| Abstract [eng] |
THE IMPACT OF EXTERNAL ENVIRONMENTAL FACTORS ON LITHUANIAN BUSINESS SERVICES SECTOR Milda Straigė Master thesis Accounting and financial management study programme Vilnius University, Faculty of Economics and Business Administration Supervisor – Prof. dr. Rasa Subačienė Vilnius, 2025 SUMMARY 90 pages, 8 tables, 25 pictures, 137 references. The main purpose of this study is to determine the motives and dynamics behind the establishment of business service centers and to assess the impact of external factors on the performance efficiency of companies in the business service sector. The study consists of three main parts – the analysis of scientific literature, the research and its results, conclusions and recommendations. Scientific literature analysis includes: i) analysis of the trends in the establishment of business service centers abroad and overview of the business service sector in Lithuania; ii) research of key macroeconomic indicators that influence the establishment of business service centers in the Baltic region and an overview of Lithuanian macroeconomic environment; iii) analysis of core financial indicators to evaluate company’s operational efficiency. The second part of the study presents the impact of external environmental factors on Lithuanian business service sector research, which is divided in two parts. First part of the research includes expert assessment, which helps to identify the most relevant macroeconomic and operational efficiency indicators to analyze business service sector companies. Second part of the research includes correlation and Ridge regression analyses, to determine which external environmental factors influence analyzed companies the most. In addition, research includes comparative analysis between national and international business service centers. This study analyzes financial data from 32 foreign-owned and 32 Lithuanian-owned business service centers between 2019 and 2023. The findings show that external factors significantly influence the efficiency of these companies. Correlation analysis revealed that cost and revenue per employee and short-term solvency are the most relevant metrics for evaluating financial performance in the current macroeconomic environment. Ridge regression showed that short-term solvency is less sensitive to external factors, while cost-related metrics are more affected by these changes. Among all factors, changes in the educational environment have the greatest impact on business service center costs, while employment-related conditions have the least. Lithuanian-owned companies tend to achieve higher revenue levels compared to foreign-owned ones. Even though external factors increase operating costs, the parallel growth in revenue offsets these expenses and contributes to profitability in the sector. Research findings revealed that the education environment constitutes the most significant external factor influencing the performance efficiency of companies operating in the business services sector. Therefore, further analysis is recommended in the areas of human capital investment, employee qualification development, and shifts in educational attainment. In addition, longitudinal studies should be conducted to assess the long-term impact of external environmental changes on performance efficiency and the dynamics of relevant independent variables. The application of qualitative research methods, such as case studies and structured interviews with management representatives, is also recommended to provide a more in-depth understanding of the determinants of performance efficiency in business service centers. |
