Understanding the Mechanism of Influence of TQM Practices on Financial Performance: the Mediating Effect of Innovation Performance

This study explores the mechanism of influence of total quality management (TQM) practices on a company’s financial performance (FP), considering innovation performance (IP) as a mediator variable. In addition, the proposed model seeks to determine whether the competition intensity (CI) moderates the relationship between TQM practices and FP. Based on the sample of 593 companies from various sectors in Bosnia and Herzegovina, structural equation modeling is used to analyze the relationships between the variables in the model. The results of this paper reveal the implicit and often omitted impact of IP on FP taking into account TQM practices, suggesting that the impact of TQM practices is manifested through full mediation of IP. The moderating effect of CI in the relationship between TQM practices and FP was not supported. The results indicate the role and the importance of IP in the mechanism of influence of TQM practices

KREATIVNO PROMIŠLJANJE I INOVATIVNOST KAO KLJUČ USPJEŠNOG PREDUZETNIČKOG DJELOVANJA

U današnje turbulentno vrijeme kreativnost je izuzetno važna, ako ne iesencijalna karakteristika uspješnog preduzetnika. Ona predstavlja motivaciju isposobnost pojedinca da, samostalno ili u okviru organizacije, uoči priliku iiskoristi je stvaranjem nove vrijednosti. Kreativnost je sposobnost logičkograzmišljanja i zaključivanja koja mora biti svojstvena preduzetniku kao kreatorunovog preduzetničkog poduhvata. On treba težiti razvijanju kreativneorganizacije u kojoj menadžeri vjeruju svojim ljudima i ne kontroliraju ihstriktno, komunikacija između članova organizacije je slobodna, interakcija iotvorenost organizacije sa okolinom je izražena, evidentna je velika raznolikosttipova ličnosti itd. Modeli inovativnosti i kreativnosti predstavljaju izvrsne alatekoji se nameću kao temelj održivog opstanka i ključ uspješnog poslovanjamikro, malih i srednjih preduzeća.Prema Globalnom indeksu inovativnosti jasno je prepoznatljivo da su razvijenezemlje, ali i neke zemlje iz okruženja, konkurentnije od BiH iz razloga što se utim zemljama sistematski kreira ambijent koji stimulira inovativnost ikreativnost. Stopa rasta i napredovanja u našoj zemlji veoma je niska, te jepotrebno sistematski redefinirati razvojnu politiku, kako bi se dostigao nivozemalja Evropske unije, u kojoj je preduzetništvo predominantno razvojno, a nesocijalno. Komparativnom analizom BiH sa drugim zemljama, uz primjenu statističkihpodataka dobijenih na bazi modela Globalnog indeksa inovativnosti, u formizaključnih razmatranja bit će date ključne preporuke i smjernice za unapređenjeekonomske politike u cilju jačanja kreativnog razmišljanja i inovativnosti kaosignifikantne komponente uspješnog preduzetničkog djelovanja mikro, malih isrednjih preduzeća, ali i konkurentnosti nacionalne ekonomije kao preduvjetanjenog budućeg ekonomskog rasta i razvoja

MIDDLE MANAGEMENT INVOLVEMENT IN THE PROCESS OF STRATEGIC DECISION MAKING IN MIDDLE ENTERPRISES IN FEDERATION OF BOSNIA AND HERZEGOVINA

Strategic decisions are of crucial importance for any company since they determinedirection of its development and growth. Strategic decisions determine thedirection of the company and are made by high-ranking managers in the organization.From the point of view of the importance and complexity, these decisionsare crucial for the success of the organization. Although strategic decisionsare generally associated with top management, middle management playsserious role in some phases of strategic decision making. Therefore, adequatecooperation between the middle and top management in strategic decision-making process becomes very important in order to make the right decisionsPurpose of this paper is to test theoretical model of strategic decision making which definesand involves middle management roles in the process of decision making in emergingmarkets such as Federation of Bosnia and Herzegovina. The goal is to researchin which extent middle managers participate in different phases of strategic decisionmaking. We used ‘’management science’’ method of decision making which has sevenphases among which three are considered as strategic role of middle management.Those phases are implementation of decisions, synthesizing information from environmentand adoption of alternatives for decision making. For the purpose of empiricalmodel testing, we surveyed 135 middle and top managers from 30 middleenterprises in Federation of Bosnia and Herzegovina. Correlation and regressionare used as statistical methods. Based on the model, research revealed that middlemanagers only participate in phases of defining the problem, implementation of decisions and analysis of results while other four phases are generally associated withtop management. Analysis of results confirmed that characteristics of middle managersdo not correlate with the degree of their involvement in the process of decisionmaking

The life and work of Professor Emeritus Marin Buble

This collection of papers provides a wide diversity of personal and professional reflections upon the life and work of the late Professor Marin Buble. The authors discuss the contribution of Professor Marin Buble to the development of the science and practices of management, organizational design, entrepreneurship and international management, as well as different aspects of his academic career, including his work committed to development of Faculty of Economics Split and his work as a supervisor with many young scientists

Transient nature of the employees’ job satisfaction: The case of the IT industry in Bosnia and Herzegovina

In a time of persistent and fierce “war for talents,” which is naturally inherent to the knowledge-intensive industries, the issue of employees’ job satisfaction is of the utmost managerial significance. In that respect, this study explores certain intrinsic factors that underlie the job satisfaction concept, as well as the durability of employees’ job satisfaction. Based on the extant literature, a theoretical model of job satisfaction was designed, which was subsequently tested using the data gathered through the surveys conducted over the ten years. The results obtained by model testing show that employees’ job expectations make up that particular intrinsic factor that differentiates job satisfaction from non-satisfaction. More intriguingly, the results showed that prior job satisfaction is not a reliable predictor of later job satisfaction

THE NECESSITY OF BUSINESS RESTRUCTURING OF STATE-OWNED AND PUBLIC ENTERPRISES IN BOSNIA AND HERZEGOVINA

The restructuring of state-owned and public enterprises has attracted the attention of numerous researchers in the transition and post-transition period. The goal of restructuring as a business philosophy is to change and establish a new business philosophy, a new way of thinking. The correct interpretation of this term goes beyond its narrow and misleading translation, which equates to restructuring with a measure of change in structure. This paper examines the situation with the state-owned enterprises in Bosnia and Herzegovina. Although Bosnia and Herzegovina is characterized by the presence of two completely separate systems of corporate governance (corporate governance is regulated at an entity level without any common grounds at the level of Bosnia and Herzegovina), the symptoms of the situation are identical in both entities: state enterprises are commercially inefficient in both entities, and the reasons for their inefficiency are identical. The paper attempts to identify the symptoms and causes of such a state with a set of recommendations for the restructuring of state-owned enterprises, with clear definitions that, considering the trend of expansion of state-owned enterprises in highly developed countries, state-owned enterprises are needed here. It turns out that the privatized companies do not take into account the state interest. Following the logic of the OECD Guideline No. 2 (Ownership of State), first, it is considered how the state should manage the state-owned companies, and then by following the logic of the OECD Guideline no. 6 (Responsibilities of Committee) the complete corporation of state-owned enterprises is advocated in the way that state-owned enterprises have all the prerogatives of corruption, and are sufficiently distanced from political parties in power. Such an approach will significantly contribute to the improvement of corporate governance rating in Bosnia and Herzegovina that shows the atrophy of the system

THE IMPORTANCE OF COMPATIBILITY IN MANAGEMENT STYLE FOR SUCCESSFUL CHANGE MANAGEMENT IN ACQUIRED COMPANIES

U akademskoj zajednici ne postoji konsenzus o optimalnom oblikovanju i provedbi strategije preuzimanja poduzeća, već se često analiziraju različiti faktori i različite perspektive uspješnosti preuzimanja poduzeća. Jedan od ključnih čimbenika uspješnosti preuzimanja poduzeća je i optimalno upravljanje promjenama u preuzetom poduzeću. U radu se korištenjem financijskih pokazatelja uspješnost poslovanja preuzetog poduzeća utvrđuje usporedbom uspješnosti poslovanja poduzeća prije i nakon preuzimanja. Optimalno upravljanje promjenama se, pak, definira otporom zaposlenika, stoga je cilj rada utvrditi utjecaj stila menadžmenta na otpor zaposlenika pri provođenju promjena u preuzetom poduzeću. Hipoteza prema kojoj sličnost novog menadžmenta preuzetog poduzeća s promijenjenim menadžmentom rezultira manjim otporom zaposlenika, također se testira u okviru ovog istraživanja. Empirijsko je istraživanje provedeno pomoću anketnog upitnika na uzorku poduzeća koja su bila preuzeta u vremenskom razdoblju od 1998. do 2006. godine u Republici Hrvatskoj. Znanstveni doprinos rada ogleda se u verifikaciji važnosti kompatibilnosti stilova menadžmenta za uspješno upravljanje promjenama u preuzetim poduzećima.In academic community there is no consensus on the optimal design and implementation of acquisition strategy, yet different factors and perspectives for successful acquisition are being analyzed. One of the key factors for successful acquisition is optimal change management in target company. In this paper, successful performance of target company after the acquisition is defined by comparison of business performance prior and after the acquisition using financial indicators. Optimal change management is defined by employees’ resistance, and therefore the aim of this paper is to determine the impact of management style on employees’ resistance during change process in target company. Hypothesis according to which similarity between new management of the acquired company and replaced management results in lower employees’ resistance is also tested in this research. Empirical research was conducted using a questionnaire on the sample of target companies that were acquired in the period from 1998 until 2006 in the Republic of Croatia. Scientific contribution of this paper can be seen through the verification of importance of compatibility in management style for successful change management in acquired companies