International Scientific Conference Strategic Management and Decision Support Systems in Strategic Management

Profitability Dynamics of Food Companies Amidst COVID-19 Challenges: Evidence From Serbia

Teodora Ilić — 2024-07-01

This study examines the impact of the COVID-19 pandemic on the profitability of food companies in Serbia. Lockdown measures, production, and supply chain disruptions, shifts in consumer behavior, and increased operational costs significantly impacted the food industry. The research was conducted on financial data from 1661 companies operating from 2018 to 2022. The assessment of the panel data model confirmed the presence of a negative and statistically significant effect of the Covid-19 epidemic on profitability as measured by return on total assets (ROA).

Video Game Industry: A Marketing Perspective

Dinko Jukić — 2024-07-01

Purpose: The study discusses the importance of branding and the video game industry. Emphasis is placed on brand analysis. The phenomenon of the happiness industry and the video game industry are discussed.

Methodology/approach: The research is based on relevant theories of brand management. The study starts from the construct of brand identity according to Kapferer and brand image according to Keller. The context of happiness and the entertainment industry is analysed according to Davies.

Results: The paper researches and analyses distinct brands in video games. Video game branding is analysed from the aspect of marketing communication. Brand categories in video games are suggested. Also, the economic impact of the games was analysed.

Conclusion: The video game industry is a large market that has overtaken the music and film industries in terms of revenue. Video games should be viewed in a wider social context as a generator of new jobs, creation of new value, but also as a cultural phenomenon. Branding in the video game industry is important for two reasons: creating greater visibility and consolidating an existing position in the market. In other words, we see the brand in video games as an evolutionary process of digital marketing, but also as a digital imprint of an existing brand.

Limitations/future research: This study is theoretical and starts from a qualitative methodology, i.e. thematic literature analysis. Further empirical research can be conducted on different game types, consumer type and by gaming platform to identify the existing market.

Event-Driven Analysis of the Effectiveness of European Economic Sanctions Against Russia (2022–2024)

Aleksandr Chernykh — 2024-07-01

This paper examines the effectiveness of European economic sanctions against Russia from 2022 to 2023, with a focus on the impact of these measures on the Russian oil & gas sector. Prior to the implementation of large-scale sanctions, the European Union was Russia's principal trading partner. Against this backdrop, this study assesses the impact of European restrictions on Russia. Utilizing the event analysis method, renowned for its reliability in assessing the effects of anti-Iranian sanctions and previous sanctions against Russia during 2014-2021, this research analyzes data from the oil & gas sector of the Russian stock market on the Moscow Exchange. Despite significant attention to oil exports from the sanctions imposers, findings indicate a minimal impact on the oil and gas sector. The study aims to shed light on the economic ramifications of these recent sanctions and seeks to contribute to the broader discourse on the efficacy of economic sanctions as a tool of foreign policy.

The Effect of Recent Crisis Situations on the Sustainability of Indebtedness of the Manufacturing Sector of Serbia

Miloš Đaković — 2024-07-01

This study investigates the impact of recent crisis situations on debt sustainability in the manufacturing sector of Serbia. Focusing on the economic and financial challenges facing the sector after the crisis, covering the period from 2015 to 2023, the research uses a comprehensive analysis of key indicators such as levels of total, short-term, and long-term debt as well as liquidity and profitability. Examining the dynamics of indebtedness during crisis periods, the study aims to show the resilience and adaptability of the sector to adverse economic conditions. The findings will contribute to a better understanding of the manufacturing sector's ability to sustain indebtedness in times of crisis and inform policymakers, industry stakeholders, and financial institutions about potential strategies to enhance financial stability and sustainability within the sector.

The Impact of Digitalization on Sustainable Food Supply Chain Management

Daniela Nuševa — 2024-07-01

The food supply chain includes all activities from the transformation of inputs to the creation of the final product and its consumption, that is, all activities from the farm to the retail shelf. With the increase in complexity, actors in food supply chains face greater risks in the market so they must follow the latest trends and changes in the food market, and react quickly to challenges. In addition to economic, food supply chain management faces sustainability challenges as well. Instead of focusing only on their own growth and expansion, actors in food supply chains must consider how their business affect the environment and the interests of their communities. On the other side, consumers demand realtime updated information on food they consume and they want to know if the food they are consuming is environmentally and socially sustainable or not. For this reason food product traceability, safety and sustainability issues have become a crucial concern to food retailers and everyone else in the food supply chain. The aim of this paper is to point out digitalization as a solution to those issues. Particularly blockchain as an emerging transformative technology for supply chain management. Secondary data and methods of induction, deduction, synthesis ana analysis were used for the purpose of writing this paper.

Rural Tourism in Federation of Bosnia and Herzegovina – Current Situation and Perspectives

Nerma Čolaković-Prguda — 2024-07-01

Rural tourism stands out as a specific form of tourism. The rural search for peace, rest and recreation is a growing trend at regional, national, European and international levels. It can be said that rural tourism represents a relatively new tourist activity that aims to return people to traditional values and the natural environment.

This type of tourism produces numerous positive macroeconomic effects. These are, first of all: the development of underdeveloped areas, the employment of a larger number of household members, the placement of home-made products and agricultural products, and development of non-agricultural activities.

Development of rural tourism, in addition to contributing to the economic empowerment of the rural population, also contributes to the strengthening of local and regional economies, as well as the overall economy.

The most important consequence of rural tourism development in Federation of Bosnia and Herzegovina is the progress of rural communities, the improvement of the socioeconomic status of the rural population so that they would rather choose to stay in their surroundings than to migrate to larger cities in the country or outside the country.

In FBiH, there are already a lot of guesthouses, rural households, camps, vineyard houses, mountain huts and ethnic villages that provide rural tourism services. However, there are also numerous difficulties faced by those who have decided to stay in their local community and develop it through the provision of tourist services.

In the paper, we will point out the current situation in the field of rural tourism in FBiH, the challenges it faces and possible perspectives and directions in the future.

Corporate Social Responsibility and the Importance of Esg Reporting From the Young Generation Perspective

Miriama Blahušiaková — 2024-07-01

Since the adoption of the Non-Financial Reporting Directive, companies are required to report information on environmental, social, and employee matters, respect for human rights, anti-corruption, and bribery matters. These aspects represent some of the elements of socially responsible corporate behavior.

Following the adoption of the Corporate Sustainability Reporting Directive and its gradual transposition into the European Union Member States' national legislation, the ESG reporting requirements are becoming stricter. The aim is to ensure transparency and comparability of reported sustainability information, to prevent greenwashing, and to ensure that companies behave in a socially responsible manner to the environment, society, and governance, and report this information in the Sustainability Report.

The paper aims to analyze how the young generation from four different countries perceives the socially responsible behavior of companies and what importance they give to different aspects of corporate social responsibility.

To meet the purpose of the paper, a standard methodology of legislation and literature review was performed. Afterward, a questionnaire survey was conducted in which we investigated the attitudes of the young generation to the socially responsible behavior of companies.

The results of the research showed that the young generation perceives social responsibility in companies’ behavior and takes it as a competitive advantage in the market. The results, among others, showed which aspects of responsible business are the most important for the young generation, if young people can name some socially responsible companies, and if they prefer to buy products or services from companies that behave responsibly to society and the environment, etc.

The paper analyses the attitudes of the young generation which can be a limited factor in the research. More detailed analysis within all the age groups could bring different results. The number of respondents is another limitation.

The Functioning of Retail Stores of Fmcg in Circumstances of Crises in the Republic of Serbia

Radenko Marić — 2024-07-01

The retail sector with its network of stores is an inseparable and one of the most important parts for the functioning of the economy and society in general in the modern dynamic market environment. This is particularly evident when it comes to the retail sale of fast moving consumer goods (FMCG). The fact is that the vast majority of the population does not produce food and other existential goods for daily consumption, but is completely dependent on the purchase of these products. Considering this, it is clear that any major turbulence caused by a certain crisis that directly or indirectly affects retail sector also affects consumers’ life quality. Crises, such as those caused by the COVID 19 pandemic, lead to product shortages on the shelves, reduced opening hours of the stores, closure of stores in many locations, changes in the assortment of stores, increase in prices of products on retail shelves, longer waits for product delivery, less employees in the stores that are available to consumers, etc. If the global events that caused crises on market in the recent past have shown as anything, it is that crises will be more and more frequent, with an unpredictable length and even faster expectations for adjustments to market conditions in order to persist and remain competitive. The objective of this research is to look at the impact of these crises and their consequences on retailers and consumers, in order to predict new crises and make suggestions so that retailers can react to mitigate the effects of these crises.

Digital Nomads and Their Influence on Local Economy Development

Marija Lazarević – Moravčević — 2024-07-01

Digital nomads are the simplest to describe as professionals who perform tasks independently of location and with the application of digital technology. Those individuals are characterized by a constant search for freedom, an escape from the traditional work environment, autonomy in choosing a destination for life and work. The locations chosen by digital nomads are pleasant environments, i.e. destinations where it is possible to satisfy work, social and financial needs. The purpose of this paper is to analyze the significance of digital nomadism as a global phenomenon. Acknowledging the impact that digital nomads have on the development of the local economy and community, the findings of the paper indicate the role of a strategic approach in creating an attractive environment for their arrival, stay and work.

The Students’ Perception of Their Soft Skills – Based on Research Results From Hungary and Serbia

Agneš Slavić — 2024-07-01

In the 21th century the talented employees and their knowledge and skills are the most important assets of the organizations. In relation to graduated students of economics and management studies employers often value soft skills more than technical and professional skills. Therefore, higher education institutions have a significant role in the advancement of the employability of their students – developing not only their knowledge and professional-technical skills, but soft skills, too. The aim of this paper is to introduce the results of a few international research concerning the role of university-level study programs in the development of the students' soft skills. Besides, the paper presents the results of a questionnaire-based research on the students' perception of the importance and development of soft skills in Hungary and Serbia. Based on the data obtained in 2023 from students of Budapest Business University and Faculty of Economics in Subotica, University of Novi Sad we will show the students' perception of the most important soft skills, their opinion on where the soft skills may be developed, how important is university in developing soft skills and what soft skills may a teacher help to develop. The research hypothesis is that students from Hungary and Serbia have similar perception on the importance and development of soft skills. The IBM SPSS Statistics 26 program is used for statistical analysis. The obtained results may be a useful input for the evolution of university level study programs for students' soft skills development both in Hungary and Serbia.

The Green Food Supply Chain Concept

Marija Jeremić — 2024-07-01

The traditional food supply chain is a complex network of interconnected entities whose function is to supply consumers with enough health-safe products, i.e. enough food with optimization of production and distribution. In the previous period, the traditional supply chain has faced numerous challenges and problems. Globalization, climate change, changes in living standards and consumer preferences, limited natural resources (agricultural land and water), growth in the amount of food and packaging waste, as well as food insecurity led to creation of numerous national and international regulations and agendas related to environmental protection. Those regulations and agendas influence various business philosophies, including the philosophy of food supply chain management. With its focus on optimizing production and distribution of food, the traditional supply chain cannot meet the international regulations' requirements. Because of that it was necessary to go in the direction of greening the activities of the traditional supply chain, i.e. in the direction of defining the concept of a green food supply chain. The concept of a green food supply chain represents an improved, wider concept of a traditional food supply chain that, apart from standard activities, agricultural production, processing and distribution of products, also includes additional activities such as green procurement, green product design and reverse logistics. Therefore, bearing in mind that in the future food should be produced and distributed in a way that pollutes the environment as little as possible, the aim of the research is an analysis of the importance of the green supply chain concept in food production and distribution. Considering the defined goal, the literature review method was used with a focus on the Scopus database. The results of the research indicated that due to the complexity and frequent changes of regulations in practice, the green supply chain concept is still not sufficiently applied.

Media Mix Budget Allocation

Nenad Djokic — 2024-07-01

An important topic within marketing communications management is related to media mix budget allocation. In addition to traditional approaches, the new circumstances in which there is the use of digital marketing and the availability of a significantly greater volume of data yielded new possibilities in approaching the topic. Furthermore, one should not neglect the privacy regulations affecting future data availability. In all those considerations, the emphasis on different media effectiveness and its measurement is crucial. In this paper, the authors present different approaches to media mix budget allocation. The secondary research is performed by analyzing scientific papers related to the topic.

Assessing the Carbon Footprint and Cumulative Energy Demand of Biodiesel Produced From Rapeseed Oil in Serbia

Ferenc Kiss — 2024-07-01

This paper aims to evaluate the carbon footprint and energy balance associated with biodiesel production from rapeseed in Serbia, employing the life cycle assessment (LCA) methodology. Data on material and energy consumption were collected for the primary agricultural and industrial entities involved in the biodiesel production chain, with the broader system modeled using information from the ecoinvent life cycle inventory database. Our findings indicate that the carbon footprint of biodiesel (44 g CO_2eq/MJ) is significantly lower than that of fossil diesel (86 g CO_2eq/MJ) when not considering the potential impacts of indirect land-use change (iLUC). However, inclusion of iLUC impacts could result in a higher carbon footprint for biodiesel than fossil diesel. The life-cycle fossil energy inputs for rapeseed biodiesel are estimated at 0.53 MJ per one MJ of biodiesel, while fossil diesel requires approximately 30% more fossil energy than is present in the fuel.

The Use of Cloud Computing in Higher Education in Republic of North Macedonia

Dejan Zdraveski — 2024-07-01

The development of Information technologies has enabled Higher Education Institutions to improve their teaching and learning methods through the use of modern IT platforms and tools and thus completely change the environment for the implementation of the teaching and learning process. Cloud computing as a model of offering information resources has enabled Universities to use IT resources efficiently. Through the implementation of Cloud computing model in teaching process, every University can afford the use of relatively large amounts of information resources with relatively low costs for their use. It is especially important for developing countries such as the Republic of North Macedonia, which are not able to allocate large financial resources for the purchase of the latest expensive information technologies. Today, Cloud computing platforms for education (Google Suite for education, Microsoft education, Amazon cloud computing for education, Coursera, Blackboard, Evernote etc.) through the benefits they offer such as the availability of applications, cost effectiveness , flexibility, ease of use and security, enable Universities to transform traditional learning processes and thereby advance the overall higher education process.

The main goal of this paper will be to present the level of use of Cloud computing platforms and tools in Higher Education Institutions in the Republic of North Macedonia. For this purpose, a questionnaire was created in which the largest number of Universities in the Republic of North Macedonia were included. This paper will present a qualitative and quantitative analysis of the results obtained from the survey. The questionnaire was created using Google Forms and was delivered to the academic staff from the most of Universities in Republic of North Macedonia. Also, through this paper, most of the challenges and benefits of using Cloud computing platforms/tools will be presented.

Generation Z Attitudes Towards Organic Food: A Review

Sanja Džever — 2024-07-01

The global food market is continuously undergoing rapid and complex changes, creating a dynamic environment that demands constant adjustments and responses. Thus, the food industry has been increasingly popular nowadays as a research topic. Furthermore, academic researchers are notably interested in analyzing greater demand for organic food, particularly in developed countries. Despite the barriers that consumers encounter in the market, a growing percentage of them are currently shifting to organic purchases. Consequently, most of the research studies aim to understand consumer behavior since it is crucial for businesses and policymakers seeking to promote sustainable food systems. Consumer choices concerning food have a significant impact on the environment, as they are drivers of agricultural production. Despite the fact that Generation Z consumers will be the head of their households in the near future, little is known about their behavior. Therefore, the subject of this paper is organic food, with a special emphasis on Generation Z attitudes. The research gap is particularly concerning given that Generation Z is likely to embrace a lot of new trends on the market. Thus, this paper aims to define recommendations for further research on the topic in order to minimize the noticed research gap. Through a systematic literature review, the paper examines a total of five empirical studies published in the last four years.

Contemporary Challenges for Accounting and Environmental Behavior

Milos Todosijevic — 2024-07-01

Industry 4.0 happened to us. It acquires a dominant role in accounting mosaic. The new accounting philosophy requires continuous reactions and managing changes.

Blockchain and artificial intelligence will affirm new categories in communication relations. The aim of the work: new philosophical views on the causes of change, their recording and digital communication networking; The subject of the work is the micro and macroeconomic part and the social dimension. Hypothesis: the ability to identify digital trends. Auxiliary hypothesis: Recognition of self-benefit.

Measuring the Impact of Geopolitical Risk on Capital Market in Selected Developed Countries

Milica Inđić — 2024-07-01

Shocks that cause uncertainty also inevitably have an impact on financial markets, in addition to the typical range of economic and financial considerations. Previous research shows that recent events like the COVID-19 pandemic, changes in oil prices, and the Russian-Ukrainian conflict have had an impact on the world financial market. The aim of the paper is to examine the impact of geopolitical risk on the capital markets of developed countries in the region of Asia and Oceania. The main research variables in the capital market are share trading and market capitalization. To measure the impact of geopolitical risk on capital market variables, in the period from 2005 to 2022, a panel regression analysis was applied. The observation period includes three major events that had a strong impact on the global capital markets, namely the global financial crisis, COVID-19, and the Russian-Ukrainian conflict. According to the findings, stock trading is negatively impacted, while market capitalization is positively impacted by geopolitical risk. Both influences are not significant. When making financial decisions, information about how the capital markets respond to geopolitical events can be helpful, especially for investors.

Does Employer Branding Matter in Healthcare Organizations? Perception of Healthcare Workers in the Republic of Serbia

Milica Stanković — 2024-07-01

Attracting and retaining high-quality employees is the ultimate task of healthcare organizations in order to achieve their mission of providing quality healthcare services. Building a strong employer brand can not only reduce the turnover rate, but also make the healthcare organization a desirable place to work. Accordingly, the aim of the paper is to identify the perception of healthcare workers about the employer brand of healthcare organizations in the Republic of Serbia. The research results show a significant gap for the development of the employer brand in healthcare organizations.

The Quality of Financial Statements During the Crisis Period

Kristina Peštović — 2024-07-01

The aim of this paper is to investigate the quality of financial statements during the period of crisis. The crisis has a negative effect on the business performance of a company. It is necessary to measure and analyze various aspects of performance and take timely corrective actions in order to achieve business stability. Quality of financial statements can be expressed as one of the business performances. High-quality financial statements are created in an accurate, timely and reliable manner in accordance with all requirements of regulation. Professional accounting regulation determines a large number of obligatory disclosures which have a direct impact on the quality of financial statements. This paper will analyze the quality of financial statements from the aspect of disclosures according to the International Accounting Standard 2 – Inventory (IAS 2). Inventory represents significant assets for production and trade companies. Therefore, the quality of disclosures according to IAS 2 can be significant for adequate business decisions. The research is based on a sample of agricultural and manufacturing companies registered in the AP Vojvodina during the period 2020-2021. The research is based on a descriptive analysis of the quality of disclosures according to the IAS 2 and financial reporting quality index. The results indicate that 41% of the obligatory disclosures are presented in companies reports. Accounting policy for inventories and carrying amount according to inventory classification are identified as disclosures of high quality. On the other hand, disclosure of the write-down of inventories, recognized as an expense for the period is identified at the lower quality level. The research can be of interest for managers, owners, and creators of financial statements in order to improve the quality of financial reporting as a result of disruption during the period of crisis.

Profitability Determinats of Agricultural Smes From Republic of Serbia

Dragana Novaković — 2024-07-01

This research focuses on small and medium-sized agricultural enterprises, serving as the vital contributors to the agricultural sector in the Republic of Serbia. The aim of the study is to analyze the profitability and factors influencing profitability of the observed enterprises based on a sample of 220 companies operating from 2014 to 2021. By applying panel regression analysis, it was concluded that financial leverage, company size, tangibility, and the ratio of total asset turnover have a statistically significant impact on the profitability of observed enterprises

Tax Benefits of R&D in Crisis Circumstances - Accounting Aspects

Nikola Rakić — 2024-07-01

In times of crisis, one of the major challenges for businesses is maintaining an appropriate level of liquidity. During periods marked by supply and/or demand shocks caused by various economic, political, or natural influences, most companies experience a drop in sales and a decreased likelihood of collecting receivables on time, if at all. In conditions of reduced business activity and lower cash inflows from operations, businesses are forced to seek additional sources of liquidity to ensure their survival despite the crisis. Tax reliefs can serve as a means for companies to secure additional liquidity sources, i.e., a way to reduce the costs they face. This paper primarily explores the possibility of reducing cash outflows related to gross wages paid. One form of tax relief available to companies in the Republic of Serbia is for research and development (R&D) activities. If a company decides to engage in R&D activities, it will pay a lower amount of taxes and contributions for employees involved in these activities, thereby saving funds and improving its liquidity. The paper presents which activities are considered R&D according to the legal and sub-legal regulations of the Republic of Serbia and the conditions necessary for a company to benefit from tax reliefs. Additionally, the paper discusses the accounting aspect of calculating wages for employees engaged in R&D activities.

Inflationary Pressures in the Conditions of Global Uncertainties: Evidence From Developed European Economies

Jovica Pejcic — 2024-07-01

This paper analyzes the key macroeconomic consequences that are directly determined by the
pandemic and geopolitical crisis in the form of growing inflationary pressures, reflecting a high level of
uncertainty during decision-making and planning at the individual, business and macroeconomic level. The
subject of the econometric analysis aims to see how the movement of oil prices affects the consumer price
index (CPI) on a sample of 15 developed European economies in the period from 2020q1-2023q4. Using
heterogeneous panel models, specifically Mean Group (MG), and Pooled Mean Group (PMG) methods
positive and heterogeneous impact of the increase in the price of crude oil on CPI is detected. Research
indicates that the long-run relationship and speed of adjustment of individual economies to the long-run
equilibrium relationship is heterogeneous during the analyzed period, indicating that the effect of
macroeconomic uncertainties represented in crude oil price increase had different magnitude of influence in
developed European economies. Individual adjustments were the most intensive in Greece, France, and
Portugal, meaning that those economies were more exposed to higher inflationary pressures, while a slower
intensity of adjustment and lower inflationary pressures were present in Austria, Belgium, Finland, and
Luxembourg. Detected vulnerability of developed European economies in the circumstances of global
uncertainties is expected due to absence of mechanisms to achieve countercyclical effects on the growth of
inflation.

Approaches to Measurement Sustainability of Agri-Food Value Chains

Sanja Titin — 2024-07-01

Globalization combined with recent extreme events (Covid-19, wars, sanctions, climate changes) yielded additional challenges to sustainability of agri-food chains on national levels. Contemporary approaches to agri-food value chains (AFVC) should be evaluated. The goal in this paper is systematic review of AFVC literature in several dimensions: applied concept, focused value chain, used methods, location of studies and key findings. Based on this research prevailing concepts and research methods will be defined, as a first step in further researching an AFVC in Serbia.

Factors That Drive Brain Drain in Generation Z: A Lesson Learned

Marko Slavković — 2024-07-01

Negative migration, including individuals with higher education and in the early stages of their professions, has been ongoing for many decades. It is essential to keep talented young people in the nation by creating an environment that enables them to reach their full potential and respond to their requirements. This research intends to examine the factors that drive Generation Z individuals to emigrate from their home country. The authors conducted a systematic literature review by accessing several databases such as Google Scholar, Web of Science, and Scopus.

Analysis of Trade Margins in Serbia

Radojko Lukic — 2024-07-01

Research into the size and structure of the margin in trade is a continuous, relevant, and complex issue. Margin is one of the significant performance indicators of trade. In this study, starting from that, the size and structure of the trade margin of the European Union are analyzed, with special reference to Serbia. The research results show the following: In the trade of the European Union, the margin rate ranges from 7.02% ( Luxembourg) to 22.05% (Ireland). In the leading countries of the European Union, the trade margin rate is Germany at 15.15%, France at 16.48%, and Italy at 13.48%. In the countries in the region of Serbia, the trade margin rate is Croatia 13.22% and Slovenia 13.15%. The trade margin rate in Bosnia and Herzegovina is 11.35%. In Albania, the trade margin rate is 11.66%. In Serbia, the trade margin rate is 15.79. The trade margin rate in Serbia is higher than in Croatia and Slovenia. In the trade of Serbia, the sales margin rate in the period 2013-2022. ranged from 13.51% (2014) to 20.45% (2013). The average sales margin rate in Serbian trade is 14.82%. It is lower in 2022 compared to 2021. The rate of margin from stocks in Serbian trade ranges from 69.52% (2015) to 122.74% (2013). In 2022, compared to 2021, the margin rate from inventory is lower. The average rate of margin from stocks in Serbian trade is 79.97%. In Serbian trade, there is a strong correlation between margin and sales, the purchase value of realized goods, operating expenses, salary of employees, net profit and inventory, and that at the level of statistical knowledge. There is a strong correlation between the rate of margin on sales the rate of margin on inventory and the rate of operating costs of trade in Serbia. The target margin of trade in Serbia can be achieved by effective control of sales, purchase value of realized goods, operating costs, employee wages, net profit, and inventory. The purpose of this is to improve the competitive position and digitize the entire business.

Effects of Acquisitions on Financial and Esg Performance: Analysis of Siemens Mobility’s Financial and Sustainability Reports

Slađana Savović — 2024-07-01

A large number of studies have investigated the effects of acquisitions on the financial performance of the companies involved. Financial reporting plays a crucial role in understanding the effects of acquisitions on financial performance. An important aspect of financial reporting in acquisition processes is audit procedures that are carried out to confirm the reliability and truthfulness of financial reports. While research on the effects of acquisitions on financial performance is dominant in the academic literature, very little research has analysed the impact of acquisitions on companies' sustainability and ESG performance. Sustainable business practices are becoming increasingly important in today's corporate world. Companies realize that ESG (environment, social and governance) factors can have a significant impact on their long-term success and profitability. ESG factors are important in acquisition processes as companies face increasing scrutiny and pressure for transparency regarding environmental risk, social justice and corporate governance. The aim of the research in the paper is to look at the effects of acquisitions on the financial and ESG performance of companies. The research was conducted on the example of Siemens Mobility, which was created by the acquisition of the Serbian company Milanovi? Inženjering by the German company Siemens. Financial statements of the company in the years before and after the acquisition, reports on the sustainability of the company, as well as other relevant documents were analysed. The special contribution of the work is reflected in the comprehensive overview of the effects of acquisitions on ESG performance of companies.

Barriers in the Implementation and Adoption of Cloud ERP Systems

Vuk Vukovic — 2024-07-01

For the digitization and integration of internal business processes and data, organizations have been relying on the use of ERP systems for decades. They have evolved from their predecessors MRP, MRP II, on-premise ERP 1.0 from the 1990s to ERP 1.0+ from the 2000s and now into ERP 2.0 systems based on cloud computing technology. Today, cloud ERP systems represent the dominant type of information systems on which organizations base their business, making it essential to comprehensively consider all the benefits they offer. On the other hand, it is realistic to expect certain complications that arise during the crucial phases in the lifecycle of cloud ERP systems, namely, the implementation and adoption phases. The aim of this paper is to review relevant scientific works and highlight the obstacles that burden the implementation and adoption of cloud ERP systems. The outcome of this study, in the form of identified and described barriers of cloud ERP systems, can be beneficial to various levels of management during the implementation and adoption of cloud ERP systems.

Military Conflicts and Country Image

Robert Dobó — 2024-07-01

Country image is an important aspect in international relations (tourism, products and services, trade etc.) thus a lot of emphasis is put on it from a marketing communication perspective, in order to influence the individuals in their view. According to the aims of the sender, the messages can have a positive or negative effect on how we perceive certain regions or entire countries and their leaders or specific policies. Nye (2004) describes this projection as “soft power” when exporting ideas towards a desired outcome, Herman & Chomsky (2008) stresses that premise of discourse is influenced by topic setting, thus interpretation of events can be changed, which are in line with the work and theories of Bernays, who among other stressed that expected form of behaviour should be impacted, with the assistance of psychological techniques and propaganda (public mass persuasions). Thus conditioning the public for certain narratives in accordance to individual or political objectives can be considered as vide spread. This involves fake news and creative new ways of distributing desired narratives through online and social media marketing, given its proliferation, accessibility and low entry barriers (from a communication perspective) makes it an ideal platform for information (message) dissemination. Presently in 2024 there are more localised and international conflicts, where belligerents aim to persuade the public (voters) of their own and of other countries in their favour, thus of their moral superiority over their adversaries. This can in turn create political support for certain desired policies. In the article, according to my modest means, I will explore these techniques and theories, and show through the conflict in Ukraine, how different groups in Hungary (according to demographic markers, marketing communication channel trust, and political party preference) have varying opinions of those countries that are in the focus, namely Ukraine, the Russian Federation, the United States of America and the European Union. During my research a primary questionnaire study has been performed and preliminary data analysis suggests a strong correlation of communication channel trust and political party preference which in turn polarises public opinion about these states, all in a trend like fashion. Thus, where the individual gathers information and news; and what kind of political affiliation the same person has, will have an effect on the country image, meaning that different narratives can be identified and their effects shown in practice.

The Analysis of the Break Even Point in Selected Companies in Crisis Circumstances

Suzana Cvijanović — 2024-07-01

The research is based on the break-even analysis. The sample consists of three selected companies in the Republic of Srpska, whose financial reports are publicly published on the website of the Banja Luka Stock Exchange. The analysis covers the period from 2018 to 2022. The aim is to examine how companies operated and covered fixed costs during a period characterized by increased levels of uncertainty, risk, and challenges. Therefore, it is necessary to determine the break-even point (BEP-break-even point) for each year individually in each of the three companies, to determine the financial performance of the company in the crisis period. The obtained results indicate that the companies performed positively in the entire analyzed period, but worse financial performance is observed in the period 2020-2024. year in all three companies.

Price Promotions and Brand Growth

Saša Ćirić — 2024-07-01

Price is one of the important instruments in the process of marketing management. The success of investing in a brand can also be seen through its price elasticity. The price shows how the investment in the brand is capitalized, because the increase in prices, which is not initiated by the increase in costs, can be reflected in the increase in the profit of the brand. According to that, price changes, whether they are long-term or temporary, have an impact on other parameters of brand effectiveness. The aim of this paper is to try to link price actions (temporary price reductions) and long-term parameters of brand success. Special attention will be paid to long-term investment in the brand through advertising. In the first part of the paper, the author will review the theoretical framework of this topic. The second part of the work will be based on secondary data obtained by the marketing research agency GFK. Also, an effort will be made to review certain recommendations in the theoretical and practical domain.

Usability of Management Accounting Techniques in Crisis Circumstances

Dragana Đorđević — 2024-07-01

Management accounting has a wide set of various techniques for the purpose of decision-making, planning, coordination, control and motivation through performance measurement, budgeting, responsibility centers, transfer pricing, costing and cost allocation. Over the past two decades, the need to explain the mechanisms of business decision-making by expanding the focus from the internal environment to factors of the external environment such as exchange rate fluctuations, inflation, slowing down of economic activity, volatility of the stock market and others has been clearly manifested.

The strategic aspect and non-financial information, as important aspects of decision-making in crisis conditions, influenced the development of new and improvement of existing management accounting techniques. In the post-corona era, the central focus of management accounting tools and techniques becomes sustainability and accelerated technology adoption, so management accounting practices must be adapted accordingly. The intention of the work is twofold. First, the work tries to point out the environmental factors and influences that are the impetus for necessary changes and adaptability of the management accounting technique in the crisis circumstances. Second, the aim of the paper is a critical review of the current literature on the issue of the use of management accounting techniques in conditions of crisis and unpredictability in various types of entities and industry sectors. Finally, the aim of the paper is to consider whether new and proactive management accounting techniques are applied in crisis conditions or whether the management's focus is on the short-term realization of income and profit.

Artificial Intelligence in the Function of Content Creation in Digital Marketing

Jelena Šiđanski — 2024-07-01

The rapid advancement of techniques and technologies leads to the emergence of innovative solutions that facilitate, enhance, and shorten the time required for work. Companies are searching for innovative strategies that will help them more easily contend with growing competition and reach target desired consumers more precisely. Opportunities for business development increase through the use of artificial intelligence in digital marketing strategies. Considering that digital marketing requires the existence of marketing content, the success of a company's online communication largely depends on the quality of its content. Artificial intelligence transforms marketing by enabling companies to connect with the right audience in real-time through personalized product recommendations and dynamic content creation. The aim of this work is to present the benefits of artificial intelligence in the function of content creation in digital marketing. Secondary data, including the results of previous research, relevant industry reports, expert articles, and relevant statistical data, have been used in further research.

Sustainability of Corporate Tax Revenues in European OECD Economies Eatr Cuts and FDI Inflow

Jelena Trivić — 2024-07-01

Base erosion and profit shifting (BEPS) is an endeavor to prevent increased profit shifting as a result of global tax competitiveness. However, there is still a scarcity of thorough analyses that quantify BEPS effects on the economy, tax revenues, employment, and welfare. This paper's main objective is to empirically evaluate the direct effect of EATR changes and indirect effect through FDI on the corporate tax revenue (CTR) in European OECD countries using available empirical data in the period 1998–2021. The paper analyses volume of capital/profit shifts which reflect in tax revenues loses in some economies due to heterogenous tax policies within the EU. Using the (Pooled) Mean Group model a significant positive long-term relationship was confirmed between the CTR and the EATR; and between CTR and FDI. The Dynamic Common Correlated Effects (DCCE) model was implemented as a robustness check, and it confirms results revealed with PMG model in short-run. The findings show that on average in European OCED economies achieving tax competition leads to tax revenue loss. On the other hand, FDI increase creates positive effect on CTR. Furthermore, results show that completely different strategies exist in emerging vs developed European OECD economies – in terms of attracting FDI vs maintaining sustainable the level of tax revenues.

Sport-Oriented Corporate Responsibility

Zsuzsanna Gősi — 2024-07-01

Corporate social responsibility is becoming increasingly important in the way companies communicate and operate. One way of doing this through sport-focused actions. In the case of large companies operating in Hungary, we examined the issue through document analysis. For each company, w compared the actions oriented towards own employes, recreational sports and competitive sports. The results show that organizations can make use of the positive benefits of sport. In their operations, sport is present both in the business sponsorship area and in the area of charity.

Analysis of Users’ Attitudes Towards the Use of Mobile Technologies in Republic of Serbia

Julija Vidosavljević — 2024-07-01

The increasing use of mobile devices and wireless internet connections has led to their utilization, not only for communication purposes, but also for various other activities, such as mobile commerce (m-commerce). Contemporary trends have enabled m-commerce to become a business model with the potential to transform entire industries. Alongside technological advancements, there is an evolution of models explaining consumer behavior in the domain of technology acceptance. The original TAM model and its extensions, although providing useful insights, do not encompass all relevant determinants, prompting practitioners to increasingly turn to more contemporary models in order to understand the acceptance and usage of mobile technologies in today's digital environment. UTAUT2 model is considered an improved version of the original UTAUT model, making it one of the most used models. Considering the above-mentioned, the research aims to measure users' attitudes towards various aspects of mobile commerce usage. In this context, consumers' attitudes towards performance expectancy, effort expectancy, social influence, facilitating conditions, price value, hedonic motivation, and habit in using m-commerce will be examined. Additionally, the aim of the study is to analyze the attitudes of different consumer segments, based on two criteria - gender and age. The sample consists of 210 respondents. The research was conducted in the territory of Central Serbia, from April to May 2023. Descriptive statistical analysis, reliability analysis, and t-test for two independent samples were applied in the research. The research findings can be useful to mobile commerce service providers in adjusting loyalty programs to different segments, providing added value, and shaping the overall user experience that appeals to various consumer segments. Given that previous research, especially in domestic literature, has been based on some of the previously established models such as TAM or UTAUT, the originality of this study lies in the use of the contemporary UTAUT2 model. Additionally, the originality is contributed by the comparative analysis of different segments of m-commerce service users.

The Effects of High Work Involvement on the Well-Being of It Sector Employees in the Republic of Serbia

Tamara Jevtić — 2024-07-01

In the modern business environment, organizations focus on strategies and concepts that are in the domain of social responsibility, with the aim of strengthening their competitive position on the market. This paper deals with human resource management concepts based on new models, such as high employee involvement and employee well-being. The main goal of this research was to examine the relationship between high work involvement and employee well-being. The main research question relates to determining the effect that high work involvement causes on the well-being of employees. The theoretical and empirical part of the research is the methodology of the work. As part of the theoretical part of the research, an overview of the author's previous research on the topic of high work involvement and employee well-being was carried out. Empirical research was conducted on a sample of 100 employees (managers and professional workers) in organizations operating within the IT sector in the Republic of Serbia. The collection of the sample lasted during January 2024 through an electronic questionnaire. Using the PLS-SEM method within the Smart PLS software, the proposed relationship was tested. The results of the research indicated that there is a direct positive effect of high work involvement on the well-being of employees. Employees who are involved in making decisions, solving problems and proposing new ideas will have more developed mental, psychological and emotional aspects of life.

The Influence of Using Mineral Fertilizers on the Output in Crop Production: Case of the South Backa District

Danilo Đokić — 2024-07-01

In scientific research in the field of agricultural economics, in the last decade, the ecological effect of the use of chemical inputs has been increasingly in focus. Changes within the EU's Common Agricultural Policy, stimulated by the European Green Deal, contributed significantly to this trend. Following the above, the goal of this research is to determine the effect of mineral fertilizers on the output in different lines of crop production in South Ba?ka District. The FADN database was used in the work. The results showed that using mineral fertilizers is a significant factor in crop production. Also, a positive correlation between the use of mineral fertilizers and yield was identified in the production of corn and soybeans. In contrast, a negative correlation was present in the case of wheat and sunflower production. The negative correlation suggests that the mineral fertilizer was used suboptimally and that weather conditions significantly affected this production and prevented the absorption of nutrients. In addition, there are nitrogen surpluses, which threaten the environment. The estimated losses are 26 tons of nitrogen.

Assessing Collaborative Climate in Organizations

Viktorija Petrov — 2024-07-01

Knowledge and knowledge worker are the most important resources in the knowledge economy. Collaborative climate, defined as a “permeability” of human infrastructure for knowledge exchange, is a specific aspect of organizational culture. The Collaborative Climate Assessment instrument developed by Sveiby and Simons (2002) identifies and measures collaborative climate. In this paper validity and reliability of the Instrument were tested. The research was conducted on a sample of 283 respondents in Serbia.

The Efficiency Analysis of Agricultural Production in the European Union

Željana Ivošević — 2024-07-01

In this paper authors examine relative technical efficiency of agricultural production in the European Union using Data Envelopment Analysis (DEA). Output oriented DEA model with variable return to scale has been applied. Four input variables were used in the model: labour, pesticides, fertilizers and used land. Production has been used as the only output variable. Results of this analysis indicate that the efficiency score values lie between 9% and 100%, with the average efficiency score of 52%. Slovenia, Estonia, Germany and Malta are characterized with the highest efficiency scores, while Cyprus, Finland and Ireland have the lowest efficiency score values. Policymakers can utilize this paper's findings to determine what elements enhance or diminish agriculture's efficiency.

Significance of Explainable Artificial Intelligence (XAI) in Marketing

Zvjezdana Krstić — 2024-07-01

Explainable artificial intelligence (XAI) is increasingly crucial due to its extremely important role in modern marketing, as it advances predictive analytics of consumer behavior and analysis of the purchase decision-making process. This paper examines the importance of XAI in marketing, emphasizing its role in improving the effectiveness and efficiency of marketing strategies. By examining the evolution of AI in marketing and the challenges posed by opaque algorithms, this study highlights the transformative potential of XAI in bridging the gap between marketers and consumers. In addition, ethical issues related to the application of XAI are discussed, emphasizing the imperative of conscientious application in order to maintain privacy and consumer trust. Furthermore, possible directions for the use of XAI are explored, with the aim of driving marketing practices in a data-dominated era. This paper highlights the key role of XAI in shaping future trends in marketing research and its implications for businesses operating in a dynamic market environment.

Esg Reporting in Crisis Circumstances

Miloš Grujić — 2024-07-01

Global crises like pandemics and geopolitical turbulence have underscored the importance of responsible business practices and corporate transparency. In light of these circumstances, ESG reporting, which measures and expresses a company's concern for the environment, society, and transparent management, has become increasingly crucial. However, in challenging environments with limited resources, such as Bosnia and Herzegovina (BiH), adopting ESG reporting can present significant barriers to the accounting profession.

Therefore, this paper aims to examine accountants' readiness in BiH to adopt ESG reporting under such circumstances. To achieve this goal, we surveyed a representative sample of 290 accountants from across BiH. The survey used a Likert scale to assess accountants' knowledge of ESG standards, their willingness to adopt different reporting methods, and their expectations regarding the impact of ESG reporting on their work, responsibilities, long-term career prospects, and professional development. Data analysis included descriptive statistics, ANOVA tests and t-tests in Excel and SPSS programs.

Our study provides valuable insights into the readiness of accountants for ESG reporting, the measures necessary to support its implementation, and the impact of ESG on the development of the accounting profession in BiH. The study also discusses the role accountants can play in encouraging ESG reporting and answers questions about ESG standards' challenges and how accountants can prepare for their adoption.

Our results demonstrate that the majority of accountants in BiH support ESG reporting, but they lack the necessary knowledge, tools, and resources to properly implement the new requirements. Hence, we strongly recommend taking measures to improve the preparation of accountants for ESG reporting.

Reconfiguration of Cooperation Ties of Russian Manufacturing Firms Under Economic Sanctions

Victoria Golikova — 2024-07-01

This paper is focused on one important direct consequence of economic sanctions introduced in 2022: namely, on the necessity to change the suppliers of raw materials, components and equipment in Russian manufacturing firms that historically had long-term cooperation ties with the partners from Europe. The main goal of the paper is to investigate the immediate response to the break of contracts and cooperation agreements, namely, (a) what firm-specific features are associated with the managerial decision to change the suppliers, (b) what is the scale of import substitution and (c) what is the geographical structure of new cooperation partners.

This study is based on the results of the representative survey of 1860 Russian manufacturing firms. It was conducted with CEOs in 2022 and covers firms with more than 10 employees. The survey reports the information on a variety of firm characteristics such as size, age, location, ownership, international trade, cooperation ties, investment and innovation, etc.

We provide the empirical evidence that sanctions shock of 2022 turned out to be extremely painful for the current supply structure and forced enterprises to look for solution to compensate for gaps in cooperation chains. We tested several hypotheses to identify those characteristics of the company that are associated with the reconfiguration of suppliers of raw materials/materials, parts/components or technological equipment. In the econometric analysis, we use probit regression controlling for firm size measured as number of employees, industry heterogeneity and regional territorial effects. Our finding confirmed that it was systematic importers who turned out to be the most vulnerable and affected group because of the imposition of sanctions, and it was this group that began to actively seek a replacement for contractors who had cancelled cooperation. The most technologically advanced firms and active innovators were found to be in the group of those who immediately replaced suppliers in the first months after the imposition of sanctions. Another finding is a significant positive role of the supply chain digitalization.

We have shown that it was European suppliers that Russian firms most often changed in 2022: 80% of firms that changed foreign suppliers indicated Europe as the region of previous supplies. At the same time, in 2/3 of cases, the reason for the replacement was the unilateral refusal of the partner from further deliveries – i.e. the replacement was forced. This was only partially offset by switching to Russian suppliers, although it should be noted that the share of such replacements (from a foreign supplier to a domestic one) turned out to be higher than expected. According to indirect data, enterprises managed to find an alternative within Russia for 30-40% of European partners but most of the changes in the network of foreign suppliers were not related to import substitution as significant part of the imports have switched to China.

Assessing the Serbia EU Integration Process Impacts on Key Agricultural Market Products Using the Agmemod Model

David Kranjac — 2024-07-01

The EU integration process brings substantial transformations across all economic domains, agriculture included, as a result of shifts in both the economic and political landscapes. These processes necessitate numerous adjustments to legislation, agricultural support structures, business conditions within the single market, and the harmonization of domestic producer prices with those prevailing in the EU market. The impacts of these changes can be assessed utilizing partial equilibrium models such as the AGMEMOD model. While this paper primarily lays the methodological framework for constructing the Serbian national AGMEMOD model, upon its completion, it could serve as a valuable instrument for evaluating the effects of political changes on agricultural markets in Serbia, aligning with the evidence-based policy principle, similar to other EU member states

Macroeconomic Determinants of Corporate Debt: Evidence From North Macedonia

Dragica Odzaklieska — 2024-07-01

Several important factors affect the financing of companies in North Macedonia today. The paper aims to explore how the Gross Loans to Non-Financial Sector / GDP ratio depends on the Inflation Rate, the Interest Rate of Non-financial Sector Loans, and the GDP. Based on the secondary data (quarterly time series) obtained from credible sources covering the period from 2015:Q1 to 2023:Q3, we employ the Auto-Regressive Distributed Lag (ARDL) approach to examine both the short- and long-run dependencies. The results confirm the statistically significant impact of the regressors on the dependent variable.

IT Consumerization – A Systematic Mapping Study

Marijana Petrović — 2024-07-01

The use of personal, consumer IT artifacts for business purposes, complementary to or instead of official IT infrastructure is called IT consumerization. Its impact on IT management is significant, and a prerequisite for its successful management is understanding the difficulties and potential that this phenomenon carries. They are highlighted in the paper through a systematic mapping study of current information collected from scientific and professional sources, and are also the basis for further research - a systematic literature review.

Portraying the Level of Digital Performance and Innovation of the European Public Sector: Contextualising the Relationship Between E-government and Digital Innovation

Cristina Criste — 2024-07-01

Due to the differences among European Union member states in governance quality, public governance effectiveness, financial resource management, and efforts to improve economic performance and well-being, digital innovation is essential for promoting digital governance. Achieving qualitative e-governance requires increased innovation, along with the effective adoption and implementation of digital technology. The main objective of this study is to analyse the connections between public governance and digital innovation in the European Union (EU). Two research methods were considered to carry out the longitudinal data compiled at the EU-27 member states (EU27) level from 2017 to 2022: bibliometric and Gaussian and mixed-Markov graphical (GGMs) analysis. This methodology allows a comprehensive approach to evaluating the interaction of digital innovation with public governance. Scientific documents from the period 2010-2023 from the Web of Science were analysed to explore the relationship between e-government and digital innovation. The analysis revealed that this subject is relatively new, with the most productive years being the last five years. It also identifies the countries and authors in this field that are most concerned and the most relevant documents. Based on GGMs and correlation analysis, the empirical part focused on digitalisation, innovation, world governance indicators, and economic variables from 2017 to 2022 across EU member states to identify links between these variables. Our findings support our assumption that digitalisation and innovation positively impact e-government services. The results reveal the need for countries to align their digital transformation plans to integrate digital technologies and continuous innovation to improve e-government effectiveness. Successful implementation of e-government relies not only on technology but also on well-planned strategies, adequate resource allocation, ongoing innovation, and governmental dedication to ensure accessible, secure, and user-friendly e-services for all citizens. The findings underscore the necessity for countries to reconfigure and align their digital transformation plans by integrating digital technologies into service delivery while continuously promoting innovation to improve the performance of e-government.

Exploring User Satisfaction: A Topic Modeling Approach

Luka Gluščević — 2024-07-01

In today's highly competitive market for mobile business applications, user demands and expectations are continuously rising and evolving rapidly. As a result, companies increasingly focus on enhancing user satisfaction and fostering customer loyalty, as these are essential for a stable and reliable source of revenue, as well as for spreading positive word-of-mouth and acquiring new users. Conducting evaluations of user experience for mobile business applications is crucial for their ongoing improvement, as user experience directly impacts user satisfaction and customer loyalty. In this paper, the authors provide a step-by-step methodology for exploring user satisfaction using topic modeling, demonstrated through a case study on SalesForce. SalesForce is one of the most popular cloud-based CRM solutions. The authors have organized the results of their empirical research into groups of factors influencing positive and negative user satisfaction with the SalesForce application.

Analysis of the Influence of Selected Macroeconomic Variables on the Public Debt of Serbia

Nenad Benović — 2024-07-01

Controlling public debt is one of the most significant challenges faced by contemporary states. The aim of this study is to examine the relationship between the level of public debt and selected macroeconomic variables in the Republic of Serbia. The empirical analysis, based on annual data from 2006 to 2023, includes, in addition to the public debt as a percentage of gross domestic product as a dependent variable, four selected macroeconomic indicators incorporated into the model as independent variables. For the purpose of the analysis, E-views and Stata software were used. Descriptive statistics were initially presented, followed by a series of diagnostic tests such as unit root test and the derivation of the correlation matrix to reject hypotheses of non-stationarity and multicollinearity. Finally, the Ordinary Least Squares (OLS) method was applied to interpret the effects of independent variables on the dependent variable. The research results can be significant for policymakers in defining activities aimed at maintaining the stability of public debt.

Strategic Decisions in Logistic of Sugar Beet Campaign

Dejan Brcanov — 2024-07-01

Managers of sugar beet processing companies need to decide which parcels will become part of the campaign, as well as the time when the beets will be collected from it. Such decisions have far-reaching consequences in a logistic chain. The company strives to optimize transportation costs, but at the same time, that the goods are collected at optimal quality, and processed timely. Simultaneously, an effective transport plan implies the use of minimal amounts of fuel, as well being environment friendly. We will present a mathematical model to support the decision-making process.

Process Innovation as a Result of CRM Mechanisms

Bojan Leković — 2024-07-01

This paper aims to examine the impact of different cooperation mechanisms with customers on the development of process innovation in companies. in ??AP Vojvodina in the Republic of Serbia. Customer collaboration mechanisms include information sharing with customers, joint problem solving with customers, and technology used in customer relationships. In the software package for statistical data analysis Smart PLS 4, a statistical analysis of the data obtained by conducting a questionnaire in companies in AP Vojvodina was performed. The sample includes 31 companies, and its owners or general managers were responsible for filling it out. The results showed that joint problem solving with customers and the application of technology in relations with them significantly and positively affects the development of process innovations. In addition, information sharing with customers also has a positive impact on process innovation, but it is not statistically significant.