JOURNAL OF CONTEMPORARY ECONOMICS

The role of institutions in the digital transformation of companies in transitional countries

2025-02-13T12:22:37+01:00

The digital transformation represents a crucial factor for the competitiveness
of companies both at the local and regional, and especially at the global
level. The aim of this paper is to assess the adequacy of the legislative
framework in Bosnia and Herzegovina (BiH) and to compare the level
of digitalization in BiH with other countries in the region. In measuring
the level of digitalization, the paper utilizes the DESI index, which
assesses four key areas: connectivity, human capital, integration of digital
technologies by the business sector, and digital public services. The author
provides an overview of the literature on the impact of institutions on
digital transformation in transitional countries, as well as a critical
review of current and future trends on this topic. BiH has an outdated
and underdeveloped legislative framework concerning the implementation
of digitalization at both the systemic and company levels, which is not
aligned with modern trends. Consequently, BiH ranks among the lowest
countries in Europe in terms of the degree of digital transformation
compared to other countries in the Western Balkans. While the legislative
framework is not the sole cause of BiH's low level of digital transformation,
it represents one of the significant factors. This paper also provides recommendations
to policymakers and managers on the possibilities and
importance of digital transformation for companies, thus making certain
contributions to the field.

Does market orientation of small and medium enterprises make differences in the market?

2025-02-14T10:57:53+01:00

In market-oriented businesses, market orientation holds a significant
position as a business concept focused on recognizing and meeting
customer needs (the market). Given the interest in this subject, it is
essential to identify and analyze the factors influencing the development
of market orientation dimensions (market orientation - MO), conceptualized
according to the model proposed by Kohli and Jaworski (1990), and
their impact on increasing MO. Based on available literature and previous
empirical research, the following factors have been identified to assess
their influence on market orientation: professionalization of management
in SMEs, quality of communication/dissemination of market information
within the company, performance measurement of management staff in
SMEs, and their material rewards. This research was conducted on a
sample of 26 SMEs in Split-Dalmatia County, Republic of Croatia,
using statistical methods of descriptive statistics, correlation, statistical
testing, and clustering. Non-parametric statistics were used to overcome
certain limitations of the small sample size. The results are discussed in
the context of developing entrepreneurial infrastructure and public
policies to support entrepreneurship.

The Impact of Macroeconomic and Environmental Factors on Household Debts in G7 Countries

2025-02-14T10:54:48+01:00

This article aims to study the influence of macroeconomic and ecological
factors on household debts. The quantitative method of OLS multiple
Regression is applied to the data used for this research from the period
2003 to 2021. To establish the macroeconomic factor, the metrics are
the real house price index with the base year 2015, unemployment as %
of the labour force, and short-term interest rate per annum. Research
shows that house price and unemployment have a noteworthy relationship
with the dependent variable, while trade in goods significantly adversely
affects household debt. In respect to the climate change factors, results
reveal that annual surface temperature and annual emissions of CO2
have a favourable and notable impact on household debt. The only insignificant
effect on household debts had been shown by the short interest
rate. The beneficiaries of this research can include policymakers, economists,
and financial institutions who are interested in understanding the factors
that affect household debts. The significant relationship between household
debt and factors such as house prices, unemployment, export trade,
climate change factors, etc. reflect underlying economic disparities in
these countries. The results of this research could benefit policymakers
and economist in farther understanding the environmental factors that
influence household debts.

Factor Analysis and Principal Component of Project Delays Durign the Covid-19 Pandemic Due to Supply Chain Disruptions: Lesson Learned

2025-02-13T10:30:39+01:00

Each crisis provides food for thought concerning project management,
and lessons can be drawn for the future regarding risk mitigation. In that
milieu, there has been a lot of scientific discussion about the effects of the
COVID-19 pandemic on project implementation. That discussion pointed
to numerous factors that led to delays in the execution of projects. Thus,
this study aims to identify the main factors that caused project delays
during the pandemic. For this purpose, we used factor analysis, more
precisely principal component analysis, to determine the main culprits
that caused project delays. Factor analysis pointed to two primary causes
of project delays during the pandemic, namely Epidemic-Related
Disruptions and Supply chain disruptions. These findings indicate two
basic groups of factors enabling a much more focused approach to project
management should similar crises occur in the future.

The Importance of Soft Skills for Small and Medium-Sized Enterprises – Evidence from Bosnia and Herzegovina

2025-02-14T11:15:35+01:00

This article aims to investigate the importance of soft skills for starting
and successfully running small and medium-sized enterprises (SMEs)
in Bosnia and Herzegovina (BiH). Using data collected from a survey of
71 upper-level managers from enterprises operating in BiH, complemented
by qualitative insights from a focus group on the same subject, the study
examines the perception of the importance of skills such as leadership,
communication, emotional intelligence, problem-solving, and teamwork.
Statistical analyses, including descriptive analysis, Spearman correlation
coefficients, Chi-square tests, and Fisher’s Exact tests, reveal that most
soft skills are highly valued by SMEs, with slight differences in perceived
importance. Communication skills emerged as the most important,
reflecting their central role in fostering productive business interactions.
The conducted analyses also indicate that the desirable set of soft skills
does not change with the company size, except for the leadership skill.
Leadership shows a moderate positive correlation with company size, indicating
its increasing importance in larger organizations. Qualitative
findings confirm the importance of soft skills for starting and managing
businesses, with emphasis on communication and problem-solving skills.

Holistic Performance Assessment: Research on the Relationship between Sustainability Reporting and Financial Performance of MBI10 Companies in R. N. Macedonia

2025-02-14T10:56:17+01:00

The complex interaction between sustainability indicators and financial
performance shapes a company's resilience and long-term value creation,
guiding the path toward a sustainable future in the global business
world. This paper attempts to explore the relationship between sustainability
reporting, measured through the ESG index (ESGIn), and the financial
performance (FP) of high-ranked companies listed on the Macedonian
Stock Exchange and part of the MBI10 Index. Through the analysis of
ten high-ranked companies, including five banks and five companies
from the real business sector, over a period of 11 years (2013-2023), the
research reveals intriguing insights into the complex relationship between
sustainability efforts and financial success. When analyzing the entire
sample, no significant correlation between ESGIn and FP was generally
observed, except for a moderately positive correlation between ESGIn
and the ROE indicator. Additional sector-specific analyses reveal different
patterns in the sectors. In the case of companies from the real business
sector, there is a moderate positive correlation between ESGIn and the
ROA and ROE indicators, while in the financial sector (banks) there is
a weak positive correlation between ESGIn and the ROA and ROE
indicators and a weak negative correlation between ESGIn and YPS.
The analysis did not reveal a correlation between ESGIn and EPS. These
results have implications for strategic decision-making in the Macedonian
market and beyond, highlighting the need for tailored approaches to
effectively integrate sustainability practices. The study contributes to the
ongoing dialogue on the relationship between sustainability indicators
and FP, providing a basis for further research and practical applications.