EMC REVIEW - ECONOMY AND MARKET COMMUNICATION REVIEW

DIFFERENCES IN THE FINANCIAL CYCLE OF BOSNIA AND HERZEGOVINA AND OTHER CURRENCY AREAS

Vesela Vlašković — 2025-02-03

The financial cycle is determined based on real loans or the ratio of loans to nominal GDP. In the research, we applied the standard methodology of determining trends and cycles as deviations from the trend using the Hodrick-Prescott filter. We entered the research with two hypotheses. We assumed that the BH financial cycle is different from the financial cycle in the eurozone. We also assumed that the difference between the highest and the lowest point of the financial cycle is the most pronounced in Bosnia and Herzegovina. In addition to the financial cycle in Bosnia and Herzegovina, the subject of analysis was the financial cycle in eurozone, Slovenia, Serbia, Bulgaria, and Croatia. Measured by real loans, Bosnia and Herzegovina had two financial cycles in the past period, while the ratio of loans to GDP indicates only one financial cycle. Both methods of determining the financial cycle show that credit activity in BH in the recent period is significantly below the trend. Compared to other countries, the correlation between the BH financial cycle and that of the eurozone is relatively low. Due to the characteristics of the banking and financial market, the absence of the credit function of the central bank on the domestic market, and the generally low degree of monetary policy discretion, the recent values of the financial cycle in BH are the lowest in the selected sample of currency areas. In BH the biggest difference is shown in the final values of the financial cycle measured by real credit, and the same result is shown in the financial cycle based on financial intermediation depth. The exception is Slovenia, where the banking crisis had a long-term impact on the financial cycle. At the end of the analyzed period, BH has the lowest value of the financial cycle. For the correction of the financial cycle, BH has at its disposal the existing instruments of monetary policy, the reserve requirements, remuneration on reserve requirements, and excess reserves, and it can introduce new ones; ex nihilo issuance of primary money and macroprudential regulation. The currency board regime does not guarantee compliance of the financial cycle with the reserve currency currency area. Bosnia and Herzegovina has a financial cycle, which is significantly different from that of a country with a reserve currency. A significant deviation from the trend value of the loan-to-GDP ratio is also connected with the use of credit potential for exposure of BH banks to predominantly еurozone markets. The extremely low recent value of the BH financial cycle indicates the low level of liquidity of the BH economy. The potential ex nihilo issue of the primary money of the central bank in the BH monetary regime would be a strong corrective factor of the financial cycle in Bosnia and Herzegovina.

APPLICATION OF THE CAMA ALGORITHM IN MASS PROPERTY VALUATION IN THE REPUBLIC OF SRPSKA

Dragan Stanković — 2025-02-03

The real estate market is an integral part of the economic development of every country and contributes to promoting investments, production, increasing income, as well as socio-economic stability. Every country strives to achieve stability in the real estate market. The most important factor in the stability of the real estate market is real estate prices. Real estate prices determine the general well-being of citizens. They also affect the operations of banks (through mortgages, sales, etc.). It is extremely important to stabilize real estate prices. Only in this way is it possible to implement policies and macroeconomic measures that will make the real estate market an efficient segment of the overall socio-economic system. For all these reasons, it is very important to accurately assess real estate prices. Mass appraisal or Computer-Assisted Mass Appraisal (CAMA) are terms usually applied for the valuation of real estate for property taxation purposes. The development of computational technologies enables computer-supported methods for valuing all properties. CAMA represents a computer algorithm for the mass and individual calculation of real estate values. The use of the term Computer-Assisted Mass Appraisal techniques is defined as the systematic assessment of the value of all properties on a given date using standardized procedures and statistical testing. The CAMA algorithm consists of several components: Model specification (mathematical form of the model or valuation model); Sales prices and descriptive property data; Income and expense data and descriptive property data; Model calibration software (usually multivariate statistical methods); Calibrated models (a function of input data with established model coefficients; a mathematical expression for calculating the estimated value); Attributes (characteristics required by the appraisal model in a computer-readable form); Valuation software (software for applying the calibrated model to the characteristics of input attributes to create value estimates; creating an estimate file and generating defined reports or producible); Value estimates (file or database of value estimates). The goal of this research is to estimate the value of real estate using the mass appraisal method - the CAMA algorithm. The specificity of forming the estimated value of real estate lies in defining the market value of real estate if the prices from sales contracts entered into the Real Estate Price Register (formed based on supply and demand for apartments) are known, forming value zones (location factor), value tables (relational tables and value levels), additional influence factors (apartment location factor within a building), and an equation for estimating real estate value. The research results show that deviations between notarial contract prices and estimated values correspond to the standards applied in mass real estate value appraisal in all countries that implement them.

ENTERPRENEURIAL INNOVATIVENESS AS A FACTOR OF SUCCESS ENTERPRENEURIAL BUSINESS PERFORMANCE

Jasmina Ognjanović — 2025-02-03

Innovativeness is a key entrepreneurial orientation needed to successfully develop products and services to face continuous change and uncertainty. Entrepreneurial innovativeness can, to some extent, improve the ability of the entrepreneur to identify and develop opportunities, which will significantly improve their business performance. Therefore, it is necessary to determine how much and what the contribution of entrepreneurial innovation is to two types of business performance - financial performance and innovation performance. The research was conducted on the example of 40 entrepreneurs in central Serbia who introduced at least one kind of innovation in their business. The paper aims to identify the contribution of entrepreneurial innovativeness to entrepreneurial business performance in central Serbia. To test the hypotheses, regression analysis was applied. The results indicate a positive contribution of entrepreneurial innovativeness to financial performance and innovation performance. Results also indicate the need for additional improvement of the innovative activities of the observed entrepreneurs.

ECONOMIC ASPECTS OF THE CHARACTER AND WORK OF IVANA BRLIĆ MAŽURANIĆ IN THE FUNCTION OF DEVELOPMENT OF COMPETITIVE CULTURAL AND TOURIST PRODUCTS OF THE TOURIST AREA “SLAVONSKI BROD - POSAVINA”

Biljana Lončarić — 2025-02-03

Ivana Brlić-Mažuranić is the brand of the tourist area “Slavonski Brod-Posavina”, and her name and work are a frequent motive for the arrival of tourists, and the key distinguishing element on the basis of which this destination can differentiate itself from the competition. Analyzing the results of a large number of primary research conducted by the Zagreb Institute for Tourism during the preparation of marketing plans for the tourism development, as well as trends on the global tourism market, it was found out that the name and work of this Croatian writer could be the starting point for more intensive development of various forms of cultural tourism, including heritage, literary tourism, event and creative tourism. The aim of this paper is to determine which of these forms of tourism should the most be invested in, and which of the mentioned tourist products could bring the greatest economic benefits. As part of this, after analyzing the existing situation, the primary research, using the survey method, was carried out, in order to determine the attitudes of tourists and local residents regarding the perspective of particular cultural-tourism products based on Ivana’s name and work. The results of the research showed that the views of the respondents regarding the perspective of certain cultural products are fairly evenly distributed, and therefore each of these products is to a lesser or greater extent in the function of the arrival/longer stay of visitors in the destination. The conclusion drown from there was that cultural tourism needs to be developed in different directions and within each policy area, various activities should be implemented to intensify the arrival of tourists motivated by culture; improve the conditions of their stay, as well as achieve economic benefits on the part of the holders of cultural and tourist activities.

DEVELOPMENTAL OPORTUNITIES FOR DIFFERENT TYPES OF TOURISM IN BANJA SLATINA

Saša Milinković — 2025-02-03

This paper aims to point out the possibilities of tourism development and the current position of Banja Slatina on the tourist market, pointing out the exceptional tourist position and variety of tourist opportunities. Also, the goal is to point out various highly attractive opportunities, which can attract tourist demand, and the need to appreciate them in their complexity and the complexity of relationships and phenomena that arise during tourist movements. The analysis of tourist resources determined the benefits and comparative advantages, as well as the weaknesses and disadvantages of Banja Slatina as a tourist destination, presented by SWOT and portfolio analysis.
For the purposes of the research, a survey was conducted among the resident population regarding the favorable environment, information and interest of household owners in rural tourism. In doing so, the method of description and analysis was used, and for the purposes of comparing survey results from 2003 and 2014, the method of comparison was used. The research results indicate that, regardless of the passage of time of 11 years, there is still a moderate level of interest of the Slatina population in providing this type of tourist service.

THE EFFECT OF DIMENSIONS OF BRAND PERSONALITY ON ACTUAL AND IDEAL SELF-IMAGE CONGRUENCE: EVIDENCE FROM STARBUCKS COFFEE BRAND

Murat Arslandere — 2025-02-03

The purpose of this study was to examine the simultaneous impact of brand personality dimensions on actual and ideal self-image congruence in a sample of Starbucks coffee shops.The data were gathered via an online survey of 471 customers of Starbucks coffee shops in Türkiye. Structural equation modelling was employed for the purpose of data analysis. It has been observed that excitement, which is a dimension of brand personality, has a positive effect on actual self-image congruence. Similarly, the sophistication dimension of brand personality has been found to positively affect ideal self-image congruence. Therefore, it can be said that while Starbucks customers tend to show their actual self-image congruence with the excitement dimension of brand personality, they tend to show their ideal self-image congruence with the sophistication dimension of brand personality. This study represents an inaugural attempt to demonstrate the impact of brand personality dimensions on self-image congruence within the context of branded coffee shops. The results contribute to the growing body of knowledge regarding the relationship between brand personality dimensions and ideal and actual self-image congruence, which is still in its infancy in academic literature.

CHALLENGES OF MIGRATION OF STUDENTS IN EASTERN CROATIA

Sanja Knežević Kušljić — 2025-02-03

The purpose of this research is to describe student’s intentions of migration and their satisfaction with life in the home country and also the factors that are important for staying in Croatia. Research also investigate how sociodemographic characteristics are connected to student’s intention of migration from Eastern Croatia. The differences between gender, age, household income, place of residence, average grade in the previous part of the study, student status and close friends/family members live abroad were examined. This research was conducted on 420 students in Eastern Croatia during January and April 2023. Data was analyzed using SPSS and descriptive statistical analysis and Mann Whitney and Kruskal Wallis test. Research results identified that gender, place of residence, average grade in the previous year of the study, close friends/family members live abroad didn’t have significant impacts on the intention of migration. Age, household income and student’s status have significant impacts on the intention of migration. The results also recognized that most respondents are satisfied with life in Croatia and believe that Croatia is better than other countries.

MEASURING TRUST IN SHARING ECONOMY AND EVALUATING THE EFFECT OF TRUST ON SHARING INTENTION ACROSS TWO CULTURES

Ruşen Akdemir — 2025-02-03

The purpose of this study was to examine the influence of the trust of product/service providers in sharing economy platforms on renting intention, the potential mediating effect of consumer trust, and the moderating role of culture on renting intention. The authors collected survey data from 823 respondents in total, including 416 Turkish and 407 Russian individuals. To test the relationships among study variables, the authors analyzed the data using structural equation modeling. The results of the analyses showed that the perceived personal safety system and perceived review system have an effect on trust in the sharing platform, but the perceived property security system has no effect on trust in the sharing platform. In addition, the trust in the sharing platform mediated the effect of perceived personal safety system and perceived online review system on trust in consumers, but it did not mediate the effect of perceived property safety system on trust in consumers. The results indicated that trust in the sharing platform affects renting intention, but trust in consumers does not affect sharing intention. Finally, the results revealed that culture does not have a moderating role in the relationship between trust in the sharing platform and trust in consumers. Platform operators should improve their trust mechanisms. Marketers should consider trust as one of the main issues when determining their strategies as it can provide competitive advantage. In addition, policymakers should also produce policies that incentivize platforms in activities that increase trust. The article provides important theoretical and practical insights into understanding and improving the trust affecting the renting intention in the context of the sharing economy.

OPTIMISING EMPLOYEE DEVELOPMENT PROCESSES: PERCEPTIONS OF MICROLEARNING AS AN INNOVATIVE SOLUTION

Vasilii Ostin — 2025-02-03

The author conducted a systematic literature review to emphasize the researched topic’s current trends and related historical development of the key terms. To address the determined research gap, a quantitative approach was employed. The author primarily used a questionnaire survey to gather viewpoints from training participants. This study explores the integration of the microlearning trend into employee learning and development processes. It aims to better understand the attitudes towards microlearning utilization of the current training participants. Furthermore, it seeks to determine the practical pillars associated with microlearning adoption within organizations. The research confirmed that training participants have diverse associations with microlearning, which current businesses can leverage to structure succeeding learning content. These associational benefits can support current businesses with a microlearning formation and a better understanding of relevant implementation prerequisites. This study explores a rarely covered topic, that is addressing a research gap within the European context. The exploration of microlearning significance, its related aspects, and learners’ feedback offer valuable understandings, that provides a number of outcomes to contribute to theoretical and empirical wisdom of this research.

ADVERTISING MINORITY REPORT: THE (IN)VISIBILITY OF MINORITIES AND SENSITIVE GROUPS IN ADVERTISING

Marija Ocokoljić — 2025-02-03

The research focuses on the visibility of minorities and sensitive groups in television advertising in Serbia. Ethnic, sexual minorities, disabled, the elderly and people with large body types were chosen as groups which do not fit the usual representation template in commercial communication. Content analysis of television ads aired in 2023 showed very low visibilities amongst them, while some being practically invisible. Some of these groups carry certain risks in terms of communication backlash and controversy (ethnic, sexual minorities) which could to a certain point explain their exclusion from ads. On the other hand, the invisibility of others, carrying no controversies at all (disabled) only show the fact that they are not seen, as members of society or as consumers. Their societal invisibility drives their media invisibility which makes a kind of perpetuum mobile or a circle that needs to be broken in order to start creating a more inclusive and integrated local community.

LEADERSHIP STYLES, ESGs, AND EXTERNAL SOCIAL CAPITAL: IMPACT ON ORGANIZATIONAL COMMITMENT AND INNOVATION IN SERBIA

Nikola Jovanović — 2025-02-03

Leadership, Environmental, Social, and Governance (ESG) practices and External Social Capital (ESC) are critical elements in contemporary organizations, frequently discussed in scientific literature. However, their influence on organizational commitment and innovation, particularly in the Serbian context, is underexplored. This study aims to investigate the relationships between leadership styles, ESG dimensions (Environmental Protection, Corporate Social Responsibility, Corporate Governance), and ESC on organizational commitment and innovation in Serbian enterprises in order to provide valuable insights for managers. All three hypotheses were confirmed. According to the results, environmental protection is the strongest predictor of innovation, explaining 28% of its variance. While leadership significantly affects both organizational commitment and organizational innovation, ESC has a less direct or even negative impact on commitment and a positive one on innovation. These results from Serbian organizations contribute to the understanding of how contemporary leadership and sustainability practices drive success in the context of the national business environment.

THE PROFESSIONAL DEVELOPMENT OF UNIVERSITY TEACHERS IN CURRICULUM INTERNATIONALISATION: INSIGHTS FROM SLOVENIA AND BOSNIA AND HERZEGOVINA

Katarina Aškerc Zadravec — 2025-02-03

This article examines the role of professional development in enabling academic staff to effectively internationalise university curriculum, focusing on higher education institutions in Slovenia and Bosnia and Herzegovina. The primary objective is to analyse how pedagogical training courses enhance the ability of university teachers to integrate global and intercultural dimensions into teaching practices. Employing a qualitative methodology, the study uses semi-structured interviews and responses and content analysis to gather and interpret insights from 22 university teachers across various academic disciplines. Findings highlight the significance of professional development programs in fostering teachers’ global competencies, enhancing intercultural awareness, and improving teaching methodologies. Participants reported increased self-confidence, the incorporation of international elements into syllabi, and refined assessment practices. Key challenges identified include institutional resistance to change, insufficient resources, and cultural and linguistic barriers. Despite these obstacles, the study underscores the transformative impact of internationalisation-focused trainings on both university teachers’ pedagogical approaches and students’ preparedness for a globalised world. The article provides valuable insights for policymakers and higher education institutions seeking to develop inclusive, internationally oriented curriculum. It emphasizes the necessity of cohesive national and institutional strategies to overcome existing challenges and advance global competencies in higher education.

SIMULATION MODELS IN THE FUNCTION OF PROGRAMMING OPTIMUM BUSINESS EFFICIENCY FOR THE EXAMPLE OF MANUFACTURING COMPANIES

Mirjana Landika — 2025-02-03

The quantitative description of the state of business operations of the company is based on the translation of the problem into an adequate theoretical model, so that through the process of modeling the business system, through management actions aligned with the circumstances in which the business system exists, it becomes a powerful analytical tool for the problems of overcoming insufficient business efficiency. Increasing efficiency is a key motivating element of the change equation in finding a possible solution as a state in which the system, in accordance with the set goal, wants to reach in the future and thereby strengthen the competitive advantage and secure the market position.
Changes in the environment are constant and uninterrupted, and the company is obliged to notice them in a timely manner, adapt to them and respond to them in an adequate way. In accordance with the above, the company sets main and partial goals. Real possibilities and business options are not set by the subjective preferences of management. They are the result of specific mathematical and enmathematical calculations on the basis of which the model is established, which is efficient and flexible enough. Also, one of the important assumptions of the goals is that it must be flexible if it is long-term, due to leaving the possibility of adapting to changes or taking advantage of unexpected opportunities that the environment can provide.
A realistic business environment opens up numerous possibilities of business options, where some of these options enable companies to achieve the desired economic quality, expressed in the form of efficient strategies and set goals. Many real factors show an appropriate connection, which needs to be recognized, quantified and included in an adequate theoretical model that connects business outcomes with the cause or probability of their occurrence, including the mathematical connection of input variables with a possible business outcome. An objective approach in the application of theoretical tools refers to the inclusion of initial assumptions in a quantitative relationship, as a starting assumption of the optimal combination of resources. Therefore, the construction of the model should enable the achievement of management balance through the model correction of available operational resources. New market conditions require an ever wider application of theoretical models with the aim of overcoming the problem of insufficient business efficiency. The results of the research should show that the application of regression analysis of economic functions, simulation and competitive models, as well as mathematical programming models in the specific example enables the company to significantly raise the level of business efficiency through increased profits, more complete utilization of capacity and increased competitiveness. The problems of the business of the mentioned company are contained, primarily, in the insufficient efficiency of the business, which certainly results from the burden of costs of traffic surpluses (stock disposal), especially in cases where the quality of the service is directly expressed by the “freshness” of the items exchanged within the business.

APPLICATION OF MODERN METHODOLOGIES IN IMPROVING BUSINESS EXCELLENCE AND PROCESSES OF BUSINESS ENTITIES

Mirko Miličević — 2025-02-03

Domestic companies must take care of product quality, because in addition to not being able to operate on the foreign market, they will soon not be able to operate on the domestic market either if they do not adhere to quality standards and at the same time improve their own registered business activities. The ultimate goal of quality improvement is to achieve business excellence, and excellence satisfies the end user. In order for companies to operate successfully, it is necessary to continuously improve and transform their business processes, from which companies can create certain smaller accumulations that are significant for new developments in increasing the level of quality of products or services. Companies also have the opportunity to make different and new business decisions during their operations, which can result in positive changes that will create significant breakthroughs in the company in question, and which will reduce future costs and improve their competitiveness on the market. Realizing that the state of errors or scraps of products, or services, arise as a result of “business blindness”, which is caused by the application of wrong or badly evaluated business processes at the micro or macro level, every company sooner or later comes to the realization that there is a need to make additional changes until achieving the highest possible correctness of the quality of products or services. By applying new methodologies for the purpose of improving the processes of business entities, the hypothesis of this paper is defined, which reads: “Companies that apply international standards do not achieve business excellence, because they do not apply models for assessing the maturity of business and for improving the level of maturity of business processes.”

TRANSPARENCY OF FINANCING OF THE NON-PROFIT ORGANIZATIONS IN THE REPUBLIC OF SRPSKA

Miloš Jokić — 2025-02-03

This paper examines the transparency of financing of the non-profit organizations. This subject is regulated by legal and by-laws that define the conditions and criteria that non-profit organizations, should fulfill and satisfy in order to gain allocated funds. However, the question arises of the transparency of the financing of these organizations, whether the allocation procedure is followed by reports on the intended use of funds, whether there is a clearly visible public interest that is financed by budget funds. Therefore, this research was prepared in order to provide an answer and collect data on the method of allocation and the amount of financial amounts of public funds that were available to non-profit organizations for the period 2021-2022. The subject of analysis of this paper includes the legal framework for financing non-governmental organizations in the Republic of Srpska, and the goal is to determine to what extent the legal regulation affects the achievement of transparency in the financing of non-profit organizations. In accordance with the above, the following hypotheses are tested: H1: The legal framework for financing non-profit organizations in the Republika Srpska provides an adequate basis for achieving transparency regarding the collection and spending of funds by non-profit organizations. H2: Inadequate application of legal regulations and the absence of appropriate by-laws affect the achievement of a low level of transparency in the financing of non-profit organizations in the Republic of Srpska.
The considerations that we give through the conclusion of the paper will give us an answer to the set research problem and confirm or deny the truth of the set hypothesis.

CULTURAL IDENTITY BRANDING ON THE EXAMPLE OF DANI PAJE KOLARIĆA - A CASE STUDY

Blanka Gigić Karl — 2025-02-03

This paper deals with the presentation of a case study of Dani Paje Kolarića on the topic of cultural identity branding and specifics of the implementation as part of cultural identity branding activities by the Academy of Arts and Culture and the local community and the City of Osijek are presented. This paper presents the theoretical determinants of culture and cultural policy, followed by the specifics of branding. The methodological framework refers to the presentation of the interdisciplinary project “Dani Paje Kolarića”, through the specifics related to the formation of the project team, setting the main and specific goals of the project, defining the target audience or stakeholders, as well as planning and implementing project activities. The main goal of this research is to promote the art and culture of the 19th century based on the life and work of Pajo Kolarić through the programs of the AUK-Os, during April and May 2021. It includes informing the public about the historical significance and cultural heritage of Pajo Kolarić’s work for his homeland, protecting the archaic value of 19th century art through contemporary artistic expressions of young artists, and creating a new tourist product through the presentation of Osijek’s historical figures and musical heritage. Through art exhibitions, music-stage events, vocal-instrumental concerts and music workshops, the interdisciplinarity of the project was evoked and thus the goals of the project are realized. This work will show how this interdisciplinary approach to the entire project affects the public, which will change the awareness about preserving cultural heritage, because the historical and cultural significance of the work will be promoted through the project. The implementation of the interdisciplinary project will also be presented in detail, since it was extremely successful and can serve as an example of good practice in how cultural heritage, tradition, music, performing and applied arts and science are united in the creation of a cultural identity. Due to its characteristics, the project has largely served as an educational backbone for the younger generations who are currently connected with popular and current knowledge, while on the other hand, they do not possess knowledge of the values of cultural heritage. By approaching a historical topic in the way it is presented, this project arouses the interest of the younger population, which was ultimately the goal of the entire project. The implementation of this project resulted in the fulfillment of the set main and specific goals, and it becomes a good basis for research and implementation of projects on the topic of other famous Osijek / Slavonians of the 19th century. Finally, this project was quite demanding, but also rich. The Corona virus epidemic made the implementation of this project even more difficult, but the great involvement of students from different departments of the Academy in the very preparation, implementation and participation in all activities of this project and the breadth of the Academy in terms of art and science enabled this approach and opened the door to many further activities and projects.

THE INFLUENCE OF GDP ON THE FOREIGN TRADE OF BOSNIA AND HERZEGOVINA WITH A FOCUS ON THE EXCHANGE OF GOODS WITH THE COUNTRIES OF THE EUROPEAN UNION

Mirjana Milovanović — 2025-02-03

Bosnia and Herzegovina is a country in transition with an economy that imports more than it exports, but the importance of exports is crucial for sustainable economic growth. This paper investigates the impact of the gross domestic product (GDP) on the foreign trade of Bosnia and Herzegovina, focusing on the exchange of goods with the countries of the European Union. The analysis covers the period from 2009 to the end of 2022 to look at long-term trends. The main goal of the research is to determine the existence of a statistically significant influence of GDP on the exports and imports of the country. Using the t-test, the value of exports/imports between the countries of the European Union and other countries is also analyzed. Firstly, an analysis of macroeconomic trends was conducted, which is crucial for understanding the economic situation in BiH. Monitoring the trends of GDP, imports, and exports provides insights into the country’s economic activity. GDP trends reflect economic growth or recession, while the analysis of imports and exports provides information on trade activities. From 2009 to the end of 2022, the GDP of BiH mostly showed a rising trend, with exceptions such as in 2012. The GDP growth rate varied during the analyzed period, with the lowest values during the years of the global financial crisis and the Covid-19 pandemic, and the highest in 2021. Imports and exports of Bosnia and Herzegovina are also important indicators of economic activity. The value of imports and exports mostly showed an upward trend, although decreases were recorded in some years. The analysis of the relationship between imports and exports indicates a trade deficit, which can be a challenge for economic stability. The country faces challenges in achieving balance in the foreign trade balance, given the higher imports compared to exports. After analyzing macroeconomic trends, a regression analysis was conducted to determine the impact of GDP on the imports and exports of Bosnia and Herzegovina. The results show a statistically significant positive correlation between GDP and imports, as well as exports. This confirms that economic growth (GDP) positively influences the country’s trade activities. Additionally, the trade exchange of Bosnia and Herzegovina with the countries of the European Union and other countries was analyzed. Although no statistically significant difference was found, the data show a significant volume of trade with the European Union countries. Favorable trade agreements facilitate access to the EU market for Bosnian products, while the connection with the EU enables access to technology and investments that support economic development. Further development of trade relations with the EU is expected to support the economic growth of this country and open up new business opportunities. The results of the research provide insight into the trends of the mentioned variables during the analyzed period. Based on the obtained results, concrete recommendations are given for increasing the export of Bosnia and Herzegovina. The paper contributes to the understanding of the economic dynamics of this country in the trade context, emphasizing the importance of strategies for improving exports and strengthening economic stability.

METHODOLOGICAL APPROACH TO COLLECTING CLIMATE FINANCE DATA- THE EXAMPLE OF BOSNIA AND HERZEGOVINA

Miloš Jokić — 2025-02-03

This study examines climate finance context, policy context in Bosnia and Herzegovina and creating recommendations regarding national Monitoring, Reporting and Verification (MRV) system to track climate finance inflows and public expenditure. This research was prepared to answer the question, what is the best methodological approach for recording climate finance in Bosnia and Herzegovina, considering the best foreign practices as well as the specifics of the political system of Bosnia and Herzegovina. The subject of the research was the financial flows of investments in climate change, mitigation and adaptation, and the recommendation of the best way to establish a system for monitoring, reporting and verifying the relevant financial indicators. During the research, the main hypothesis was tested: H1: The existing monitoring of flows of public finances in Bosnia and Herzegovina give a clear picture of investment in climate change. The findings underscore the necessity for a robust MRV system that not only enhances transparency but also fosters accountability in the allocation of climate finance. It becomes evident that tailored strategies must be deployed to integrate these practices within the existing governance frameworks, ensuring that financial flows align with national climate objectives. Ultimately, this study seeks to contribute valuable insights and actionable recommendations toward advancing climate finance management in Bosnia and Herzegovina, advocating for a sustainable and resilient future in the face of climate change impacts.

MAKING UNCERTAIN BUSINESS DECISIONS IN THE BANKING SECTOR

Željana Jovičić — 2025-02-03

The time in which we live today imposes new business rules that must be followed in order to survive in the market. Therefore, the essence of today’s management in all sectors, including banking, is flexibility. Clients who use the bank’s services have the following key products at their disposal: loans, guarantees and deposits. The subject of analysis in this paper will be the approval of loans to business users. Analyzing business users, banks analyze the entire spectrum of different financial indicators. This information, in the form of quantitative and qualitative data, is the basis for assessing the creditworthiness of the client in order to minimize credit risk. Based on the analysis of financial indicators and overall operations of a legal entity, a detailed report on solvency, liquidity, profitability, activities, repayment capacity of a particular client can be obtained. The main goal of the research is to show the analysis process that happens in the background when approving a loan to a business user. The paper will present banking risks as well as the types of financial indicators on the basis of which business decisions are made. On the basis of the case study method, it will be shown how and in what way banks approach the process of approving loans to business persons, which methods they use to protect themselves and to prevent the emergence of banking risk. The results of the research point to the need to use financial indicators during the loan approval process, because in this way banking risk is prevented, and subjective assessment methods cannot meet such a demanding task.

RENEWABLE ENERGY SOURCES AS A PATH TO SUSTAINABILITY: BIOMASS ENERGY POTENTIAL IN AGRICULTURE

Vlatka Bilas — 2025-02-03

The main purpose of this paper is to identify and discuss challenges and opportunities of using biomass in agriculture. The importance of biomass supply chain is thus emphasized. The main objective is to identify all the challenges of assessing the potential of biomass as well as the challenges in collection and storage of biomass residuals in agriculture on the example of Croatia. Methodology framework for determining potential locations for collection and logistics centers and establishment of the value chain is proposed and is based on the Herfindahl-Hirschman Index (HHI) and concentration rates by counties. The scientific contribution of the paper is seen in filling the research gap on biomass potential and organization of the biomass supply chain. Research results and policy recommendations can be informative for government decision making as well as for designing and implementing national bioeconomy strategy, but they can also be useful for analyzing the biomass supply chain and designing new business models with the purpose of efficiently using biomass potential.

BENCHMARKING INSTRUCTIONAL DESIGN MODELS - ADDIE WINS

Dalibor P. Drljača — 2025-02-03

The rapid development of learning and instructional design technology has resulted in the creation of numerous instructional design models. These models are often used as the basis for instructional design courses, providing students with an introduction to the field. The abundance of models can be overwhelming, especially for beginners in the field. This prompts the question - which model is the best to use? The objective of this paper was to review the comparative advantages of selected models and to assist instructors in choosing the most appropriate one. Desk research was conducted to establish a list of qualitative indicators that can be used to evaluate and benchmark selected models. The models (such as ADDIE, SAMR etc.) were examined, and a benchmarking table was created. The paper provided insight into the most important characteristics of the selected models and presented arguments on their advantages and disadvantages. Based on the results of analysis and benchmarking indicators, the ADDIE model demonstrated slight advantages over other models. This paper compares four important models and recommends the ADDIE model as the most complete, structured, flexible, and easy to implement.

KEY FACTORS OF INFLUENCE OF SME OWNERS ON SUCCESSFULL AUTOMATION OF HR PROCESSES

Aleksandra M. Damnjanović — 2025-02-03

The paper explores the impact of leadership on the introduction and implementation of automation in the human resources (HR) sector of small and medium-sized enterprises (SMEs), emphasizing the importance of a strategic approach. Automation in HR has the potential to significantly improve operational efficiency. However, the ultimate success of such initiatives is highly contingent upon leaders’ ability to plan strategically and execute changes effectively.The empirical analysis focuses on leaders who adopt a strategic framework when integrating automation. These leaders excel in setting clear objectives, analyzing available resources, and foreseeing potential challenges, which results in streamlined processes and improved outcomes. The findings underscore that a strategic approach not only enhances operational efficiency but also facilitates smooth transitions within HR operations. Key success factors identified in the study include meticulous attention to detail, well-defined goal-setting, and effective resource allocation. Leaders’ ability to anticipate obstacles and develop strategies to address them is shown to minimize risks and maximize the benefits of automation. This proactive management approach ensures that the introduction of automation aligns with organizational goals and employee needs, fostering a balanced and productive transition. The paper emphasizes that strategic leadership is central to the successful adoption of technological changes in HR. By focusing on long-term objectives, strategic leaders not only drive efficiency but also create a resilient foundation for future innovations. These leaders play an instrumental role in optimizing HR processes, ultimately contributing to the broader success of the organization. The research provides valuable insights for managers aiming to implement automation in their HR departments. It serves as a practical guide, illustrating the critical role of effective leadership in navigating the complexities of technological change. Strategic leaders act as catalysts, bridging the gap between automation’s technical aspects and its operational implications.In conclusion, the study highlights the profound influence of leadership on the effectiveness of HR automation. Leaders who strategically plan and manage the automation process enable their organizations to achieve enhanced efficiency and align technological advancements with business objectives. The findings affirm that strong leadership is pivotal in realizing the full potential of automation, ensuring both immediate gains and sustained growth. By aligning leadership strategies with automation goals, organizations can better position themselves to tackle challenges and leverage technological advancements. Ultimately, the research underscores the transformative power of strategic leadership in achieving operational excellence and long-term success in the HR domain. Ultimately, the research underscores the transformative power of strategic leadership in achieving operational excellence and long-term success in the HR domain. Beyond these immediate impacts, the study suggests that strategic leadership in automation fosters a culture of innovation within the organization. Leaders who embrace automation as a tool for growth encourage continuous learning, adaptability, and collaboration among their teams. This approach not only ensures the successful implementation of automation but also strengthens the organization’s ability to remain competitive in a rapidly evolving business environment. By cultivating such a forward-thinking mindset, organizations can unlock new opportunities for development and maintain a strong position in their respective markets.

BIG DATA TECHNOLOGIES IN ANALYSIS OF CONSUMER BEHAVIOR

Nataliia Parkhomenko — 2025-02-03

The study of consumer behavior at all stages of marketing is related to Big Data analysis. The purpose of the study is to structure information on assessing consumer behavior, which relates to Big Data on the components of marketing max, to form methods for analyzing this information and basic results that will contribute to sustainable business development in the conditions of information and technological transformations. During the research, methods of synthesis, system analysis, comparison and systematization were used to track trends in the use of Big Data analysis in a system for assessing consumer behavior. The result of the study is the systematization of information data, methods of Big Data analysis for assessing consumer behavior. The proposed tools for assessing consumer behavior based on Big Data technologies make it possible to improve the marketing strategy for enterprise development and form a mechanism for strategic marketing management. Further research may concern generalizing the methodology for using Big Data for different categories of consumers.

CRIMINAL OFFENSES AGAINST THE ENVIRONMENT IN THE EUROPEAN UNION, THREAT TO SURVIVAL, AND RISK FOR THE COMPANY AND MANAGEMENT

Goran Matijević — 2025-02-03

World population growth, economic development, globalization, and industrialization, the race for capital, especially in the last 100 years, have caused numerous benefits to the world’s population. But they have also caused many problems which were previously unknown. In the context of this paper, the primary focus is on the pollution of the atmosphere, hydrosphere, and biosphere and the destruction of plant and animal life. The latter affected the health and the survival of people by breaking numerous food chains in nature. The goal of those who are trying to prevent the negative effects is different from the goal of those who wish to acquire capital. Criminal offenses against the environment are among the most profitable organized crimes in the world. The latter presents the third most widespread criminal activity, with an annual increase of 3-5%. It has alarmingly reached 110 to 280 billion dollars in damage. Improper waste collection, waste transport, and disposal, illegal emissions, or release of substances into the atmosphere are some of the crimes that are annually increasing, along with the constant need to monitor the situation and pass regulations to prevent and suppress these occurrences. The European Union reacted to these risks, and in 2024, improved the legal regulations, and introduced stricter sanctions with an expanded list of criminal offenses against the environment, which aim to result in a lower number of these criminal offenses, but also a cleaner and healthier environment. The paper defines the issue of environmental protection through the lens of new legislation, provides an overview of the legislative framework and the basic terms at the level of the European Union and the Republic of Croatia related to criminal offenses against the environment, identifies the most numerous ones in the Republic of Croatia, and proposes prevention measures which aim to raise the level of awareness among management, the public and highlight the need to fight against them.