.9.) were Baby boomers born be­fore 1965. This demographic breakdown aligns with the generational cohorts identi.ed by Hristov (2021). If more than one answer is marked, 707 of the respondents or slightly more than 60. indicated that they were involved ‘Online sale of goods and services,’ 222 (18.9.) – ‘Digital marketing, advertising and media,’ 207 (17.6.) o.er ‘Freelance services (designer, photographer, virtual assistant, etc.),’ 153 (13.) are involved in the ‘Creation of digital products (software, website, applications, etc.),’ 28 (2.4.) indicated the [348] domain ‘Education/Conducting online trainings,’ and less than half a per cent (0.4., 4 people) chose ‘Other.’ To the question ‘How long have you been a digital entrepreneur?,’ 52. or 611 of the respondents indicate that they have been developing a digital business ‘between 1 and 5 years,’ 29. or 339 of the respondents choose ‘between 5 and 10 years,’ 11. or 134 have started a digital busi­ness less than 1 year ago, 8. or 91 participants are developing business the most extended period in a digital environment: between 10 and 15 years. The number of people who chose the option ‘over 15 years’ is 0. To the question ‘When you think about your digital business, how do you feel?,’ 53., or 624 respondents, chose ‘Motivated and Satis.ed,’ 33. or 391 indicated ‘I am Optimistic,’ and 14. or 160 identi.ed them­selves as ‘Exhausted and Discouraged.’ Asked ‘What best describes your digital business?,’ 859(73.) of the respondents de.ne their business as ‘Successful,’ 154 (13.) as ‘Startup,’ for 160 (14.) it is rather ‘Unsuc­cessful,’ and 2 (less than 1.) chose the option ‘Other’ (‘Mid-level’ and ‘Successful business until Covid 19’). The results for the individual indicators – self-awareness, self-regula­tion, optimism, motivation, empathy and social skills – are as follows: Self-Awareness Just over 58. (686) of all surveyed digital entrepreneurs showed a high degree of self-awareness, 36. (428) performed at an average level, and about 5. (61) had a relatively low degree of self-awareness. The data showed that a signi.cant share of the surveyed Bulgarian digital entre­preneurs have an accurate perception of how they feel and how their own emotions a.ect both themselves and others. A generational analysis of self-awareness reveals a downward trend. Baby Boomers show the highest level of self-awareness (71.), followed by Millennials (66.) and Generation X (57.). Generation Z reports the lowest level (50.) of self-awareness. At .rst glance, the data re.ect a downward trend of decreasing self-awareness with each successive gen­eration. Indeed, viewed from a di.erent angle, the results testify to the potential for the development of ei and, more speci.cally, of its com­petence – self-awareness with age (Todorova 2024). Emotional and Social Intelligence table 1 Scores of All Respondents on Indicators Self-Awareness and Gender Indicator High Average Low Women Men Women Men Women Men Self-awareness ..... ..... ..... ..... .... ..... notes In percent. [349] A look at the results by gender shows a preponderance of female digital entrepreneurs in terms of self-knowledge at almost 60. (460) relative to 36. (138) of males (table 1). The data resonates with the con­clusion of Korn Ferry (2016), whose research found that ‘the most sig­ni.cant di.erence between men and women can be seen in emotional self-awareness.’ Eurich (2018) shares a similar opinion, stating that self-awareness has emerged as a critical competence in contemporary leadership and management literature. Empirical evidence shows that people with high self-esteem are more likely to exhibit con.dence, creativity, and sound decision-making skills. Additionally, self-aware individuals tend to build stronger interpersonal relationships, communicate more ef­fectively, and demonstrate higher levels of integrity. Such qualities are essential to both individual and organisational success. Self-Regulation The survey results indicate that a signi.cant majority, 63. of the digital entrepreneurs, exhibited a high level of self-regulation. Approximately 21. demonstrated average self-control, while 16. displayed lower lev­els. A generational analysis reveals that Generation X had the high­est percentage of individuals with high self-regulation (70.), followed closely by Baby Boomers (67.). Millennials (63.) and Generation Z (56.) showed slightly lower levels of self-regulation. This trend raises questions about the potential impact of generational factors on self-regulation and the extent to which this skill can be developed over time. In the analysis of the self-regulation competence by gender of the re­spondents (table 2), the results show a signi.cant advantage for female entrepreneurs – 464 (58.) demonstrate a high degree of self-control compared to 169(44.) of the men, which is a likely consequence from their better self-knowledge (previous indicator). According to Goleman (2005, 75), a good awareness of emotions is the essential skill on which the rest are built, including emotional self-control or self-regulation. Although the Korn Ferry agency (2016) table 2 Scores of All Respondents on Indicators Self-Regulation and Gender Indicator High Average Low Women Men Women Men Women Men Self-regulation ..... ..... ..... ..... ..... ..... [350] notes In percent. concluded in its study that ‘emotional self-control is the only com­petency in which men and women showed equal performance,’ the present study is indicative that Bulgarian female digital entrepreneurs demonstrate better self-control compared to men. Optimism A substantial portion (67.) of the surveyed digital entrepreneurs dis­played high levels of internal motivation. Approximately 22. and 11. exhibited moderate and low levels of motivation, respectively. A gen­erational analysis revealed that Generation X had the highest percent­age of highly motivated individuals (72.), followed closely by Baby boomers (70.), Millennials (66.), and Generation Z (64.). These .nd­ings suggest that while generational factors may in.uence motivation, individual temperament, as described by Goleman (2005), also plays a signi.cant role. Women entrepreneurs show a higher level of internal motivation and optimism – 486 (61.) compared to 172 (44.) of men (table 3). This can be taken as an indicator that women are more oriented towards setting goals and taking the necessary actions to achieve them, and are highly committed and proactive. table 3 Scores of All Respondents on Indicators Optimism and Gender Indicator High Average Low Women Men Women Men Women Men Optimism ..... ..... ..... ..... ..... ..... notes In percent. Motivation The summary results of the survey for all participants in the study re­garding the indicator ‘Motivation’ demonstrate that just over 61. (717) of the respondents possess to a high degree the ability to positively in­.uence the behaviour of others, to express moderate and constructive criticism, compared to over 25. (294) with an average and over 14. Emotional and Social Intelligence table 4 Scores of All Respondents on Indicators Motivation and Gender Indicator High Average Low Women Men Women Men Women Men Motivation ..... ..... ..... ..... ..... ..... notes In percent. [351] (164) with a low degree of manifestation of the investigated compe­tence. The study found that the ability to motivate others varied across generations. Baby boomers were least likely to possess this skill, with only 40. demonstrating a high level of motivation. In contrast, Gen­erations X and Y showed signi.cantly higher levels of motivation, with 67. and 61., respectively. Generation Z reported a somewhat lower level of motivation (54.). This discrepancy highlights the importance of balancing optimism and the ability to in.uence others for e.ective leadership. When analysing the ‘Motivation’ indicator (table 4) according to the gender of the respondents, a certain equality is noticed, i.e. this skill is almost equally developed in women – 47. (373) and in men – 41. (156) entrepreneurs, but signi.cant di.erences stand out in the medium and low values of this ei competence. Empathy The summarised results of the Empathy indicator survey demonstrate that over 63. (740) of digital entrepreneurs in Bulgaria have a high de­gree of empathy, about 22. (259) are moderately empathetic individu­als, and less than 15. (176) do not feel or are not able to show empathy for others. When we look at empathy levels by age group, we see that Genera­tion X (69.), Y (62.) and Z (61.) demonstrate relatively similar high levels of empathy. A deviation from this trend is observed in the gen­eration of baby boomers, where the share of entrepreneurs with mod­erately developed empathy (50.) is higher compared to those who can fully build and maintain relationships with others (42.). In the analysis by Gender (table 5), a signi.cant preponderance of female digital entrepreneurs – 535, or more than 67. – have devel­oped empathy. In comparison, for men, this share is slightly more than 28. respondents. From such a result, the statement that ladies are more empathetic and men have a harder time putting themselves in an- Indicator High Average Low Women Men Women Men Women Men Empathy ..... ..... ..... ..... ..... ..... [352] notes In percent. other’s situation cannot be de.nitively deduced. Still, the data con.rm the conclusion of Korn Ferry (2016): according to most instruments as­sessing ei, women’s norms are on average higher than men’s and fe­males score higher on empathy and social skills. Social Skills The research demonstrates that digital entrepreneurs with the most de­veloped social skills convey more than 57. (670) of those participating in the study. On the other hand, in just under 25. (294), it is medium, and in 18. (211) – respectively low, i.e. these entrepreneurs tend to lack the social skills listed above. When it comes to social skills, Generation X stands out, with 62. of respondents demonstrating strong communication and interpersonal abilities. For those born after 1980 (Generations Y and Z), slightly over 55. possess these skills. In contrast, individuals born before 1965 ex­hibit lower levels of social skills, with only 44. demonstrating strong abilities. Like the empathy competence, social skills are more prevalent among women developing digital businesses – 52. or 416 of them pos­sess this skill compared to 22. or 86 of men (table 6). However, over 41. (159) of men have developed the skills of active listening and e.ec­tive communication to an average degree versus 32. (257) of women. This ability is relatively absent in almost 36. of 139male respondents and 15. or 118 female respondents. table 6 Scores of All Respondents on Indicators Social Skills and Gender Indicator High Average Low Women Men Women Men Women Men Social skills ..... ..... ..... ..... ..... ..... notes In percent. Emotional Intelligence (ei) By analysing the results for each competency, we were able to categorise Bulgarian digital entrepreneurs into three groups based on their over­all level of ei: high, average, and low. Summary data from the survey regarding the general level of ei indicates that just under 62. (727) have excellent understanding, management and response to their own and others’ emotions, 25. (295) experience di.culties in con.ict man­agement, communication, empathy and coping with failure, and in 13. [353] (153) the essential competencies of ei are poorly developed. In the survey, 859(73.) respondents self-identi.ed their digital business as successful, while 160 (14.) did as unsuccessful. The re­maining 156 (13.) respondents indicated a response other than suc­cessful/unsuccessful. In the present work, the impact of ei on the suc­cess of digital entrepreneurs is investigated, which is why the survey results on the individual indicators of ei for the two leading groups of digital entrepreneurs for the study – successful and unsuccessful – were studied. Data analysis shows that among self-identi.ed successful digi­tal entrepreneurs, the percentage of respondents with a high degree of ei and its corresponding competencies varies between 65. and 78.. The rate of optimistic and self-motivated respondents is the highest – over 77. (661) have a positive attitude and know how to deal with problems. The share of highly emotionally intelligent entrepreneurs is around 70. (601). In the opposite group there are those participants whose expecta­tions were not justi.ed by the digital business, entrepreneurs with an average level of ei predominate, with values ranging from 31. to 55. for each competency. On the ‘Social skills’ indicator, the share of inef­fective communicators and those showing a lack of active listening is over 65. (104), i.e. the percentage of entrepreneurs with a relatively low level of social skills and relationships with others is the highest. It is impossible to de.nitively conclude whether the group of re­spondents with failed businesses has a medium or low level of ei, as the values are close. However, the share of highly emotional entrepre­neurs in this group is signi.cantly lower than among those who self-identi.ed as successful and satis.ed with their business venture. Table 7 visualises the di.erence in ei between successful and unsuccessful entrepreneurs. A relatively high percentage of female and male digital entrepre­neurs self-identi.ed as ‘Successful’ – over 78. (614) for the former and over 63. (245) for the latter. There is a signi.cant di.erence in the re­sults for ‘Unsuccessful Business’ – just over 5. (44) of women versus over 30. (116) of men believe de has not met their expectations. The table 7 Results of the Study Regarding the General Level of Emotional Intelligence in Successful and Unsuccessful entrepreneurs Emotional Intelligence High Average Low Successful entrepreneurs ..... ..... .... [354] Failed entrepreneurs .... ..... ..... notes In percent. share of the optimistic is similar, but still with a preponderance for male entrepreneurs – 39. (150) against over 30. for ladies (241). Over 16. (131) of female entrepreneurs show relatively higher initiative and ‘have started a new business,’ against about 6. (23) of male respondents. After the analysis, it can be summarised that female digital entrepre­neurs show higher results regarding ei and its inherent competencies. This does not re.ect directly on successful business ventures – both groups of respondents have high values. But it is indicative, on the one hand, of the sense of ‘failure’ and, on the other hand, of the feeling of ‘discouragement’ in men – almost 30. (115) of male respondents feel ‘exhausted,’ while for women, this percentage is less than 6. (45). Formulation of Conclusions and Recommendations In summary, the research data satisfactorily answer rq1: ‘What is the degree of manifestation of ei among Bulgarian digital entrepreneurs?’ Over 62. (727) of respondents have highly developed ei, 25. (295) are around an average level, and just over 13. (153) demonstrate a low level of empathy, communication, and optimism. In the aspect of the poten­tially nascent era of empathy (Kotler, Kartajaya, and Setiawan 2020, 133), it should be noted that a relatively large share – 63. (745) of entre­preneurs show empathy and understanding of other people’s emotions. In thecaseofsuccessfulentrepreneurs, thiscompetencewas developed in over 71. (616), and in the case of unsuccessful entrepreneurs – in only 11. (17) of the respondents. However, it cannot be categorically stated that success is directly dependent on empathy. It is conceivable that the presence of this trait is rather a prerequisite for morally justi­.ed decisions and actions but not for the achievement of material and .nancial results. From the point of view of the in.uence of the individual compe­tencies of ei on the success of the respective digital entrepreneur, the research shows that over 70. (604) of the respondents who self-identi.ed as successful have the highest level of ei, while among the unsuccessfulthisshare is below7.(11).Furthermore,optimismstands out as an essential and vital competence for success – almost 78. (668) of successful entrepreneurs are somewhat ‘Optimistic,’ compared to less than 5. (73) of unsuccessful ones. The di.erence is also signi.cant regarding the ‘Social skills’ indicator – about 66. (565) of the successful [355] compared to just under 3. (5) of the unsuccessful digital entrepreneurs who mastered the skills of active listening and e.ective communica­tion. This also provides an acceptable answer to the second formulated rq2: ‘Is there a positive relationship between a high level of ei and a sense of success among Bulgarian digital entrepreneurs?’ The research answers rq3: ‘Is there a positive relationship between the ei of Bulgarian digital entrepreneurs and the demographic char­acteristics of age and gender?’ Almost 70. of the generation born be­tween 1965 and 1979 stand out as an age group with a high degree of ei, while for other age groups, this share varies between 55. and 61.. When compared by gender, female digital entrepreneurs have a signi.­cant advantage in each of the skills inherent in emotionally intelligent people.Theoverallproportionofwomenwithhighlydeveloped ei isal­most 58. (455) compared to just over 36. (138) for men. Unfortunately, although the study indicates that women demonstrate much more self-awareness, self-control, motivation and optimism, empathy, and so­cial skills, in Bulgaria, for example, an individual’s gender remains a strongerpredictorofcareerdevelopmentthan ei,andmenremainpre­ferred for leadership positions (Todorova and Antonova 2023). Due to the di.erent channels used to distribute the research sur­vey (such as social networks and email), some participants took advan­tage of the feedback opportunity. Part of the respondents, for whom it is unknown what answers they indicated in the questionnaire, claim that such ‘emotional nonsense’ is unnecessary for business and that our economy only needs a ‘carrot and a stick.’ This result fully corresponds to the statement expressed in the intro­duction of the present study that until now, the main principle in man­agement is top-down command and control. Unfortunatelly, too little consideration is given to the possibility that the subordinates play a sig­ni.cant role in the realisation of organisational goals and tasks through their unique human characteristics. Reality shows that these principles are relevant and, according to many, in.nitely applicable. Do emotions have a standing in business? Bryan Kramer (2017) at­tempts to debunk the dilemma in his book ‘There is no b2b or b2c: It’sHumantoHuman: h2h,’ wherehestatesthat ‘Thefactisthatbusi­nesses do not have emotion. Products do not have emotion. Humans do. Humans want to feel something.’ Yes, it is a fact that companies have no emotions. Yes, products do not have feelings. But people have [356] and want to feel something positive while communicating with busi­nesses. Kramer also argues that organisations and marketers must ap­peal to people’s emotional needs to survive. Last but not least, their behaviour and communication with consumers must be corrected rel­ative to the ever-evolving and fast-moving digital and social world. In addition to intelligence and digital knowledge, modern business lead­ers must also possess social skills. Countless examples of successful entrepreneurs prove that classi­cal intelligence is not enough: the heart may be irrational, but navi­gating with it in business is an intelligent and common-sense strategy (Galloway 2018, 181). Trust in instincts and an intuitive sense of what is right are the essential prerequisites for achieving enduring success (Byrne 2011, 219). Scott Galloway (2018, 265–266), closely examining the ‘Four Horse­men’ (Amazon, Apple, Facebook and Google), gives an obvious explana­tion as to why classical intelligence alone is not su.cient and even an obstacle. He likens entrepreneurs to storytellers who share three com­mon qualities: a high tolerance for risk, the ability to sell, and ‘they don’t have enough brains to know they’ll fail.’ According to the author, highly rational and knowledgeable people are rarely promising entre­preneurs, as they ‘clearly see the risks,’ i.e. they are cautious and inde­cisive. A number of authors have also argued that we are entering an en­tirely new stage of development when the qualities of people that dis­tinguish them today begin to emerge from their hearts. Less logical, linear, rule-based thinking will not be so relevant from now on. Instead, the value of empathy, joy, optimism, inner qualities, and relationships with others will rise like an avalanche. These highly underrated qual­itiescan be developed whenwedowhat weloveand bringour whole being to our work – expertise and emotion will work better together (Byrne 2011, 217). Stephen Sampson points to six leadership traits that draw others to them: physical attractiveness, intellectuality, sociability, emotional­ity, pleasant manners, and morality (Kotler, Kartajaya, and Setiawan 2020, 133). The listed characteristics partially overlap with ei indica­tors, which leads to the question, isn’t it time to emphasise ei compe­tencies in the academic training of future entrepreneurs and leaders? It is evident from the present research that one of the most promi­nent characteristics of Bulgarian digital entrepreneurs is precisely op­timism. Self-motivation is a driving force for over 77. of respondents [357] whoperceivethemselvesassuccessfulentrepreneurs.This supports the conclusion that a positive attitude is one of the ei competencies that must be stimulated and developed in current and future digital entre­preneurs. Failure should not be a reason for demotivation but to change direction and revise the plan. Theresearchdoesnotconclusivelyprovetheroleofanother ei com­petency (empathy) as signi.cant for the success of digital entrepre­neurs, especially as it relates to demographic pro.ling by age. For exam­ple, Baby boomers demonstrate a high self-e.cacy rate but also show the lowest levels of empathy. Therefore, it is possible to reason from an­other point of view: even the basic levels of empathy in a person and/or its proper distribution can contribute to his success. And what would happen if we worked purposefully towards fully developing this com­petence? It can also be assumed that empathy alone does not predetermine whether an entrepreneur will be successful or not. A is primarily re­sponsible for the correct (moral) decisions he makes. Objectivity re­quires recognising that it is relatively easy to achieve success based on dishonest actions, i.e. those that support the personal but harm or are at the expense of someone else’s good. In fact, the ‘Four Horsemen’ and therestofthe ‘builders’ of thedigital ageowe theirsuccess notto their own empathy but to their ability to monetise others’ empathy and emo­tions. But do the world, humanity, and the economy of the future need entrepreneurs – digital or traditional – who have a value system that is devoid of empathy and morality? The present study cannot commit to such a general conclusion. Still, it is undeniable that in today’s highly digitalised environment, empa­thy is a powerful catalyst for igniting meaningful interactions and rela­tionships in social media (Solis 2014, 219). New information and com­munication capabilities have put the power in the hands of consumers and they can a.ord to choose. Their attention is drawn to those com­panies that successfully demonstrate knowledge and openness to their interests. Genuine empathy is relatively easy to identify, but more im­portantly, it can be contagious. But this competence is not an object that could be bought, physi­cally possessed and implemented. It is not something that companies can invent, it must be felt (Solis 2014, 310). Instead, businesses can increase their empathy by listening to their users and customers and [358] openly caring about what is important to them. Put another way, em­pathy requires active listening, which is inherent in another ei com­petency – social skills. The latter, in turn, also include change manage­ment and con.ict resolution, which requires entrepreneurs to exhibit self-control, .exibility and adaptability. The conclusions formulated in this point regarding entrepreneurship in the aspect of ei are an attempt to show that a change in the tradi­tional business model known as the ‘principle of the carrot and the stick’ is imperative. Perhaps the time has come when Muhammad Yunus’s assertion that through the multifaceted de.nition of an en trepreneur, it is possible to radically change the nature of capitalism and solve many of the pressing social and economic problems of the free market (Byrne 2011, 313). It is also widely believed that entrepreneurs are driven by maxi­mum pro.t as a source of their intrinsic motivation. Is it not admissi­ble that the sources are ultimately two mutually exclusive at .rst glance but equally competitive. According to Yunus, cited by Byrne (2011, 39), modern entrepreneurs should be precisely driven by these two speci.c goals: to make maximum pro.t and to do good deeds for the world. This not only goes beyond the meaning of typical corporate social responsi­bility but also requires developing ei along with rational intelligence. John Mackey’s words can serve as a kind of recommendation and call for people to go out and use their creative energies because the world needs more innovation and creativity, and lacking humanity is a serious problem (Byrne 2011, 39). conclusion Emotionally and socially intelligent people have the ability to put them­ selves in other people’s shoes, but not only. They see challenges from di.erent perspectives, which is a prerequisite for performing complex tasks and solving complex problems. In addition, higher ei quotient scores combined with well-cultivated social intelligence suggest higher productivity and better social skills, including perceiving the needs of others and in.uencing them through balanced interpersonal relation­ ships. Although decision-making is the essence of entrepreneurial initia­tive, running a business is also an emotional experience. Every entre preneur puts heart and soul into their venture, and very often, this dedication is responsible for positive results. However, when emotions interfere in business, and it is di.cult to distinguish them from facts [359] and logic, there can be no talk of success in undertakings. Therefore, increasing ei could improve and even facilitate the process, helping a person to navigate faster and more accurately in any life and profes­sional situation, which can be the real di.erence between a successful and a failed business. In essence, traditional businesses di.er from digital entrepreneurs only in that the latter need signi.cantly more specialised technical knowledge and skills to survive in the digital competition. But this does not change the pro.le of the entrepreneur – an optimist who lis­tens to his intuition, is ready to take risks, is persistent, motivated, and successfully motivating. According to data from the current study, self-identi.ed successful digital entrepreneurs demonstrate a much higher level of ei and its inherent competencies than those who consider themselves unsuccessful. Individual ei components – self-awareness, self-control, optimism and motivation, empathy, and social skills – also showed higher and more stable levels in achievement-satis.ed versus failure respondents. Based on the current results, future studies can develop the topic of the so-called human-centric business model or empathy marketing. Trends and analysis show that the more technologically advanced a so­cietyis, themoreconsumers prefer andwill gravitate towards busi­nesses that can communicate with their customers in a human and emotional way. Therefore, the entrepreneur’s awareness and knowledge of ei will help him communicate more e.ectively, understand his cus­tomers, and realise a better impact on their needs and desires, frustra­tion, or satisfaction. acknowledgments This research is supported by the Bulgarian Ministry of Education and Science under the National Program ‘Young scientists and Postdoctoral Students – 2.’ references Albrecht, K. 2009. Social Intelligence: The New Science of Success. Zürich: Pfei.er. [360] Antonizzi, J., and H. Smuts. 2020. ‘The Characteristics of Digital En­trepreneurship and Digital Transformation: A Systematic Literature Review.’ In Responsible Design, Implementation and Use of Information and Communication Technology, edited by M. Hattingh, M. Matthee, H. Smuts, I. Pappas, Y. Dwivedi, and M. Mäntymäki, 239–251. Lec­ture Notes in Computer Science 12066. Cham: Springer. Asana. 2024. ‘Top-Down Approach vs. Bottom-Up Approach: What’s the Di.erence.’ Asana, 24 February. https://asana.com/resources/top -down-approach. Bell, M. 2020. ‘Emotional Intelligence in Leadership.’ Mind Tools. https://www.mindtools.com/ax3ar6w/emotional-intelligence-in -leadership Berginc, D., V. Jošt Lešer, and K. Kraškovic. 2023. ‘The Role of Chal­lenge Based Learning in Improving the entrepreneurial Mindset of Students: A Case Study.’ International Journal of Euro-Mediterranean Studies 16 (1): 11–34. Byrne, J. 2011. World Changers: 25 Entrepreneurs Who Changed Business as We Knew It. Brentford: Portfolio. Carnegie, D. 2012. How to Win Friends and In.uence People in the Digital Age. New York: Simon & Schuster. Craig, H. 2019. ‘The Theories of Emotional Intelligence Explained.’ Pos­itive Psychology, 30 January. https://positivepsychology.com/ emotional-intelligence-theories/. Dimitrov, M., and N. Venelinova. 2019. ‘Smart, Secure and Safe Energy Management Approach.’ 25th International Conference Knowledge-Based Organization 45 (1): 213–18. El Othman, R., R. El Othman, R. Hallit, S. Obeid, and S. Hallit. 2020. ‘Personality Traits, Emotional Intelligence and Decision-Making Styles in Lebanese Universities Medical Students.’ bmc Psychology 8(46): 1–14. Eurich, T. J. 2018. ‘What Self-Awareness Really Is (and How to Cultivate It).’ Harvard Business Review, 4 January. https://hbr.org/2018/01 /what-self-awareness-really-is-and-how-to-cultivate-it. Galloway, S. 2017. TheFour:TheHidden dna ofAmazon,Apple,Facebook and Google. New York: Random House Large Print. Goleman, D. 2005. Emotional Intelligence: Why It Can Matter More Than iq. New York: Bantam Books. ———. 2017. What Makes a Leader? Brighton, ma: Harvard Business Press. Hristov, T. 2021. ‘Pokoleniya v marketinga.’ Novavizia, 12 September. https://www.novavizia.com/pokoleniya-v-marketinga/. Kihlstrom, J., and N. Cantor. 2011. ‘Social Intelligence.’ In The Cambridge Handbook of Intelligence, edited by R. J. Sternberg and S. B. Kaufman, 564–81. Cambridge: Cambridge University Press. Korn Ferry. 2016. ‘New Research Shows Women Are Better at Using Soft Skills Crucial for E.ective Leadership and superior business perfor­mance.’ Korn Ferry, 3 November 3. https://www.kornferry.com [361] /about-us/press/new-research-shows-women-are-better-at-using -soft-skills-crucial-for-e.ective-leadership. Kostadinova, I. 2013. ‘De.ning the Categories of “Emotional and Social Intelligence” for the Purposes of Applied Research.’ Proceedings of University of Ruse 52 (5.1): 84–9. Kotler, P., H. Kartajaya, and I. Setiawan. 2020. Marketing 4.0: Moving from Traditional to Digital. Hoboken, nj: Wiley. Kotsev,E.2020. Digitalna transformatsiya na balgarskoto predpriemach­estvo. Ruse: Rusenski universitet. Kramer, B.n.d.‘There Is No More b2b Or b2c:It’s Human to Human, h2h.’ https://bryankramer.com/there-is-no-more-b2b-or-b2c-its -human-to-human-h2h/. Kunev, S., B. Fleaca, D. Antonova, and R. Dráb. 2020. ‘Fostering the Innovative University Student-Centred Learning by Application of ict Tools Together with Stakeholders: A Project Methodology Overview.’ In 7th International Conference on Energy E.ciency and Agricultural Engineering. New York: ieee. Laskova, V. 2018. ‘Potrebitelskoto povedenie v predvidimoto badeshte – promeni i predizvikatelstva.’ In Targovia 4.0: nauka, praktika i obra­zovanie, 166–76. Varna: University of Economics. Ljubotina, P., and J. Vadnjal. 2023. ‘Career Decisions in the Mediter­ranean: To Be or Not to Be an entrepreneur?’ International Journal of Euro-Mediterranean Studies 16 (2): 221–49. Ordun, G., and A. B. Acar. 2014. ‘Impact of Emotional Intelligence on the Establishment and Development of High Quality Leader Member Exchange (lmx).’ Advances in Management & Applied Economics 4(2): 111–29. O’Reilly,T.2017. wtf? What’s the Future and Why It’s Up to Us. New York: Harper Business. Pavlov, D., M. Sheresheva, and M. Perello. 2017. ‘The Intergenerational Small Family Enterprises as Strategic Entities for the Future of the European Civilization – A Point of View.’ Journal of Entrepreneurship and Innovations 9(9): 121–33. Rashidi, R.,S.Yousefpour, Y. Sani,and S. Rezaei. 2013. ‘Presentinga Butter.y Ecosystem for Digital Entrepreneurship Development in Knowledge Age.’ In 7th International Conference on Application of In­formation and Communication Technologies. New York, ny: ieee. [362] Ronin, K. 2020. ‘21 Soft Skills Future Leaders Need to Be Successful.’ Linkedin, 7 June. https://www.linkedin.com/pulse/21-soft-skills -future-leaders-need-successful-kara-ronin. Ruskova, S., and I. Ruseva. 2018. ‘Theoretical Aspects of the Impact of Con.icts on Employee Motivation.’ Proceedings of University of Ruse 57 (5.1): 41–5. Salovey, P., and D. Grewal. 2005. ‘The Science of Emotional Intelligence.’ Current Directions in Psychological Science 14 (6): 281–85. Solis, B. 2014. What’s the Future of Business: Changing the Way Businesses Create Experiences. Hoboken, nj: Wiley. Todorova, A. 2024. ‘Examining Emotional Intelligence Evolution with Age: Insights from Bulgarian Digital Entrepreneurs of Di.erent Generations.’ iimt JournalofManagement 1(1):5–23. Todorova, A., and D. Antonova. 2023. ‘Emotional Intelligence: Predictor of Success and Career Advancement: A Survey of Bulgarian Digital Entrepreneurs.’ In Proceedings of the 15th International Joint Confer­ence on Knowledge Discovery, Knowledge Engineering and Knowledge Management, 126–33. Setúbal: SciTePress. Vermeulen, S. 1999. eq: Emotional Intelligence for Everyone. Cape Town: Struik. Wood, R., and H. Tolley. 2002. Test Your Emotional Intelligence. London: Kogan Page. Résumés Approches innovantes du marketing et transformation du comportement des consommateurs slovènes pendant la pandémie de covid-19 maja pucelj, muhammad naeem shahid, regalla ravikanth, samah adel ibrahim mohammed radwan, muhammad malik et anthony k. hunt La pandémie de covid-19a engendré des di.cultés sans précédent, néces­sitant des réponses .exibles et adaptatives de la part des sociétés et des en­treprises. Cette étude vise à analyser les nouvelles techniques de marketing ainsi que les ajustements opérationnels développés en réponse à cette crise mondiale, en mettant l’accent sur leur impact sur le comportement et les choix d’achat des consommateurs. En adoptant un paradigme abductif avec un design exploratoire séquentiel, nous avons combiné des approches de re­cherche qualitative et quantitative. Les données ont été collectées auprès d’un échantillon de 204 répondants slovènes via une enquête en ligne, ana­lysée rigoureusement à l’aide de la modélisation par équations structurelles, Structural Equation Modeling (sem). Basée sur la théorie du comportement des consommateurs et les cadres d’innovation marketing, l’étude révèle des changements signi.catifs dans le comportement des clients, notamment un passage marqué vers les plateformes de vente au détail en ligne. L’éducation joue également un rôle crucial dans l’in.uence des changements de compor­tement des consommateurs, en particulier dans le contexte complexe de la pandémie. Par ailleurs, les modi.cations de la répartition des revenus in­.uencent directement la dynamique de la demande de produits sur le mar­ché. La pertinence pratique de cette étude réside dans les recommandations concrètes qu’elle o.re aux décideurs politiques et aux organisations, leur per­mettant d’adapter e.cacement leurs stratégies pour répondre aux besoins et préférences changeants des consommateurs et se préparer à d’éventuelles crises futures. Mots clés : pandémie de covid-19, comportement des consommateurs, achats en ligne, éducation, Modélisation par Équations Structurelles ijems 17 (2): 195–234 Intégrer la spiritualité et la politique : Les perspectives de l’islam et du christianisme sur la religiosité et la gouvernance dans la société contemporaine othman sqalli houssaini [364] La pertinence de ce papier scienti.que réside dans l’exploration de la corre­lation entre le spirituel et le politique à notre époque contemporaine, à tra­vers une analyse des deux approches inversées reliant les sphères spirituelle et politique par l’analyse des valeurs religieuses, des croyances spirituelles et des visions politiques, ainsi que par l’exploration de l’interconnexion sou.e entre le spirituel et le politique. L’étude examine également les fondements religieux du modèle marocain de religiosité, caractérisé par la Commande­rie des Croyants et ses principes dans la gouvernance moderne, en mettant l’accent sur l’intégration des valeurs spirituelles dans le leadership pour l’har­monie sociétale. Les résultats de cette recherche, fondés sur une étude analy­tique des théories littéraires historiques et une étude comparative de la gou­vernance et de la spiritualité dans l’islam et le christianisme, soulignent l’im­portance cruciale de l’équilibre entre la spiritualité et la politique pour rele­ver les dé.s socio-économiques et environnementaux modernes. L’étude met également en avant l’importance d’une gouvernance équilibrée qui respecte la diversité religieuse, les perspectives spirituelles et un leadership guidé par les valeurs pour le bien-être et l’essor sociétal. Mots clés : gouvernance, politique, spirituel, Sou.sme, Commanderie des Croyants, Vatican ijems 17 (2): 235–258 Démocratisation en Tunisie : comprendre l’interaction entre la politique et le développement économique noureddine selmi Cette recherche analyse les implications de la révolution tunisienne de 2011 et son évolution démocratique. Elle se concentre sur les conditions préa­lables à la transition démocratique durant le printemps arabe, en s’articulant autour de deux axes principaux. Le premier explore les raisons objectives et les facteurs qui ont entravé cette transition en Tunisie, notamment l’in­tervention étrangère et le rôle décisif des forces politiques et sociales dans le blocage du processus de démocratisation. Parmi ces acteurs, notre étude met en évidence l’Union Générale Tunisienne du Travail (ugtt), des mé­dias, des organisations de la société civile, ainsi que des entités in.uentes au sein de l’administration bureaucratique. Le second axe examine l’impact de la situation économique et des politiques mises en place après la révolution, qui n’ont pas abouti aux résultats escomptés. Le blocage de la transition dé­mocratique s’accompagne de signes annonciateurs d’une crise économique imminente, aux répercussions sociales et sécuritaires profondes. Cette re­cherche a.rme que le ralentissement économique et les inégalités régionales ne su.sent pas à expliquer l’échec de la transition démocratique. Il est égale­ [365] ment crucial de prendre en compte le rôle central des con.its idéologiques et la nécessité d’une culture démocratique partagée. Mots clés : démocratisation, développement économique, Moyen-Orient et Afrique du Nord, Printemps arabe, Tunisie ijems 17 (2): 259–282 L’impact du comité d’audit sur la performance .nancière des pme marocaines : une étude empirique hanae laaroussi, mohamed amine tbatou et babounia aziz Cette étude examine l’impact des comités d’audit sur la performance .nan­cière des pme marocaines, en soulignant l’importance du contexte et de sa valeur ajoutée. En outre, elle examine l’in.uence du système de gouver­nance sur l’indépendance du comité d’audit et explore les variables liées aux caractéristiques du comité d’audit. Basée sur un échantillon de 58 pme maro­caines, l’étude s’étend sur une période de 4 ans, de 2018 à 2022. Grâce à l’utili­sation de l’analyse de régression, les résultats révèlent des dé.s à l’indépen­dance totale du comité d’audit, attribués à un système dual et à la taille li­mitée du comité. Par conséquent, les comités d’audit des pme marocaines sont confrontés à des contraintes dans l’exercice de leurs responsabilités, en particulier dans l’examen des états .nanciers, ce qui pourrait entraver la per­formance .nancièreet la croissancedes pme. Cetterecherche contribue à la compréhension des dynamiques de gouvernance au sein des pme maro­caines, en soulignant l’importance du contexte et en o.rant un aperçu des complexités des comités d’audit. Mots clés : comité d’audit, performance .nancière, pme marocaines, qualité de l’audit ijems 17 (2): 283–312 L’impact du tourisme, d’investissement direct à l’étranger, du commerce, de la croissance économique et de l’énergie renouvelable sur les émissions de carbone : le cas des pays méditerranéens [366] younesse el menyari Dans cette étude, nous examinons l’in.uence du tourisme international, du commerce, de l’investissement direct à l’étranger, de la croissance éco­nomique et de la consommation d’énergie renouvelable sur les émissions de co2 dans 17 pays méditerranéens, couvrant la période de 1995 à 2018, en utilisant des techniques d’estimation en panel hétérogènes. Les résul­tats montrent que la croissance économique a un impact fort sur les émis­sions de dioxyde de carbone. Nos résultats sont en faveur de l’existence d’une courbe de Kuznets environnementale (cke) en forme de U inversé dans les pays méditerranéens. De plus, les résultats économétriques ont prouvé que le tourisme international, l’ouverture commerciale, l’ide et la consommation d’énergie renouvelable ont un impact négatif sur les émissions de dioxyde de carbone. En outre, les résultats du test de causalité de Granger en panel de Dumitrescu et Hurlin suggèrent qu’il existe une causalité bidirectionnelle entre les émissions de co2 et les autres variables explorées (tourisme inter­national, ouverture, ide, consommation d’énergie renouvelable et revenu réel) et une causalité unidirectionnelle allant de la consommation d’énergie renouvelable et de l’ouverture commerciale au revenu réel. Par conséquent, le développement des échanges internationaux dans le domaine des énergies renouvelables et l’exploitation de ces énergies dans le domaine du tourisme et des ide peuvent être favorables à la croissance économique et à la réduc­tion des émissions de dioxyde de carbone. Mots clés : tourisme, commerce, investissement direct à l’étranger, croissance économique, énergies renouvelables, emissions co2 ijems 17 (2): 313–337 Intelligence émotionnelle et sociale et son impact sur la réussite commerciale des entrepreneurs numériques Bulgares ana todorova et irina kostadinova Le développement rapide des technologies numériques au cours des deux dernières décennies a créé un nouvel environnement économique qui néces­site une adaptation continue. Cependant, paradoxalement, la numérisation croissante souligne l’importance des compétences générales telles que l’in­telligence émotionnelle et sociale. La présente étude vise à analyser empiri­quement la relation entre ces compétences et la réussite des entrepreneurs numériques Bulgares. Les résultats montrent que les entrepreneurs à suc­cès font preuve de niveaux plus élevés d’intelligence émotionnelle et sociale, toutes ses composantes – conscience de soi, maîtrise de soi, motivation, em­ [367] pathie et compétences sociales – contribuant de manière signi.cative à la réussite entrepreneuriale. L’importance de l’optimisme pour surmonter les dé.s dans l’environnement numérique dynamique est particulièrement sou­lignée. La conclusion est que, malgré les exigences spéci.ques de l’entreprise numérique, le pro.l de base d’un entrepreneur à succès reste universel et se caractérise par une intelligence émotionnelle et sociale élevée. Par consé­quent, l’étude ajoute de la valeur à la littérature sur l’entrepreneuriat, le ma­nagement, le comportement organisationnel et la gestion des ressources hu­maines et peut éclairer le développement d’outils d’évaluation ainsi que de programmes de formation et de développement de l’intelligence émotion­nelle et sociale. Mots clés : intelligence émotionnelle, entrepreneuriat numérique, compé­tences, empathie, motivation ijems 17 (2): 339–362 Povzetki Inovativni marketinški pristopi in preobrazba vedenja slovenskih potrošnikov med pandemijo covida-19 maja pucelj, muhammad naeem shahid, regalla ravikanth, samah adel ibrahim mohammed radwan, muhammad malik in anthony k. hunt Pandemija covida-19je prinesla zahtevne razmere brez primere, ki so zahte­vale prilagodljive in prožne odzive tako od družb kot podjetij. Ta študija ana­lizira nove marketinške tehnike in operativne prilagoditve, ki so se pojavile kot odgovor na globalno krizo, s posebnim poudarkom na njihovem vplivu na vedenje in nakupne odlocitve potrošnikov. Uporabili smo abduktivni pri­stop s sekvencnim raziskovalnim nacrtom, ki združuje kvalitativne in kvan­titativne raziskovalne metode. Podatke smo zbrali z vzorcem 204 slovenskih respondentov preko spletne ankete, ki smo jo natancno analizirali z modeli­ranjem strukturnih enacb (sem). Študija temelji na teoriji potrošniškega ve­denja in okvirih inovativnega marketinga. Rezultati kažejo pomembne spre­membe v vedenju potrošnikov, predvsem prehod na spletne prodajne plat­forme. Izobrazba se je izkazala za kljucno pri vplivanju na spremembe v po­trošniškem vedenju, zlasti v kompleksnem kontekstu pandemije. Poleg tega spremembe v razporeditvi dohodkov neposredno vplivajo na dinamiko pov­praševanja po izdelkih na trgu. Prakticni pomen te študije poudarjajo pre­dlogi za oblikovalce politik in organizacije, ki zagotavljajo potrebno razume­vanje za ucinkovito prilagajanje strategij spremenjenim zahtevam in prefe­rencam potrošnikov ter za pripravo na morebitne prihodnje krize. Kljucne besede: pandemija covid-19, vedenje potrošnikov, spletno nakupova­nje, izobrazba, modeliranje strukturnih enacb ijems 17 (2): 195–234 Integracija duhovnosti in politike: vpogledi iz islama in kršcanstva o religioznosti in upravljanju v sodobni družbi othman sqalli houssaini Namen tega prispevka je raziskati odnos med duhovnim in politicnim v so­dobnem casu z analizo dveh nasprotujocih si pristopov, ki povezujeta du­hovno in politicno sfero. To so avtorji dosegli s preucevanjem verskih vre­dnot, duhovnih prepricanj, politicnih ciljev in raziskovanjem su.jske pove­zanosti med duhovnimi in politicnimi podrocji. Študija preucuje tudi religio­zne temelje maroškega modela religioznosti, ki ga zaznamuje institucija za­povedništva vernikov in njegove principe v sodobnem upravljanju, s poudar­kom na vkljucevanju duhovnih vrednot v voditeljstvo za družbeno harmo­nijo. Ugotovitve te raziskave, ki temeljijo na analiticni študiji literarnih teorij in primerjalni študiji upravljanja ter duhovnosti v islamski in kršcanski reli­giji, poudarjajo kljucno pomembnost uravnoteženja duhovnosti in politike [370] pri reševanju sodobnih družbeno-ekonomskih in okoljskih izzivov. Študija prav tako izpostavlja pomen uravnoteženega upravljanja, ki spoštuje versko raznolikost, duhovne uvide in na vrednotah temeljece voditeljstvo za dobro­bit družbe. Kljucne besede: voditeljstvo, politika, duhovnost, su.zem, zapovedništvo ver­nikov, Vatikan ijems 17 (2): 235–258 Demokratizacija v Tuniziji: pogajanja o prepletu politike in gospodarskega razvoja noureddine selmi Študija preucuje posledice tunizijske revolucije leta 2011 in njenega nadalj­njega demokraticnega razvoja v okviru predpogojev za demokraticni prehod med Arabsko pomladjo. Raziskava se osredotoca na dve glavni razsežnosti: prvic, gre za preucevanje objektivnih razlogov in dejavnikov, ki so povišali ovire v demokraticni preobrazbi Tunizije, kar vkljucuje identi.kacijo elemen­tov tujih intervencij ter politicnih in družbenih sil, ki so igrale vlogo pri zao­stankih, s posebnim poudarkom na entitetah, kot so Tunizijska splošna de­lavska zveza (ugtt), medijski kanali, organizacije civilne družbe in vplivni akterji znotraj birokratske administracije. Drugic, raziskava ocenjuje gospo­darski razvoj, ki ni dosegel pricakovanih rezultatov, kar se kaže v upadu raz­licnih gospodarskih kazalnikov in slabšanju socio-ekonomskega okolja, ki napoveduje bližajoco se gospodarsko krizo z globokimi socialnimi in varno­stnimi posledicami. Raziskava poudarja, da razvojne ovire, gospodarski upad in nezadosten gospodarski napredek sami po sebi ne morejo biti edini razlog za oviranje poti demokraticne transformacije v Tuniziji. Pomembno je razu­meti tudi kljucno vlogo ideoloških kon.iktov in pomanjkljive konsolidacije demokraticne kulture. Kljucne besede: demokratizacija, gospodarski razvoj, Bližnji vzhod in severna Afrika, Arabska pomlad, Tunizija ijems 17 (2): 259–282 Vpliv revizijske komisije na .nancno uspešnost maroških malih in srednje velikih podjetij: empiricna analiza hanae laaroussi, mohamed amine tbatou in babounia aziz [371] Študija preucuje vpliv revizijskih komisij na .nancno uspešnost maroških malih in srednje velikih podjetij (msp), s poudarkom na pomembnosti kon­teksta in dodani vrednosti. Poleg tega analizira vpliv sistema upravljanja na neodvisnost revizijskih komisij ter raziskuje spremenljivke, povezane z zna­cilnostmi teh komisij. Na vzorcu 58 maroških msp, zajetih v obdobju štirih let (od 2018 do 2022), so bile ugotovitve pridobljene z uporabo regresijske analize. Rezultati razkrivajo izzive pri zagotavljanju popolne neodvisnosti revizijskih komisij, kar je pripisano dvojnemu sistemu in omejeni velikosti komisij. Posledicnosemaroške msp soocajozomejitvamiprizagotavljanju odgovornosti revizijskih komisij, zlasti pri pregledu .nancnih izkazov, kar lahko negativno vpliva na .nancno uspešnost in rast podjetij. Raziskava pri­speva k razumevanju dinamike upravljanja v maroških msp, osvetljuje po­men konteksta in ponuja vpogled v kompleksnost delovanja revizijskih ko­misij. Kljucne besede: revizijska komisija, .nancna uspešnost, maroška msp, kako­vost revizije ijems 17 (2): 283–312 Vpliv turizma, neposrednih tujih investicij, trgovine, gospodarske rasti in obnovljivih virov energije na emisije ogljika: primer sredozemskih držav younesse el menyari V tej raziskavi preucujemo vpliv mednarodnega turizma, trgovine, nepo­srednih tujih investicij (nti), gospodarske rasti in porabe obnovljivihvirov energije na emisije co2 v17sredozemskih državah vobdobju 1995–2018, z uporabo heterogenih panelnih metod ocenjevanja. Ugotovitve kažejo, da ima gospodarska rast mocan vpliv na emisije ogljikovega dioksida. Naši re­zultati podpirajo obstoj okoljske Kuznetsovekrivulje (ekc) v obliki obrnjene crke U v sredozemskih državah. Poleg tega ekonometricni rezultati kažejo, da imajo mednarodni turizem, odprtost trgovine, nti in poraba obnovlji­vih virov energije negativen vpliv na emisije ogljikovega dioksida. Poleg tega Dumitrescu-Hurlinov panelni Grangerjev test vzrocnosti nakazuje na dvo­smerno vzrocnost med emisijami co2 in drugimi preucevanimi spremenljiv­kami(mednarodniturizem,odprtost, nti,porabaobnovljivihvirovenergije in realni dohodek) ter enosmerno vzrocnost, ki tece od porabe obnovljivih virov energije in odprtosti trgovine k realnemu dohodku. Zato lahko razvoj mednarodne trgovine na podrocju obnovljivih virov energije ter izkorišcanje teh energij na podrocju turizma in nti ugodno vplivata na gospodarsko rast in zmanjšanje emisij ogljikovega dioksida. [372] Kljucne besede: turizem, trgovina, neposredne tuje investicije, gospodarska rast, obnovljivi viri energije, emisije co2 ijems 17 (2): 313–337 Custvena in socialna inteligenca ter njen vpliv na poslovni uspehbolgarskihdigitalnihpodjetnikov ana todorova in irina kostadinova Hitri razvoj digitalnih tehnologij je v zadnjih dveh desetletjih ustvaril novo gospodarsko okolje, ki zahteva nenehno prilagajanje. Paradoksalno pa prav povecana digitalizacija poudarja pomen mehkih vešcin, kot sta custvena in socialna inteligenca. Namen te študije je empiricno analizirati povezavo med temi vešcinami in uspehom bolgarskih digitalnih podjetnikov. Rezultati ka­žejo, da uspešni podjetniki izkazujejo višje ravni custvene in socialne inte­ligence, pri cemer vse njene komponente – samozavedanje, samokontrola, motivacija, empatija in socialne vešcine – pomembno prispevajo k podjetni­škemu uspehu. Poseben poudarek je na optimizmu, ki pomaga premagovati izzive v dinamicnem digitalnem okolju. Raziskava ugotavlja, da je osnovni pro.l uspešnega podjetnika, kljub speci.cnim zahtevam digitalnega poslova­nja, univerzalen in zaznamovan z visoko custveno in socialno inteligenco. S tem prispeva k literaturi s podrocja podjetništva, managementa, organizacij­skega vedenja in upravljanja cloveških virov ter nudi podlago za razvoj orodij za ocenjevanje, kot tudi za programe usposabljanja in razvoja custvene in so­cialne inteligence. Kljucne besede: custvena inteligenca, digitalno podjetništvo, kompetence, em­patija, motivacija ijems 17 (2): 339–362 ã ... ....... ....... . ..... . .... ..... ......... .. .. ...... ..... -19 ..... .... .... ...... ...... .. ...... ... ....... ... .... ........ .... ...... ..... ... . .... ......... ........ . .... .... ... ....... ... ..... ...... ....... ...... .... ....... ......... .... .... ........ .... . ..... ......... .. ....... ... ......... ....... .... .... ......... ...... ... ....... . .... ..... .... ....... .. ........ .......... ........ .......... ............ ... . ... .... .... ..... .... ....... ........ . .. ... ...... ....... .. .... ..... . ... . .......... ........... .. . ... ..... .. ... . ........ ..... ... .... .... ........ ..... ...... ... .... ... . ..... ... ... ... .... .......... ....... ........ (SEM). ....... ......... . ..... ..... ....... .. ...... .... .. .... .... .... ..... ..... .. ... .... . .. ... ..... ..... ........ ... . ........ . ... . ... ....... .... . ..... . .. .......... ....... .... ......... ..... .. .. .... ...... ........ . . ...... ... .... .... .... ......... .. ..... ..... .... ..... ... ......... ..... ..... ... ........ .. ...... . .. .. ..... . ...... ....... .... ....... .... ..... ... ......... ........ ......... .... ...... ..... ........ ......... ..... ...... ..... . . .... ..... ............. .... .... ....... ........ ........ .. ........ ... ....... .... . ........ . ....... ....... ......... ........ . ...... .......... : .... ...... -19 ..... ........ ....... .. . ........ ....... ....... ....... ....... .     Q @    3    3   X    $ r .$   $   p $ .r   h     $ .$     9 r  p  9  r       – h –  X   R 3   x . 9 l X `    h  R  p  .5 9  X  R  r R   d    x  d     \  p $ r .R r R $ X $  r   r      d r       :   [374] .... ....... .. ........ ....... ........ ....... ...... . ......... ....... ....... ... ........ ........ : ... ..... ..... ...... ....... . ..... . .. .. ........ .... ..... ....... ....... ........ .. ........ . ...... ....... ...... . ........ ...... .. ...... ........ ... ........ .... ..... ....... ..... .. ..... .......... ....... 17 .... .. .. ...... ....... . 2018-1995 .... ........ ...... ..... ...... ... .......... . .... ....... .. ..... . ........ .. ..... ... ... ......... U .. ... ... . (EKC) ... ..... ........ . ... ....... .... ..... ....... ...... .. ... ..... . ..... ........ . . ... ... .... ..... ..... . ....... ....... .. ....... ....... ......... ....... .. ........ . ...... ....... ..... ... ...... ........ ... ..... .... .... ........ .... ..... ....... . ..... ... .... .... ...... ...... ..... ...... ... .... .. ... ..... ....... Hurlin)& (Dumitrescu .......... ....... . ...... ... ........ .... ... ....... .......... . ..... .... .. ......... . )...... . .. ....... .. ....... ........ .. ........ . ...... ....... ...... .. ...... ........ ...... ........ ( ........ ...... . ...... ....... .. .... . .. ...... ........ . ........ ....... . .. ... .... ....... ....... .. .... ....... ........ ..... . .. ... ..... ........ . .. .. ....... .. .... ....... .. ........ . ...... ....... .... .. .... .. ..... . .... . ........ .... ........ .... ..... ....... . ...... .......... : ....... ......... ......... ...... ........ ...... ......... ....... ......... ........ .... ...... ...... .      :  K   R   r $  l $ $ ` . r   R  h  . d   r R ? 4 X  $ h r E h 58 h R     R  $   3 r .2022  2018 h $ r . .x \ 3 h d d 5 d 5 X X `  d p $ d d d r .% d d d % d :  d [375] % , ..... .......... ... .... : .... . ........ .. ....... ........ . ......... . ..... ..... ... ....... .. ....... ...... ........ .... 2011 ... ..... .. .... .. ... . ....... ...... .......... .... ..... ...... ..... . . .... .. ....... ........ ......... ........ .... .. .. ... ..... ..... . ...... ..... ... .... . ....... : .......... .... ...... ... ... ..... ..... ...... ....... ...... ....... . ........... .... .... ... .. .. ....... ...... ........ . .. ........... ... ... . . ... ...... ... ....... ..... ....... ..... ..... .. ..... ....... ....... ...... . ...... ......... ....... .... ....... ........... ..... ... .... ....... ... ..... ...... . . ......... .... .. ... .... ..... ....... ......... ... .. ..... .. ..... .... ......... .......... ...... ...... ......... ........... .. .... ..... ....... ...... ... ....... ........ ...... ..... . ..... ..... .. ...... ......... ... ....... . .. ...... ... ..... .. .. ........ ...... . ..... .. .... .... ....... . . ..... .... ...... .......... .. ..... . .. ....... .... . ... ..... ....... .... ..... ........ . ........... .... ..... ....... ........... .... .... . ....... ......... : ..... ........... ....... . .......... ..... . ..... ...... ....... ...... ....... ......... ........ .  6 K  6 P   D  : K    X  r      X  p  $    x h l $ 3 h  R r   , r r r   h  r ` .r   x       h     $ r  d     p $ h   X  r    x   $ .  d  X r   $ R  z h r r d $   p h  r r   d r    d r   $      $ ` .     :  [376] Empowering the Mediterranean: emuni’s Journey of Growth and Innovation emuni University has made signi.cant strides under the leadership of its new president, Prof. Dr. Rado Bohinc, embarking on a path of expansion, development, and increased engagement within the Euro-Mediterranean region. By prioritising deeper partnerships between academic and professional sectors, the university has actively collabo­rated with various partners through forums, conferences, and bilateral meetings, creating new opportunities for cooperation. These e.orts have expanded EMUNI’s network, fostering joint research projects, student exchange programmes, and collaborative academic initiatives. As a result, the university’s role as a hub for Euro-Mediterranean coop­eration continues to grow, laying the foundation for long-term success in its mission. A pivotal achievement for emuni was the successful organisation of its 16th Annual emuni Conference, held on 10th–11th October 2024, in Piran, Slovenia, focusing on ancient hydrological systems and water management in the Mediterranean. Co-organised by Prof. Dr An­dreaRipam(ripam),Dr. Stefano ogs,andtheUnionfortheMediter­ranean (ufm), the conference featured keynote speakers such as Dr. Mounir Ghribi, Prof. Dr Daniela Pittaluga, Dr. Octavi Quintana Trias, Dr. Khaled Abu Zeid, and Dr. Alessandro Leto. Discussions addressed critical issues such as water scarcity and water diplomacy, with a strong emphasis on sustainable management practices. Attendees also visited the Secovlje Salt Pans, gaining insights into traditional water manage­ment techniques. The event included a high-level panel, ‘Higher Education as a Bridge Between the Two Shores of the Mediterranean,’ moderated by Dr. Mouin Hamze. The panel featured prominent speakers, including Prof. Dr. Rado Bohinc, Ambassador Nasser Kamel, Prof. Dr. Maria Cristina Pedicchio, Prof. Dr. Luigia Melillo, Dr. Alaa Abdelwahed Abdelbary, and Dr. Michele Civiero. The discussion underscored the essential role of education in fostering regional collaboration and strengthening ties across the Mediterranean through shared knowledge and cultural ex­ change. This event exempli.es emuni’s commitment to promoting sustainable development and regional cooperation. emuni’s r&d Projects and Innovation Department has been ac­ tively involved in several impactful initiatives aimed at addressing re­ [378] gionalandglobalchallenges.Aspartoftheeu-fundedChangeHubsfor Ecosystemic Social Solutions (chess) project, the department partic­ipated in the Final Event held in Vilnius, Lithuania, on 11th December 2024, showcasing its commitment to implementing ecosystem-based approaches to address social challenges, particularly in the Mediter­ranean region. Additionally, the Erasmus+ eunicoast Project high­lights emuni’sdedicationtofosteringcross-bordercollaboration,with the launch of the eunicoast Blended Intensive Programme, address­ing the unique social, economic, and environmental challenges faced bycoastalareas.Thedepartmentisalsopreparingforthe oer-codex Project Final Conference, scheduled for 14th January 2025, to present achievements in integrating Open Educational Resources (oer) within Open Science and Virtual Collaborative Learning (vcl). These initia­tives collectively demonstrate emuni’s leadership in advancing sus­tainable solutions, promoting innovative education, and strengthening international collaboration. In the coming months, emuni will establish the emuni Knowl­edge & Innovation Centres (ekics), strategically located across seven Mediterranean countries, including Tunisia, Egypt, and Algeria. These centres represent a groundbreaking initiative designed to enhance in­stitutions through elevated academic standards, expanded interna­tional partnerships, and dynamic innovation ecosystems. By partner­ing with emuni to host an ekic, institutions will gain access to a vastnetworkofuniversities, jointstudyprogrammes, support for phd and Master’s initiatives, and opportunities for collaborative research. Additionally, ekics will provide strategic support for marketing and branding, increasing visibility and reputation while driving knowledge exchange and fostering transformative collaborations. Alongsideitsimpactfuleventsandprojects, emunihasfocusedon strengthening its global network of partnerships. The university’s pres­ident has actively engaged with institutions across the Mediterranean, seeking to reinforce existing collaborations and forge new ones. These e.orts form a critical component of emuni’s strategy to expand its international presence, facilitating joint research, academic exchanges, and innovative projects. emuni also continues to celebrate the Mediterranean’s rich cul­tural heritage alongside its academic pursuits. Recent initiatives in­clude Into the Blue, an artistic exhibition honouring the region’s cul­tural diversity, and the Celebrating the Mediterranean programme, which promotes intercultural dialogue among students. A notable [379] event was the Dr. Rami Basisah Quartet concert in Ljubljana, blending traditional Syrian and Mediterranean music. Furthermore, the univer­sity co-organised a roundtable discussion titled ‘The Power of Jour­nalism and Music as Media for Intercultural Dialogue’ in collaboration with the apis Institute, zrc sazu, and Radio Prvi, highlighting the role of cultural and media platforms in fostering understanding. As emuni advancesitsmissiontoelevateeducationalandresearch standards, the university remains committed to strengthening inter­national partnerships, driving innovation, and celebrating Mediter­ranean culture. With numerous promising events and initiatives on the horizon, emuni is well-positioned to make lasting contributions to the academic and scienti.c landscape of the Mediterranean region. Emna Jbara emuni Marketing Studying at emuni Unique Euro-Mediterranean Focus emuni Universityhasastrong focus on the Euro-Mediterranean region, o.ering programs in intercul­tural business communication and kinesiology with a perspective that blends European and Mediterranean in.uences. This can prepare you for a career with a global perspective. Immerse Yourself in a Stunning Location Piran is a beautiful coast­al town in Slovenia, known for its Venetian-inspired architecture and picturesque settingon theAdriaticSea. Studyingat emuni allowsyou to combine your academic pursuits with the chance to live in a charming seaside location. Small, International Community emuni is a relatively young and small university, which can foster a close-knit and international com­munity. This can provide a supportive learning environment where you can easily connect with classmates and professors from around the world. Master Study Programmes Intercultural Business Communication 2 years | 120 ects Credits | Blended Learning Digitalization and Human Rights 2 years | 120 ects Credits | Blended Learning Comparative Business Law 2 years | 120 ects Credits | Blended Learning Kinesiology of Human Performance 2 years | 120 ects Credits | Blended Learning Sport Management 2 years | 120 ects Credits | Blended Learning Doctoral Study Programmes Comparative Corporate Governance 3 years | 180 ects Credits | Part-Time Kinesiology for Quality of Life 3 years | 180 ects Credits | Part-Time https://emuni.si/education