Budapest University of Economics and Business

The mission of FVC is to explore the present and future development of global value chains from macro- and micro perspectives with special emphasis on the impact of digital transformation. Therefore the Centre:

• Conducts research,
• Engages in educational activities,
• Develops knowledge base for vocational training programmes,
• Accomplish projects lead by the needs of business organisations exploiting the benefits of industry-university relationships.

The research activities of FVC are focusing on two, interrelated and complementary aspects, which designate the two research streams of the Centre:

1. Analysing the structural changes of global value chains (macro approach)
2. Exploring the changes in business management, highlighting the impact of digital technologies on productivity and efficiency (micro approach)

The combination of the macro- and micro aspects in the research approach will lead to a more complex understanding of these structures, because the international flow of products and services is the sum of the values added and the economic results in the various layers of global value chains.

The Macroeconomic Stream goes in quest of global value chains (GVCs) in two directions.

First, we explore the macroeconomic aspects of the GVC organisation; including methodological questions, theoretical-structural research and industry analyses. The team follows different aspects of research. One is international economics, which addresses the potential and the distribution of value added to evaluate value chains. Technology and innovation, another aspect, explores how GVCs are organised from a technological point of view, how they change and what impact they have on the macro economy. The strategic perspective focuses on the dynamics of global value chains in terms of organisational restructuring and the mobility options of the chain participants.

As another pivot the stream is involved in strategic foresight research. The team discusses present theoretical and methodological issues of futures studies with special attention to GVC applications and the development of future generations. Colleagues and PhD students of the different faculties of the BUEB as well as of other universities work together in order to contribute to the global value chains research. 

In order to ensure the best possible material flow in the supply chain and to produce the volume of the order, it is necessary to reduce the lead time as much as possible, at the same time to ensure the output of faultless products. It is only possible, if:

• the time and cost of transportation are the optimal,
• the production process is optimal throughout the production line as well as in each cells, and
• scrap products are filtered out in time and as accurately as possible.

Ensuring this automatically is of utmost importance, as the human factor can lead to error in many cases.

For this reason, the aim of the Centre's research is to develop models, procedures and methods, with the help of which we explore the operational problems of certain elements of the supply chain, and then improve and optimize these processes. During our work, we constantly take into account the aspects of environmental protection.

Here are a few major research lines within this stream:

• modelling and examining the refuelling problems related to shipping,
• production logistics: optimization of scheduling problems in production lines with the help of AI tools,
• production logistics: handling problems with AI-tools arising during production control and quality control,
• applicability of blockchain technology in supply chain management.

This research stream is supported by the Smart Shop Floor Logistics Simulation Labor. This is a practice-oriented lab for students which provides opportunities to explore the latest industry 4.0 technologies introduced in logistics (e.g. AR, RFID, tracking technologies, ERP) and a potential platform for university-industry collaboration. In addition, there are plans to set up a research lab for business informatics students where students will face practical problems directly.

• “Gazdaságok a globális értékláncokban (Economies in the global value chains)” course of the IBE MA study,
• “Macroeconomic analysis” course of the IBE MA study.

• Digitális ellátási lánc (Digital supply chain” – 4-day course on supply chains and various digital technologies
• Technologies at the Smart Shop Floor Logistics Simulation Lab – 1-day introductory course
• “Innovation: how it moves the 21^st century’s economy?” - 1-day course on innovation, innovation processes in theory and in practice (case studies)
• “Egy leendő közgazdász világa? Technológiai paradigmák és gazdasági jövőképek (The future world of an economist? Technology paradigms and economic forecasts) – half-day course

• Collaboration with Bosch on training at the Smart Shop Floor Logistics Simulation Lab
• Dissemination of knowledge within the Researchers’ Night initiative

The Lab makes modern, Industry 4.0 technologies available and testable, the application of which at the company level can have a significant efficiency-increasing effect. Laboratory users can first view the possibilities of developing a Smart Factory concept with the help of a physical model, and then they can perform the development and simulation of the concept themselves in an AR (Augmented Reality) environment.

There are various Industry 4.0 tools and methods as part of the production line simulation: RFID (automatic presence detection of materials), XDK sensor (real-time detection of physical parameters), AR (Augmented reality applications), VR (Virtual reality - virtual reality applications) SAP ERP (enterprise structure mapping into an integrated digital environment), IRID-RTLS infrared indoor localization technology.

Using all these technologies, the production line simulation consists of seven workstations and two supermarkets. The system provides an opportunity to compare production cycles based on the “traditional” and “smart factory” concepts, to learn about data-driven business procedures, and to present the role of business intelligence in supporting corporate decision-making. Digital tools - using modern Data Scientist, Business Analyst methods and technologies - also answer the important question of what environmental parameters should be measured to optimize business processes.

The data set created during the simulation activity can be processed with the help of modern analytical tools and methods in order to get a more accurate picture of what happened during the process, why it could have happened, and what could have happened based on all this. Thus, based on the historical data generated during the production simulation, the necessary analytical work (dashboards, KPIs, creation of analytical models) can be performed, and then predictive analytical models (ML / DL algorithms) can be used to create plans for the future in order to support decisions more effectively. Thus, in addition to becoming familiar with specific business processes and technologies, a business value-creating effect is also achieved.

The educational environment of the simulation lab aims to develop the hard and soft skills needed by future employees so that it can reduce the gap between industry and education and the corporate retraining periods in the most efficient way.

The role of universities in the society is undergoing significant changes around the world. In the past, higher education institutions have been places of teaching and research. Their diplomas and research findings were seen as a valuable contribution to society. In addition, however, society as a whole now expects universities to provide new services that include employable and responsible graduates and relevant, effective research, easily utilized by the business sector. Universities are able to do this by developing more relevant and deeper interactions, relationships and collaborations with their socio-economic environment than before, i.e. by strengthening their so-called "third mission”. This is also an important goal for BUEB, and the Center of Excellence is an important “tool” for the university in building these economic relationships. The staff of If you are interested and think that your business needs help in these or other related areas, feel free to contact the staff of the Center of Excellence.

On 13 December 2023, the Institute of World Economics (KRTK, Hun-Ren), FVC and EADI (European Assocation of Development Research and Training Institute) organised the now traditional international workshop on global value chains, which provides a platform for the latest research results.

The various decisions taken by multinational enterprises have a profound impact on the functioning of global value chains and, through them, on international trade, foreign direct investment or the transfer of knowledge and technology. Hungary and the Central and Eastern European region are particularly exposed in this respect, as they are typically open, catching-up countries, which enter the global value chains in a predominantly supplier role. As a consequence, the future opportunities and growth prospects of local businesses may also depend fundamentally on the strategy of multinational companies.

The workshop featured 8 presentations by FVC staff and foreign researchers, including examples from Hungary, the Czech Republic, the Netherlands and India. Topics covered included knowledge flows, sustainability, foreign capital investment, crisis management and reshoring, and the potential role of foresight in business development.

A special issue of the journal Society and Economy, co-edited by FVC staff, is now available online, featuring articles by several FVC staff members on the latest research on global value chains. A growing body of literature reveals the unequal value creation within global value chains and the contradictory possibilities of development within networks. The articles in this special issue examine the lessons of the functioning of global value chains in Hungary, the structure and dynamics of value creation, and the situation of semi-peripheral or integrated peripheral countries. The articles also provide insight into the functioning of global value chains in several sectors, including a study on the sustainability of the fashion industry in addition to the automotive industry. The articles are available here: https://akjournals.com/view/journals/204/45/3/204.45.issue-3.xml

New results on sustainability and logistics from FVC staff

In the summer of 2023, Miklós Gubán and Ákos Gubán's new book "Sustainable warehouse management with autonomous drones" was published by Akadémiai Publishers. Technological developments have led to a number of new innovations in recent years that are fundamentally reshaping logistics processes. In this volume, the authors present a solution for the application of a specific technology that can automate the task of warehousing and make it more efficient.

The authors have been working on the subject for some time from various angles, and have summarised their experience in this volume. More details can be found here: https://mersz.hu/guban-guban-fenntarthato-raktarkezeles-autonom-dronokkal// (The original news story about the book is available on the BGE website: https://uni-bge.hu/hu/tudomanyoselet/hirek/fenntarthato-raktarkezeles-autonom-dronokkal)

The FVC's 'soft skill' research group (Tamás Gáspár, Tímea Juhász, Gabriella Horváth-Csikós) organised multiple workshops this year, in addition to a meeting with a domestic focus, an international workshop also brought together colleagues from Hungary and abroad.

The workshop participants represented Poland, the Czech Republic, Kyrgyzstan, Romania, Serbia and Hungary. During the event, the researchers reported on the progress, results and problems of the joint research, discussed the progress of the international project and prepared joint publications.

In the 21st century, human resources are becoming an increasingly important element in the operation and competitiveness of enterprises, while they have to meet increasingly complex requirements in the knowledge economy. Among the skills, the importance of soft skills has clearly come to the fore in recent years, posing new challenges for businesses and universities alike. The Centre's research seeks to assess precisely what skills and competencies businesses need and how they can be trained and strengthened in the context of university education.

The conference, entitled "Current Challenge for Sustainable Development at Global and Regional Levels", organised in English and Hungarian by the Széchenyi István University of Győr, focused on sustainability from a variety of perspectives, including a session on "Challenges of Sustainable Value Chains of the Present and the Future" organised by FVC (Tamás Gáspár, Krisztián Koppány).

The six papers presented here examined the issue from both macro and micro perspectives, touching on international economic processes, policy challenges, inflation and the sustainability of certain logistics processes. In the operation of global value chains, there is also a growing emphasis on sustainability, not only in day-to-day operations, but also in the reorganization of structures, which may have a direct impact on companies already involved in value chains or planning to become involved in the near future.

More information on the conference can be found here: https://kgk.sze.hu/kautz-conference-2023

The Industry 4.0 Professional Medal, supported by the Industry 4.0 National Technology Platform Alliance and awarded by the Ministry of Culture and Innovation for the second time in 2023, has been awarded to BGE's Smart Shop Floor Logistics Lab.

The development implemented in the Lab includes both an educational and research professional programme, contributing to the strengthening of the third mission of the University, which was detailed in the application for the award. This complex initiative has convinced the judges of the competition to select our institution as the winner of the Industry 4.0 Professional Medal in the university category in 2023. This positive feedback from the wider professional community confirms our efforts and commitment to the direction along which we have launched the Centre, combining our education and research efforts for the benefit of the business sector.

The original news about the award can be found on the BGE website here: https://uni-bge.hu/hu/kkk/hirek/ipar-40-szakmai-dijat-nyert-a-bge-es-a-bosch-kozos-mesterseges-intelligenciaval-tamogatott-okoslaborja-masolat

At the Researchers’ Day organised by BGE on 18 May 2023, the heads of the two research streams of the Centre, Dr. Tamás Gáspár and Dr. Miklós Gubán, gave plenary presentations on the research focus of FVC. In their joint presentation, they highlighted the challenges global value chains are facing in the current global economic environment and illustrated the transformative impact of technological developments, namely artificial intelligence, on logistics with concrete examples. In addition to the plenary presentation, several other presentations were given in two sessions. The session "Supply chain trends and challenges in the light of digitalisation" focused on various aspects of supply chain operations, while the session "Foresight in research - case studies on future issues and methods" sought to highlight the importance of the foresight method in business decision-making.

Currently, the vast majority of Hungarian companies have weak corporate governance and strategic capabilities, which need to be improved to enable more companies to enter the international economy and to grow. Foresight could be one of the tools in the hands of companies to identify and exploit future opportunities in time.

Both sections attracted many participants. For more information on the Researchers’ Day, please visit the university’s website: https://uni-bge.hu/hu/tudomanyoselet/hirek/ilyen-volt-a-kutatoi-nap-2023-ban

"Trade and Investment in the Changing Global Economic Environment" was the title of the session organised by FVC at the OBIC 2023 conference (BGE, 5 May 2023).

At the event, FVC's colleagues Tamás Gáspár and Magdolna Sass, along with several speakers from universities and research institutes from Hungary and abroad, discussed the most important current challenges of global value chains. In the session, Hungarian-Chinese trade relations, the impact of foreign direct investment, and the impact of the global automotive industry on Central and Eastern Europe were discussed.

The conference programme and a collection of abstracts are available here: https://www.obic-bbs.hu/en/obic-conference-2023/

The FIMB Department of International Economics held a workshop on the regional dimension of FVC’s research on global value chains on 25 April 2023.

The phenomenon of de-/reshoring and the new trends of globalisation have brought the study of regional trends to the fore once again. The researchers participating in the workshop highlighted the methodological challenges and the conclusions of their research on regional networks in the Zselic, Győr and Tatabánya regions. On this basis, participants identified further areas of research that need further investigation to understand the processes better. Plans include the study of the Budapest agglomeration (Gyula Szabó) and the exploration of further development opportunities in the Tatabánya industrial area (Katalin Antalóczy, Imre Birizdó and Magdolna Sass).

The exploration of the characteristics of regional value chains is not only interesting from a research or national economic point of view, but can also contribute to the integration of enterprises into international networks, to the industrial development efforts of local governments, or even to the strengthening of international relations of clusters by identifying the relevant trends in and the logic of value chains.

After several years of preparatory work and a pilot phase, the Smart Shop Floor Lab, which is closely linked to the activities of the FVC, officially launched its programmes on 17 April 2023 at the Hatvan Community Higher Education Training Centre.

The opening of the Lab was attended by the leaders of the University and the Faculty, as well as by the colleagues involved in its operation, and the managers of Robert Bosch Elektronika Kft., whose cooperation and support were of extraordinary importance in the development of the professional programme and content. The primary task of the Lab is to provide a new, experiential learning environment for students to learn the novelties and tasks of logistics processes through practice-oriented training programmes.

In addition, the Lab is a new channel of cooperation between industry and university, enabling our Centre to conduct research for both small and large enterprises on the potential applications of artificial intelligence in their business operations, to help solve production optimisation problems, to assess the impact of product tracking technologies, to analyse human behaviour and reactions in logistics decision situations, or to assist in the management of quantum computation and sensitive data handling.

The original news about the opening can be found on the BGE website here: https://uni-bge.hu/hu/kkk/hirek/robert-bosch-smart-shop-floor-labor-unnepelyes-megnyitoja

The international scientific association EADI, the ELKH KRTK Institute of World Economy and the Center of Excellence for Future Value Chains of our university will jointly organize an international workshop from 9 to 10 December 2021, which aims to explore the linkages of multinational companies and global value chains in more detail and their role in the global economy.

We look forward to seeing you!

Participation information is available at the link ».

In today's economy, digitalisation is both a cause and a tool for many transformations, including the new market environment for businesses. One of the most important elements of the new features is the greater than ever before impact of customers, which is not only reflected in the shaping of demand, but also in the transparency of companies or the development of product supply. Gone are the days when economies of scale alone were the main drivers of business. In the 21st century, there is a growing demand for mass customization (see, for example, custom product design options offered by Nike, Rolls Royce). In this situation, it is an increasing challenge for businesses to meet diverse needs, an ever-expanding product range, while ensuring efficient operation, to which the flexible production system is the answer.

The publication, published with the contribution of Miklós Gubán and Ákos Gubán from FVC, focuses on the problem of how to create a computer application that can create a sufficiently efficient production system even in cases where companies have to cope with the production of small series, different products or individual orders. The article by Melinda Tímea Fülöp, Miklós Gubán, Ákos Gubán and Mihály Avornicului is published in the journal Processes entitled ‘Application research of soft computing based on machine learning production scheduling’. The paper presents a detailed mathematical model of the system under investigation, and then an IT model for a solution based on a soft calculation method which analyses the various versions through several practical problems.

Digitalisation is fundamentally changing how the economy operates, which is a challenge also for Hungarian small and medium-sized enterprises if they want to maintain their competitiveness and long-term success. However, determining exactly what a business have to do to meet the challenges of digitalisation is by no means an easy task. A recent article by Ágnes Sándor and Ákos Gubán, from JÉKK, entitled 'A Measuring Tool for the Digital Maturity of Small and Medium-Sized Enterprises' can help with this task.

The aim of their article is to “define the concept of digital maturity, the theoretical foundations of the digital maturity model, and present a framework for small and medium-sized enterprises (SMEs) to understand where they are in digitalisation … to respond more quickly and effectively to environmental changes." The authors have created a dynamic model that supports management in their strategic, digital, and organizational developments. The model consists of 6 components and 28 components along IT and organizational dimensions. The ultimate goal of the study is to determine the weights of the components to create a neurofuzzy model. The article has been published in Management and Production Engineering Review.