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

Strategic Agility in Turbulent Times: A Framework for SME Resilience in an Era of Global Instability

Derek Kivayilu — Wed, 29 Jul 2026 00:00:00 +0000

We live in an era of relentless disruption. Geopolitical tensions, trade conflicts, the long tail of the COVID-19 pandemic, rapid technological change, fragile supply chains, and the persistent pressures of inflation and unpredictable demand have all converged to shatter the sense of stability that businesses once took for granted. For SMEs, which make up over 90% of businesses worldwide and play a vital role in job creation, innovation, and community wellbeing, this is not just a challenging backdrop but rather an existential test. Large multinationals can lean on deep financial reserves, global diversification, and entire teams dedicated to risk management. SMEs run lean, operate with limited resources, and have little leverage in the markets they depend on, which makes them far more exposed when the ground shifts beneath them. This paper takes a close look at how global instability affects SMEs on the ground, tracing how disruptions ripple through supply chains, financial markets, and customer behavior, making an already complex environment even harder to navigate. The paper sets out a proposed practical, step-by-step framework to help SMEs build genuine resilience. This is not a one-size-fits-all prescription. SMEs are enormously varied, and any useful framework has to reflect that. Drawing on current thinking in strategic management, organizational theory, and crisis response, and grounded in real examples of how SMEs have responded to recent disruptions, the framework maps out a journey through four stages of development. It starts where many SMEs find themselves: in reactive mode, focused on immediate survival. From there, it moves through building more robust and flexible operations, developing the capacity to adapt and pivot the business model when needed, and ultimately reaching a point where agility is no longer a crisis response but a core part of how the organization works. At the heart of this paper is a simple but important argument: the way we think about resilience needs to change. Surviving a crisis and returning to where you were before is no longer enough. For SMEs operating in a world where instability is the norm rather than the exception, true resilience means moving forward rather than just bouncing back. It means weaving adaptability, foresight, and a genuine capacity for learning into the everyday fabric of how a business operates, not as a defensive measure, but as a genuine competitive strength. The framework of this paper brings together outward-looking environmental awareness, flexible internal operations, sound financial management, and a culture that can shift when needed. The paper closes with practical recommendations aimed at three groups: SME owners and managers, who have to lead this kind of change from the front; policymakers, who can either enable or hinder it through the ecosystems they create; and technology and service providers, who have a real role to play in making the right tools accessible. The conclusion is an optimistic one. SMEs that commit to building strategic agility will not just weather disruption; they will be better placed than most to spot and act on the opportunities it quietly brings.

Autonomous AI Systems as a Foundation of Sustainable Competitive Advantage in Enterprise Management

Paweł Cabała, Lena Đorđević Milutinović, Lazar Raković — Mon, 27 Jul 2026 00:00:00 +0000

Artificial intelligence is rapidly transforming enterprise management, evolving from a decision-support tool into an autonomous actor capable of independently executing complex managerial and operational tasks. This paper advances the thesis that the development, deployment, and strategic orchestration of autonomous AI systems constitute a fundamental condition for achieving sustainable competitive advantage in modern enterprises. Unlike traditional IT systems, autonomous AI systems demonstrate capabilities for continuous learning, adaptation, and independent execution within defined operational boundaries. Viewed through the lens of the resource-based and dynamic capabilities theories, these systems enable enterprises to significantly enhance operational efficiency, reduce decision latency, and dynamically respond to environmental shifts. Consequently, autonomous AI systems transition from merely supporting managers to becoming strategic assets deeply embedded within core business processes. To bridge conceptual considerations with practical applicability, the paper incorporates an exploratory analysis of the open-source AI ecosystem, utilizing data from the Hugging Face platform. By examining the proliferation and accessibility of pre-trained models, the study demonstrates how the barriers to building enterprise-specific autonomous systems have been radically lowered. This democratization allows organizations to shift their strategic focus from building models from scratch to the orchestration and fine-tuning of open-source agents using proprietary data. Ultimately, the paper argues that enterprises capable of continuously integrating external open-source AI innovations with internal, unique organizational data will establish durable, hard-to-imitate competitive advantages. The transition toward autonomous AI represents a fundamental shift in organizational governance and a key determinant of long-term strategic resilience.

Mapping Innovation Domains Using Topic Modeling

Marek Dziura, Paweł Lula, Radul Milutinović, Tomasz Rojek, Vuk Vuković — Wed, 29 Jul 2026 00:00:00 +0000

Innovation plays a crucial role in driving economic growth and development, improving competitiveness, and creating new opportunities for individuals and businesses. It also can lead to higher living standards and a better quality of life for citizens by addressing some of the world's most pressing challenges, such as climate change, health crises, and poverty. Recently, artificial intelligence (AI) appeared as one of the most influential factors in everyday life. It also is revolutionizing innovation by acting as a driving force in R&D, automating tasks and by analyzing data many times faster than humans. Use of AI technologies is accelerating the creation of new products and business models and radically transforming decision-making processes. AI could compel companies to restructure the whole innovation process in response to rapid technological advancement and the rearrangement of human resources. Society at large sees AI as a representation of unlimited possibilities.

AI is increasingly adopted by organizations to innovate, and this is even more reflected in scholarly work. To illustrate, assess and map research at the intersection of AI and innovation, we performed research of published work indexed in the Elsevier Scopus databases.

This study examines thousands of publications, indexed in the SCOPUS database, related to innovation processes (analyzing titles, abstracts, and keywords), employing BERTopic modeling and bipartite graph analysis to identify emerging patterns. The research uncovers eleven distinct innovation technologies and systematically maps their relationships with various AI methods. The results highlight that innovations in relation to AI methods are not isolated but broadly integrated across domains, suggesting the importance of cross-departmental collaboration to maximize system-wide benefits.

Hospitality and Tourism Research During Global Instability: A BERTopic Analysis

Rade Božić, Olivera Grljević, Željko Vukićević, Mirjana Marić, Nebojša Taušan — Wed, 29 Jul 2026 00:00:00 +0000

Hospitality and tourism represent the sector most affected by global disruptions caused by pandemics, energy crises, or political disturbances. In this paper authors examine how instability shapes research priorities and responses in hospitality and tourism research between 2019 and 2023, a period characterized by global pandemics. Topic modelling is utilized as the main method applied on abstracts of 1,100 scientific publications from this domain. These publications are collected from Web of Science and Scopus citation databases. Topic modelling, a natural language processing technique, uncovers hidden thematic structures in large text collections and corpora. This study utilized BERTopic to uncover research topics studied within an observed time interval. BERTopic uncovered 23 dominant topics in hospitality and tourism research, which emerged during the pre-crisis, crisis, and the adaptation period. Most prominent topics discovered include customer experience and review, energy systems modelling, consumption, brand loyalty and satisfaction and destination image and behavior.

Application of the TOPSIS Multi-Criteria Decision-Making Method for the Analysis of Economic Sectors in Serbia

Anja Dacić, Reka Korhecz — Wed, 29 Jul 2026 00:00:00 +0000

The TOPSIS method represents an important tool in multi-criteria decision-making, enabling a systematic ranking and evaluation of alternatives based on their distance from the ideal and anti-ideal solutions. Its fundamental principle is the quantitative measurement of each alternative’s deviation from the optimal values of the selected criteria, thereby providing a more precise and objective understanding of the observed phenomenon.

In order to ensure a higher level of objectivity in the evaluation process, the weights of the criteria were determined using the entropy method. This approach reduces subjectivity in weight assignment by relying on the informational content and variability of the data. The entropy-based weighting method was integrated into the TOPSIS procedure, thereby enhancing the reliability and robustness of the final ranking results.

The aim of this study was to rank 15 economic sectors in the Republic of Serbia using available economic and business data. The ranking procedure was carried out based on the number of business entities, total turnover, registered employment, average net wages, and gross value added. This approach enabled the identification of sectors with the greatest current development potential, as well as those requiring additional institutional support and investment.

The sectors of trade, manufacturing, and information and communication were identified as the three most promising and stable sectors according to the selected indicators. The conducted analysis provides insight into sectors with relatively lower competitiveness among the selected economic activities in Serbia and may serve as a useful basis for strategic planning and the direction of future investments.

The Impact of AI on the Competencies of Employees in Companies Engaged in Software Development in the IT Sector

Bojan Đurić — Wed, 29 Jul 2026 00:00:00 +0000

The rapid proliferation of artificial intelligence technologies, particularly generative AI and large language models, is fundamentally reshaping the landscape of software development. This paper aims to examine the multifaceted impact of AI on employee competencies within software companies, drawing upon recent empirical research, industry reports, and practitioner insights from a decade of IT management experience. The analysis reveals a critical paradox: while AI accelerates code generation and automates routine programming tasks, it simultaneously elevates the importance of human competencies that machines cannot replicate. The findings suggest that the future software engineer will transition from being primarily a code writer to becoming a systems architect, quality assessor, and ethical guardian. Particularly significant is what this paper terms the “junior paradox” — the observation that entry-level positions face the greatest disruption, while experienced professionals who possess deep domain knowledge, architectural thinking, and the ability to evaluate AI outputs become increasingly valuable. The paper concludes with recommendations for competency development frameworks that balance technical AI literacy with the cultivation of uniquely human capabilities such as critical thinking, ethical reasoning, and cross-functional collaboration.

Digitalizing Circular Economy Systems: A Multi-Criteria Decision-Making Approach to Sustainable Economic Development

Wed, 29 Jul 2026 00:00:00 +0000

The transition from linear to circular economic systems represents one of the key challenges for achieving sustainable economic development. At the same time, digitalization is increasingly recognized as a strategic enabler that can support the implementation, monitoring, and optimization of circular economy practices. This paper explores how digital technologies and multi-criteria decision-making (MCDM) methods can support the transition toward more sustainable and resource-efficient economic systems.

The research is conceptually grounded in a project focused on strengthening institutional and research capacities for the digitalization of circular economy practices. The study develops a methodological framework that integrates sustainability indicators with multi-criteria decision-making tools in order to support decision-making processes related to circular economy implementation. The proposed approach enables the evaluation and prioritization of circular economy strategies by considering multiple economic, environmental, and social criteria simultaneously.

The analysis highlights the importance of stakeholder cooperation among academia, policy makers, and small and medium-sized enterprises in creating enabling conditions for circular economy adoption. Digital platforms and data-driven tools are identified as key instruments for improving resource efficiency, facilitating information exchange, and supporting evidence-based policy making.

The results of the study contribute to the growing body of research on sustainability and circular economy by demonstrating how MCDM approaches can support the design of more efficient and transparent decision-making processes. Furthermore, the research provides practical recommendations for strengthening circular business models, supporting green digital transformation, and enhancing sustainable economic development.

The Impact of AI on the Fear & Greed Index on Limit Order Book Microstructure and Execution Costs: An Agent-Based Simulation of Crypto Markets

Ognjen Radović, Jelena Radojičić — Wed, 29 Jul 2026 00:00:00 +0000

This conference paper reports the core findings of an agent-based limit order book (LOB) simulation designed to examine whether the Fear & Greed Index (FGI) changes crypto-market microstructure and execution quality. The NetLogo model combines explicit buy and sell order books, a price-priority matching mechanism, mixed Poisson/Hawkes-like order arrivals, heavy-tail order sizes, and rule-based cancellations. Sentiment is introduced parsimoniously: the probability that the next order is a buy order equals FGI/100. In a 50,000-trade experiment, higher FGI regimes produce a strong directional shift in order flow, with buy-order share rising from 25.64% in the 20-35 FGI bin to 73.05% in the 65-80 bin. Average order-book imbalance simultaneously moves from -0.5175 to 0.4424. Quoted spread changes only modestly across sentiment regimes, but effective spread increases from 3.0029 to 3.9329, indicating materially worse execution costs under greed-dominated conditions. The model also reproduces important stylized facts, including fat-tailed return distributions and persistent volatility clustering in mid-price returns. These results suggest that sentiment primarily influences market quality through directional order-flow pressure liquidity depletion rather than through a simple widening of top-of-book quotes.

Global economic instability and corporate structure: Evidence from emerging markets

Miloš Đaković, Jelena Andrašić, Branimir Kalaš — Wed, 29 Jul 2026 00:00:00 +0000

This study examines the influence of global economic instability on corporate capital structure of companies from selected emerging markets, focusing on publicly listed companies from Southeastern European countries over the period 2010–2024. The sample includes non-financial companies listed on stock exchanges from the Southeastern European region, involving a period characterized by significant external shocks, including the aftermath of the global financial crisis, the COVID-19 pandemic, and recent geopolitical tensions. Using a dynamic panel data framework, the study analyzes how the mixture of microeconomic, macroeconomic and corporate governance factors in the periods of global uncertainty influenced companies’ leverage ratios. The findings indicate that heightened global instability leads to a reduction in long-term leverage and a greater reliance on short-term debt, reflecting precautionary financing behavior and constrained access to external capital markets. The results contribute to the capital structure literature by providing evidence from relatively underexplored Southeastern European emerging markets and by highlighting the sensitivity of corporate financing decisions to global instability. The findings have important implications for policymakers, investors, and corporate managers in designing resilient financial strategies in turbulent macroeconomic environments.

Credit risk determinants in the banking system: Evidence from West Balkan countries

Milica Šušljik, Miloš Pjanić, Nada Milenković — Wed, 29 Jul 2026 00:00:00 +0000

Credit risk is one of the major elements while taking banking management into account and therefore it is of the essence to habitually monitor what exerts a significant influence. West Balkan countries are prone to fluctutations of credit risk as the region is infulenced by turbulence of financial markets. For that reason, these countries are in the focus while conducting the research. The prime objective of this paper is to closely examine the factors which significantly contribute to the level of credit risk in the period from 2013 to 2025 in that effective credit risk management could be performed in the long-run. The research was conducted by using panel data regression analysis with random effects on variables. Credit risk, as a dependent variable, is measured in non-performing loans to total gross loans. On the other hand, explanatory variables include return on assets (ROA), reference interest rate, bank size, liquid assets to total assets, GDP growth and inflation.The results of a random effects model reveal that reference interest rate and GDP growth affect credit risk positively and significantly, whereas bank size, liquid assets to total assets and inflation rate have a negative and significant impact on credit risk.The limitation of the study refers to the fact that the time series covers the period 2013-2025. As well as that, the results of the research cannot be applied to developed countries since the West Balkan countries are considered as emerging countries.

The Relationship Between Economic Policy Uncertainty and Serbian Stock Market Performance

Milica Inđić, Vera Mirović — Wed, 29 Jul 2026 00:00:00 +0000

The stock market is often seen as an important indicator of the state of the economy, as it reflects the overall economic environment and the direction of its development, while at the same time it is influenced by numerous factors, including social, environmental and political circumstances. Therefore, it is of particular importance to analyze the impact of global economic policy uncertainty on the performance of stock markets, especially in the conditions of a changing macroeconomic environment. In this context, the aim of this research is to examine the relationship between the uncertainty of economic policy and the performance of the stock market in Serbia. In order to answer the goal of the research, data covering the period from 2012 to 2025 was used. The MSCI index was used as a measure of the performance of the stock market of the analyzed countries. The independent variable in the model is the Global Economic Policy Uncertainty Index (EPU). Also, World Governance Indicators are included in the model as explanatory variables. To examine the relationship between these variables, a regression analysis was conducted using the ordinary least squares (OLS) method. The results showed a significant negative impact of global economic instability on stock market performance, while the impacts of other variables are mostly significantly positive. Reducing global economic policy uncertainty is key to strengthening market stability, increasing investor confidence and encouraging domestic and foreign investment, which requires active measures by policy makers and market participants.

Determinants of Sustainability Reporting: The Influence of Owner Gender and Financial Indicators

Bojana Novićević Čečević, Milica Djordjevic — Wed, 29 Jul 2026 00:00:00 +0000

In contemporary business conditions, sustainability reporting is becoming an increasingly important component of corporate transparency and accountability toward a wide range of stakeholders. Although the practice of preparing sustainability reports is continuously developing, significant differences still exist among companies in terms of their readiness to adopt and implement this form of reporting. Against this background, the subject of this study is to examine the factors influencing the likelihood of sustainability reporting. Particular attention is devoted to the gender of the company owner, as well as to key financial indicators reflecting liquidity, profitability, and leverage.

The aim of this study is to determine whether the financial position of a company and the gender structure of ownership represent significant determinants of sustainability reporting. The empirical analysis is based on a dataset in which sustainability reporting is treated as a binary variable, while the independent variables include indicators of liquidity, profitability, and leverage, along with the gender of the owner. Binary logistic regression is employed to test the proposed relationships.

The expected contribution of this study lies in identifying the characteristics of companies that are more inclined to adopt sustainability reporting practices, as well as in providing a better understanding of the relationship between financial performance, ownership structure, and sustainable corporate behavior. The findings of this research may be of importance to both the academic community and practitioners, including company decision-makers and policymakers aiming to promote and enhance sustainable business practices.

From Scorekeeper to Business Partner: The Changing Role of Controllers Under Business Uncertainty

Wed, 29 Jul 2026 00:00:00 +0000

In conditions of global instability characterized by geopolitical turbulence, increasingly aggressive competition, and growing changes in regulatory and market requirements, the controller's function is undergoing rapid transformation. The traditional role of the "scorekeeper", focused on retrospective reporting, is increasingly giving way to the role of a strategic business partner who actively participates in planning, risk management, and decision-making. This paper aims to identify the key drivers, trajectory, and organizational implications of this change. Particular emphasis is placed on the digitalization and automation of reporting, the growing complexity of business systems, and the increasing demands of management for timely, reliable, and predictive information. Furthermore, the paper examines barriers to this transition, including institutional inertia, insufficient analytical and digital competencies, poorly defined role expectations, and resistance to organizational change. The findings suggest that companies adopting the business partner model enhance the quality of strategic decision-making, responsiveness, and organizational resilience under conditions of global instability. In addition to the literature review, a case study of a Serbian company was conducted to examine the extent to which contemporary trends in the transformation of the controller’s role are reflected in the Serbian business context. The results of the in-depth interview indicate that a hybrid role of the controller is present in the observed company and that there is no exclusivity between the different roles. The controller simultaneously performs the roles of scorekeeper, supervisor, and business partner, suggesting a gradual and context-dependent transformation process.

Cost Accounting in Times of Global Instability: From Cost Control to Strategic Resilience

Ivana Medved, Sunčica Milutinović, Dragana Đorđević, Nikola Rakić — Wed, 29 Jul 2026 00:00:00 +0000

In recent years, the global business environment has been increasingly shaped by various forms of instability, including geopolitical tensions, supply chain disruptions, inflationary pressures, and energy market volatility. Such conditions challenge the traditional role of cost accounting, which has historically been focused on cost control, efficiency, and short-term performance measurement. This paper aims to examine how cost accounting can evolve to support organizational resilience in the context of global uncertainty.

The research adopts a conceptual approach, relying on a structured review of relevant literature in cost and management accounting, as well as recent developments related to risk management and business resilience. The paper critically analyzes the limitations of traditional cost accounting systems in unstable environments and highlights the need for more flexible and forward-looking approaches. In particular, it explores the potential of tools such as flexible budgeting, scenario-based costing, and real-time cost monitoring to enhance decision-making under uncertainty.

The main contribution of the paper lies in proposing a conceptual framework that redefines the role of cost accounting from a tool of cost minimization toward a strategic instrument for managing risk and supporting resilience. The findings suggest that integrating risk considerations into cost structures and decision-making processes can significantly improve an organization’s ability to respond to external shocks and maintain sustainable performance.

The paper contributes to the ongoing discussion on the transformation of cost and management accounting practices in turbulent environments and provides practical implications for both academics and practitioners seeking to align cost systems with the demands of global instability.

Financial Statement Quality as a Factor of Strategic Business Development

Kristina Peštović, Dušan Saković, Ivana Medved, Dragana Djordjevic — Wed, 29 Jul 2026 00:00:00 +0000

In an increasingly complex and competitive business environment, the quality of financial statements has become a critical determinant of sustainable growth and long-term organizational success. High-quality financial reporting enhances transparency, reduces information asymmetry, strengthens stakeholder trust, and supports more effective strategic decision-making. This paper explores financial statement quality as a strategic tool for business development, emphasizing its role not only as a compliance requirement but also as a driver of organizational performance and competitive advantage.

The study focuses on examining the quality of financial statements in accordance with the requirements of professional accounting regulation, including applicable financial reporting standards and the broader regulatory framework governing financial disclosure. Financial statement quality will be assessed through key qualitative characteristics defined by professional accounting standards, such as relevance, faithful representation, comparability, verifiability, timeliness, and understandability. Particular attention will be given to the extent to which financial reports comply with regulatory requirements and reflect a true and fair view of an entity’s financial position and performance.

Beyond the normative and regulatory perspective, the research aims to empirically investigate whether financial statement quality has a measurable impact on organizational performance. To achieve this objective, regression analysis will be employed to test the relationship between financial reporting quality and selected performance indicators. Organizational performance will be evaluated using relevant financial metrics, such as profitability, return on assets, return on equity, and other appropriate measures of business success.

Importantly, the empirical model will incorporate a set of relevant control variables to ensure the robustness and reliability of the findings. These control variables may include firm size, leverage, industry affiliation, ownership structure, and other contextual factors that could influence performance outcomes. By controlling for these variables, the study seeks to isolate the specific effect of financial statement quality on business performance and provide more accurate and meaningful conclusions.

The expected contribution of this research is twofold. First, it provides a structured framework for assessing financial statement quality in line with professional accounting regulation, thereby reinforcing the importance of regulatory compliance and high reporting standards. Second, it offers empirical evidence on whether and to what extent financial reporting quality serves as a strategic resource that enhances organizational performance and supports long-term business development.

By integrating regulatory analysis with quantitative empirical testing, this paper aims to demonstrate that financial statement quality is not merely a formal requirement, but a strategic instrument that can significantly influence enterprise growth, market credibility, and overall business sustainability.

The Impact of AI implementation on employees’ attitudes, behaviors, and psychological states

Sanja Đukić, Dimitrije Gašić — Wed, 29 Jul 2026 00:00:00 +0000

In modern business conditions characterized by constant change and a high level of competitiveness, organizations are moving towards the necessity of implementing artificial intelligence (AI), which represents the key factor of transformation in traditional business models in order to improve efficiency and to retain and strengthen their competitive market position. The research subject of this paper is to examine the effects of AI implementation on employees’ attitudes, behaviors, and psychological state. The primary aim of this paper is to identify theoretical frameworks, underpinning empirical studies in this field, as well as variables and relations between them, as key empirical results. For this purpose, a review of theoretical and empirical studies was conducted, examining the effect of AI on employees’ attitudes (job satisfaction, job security, turnover intention and employee engagement), behavior (employee performance) and psychological state (job stress and burnout). Results of completed review of available literature indicate that the implementation of AI in organizations has a significant influence on attitudes, behavior and psychological state of employees, primarily through positive effects on engagement, work-life balance, creativity, innovation, and career development. However, its impact on job stress and burnout is indirect and mediated by work-related factors such as job security, workload, and task design. Consequently, AI may reduce stress when it enhances efficiency and facilitates tasks, but it may also increase stress if it intensifies expectations or job complexity. Overall, the psychological effects of AI depend largely on how it is implemented and managed within the organization. According to these findings, the authors have planned that in the next research phase, they will develop a conceptual framework, which will unite identified variables and their relations, with a focus on the realization of empirical analysis on a certain sample in Serbia, as a way of researching concrete effects of artificial intelligence implementation on the domestic business environment. The limitations of this paper are a relatively small number of existing research studies regarding this topic (especially within the context of Serbia), as well as the lack of empirical research that simultaneously encompasses all relevant variables.

The Role of the Circular Economy in Strengthening the Sustainability of the Business Environment Under Conditions of Global Crises

Wed, 29 Jul 2026 00:00:00 +0000

The contemporary business environment is increasingly characterized by challenges arising from global economic, environmental, and social crises, which highlight the need for sustainable business models and more efficient resource management. In this context, the concept of the circular economy has gained increasing recognition as an important instrument for strengthening the sustainability and resilience of business systems. The aim of this paper is to examine the role of the circular economy in enhancing the sustainability of the business environment in the context of global crises through the analysis of relevant scientific literature. The paper represents a review study based on the systematization and analysis of findings from previous research addressing the implementation of circular economy principles across different economic sectors. Key findings from previous studies are analyzed and presented in tabular form in order to identify major trends, benefits, and challenges related to the application of circular business models. The results of the analysis indicate that the implementation of circular economy principles contributes to more efficient resource use, reduction of environmental impacts, and strengthening of the long-term sustainability of the business environment, which is particularly important in conditions of global instability.

Corporate Entrepreneurship Assessment Instrument:

Ljiljana Kontić, Mirta Benšić, Nebojša Janićijević, Duško Laković — Wed, 29 Jul 2026 00:00:00 +0000

The main aim of this study is to investigate regional similarities and differences among top and middle managers in assessing the key corporate entrepreneurship factors. The sample consisted of 240 managers from the City of Zagreb, the City of Novi Sad, the Province of Vojvodina, and the City of Banja Luka. Research instrument was Corporate Entrepreneurship Assessment Instrument [CEAI] (Kuratko, 2014). All five factors have been analyzed i.e. Management Support, Work Discretion, Rewards, Time availability, and Organizational Boundaries thought original battery of questions. The written permission has been obtain by authors. The CEAI has been translated into Serbian language (Kontic, 2011), and used as a tool to assess various aspects of corporate entrepreneurship over the last 15 years. In this study Serbian version of the questionnaire has been translated into Croatian and Bosnian languages i.e. ijekavian dialect. Data processed by the Correspondence Analysis. According to authors’ knowledge, this is the first study in the field of corporate entrepreneurship in which the Correspondence analysis has been used in processing data. The results have been presented by five key factors. The managers from the City of Banja Luka and the City of Zagreb gave higher grades for Management Support factor then managers from Vojvodina as whole. Assessment of Work Discretion factor showed similar results. Recoding has been necessary for questions in Work Discretion and Time Availability. Rewards have been similar assessed as the Management Support factor from managers of selected regions. The managers from the City of Zagreb gave the highest grades for Organizational Boundary factor then managers from the City of Banja Luka, as well as managers from the Province of Vojvodina. Scatter plots for all five factors from CEAI questionnaire have been presented.

The Role of Human Resource Management in Serbian Organizations Based on Empirical Evidence of CRANET Research from 2026

Agneš Slavić, Nemanja Berber, Dimitrije Gašić, Marko Aleksić — Wed, 29 Jul 2026 00:00:00 +0000

One of the impacts of the global instability and contemporary business environment is that managing organizations’ most valuable assets, human capital is becoming a vital task of all organizations. Human resource management (HRM) must find adequate answers to the global and local, internal and external challenges organizations are facing with in order to achieve its main goal, to attract, motivate, and retain competent and committed employees. New challenges related to global political and economic instability, digitalization, artificial intelligence, new generations at the labour market and many others, require from organizations to focus more on human resources and develop specific HRM strategies to manage their employees adequately. It is important to determine the actual state of HRM practice and the role of HR department in contemporary organizations. The main aim of this paper is to analyse the main indicators of HRM function in organizations in Serbia, to determine its actual state and the level of development. The paper is based on literature review and empirical research results. The data are gathered through the newest round of global Cranet research from 2026. The preliminary analysis includes the main indicators of HRM, such as: the existence of HRM department, the existence of written business and HR strategies, the involvement of HR manager in the development of business strategy and the primary role of HR department and line manager in the main decisions regarding employee compensation, staffing, training and retention. The obtained results give worthwhile insight into the importance and development of human resource management activities in Serbia in 2026.

Drivers of Green Transformation of SMEs in Europe

Maja Ivanović-Đukić, Tatjana Stevanović, Jovana Milenović, Milica Ristić Cakić — Wed, 29 Jul 2026 00:00:00 +0000

The aim of this paper is to identify and empirically examine the drivers of green transformation in small and medium-sized enterprises (SMEs) in Europe. The analysis is based on data from Flash Eurobarometer 549, covering 36 countries, and considers various forms of external support?financial, advisory, and network-based. Cluster analysis and multivariate analysis of variance (MANOVA) are employed. The results indicate statistically significant differences between countries as well as across the identified clusters, confirming the key role of external factors, particularly financial and advisory support, while also revealing pronounced differences in terms of network support

The Impact of Entrepreneurial Leadership on Employees’ Job Satisfaction: The Mediating Effect of Job Characteristics

Jelena Nikolić, Jovana Papović, Dejana Zlatanović, Jelena Erić Nielsen — Wed, 29 Jul 2026 00:00:00 +0000

Abstract: In an increasingly uncertain and competitive environment, organizations striving for sustainable success are required to adopt an entrepreneurial orientation that fosters adaptability and innovativeness. Entrepreneurial orientation represents an organization’s strategic direction and its ability to identify and exploit market opportunities through specific decision-making styles and strategic procedures. The successful implementation of such orientation depends on leaders who apply an entrepreneurial leadership style.

Entrepreneurial leadership refers to leaders who are willing to take risks, exploit opportunities, and stimulate creativity in value creation and strategic processes. Entrepreneurs as leaders exert significant influence on their employees and prior research suggests that entrepreneurial leadership positively affects employees’ job satisfaction. An important aspect of entrepreneurial leadership is encouraging employees to display self-initiated behavior which may be associated with the degree of autonomy and other work-related characteristics experienced by employees. Job characteristics, including autonomy, task variety, task significance, task identity, and feedback, relate to the scope and nature of tasks as well as to the way work is performed. According to the Job Characteristics Theory higher levels of autonomy, task variety, task significance, and feedback represent important predictors of job satisfaction. Moreover, entrepreneurial leaders may shape employees’ perceptions of job characteristics through processes of social influence and environmental framing, given their unique position within both the objective and social work environment.

Although previous studies confirm the positive relationship between entrepreneurial leadership and job satisfaction, as well as between job characteristics and job satisfaction, limited research has examined whether job characteristics serve as a mediating mechanism through which entrepreneurial leadership influences job satisfaction. Therefore, the aim of this study is to examine the relationship between entrepreneurial leadership and job satisfaction and to test the mediating role of job characteristics in this relationship.

Data will be collected through a structured online questionnaire distributed to employees across various organizations in the Republic of Serbia. The questionnaire will consist of scaled items measured on a five-point Likert scale. It is expected that entrepreneurial leadership and job characteristics will positively influence job satisfaction, with job characteristics demonstrating a significant mediating effect. These findings have theoretical implications for expanding the knowledge base and enriching the literature on leadership, entrepreneurship, and job design, particularly in the context of the Republic of Serbia, where research on the relationships among these variables remains limited. The practical implications of the findings relate to providing guidance for managers and HR professionals in fostering autonomy, responsibility, and meaningful work in order to enhance employee job satisfaction.

Innovation as a Strategic Interface in a BANI Environment: Implications for Strategic Decision-Making

Sandra Nešić — Wed, 29 Jul 2026 00:00:00 +0000

Organizations operating in BANI environments (Brittle, Anxious, Non-linear, Incomprehensible) face a fundamental mismatch between established innovation management practice and the conditions under which strategic decisions are actually made. The traditional model, in which innovation teams reduce uncertainty before handing validated outputs into stable organizational systems, breaks down when the receiving system is itself in continuous flux. This paper examines how this breakdown repositions corporate innovation teams in relation to strategic decision-making and what implications that repositioning carries for how organizations maintain strategic coherence under persistent uncertainty.

The paper employs a practice-informed conceptual methodology grounded in systematic engagement with a six-year corpus of documented practitioner discourse, The Innovator's Handbook series (2021–2025), and its 2026 successor, Growth Guide: Innovation Impact in 2026. Drawing on sensemaking theory (Brown, Colville & Pye, 2015) and Teece's (2007) dynamic capabilities framework, the analysis identifies a mechanism shift from sequential handover to continuous interface.

The central conceptual contribution is the notion of the sensemaking interface as an organizational unit whose primary function is not to resolve uncertainty but to continuously translate emerging signals into informed options on which strategic decisions can be built. The paper further argues that AI and digital tools, while expanding the range of options available to innovation teams, amplify interpretive complexity rather than resolve it, making the sensemaking function more rather than less critical.

Three implications for strategic decision-making are developed: a shift from validation to interpretation, from planning to alignment, and from measuring output to measuring coherence. Together, these suggest that strategic effectiveness in BANI environments depends less on prediction and more on the quality of the interpretive loop connecting experimentation, organizational learning, and strategic intent.

The primary theoretical contribution of this paper is the concept of the sensemaking interface, which reframes innovation team function from solution delivery to continuous strategic interpretation, and proposes three corresponding shifts in how organizations approach decision-making under persistent uncertainty.

The Influence of Internal Communication Dimensions on Employee Satisfaction in Public Institutions

Sanela Ravlić — Wed, 29 Jul 2026 00:00:00 +0000

This paper analyzes the impact of internal communication on employee satisfaction in public institutions of the Republic of Croatia, the Republic of Serbia and Bosnia and Herzegovina. The aim of the research was to examine the relationship between different dimensions of internal communication and determine their impact on employee satisfaction. The research was conducted on a sample of 98 respondents, and the data were analyzed using descriptive statistics, correlation analysis and multiple linear regression. The results of the research showed that there is a statistically significant relationship between internal communication and employee satisfaction, with communication climate standing out as the most important predictor. Regression analysis showed that the model explains 58.6% of the variance in employee satisfaction. The results obtained indicate the importance of quality internal communication as a key tool for managing human capital in organizations.

Consumer Trust and Willingness to Pay for Quality Labels in the Agri-Food Sector: Evidence from Serbia

Stefan Ljubinković, Sanja Džever, Bojan Matkovski, Žana Jurjević — Wed, 29 Jul 2026 00:00:00 +0000

Quality labels represent an important instrument for strengthening consumer confidence and improving the market positioning of agri-food products. However, their effectiveness largely depends on consumer recognition and trust. The aim of this paper is to examine the relationship between consumer recognition of quality labels, trust in these labels, and willingness to pay a price premium for agri-food products in Serbia. Empirical research was conducted through an online survey. The collected data were processed using descriptive statistics and correlation analysis in order to identify relationships among the observed variables. The results indicate that higher recognition of quality labels positively influences consumer trust, while trust significantly increases consumers’ willingness to pay a premium price for labelled agri-food products. The findings suggest that improving consumer awareness and credibility of quality certification systems may contribute to greater competitiveness and market differentiation of agri-food products.

Concentration, Competition and Efficiency of Companies in the Milk and Dairy Products Market in Bosnia and Herzegovina

Mladen Rebić, Tamara Dragić — Wed, 29 Jul 2026 00:00:00 +0000

Abstract: This paper analyzes the milk and dairy products market in Bosnia and Herzegovina. It provides an overview of the current state of the market from the aspect of processing, production and foreign trade of Bosnia and Herzegovina with its important partners. The aim and subject of the paper is to determine the degree of concentration, as well as the impact of the degree of concentration on the efficiency and competition of companies in the milk and dairy products market in Bosnia and Herzegovina. The CRn index and the Herfindahl – Hirschman index were used to calculate the level of concentration in this market. The basic hypothesis in this research is that a low degree of concentration in the milk and dairy products market has a positive effect on the efficiency of the operations of companies in the milk and dairy products market in BiH. In order to more easily confirm or reject the main hypothesis, a subsidiary hypothesis was set: A low degree of concentration has a positive effect on the growth of competitive activities of companies and product differentiation. After conducting an analysis and measuring the level of concentration, it was determined that there has been a moderate level of concentration in recent years and that this contributes to greater competitiveness and efficiency of business operations of companies in the milk and dairy products market in BiH.

Transmission of Fertilizer Price Shocks to Food Inflation in Serbia

Milica Klisara — Wed, 29 Jul 2026 00:00:00 +0000

Over the past five years, the global economy has faced a series of major shocks and crises that have led to periods of exceptionally high inflation across both advanced and developing economies. Rising costs of energy, raw materials, and agricultural inputs have placed additional pressure on production chains, ultimately affecting consumer prices. In Serbia, food prices play a particularly important role in overall inflation dynamics due to their significant weight in the Consumer Price Index (CPI), 31.6% according to the COICOP classification. Additionally, the two indicators, the overall CPI and the Food Consumer Price Index in Serbia, exhibit positive linear relationship. Within this context, this study analyzes if shocks originating from agricultural input markets, specifically fertilizer prices, transmit through the production chain and are significantly affecting food prices in Serbia. Using a Vector Autoregression (VAR) framework, the analysis explores the relationship between Fertilizer Price Index, Agricultural Producer Price Index, and Food Consumer Price Index in Serbia, over the past twelve years. The findings suggest a transmission of fertilizer price shocks to agricultural PPI and indicate an indirect but economically meaningful effect on food inflation over the medium term.

The Food Supply Chain Disruptions and Global Instability: A Theoretical Approach

Marija Jeremić — Wed, 29 Jul 2026 00:00:00 +0000

The food supply chain is a network of interconnected entities that aims to deliver sufficient and healthy agri-food products to end consumers. In recent years different factors such as global health crises, climate change, extreme weather events, and geopolitical conflicts has significantly affected the functioning of food supply chains. Given that food represents a basic need and a key factor of economic and social stability, understanding these dynamics is of crucial importance. Bearing this in mind, this paper aims to analyze, based on a review of the relevant literature, the impact various shocks have on the functioning of food supply chains, as well as their potential effects on global instability. Special attention is given to the identification of key sources of disruption and the mechanisms through which these disturbances are transmitted across different stages of the supply chain, with the objective of highlighting the main drivers of instability and their implications in the recent period.

Municipal Strategic Capacity and Economic Resilience Under Global Instability: Panel Evidence from Vojvodina

Ervin Jenei — Wed, 29 Jul 2026 00:00:00 +0000

The global economic environment has become increasingly characterized by persistent instability, particularly in the post-2020 period marked by pandemic-related disruptions, energy market volatility, inflationary pressures, and geopolitical tensions. These developments have exposed structural vulnerabilities across economic systems and emphasized the importance of resilience not only at the national level but also within subnational institutional frameworks.

While existing literature extensively examines macroeconomic consequences of global instability, significantly less attention has been devoted to the role of local governments in mitigating external shocks. This research gap is particularly evident in transitional European economies, where institutional development remains uneven and local governance capacity varies considerably across municipalities.

This study examines whether municipal strategic capacity contributes to local economic resilience in the Autonomous Province of Vojvodina. The analysis focuses on the moderating role of municipal-level institutional capability in reducing the negative effects of global instability on local economic performance.

The empirical analysis is based on a balanced panel dataset covering municipalities in Vojvodina for the period 2015–2024. Indicators of economic performance, fiscal capacity, administrative capability, and strategic planning activity are integrated into a composite Municipal Strategic Capacity Index. A fixed-effects panel regression model is applied to estimate the interaction between global instability and institutional capacity at the municipal level.

The empirical results indicate that global instability has a statistically significant negative impact on local economic activity, particularly SME dynamics, employment stability, and investment intensity. However, municipalities characterized by higher strategic capacity demonstrate significantly stronger economic resilience, reflected in lower volatility of business activity and faster recovery following external shocks. The moderating effect is particularly pronounced during the 2022–2023 energy crisis period.

The findings contribute to the literature on economic resilience by highlighting municipal strategic capacity as an important institutional determinant of local economic stability. The results emphasize the importance of strengthening fiscal governance, administrative competence, and strategic planning systems in order to enhance resilience in transitional economies exposed to global shocks.

The Impact of Local Government Units on the Positioning of Culture in Society

Marin Seleš — Wed, 29 Jul 2026 00:00:00 +0000

Local self-government units (LSUs) play a key role in shaping cultural policies and funding cultural activities. However, the dominant model, which relies almost exclusively on public budget funds, exhibits structural weaknesses: it passivises stakeholders, limits innovation, and creates dependence on political cycles. This paper analyses the impact of LSUs on the positioning of culture in society through a comparative analysis of cultural budgets and policies in four Croatian cities: Osijek, Rijeka, Split and Zagreb. The central thesis is that LSUs need to transform their role – from primary funders of cultural content towards developmental actors that strengthen capacities, foster networking and stimulate cultural entrepreneurship. Drawing on budgetary data for 2020–2024, European and Croatian cultural policy literature, and the identification of structural limitations in the prevailing grant-based model, the paper proposes a set of transformational mechanisms: capacity development programmes, cross-sectoral networking platforms, cultural entrepreneurship incentives and innovative financing instruments including matching funds and cultural vouchers. The paper situates these proposals within the context of Croatia's newly introduced Cultural Card (Kooltura @18) pilot. In this way, culture shifts from a budget expenditure to an investment with measurable social and economic returns.

Bayesian Statistics in Marketing

Nenad Djokic, Nikola Milićević, Ines Djokic, Branimir Kalas — Mon, 27 Jul 2026 00:00:00 +0000

Every decision in marketing, whether strategic, tactical, or operational in nature, should be based on a previously conducted analysis or research, with collected data processed using appropriate statistical methods. Accordingly, this paper presents two fundamental statistical approaches: the frequentist and the Bayesian approach. While the frequentist approach is based on the measurable frequency of events, Bayesian inference, among other features, enables the incorporation of prior information into the analysis process. Starting from the limitations of frequentist statistics, the focus of the paper is placed on Bayesian inference and its key advantages. Special attention is devoted to the analysis of the application of the Bayesian approach in marketing, through the review of selected studies in which it has been used to address various marketing-related problems.

The Impact of Global Instability on International Trade

Daniela Nuševa, Nikola Macura, Tibor Fazekaš — Wed, 29 Jul 2026 00:00:00 +0000

From 2020 to the present, international trade has demonstrated a high level of volatility in terms of both its volume and direction. The positive effects of free trade agreements (CEFTA, ASEAN, USMCA, MERCOSUR, etc.) and the higher degree of globalization that characterized international trade resulted in increased levels of exchange and the liberalization of international markets at the beginning of the 21st century. However, since 2020, international trade flows have successively faced a series of instabilities, starting with COVID-19 and extending to wars in the Middle East, as well as new protectionist measures introduced by the United States primarily aimed at reducing the trade deficit with China. U.S. tariff revenues reached 287 billion dollars in 2025; this 192% increase compared to the previous year clearly illustrates the significance of these barriers for global trade, particularly considering that such protectionist measures are almost always followed by countermeasures. Health crises and war conflicts during this period have led to the closure of ports, waterways, airports, and airspace. Political crises have resulted in violations of WTO principles (e.g. the principles of non-discrimination and national treatment), as well as the formation and strengthening of global blocs (BRICS, the new “Board of Peace,” etc.). All these instabilities negatively affect the free movement of goods and services, resulting in a decline in trade activities and higher procurement costs for final products, as well as for energy and other resources. The objective of this paper is to determine the ways in which instability affects the volume of international trade activities, with particular reference to how these instabilities have influenced Serbia’s trade exchange with its international partners. The primary data sources which will be consulted for this research include reports from organizations such as the UN, OECD, and Deloitte.

The Impact of Global Instability on Electronic Commerce Logistics and Fulfillment Models

Sonja Vučenović, Radenko Marić, Goran Vukmirović, Marija Pavličević — Mon, 27 Jul 2026 00:00:00 +0000

Abstract: Global instability represents one of the key characteristics of the contemporary business environment, as it has a comprehensive impact on business operations and leads to significant changes in operating conditions. This instability manifests through economic crises, increased uncertainty, geopolitical conflicts and tensions, as well as frequent disruptions in global supply chains, which further complicate the planning and execution of business activities. Under such circumstances, electronic commerce stands out as a sector that is particularly exposed to these negative effects due to its strong dependence on logistics systems. The aim of this paper is to analyze the impact of global instability on logistics processes in electronic commerce, as well as on fulfillment models. The study is based on an analysis of contemporary academic literature in the fields of logistics and electronic commerce, as well as industry reports. The results indicate the growing importance of flexible and digitally supported logistics solutions, whose implementation becomes one of the key factors in maintaining competitiveness under conditions of increased uncertainty. Particular importance is placed on improved inventory management and the application of modern information technologies in the planning and coordination of logistics activities.

Measuring Marketing Outcomes of Customer Experience: Validation of the Scale

Viktorija Petrov, Đorđe Ćelić, Tanja Džinić, Zoran Drašković — Mon, 27 Jul 2026 00:00:00 +0000

Abstract:

Background: Customer experience has emerged as one of the most important constructs in contemporary marketing, as organizations increasingly compete through the quality of interactions and experiences delivered across the customer journey. While the literature has extensively examined the conceptual foundations, dimensions, and strategic relevance of customer experience, considerably less attention has been devoted to the development of validated instruments capable of measuring its downstream marketing consequences. In particular, there remains a need for a psychometrically sound scale that captures the core marketing outcomes associated with customer experience in an integrated and methodologically rigorous manner.

Purpose: The main objective of this study was to develop and validate the Marketing Outcomes of Customer Experience (MOCE) scale. The proposed instrument was designed to measure three key dimensions widely recognized in the marketing literature as major consequences of customer experience: Customer Satisfaction, Behavioural Loyalty Intentions, and Word ofMouth. By focusing on these three constructs, the study sought to provide a reliable and valid framework for assessing how customer experience is reflected in evaluative, relational, and communicative customer responses.

Methods: The empirical analysis was conducted on a sample of 702 respondents. The MOCE instrument was formed by integrating three existing scales into a unified measurement framework. The psychometric evaluation of the instrument included reliability analysis and factor analysis. Sampling adequacy was assessed using the Kaiser–Meyer–Olkin (KMO) measure, while Bartlett’s test of sphericity was used to determine whether the correlation matrices were suitable for factor analysis. Internal consistency was examined using Cronbach’s alpha coefficient, and the dimensional structure of the instrument was assessed through principal component analysis.

Findings: The results confirmed the satisfactory psychometric properties of the MOCE scale, with, with , The overall reliability of the MOCE instrument reached 0.966, indicating excellent internal consistency across the three constructs.

Implications: The study contributes to the customer experience literature by extending the measurement focus from customer experience itself to its key marketing outcomes. The validated MOCE scale offers a useful framework for future empirical research and provides practitioners with a diagnostic instrument for evaluating whether customer experience strategies generate favorable outcomes in terms of satisfaction, loyalty-related intentions, and positive word-of-mouth. Future research should test the scale in different industries, populations, and national contexts to further examine its generalizability and robustness.

Bridging the Gap Between Sustainability Education and Practice in Tourism

Marijana Bugarcic, Vanessa Guerra Lombardi, Marko Slavković — Mon, 27 Jul 2026 00:00:00 +0000

This study explores sustainability perceptions among future professionals, focusing on the role of work experience. Based on a sample of 241 students, the results reveal that those with prior work experience report significantly higher levels of perceived sustainability development and organizational responsibility. These findings suggest that practical exposure enhances sustainability understanding beyond formal education, indicating a potential gap between educational content and real-world practice. The study contributes by distinguishing between different dimensions of sustainability perceptions and by positioning these findings as a basis for future qualitative research. In particular, further studies are needed to explore how sustainability is understood and implemented by tourism professionals and whether a gap exists between the expectations of future professionals and actual industry practices.

Safety and Security: Key Drivers of Tourism Development

Aleksandra Stoiljković, Slavica Tomić — Mon, 27 Jul 2026 00:00:00 +0000

The global order is facing a series of systemic crises, including wars, political polarization, ecological disruptions, and pandemics. The tourism sector is particularly sensitive to the effects of these factors. Although destination choice and tourist arrivals are influenced by other factors (such as attractions, infrastructure, and economic development), safety and security are among the key determinants of tourism development and the competitiveness of tourist destinations.

The Travel & Tourism Development Index (TTDI) assesses the factors influencing the development of the tourism sector and ranks countries according to their capacity to develop tourism sustainably over the long term. One of the key pillars of this index is Safety and Security. The data suggest that countries with higher levels of safety and security tend to attract more tourists.

This paper focuses on the analysis of the Safety and Security pillar as a factor of Serbia's competitiveness in the international tourism market. According to the 2024 TTDI report, Serbia achieved a score of 6.10 in the Safety and Security pillar, the highest among all pillars, and ranked 32nd out of 119 countries.

Examining the Effects of FDI on the Economic Growth of the Republic of Serbia

Jelena Vujadinović, Darko Marjanović — Mon, 27 Jul 2026 00:00:00 +0000

Foreign direct investment (FDI) represents an important source of capital, particularly for transition economies, as it stimulates investment activity, increases productivity, and contributes to economic growth, while strengthening macroeconomic stability and the openness of the economy. In this research, economic development will be monitored through the movement of gross domestic product (GDP), which represents an important indicator of economic activity and overall economic growth. However, the degree of impact of foreign direct investment on gross domestic products and economic growth is conditioned by various economic and institutional factors. The empirical research aims to examine whether and to what extent foreign direct investment inflows contribute to economic growth through increases in gross domestic product in the Republic of Serbia during the period from 2014 to 2024. The study will be based on secondary annual data obtained from the National Bank of Serbia and the Statistical Office of the Republic of Serbia. For the purposes of this research, the multiple linear regression method will be applied, enabling the identification of causal relationships as well as the estimation of economic impact. The results are expected to show a positive and statistically significant impact of foreign direct investment on the economic growth of the Republic of Serbia, confirming their importance as a mechanism for strengthening macroeconomic stability and long-term development. The results indicate a clear upward trend in foreign direct investment inflows, accompanied by overall growth in gross domestic product in Republic of Serbia. The analysis suggests a positive association between FDI inflows and economic growth, highlighting their importance as a factor contributing to macroeconomic development and long-term economic expansion.

The Accelerated Rise of Artificial Intelligence in the Banking Sector of the Republic of Serbia in Conditions of Global Instability

Maja Bodrozic — Mon, 27 Jul 2026 00:00:00 +0000

Abstract: Artificial intelligence (AI) is rapidly moving from the experimental stage to the operational application stage and is becoming a key tool for transforming the banking industry, as a standard that changes the lending process, risk management, customer relations, user experience, fraud detection, customer churn prevention and decision-making process. Banks that use AI wisely can position themselves as industry leaders, providing faster, smarter and more personalized services to customers, while automating internal processes. The aim of the paper is to comprehensively explore and highlight the application possibilities that generative AI brings to the banking sector, how banks scale AI solutions with technological, investment and regulatory implications, and to make a significant contribution to understanding the role that AI plays in the banking industry, where the transition to more digitally focused banking models has become a feature of the modern banking era in which the application of AI changes the business model, but also carries with it major risks and limitations in practice. Therefore, the implementation of clear strategies, faster adaptation, constant education of management and development of talents, as well as the creation of additional value in the market are necessary. The subject of research in this paper is the accelerated development of AI in the banking sector in conditions of global instability, market volatility where the introduction of AI imposes the need for resilience, smart adaptation and responsible innovations. The paper highlights the importance of preparation and activities that the banking sector should implement in order to make its operations more resilient to upcoming changes, in which AI plays a key role. Key questions in the paper relate to the purpose of AI implementation, key decisions of top management when implementing AI, to what extent AI is being applied in the banking sector of the Republic of Serbia and where the banking sector currently stands in terms of adopting responsible AI, with a presentation of banks that are leaders in AI implementation and how they are actively adapting their people, policies and processes, what lessons they have learned, and what best practices they have adopted in order to accelerate innovation, while ensuring that they responsibly apply AI, which is not an obstacle to faster innovation, but a key so-called "grail" of digital transformation. The research methodology applied in this paper includes a combination of scientific and professional literature research, methods of content analysis of financial and business reports of banks and regulators, analysis of the AI ??index, as well as interviews with top managers and IT managers in our banks. The research results indicate that the key to the implementation of AI lies in the smart use of technologies, compliance with regulatory requirements and ethical principles in data management, and provide a practical example of how AI is used to increase efficiency, productivity and stimulate innovation in the banking sector. The paper provides theoretical and practical implications for the understanding and application of AI in the banking sector, where from a theoretical point of view it contributes to the expansion of knowledge about the role of AI and the understanding of the relationship between the application of AI and the key performance of the bank. The paper highlights the need to develop models and business frameworks for responsible AI and the integration of AI with blockchain and decentralized finance. From a practical point of view, the paper provides significant guidance to top managers and bank owners for the implementation of AI in the selected business model, where the assessment of the maturity of AI implementation compared to market leaders provides guidance and the possibility of proper implementation of AI, as well as the protection of data privacy, where the key role of regulators is to focus on resolving risks and ethical issues associated with the use of AI, but also on promoting fair competition between fintech companies and banks. The proposal for future research primarily concerns stability and security, which is reflected in exposure to various types of non-financial risks, and ultimately in the area of ??cybersecurity threats, where the bank of the future will represent a combination of technology, responsible regulation and lasting trust in times of rapid change, uncertainty and the need for resilience. Ethics, data quality and transparency are key to trust, and banks that implement AI in accordance with these principles will be the ones that advance fastest.

Environmental Management Accounting as a Risk Management Tool in Times of Global Instability

Nedeljko Babić — Mon, 27 Jul 2026 00:00:00 +0000

Global instability, characterized by climate change pressures, geopolitical tensions, energy market volatility, supply chain disruptions, and regulatory uncertainty, has significantly reshaped the contemporary business environment. In such conditions, organizations face increasing environmental and financial risks that require more sophisticated management tools and decision-support systems. Environmental Management Accounting (EMA) has emerged as a relevant mechanism for identifying, measuring, and managing environmental costs and risks within unstable economic contexts.

This paper examines the role of EMA as a risk management instrument in times of global instability. Drawing on the theoretical foundations of management accounting and sustainability governance, the study analyzes how EMA tools—such as environmental cost allocation, material flow cost accounting, and eco-efficiency indicators—support risk identification, enhance resource efficiency, and improve strategic decision-making under uncertainty. The analysis argues that EMA contributes to organizational resilience by reducing information asymmetry related to environmental exposures, increasing transparency in cost structures, and strengthening long-term economic sustainability.

By positioning Environmental Management Accounting within the broader debate on global instability and business environment resilience, the paper contributes to the understanding of how accounting practices can mitigate systemic risks and support sustainable value creation in volatile global conditions.

Comparative Analysis of Determinants of Public Debt in Selected Countries of the Western Balkans

Nenad Benović — Mon, 27 Jul 2026 00:00:00 +0000

The excessive accumulation of public debt of many countries in the past few decades, especially in the context of financial instability and low rates of economic growth, has increased the need for a deeper analysis of the factors influencing the dynamics of public debt. The aim of this paper is to identify the impact of specific variables on the level of public debt in selected countries of the Western Balkans. The paper analyzes studies that focus on determinants of public debt, and it defines four fundamental independent variables. The panel data regression model is used to interpret the impact of these variables on the public debt as a dependent variable, while it uses data from 2002 to 2024. The research results provide an empirical basis for a better understanding of the dynamics of public debt and its main drivers and can be significant for policymakers in defining activities aimed at maintaining the stability of public debt.

Export Competitiveness of Tobacco and Tobacco Products of the Republic of Serbia in the Period from 2014 to 2024

Mladen Subotic — Mon, 27 Jul 2026 00:00:00 +0000

The tobacco industry represents one of the industrial sectors that attracts the attention of scientific researchers, both due to its economic significance and its impact on human health. The focus of this paper is to determine the export competitiveness of tobacco and tobacco products of the Republic of Serbia in the period from 2014 to 2024. The relevant indicators of export competitiveness used in the analysis are the Revealed Comparative Advantages (RCA) index and the Lafay index. The analysis covers the trade of Serbian tobacco and tobacco products with the EU and CEFTA countries. The results differ depending on the applied indicator, given that the Lafay index incorporates both imports and exports in its calculation, whereas the RCA index excludes the impact of imports. In the observed period, the preliminary results indicate the existence of both comparative advantages and disadvantages in relation to the observed groups of countries; however, the results vary within the period and depending on the applied indicator of comparative advantage. The conclusion is that there is an expansion in the exports of Serbian tobacco and tobacco products, accompanied by the achievement of comparative advantage, but their presence changes over the years and depending on the indicators used.

The Impact of Demographic Aging on the Labor Market in the Republic of Serbia

Ostoja Vojinović — Mon, 27 Jul 2026 00:00:00 +0000

Population aging is an alarming trend for any country, causing serious social and economic consequences, including for the labor market. The aim of this paper is to determine the impact of demographic aging on the national labor market based on a comparative analysis of the aging process in different countries. Achieving this goal relies on generalizing demographic processes in the Republic of Serbia, developing forecast indicators for the development of the national labor market considering interregional and interstate differences. The article identifies disparities in the distribution of various age cohorts between the regions of the Republic of Serbia (RS) and identifies factors influencing the improvement of the quality of the national labor market. The dynamics of demographic changes and their impact on the labor market are crucial for developing effective public policies that will promote sustainable economic growth and social security. The article reveals the role of the elderly population in the development of the basic sectors of the RS economy and assesses the problems of workforce replacement under modern employment trends.