Predrag Trpeski, Kristijan Kozheski and Gunter Merdzan
This study examines labor productivity in the Open Balkan initiative countries (Albania, Serbia, and North Macedonia) and Southeastern Europe’s latest EU entrants (Bulgaria, Romania, and Croatia). In the study, macroeconomic and institutional factors, including the Gross National Income (GNI) per capita, the unemployment rate, the statutory minimum wage, and the labor freedom index are analyzed in relation to labor productivity. The study used econometric methods to identify the labor productivity determinants and discern the labor market differences between the two groups of countries. The key findings emphasize the pivotal role of economic development in Southeastern Europe, especially among the last EU entrants, fostering additional increases in labor productivity. The study reveals the significant influence of the labor freedom index on productivity, with nuanced implications for both groups of countries. Additionally, it highlights the tangible impact of the statutory minimum wage policies on labor productivity in the Open Balkan initiative countries, indicating potential shifts in the wage structures and broader economic landscapes. The interplay of variations in the unemployment rate emerges as a substantial factor shaping efficiency and overall productivity in the labor market across both groups. These findings provide valuable insights into the labor market complexities faced by the Open Balkan countries, underscoring the need to bridge the gaps for economic development catch-up.
Nenad Tomić and Marija Mirić
Business models in the video game industry have shifted from physical to digital. With microtransactions, game producers have been provided with the ability to charge for extra in-game content. Loot boxes are one of the most controversial forms of microtransactions in video games. These are the prize packages that consist of one or multiple virtual items, whose specific content remains unknown to the player prior to opening. This study is aimed at identifying the combination of the factors that act as motivators for players in Serbia to engage themselves in monetary transactions for the purchase of loot boxes. To address the requirements of the study, modifications were made to the fundamental Technology Acceptance Model (TAM) so as to encompass the additional variables that had been perceived as significant for players’ decision-making processes. The findings of the study indicate the fact that the “perceived enjoyment, customization”, and “perceived ease of use” variables are the important factors that can predict the “perceived usefulness of loot boxes” variable. Additionally, the “perceived usefulness of loot boxes” and “propensity for gambling” variables are significant predictors of players’ intention to purchase. Furthermore, the “intention to purchase loot boxes” variable has a statistically significant impact on the “actual use of loot boxes” variable.
Jelena Erić Nielsen1, Ana Todorović Spasenić2 and Aleksandra Stevanović1
In the contemporary business environment characterized by risk and uncertainty, manufacturing companies need to focus on improving quality in every single aspect of their business model, with a focus on reaching the level of business excellence. As the central dimension of organizational design, organizational structure has the status of important support for achieving business excellence in the following areas: the success of the quality management system, process management, orientation towards employees (their satisfaction and motivation), the development of partnership relations with suppliers and customers, supply chain management, innovation, and social responsibility. The goal of the research is to identify the parameters of the organizational structure which have the highest influence on the success of manufacturing companies in terms of achieving business excellence. The results of the research conducted on a sample of 94 manufacturing companies in the territory of the Republic of Serbia showed the statistically significant influence of the organizational structure on each of the business excellence determinants, whereby the following parameters have the most important role: specialization, coordination (based on a combination of mechanisms) and formalization (based on compliance with QMS requirements – Quality Management System and the ISO 9001 standards).
Dejan Molnar1, Sonja Josipović2 and Bojan Baškot3
The paper presents different concepts of regional economic growth, according to which the educational structure of the working age population and entrepreneurial activity significantly contribute to the improvement of economic performance. It also analyzes the role of the entrepreneurial activity and the quality of human capital in regional economic growth in Serbia in the period from 2011 to 2020 using a sample of 25 NUTS 3 level sub-regions. The results of the evaluation of the three selected panel models indicate that entrepreneurial activities play a vital role in the growth of gross added value at the level of the sub-region. Given the fact that the main theoretical and numerous empirical findings suggest that bearers of regional development should be entrepreneurs who possess the appropriate knowledge, abilities, creativity and skills, the recommendation for the creators of public policies is to continuously work on improving the business climate and building a stimulating entrepreneurial environment. Such an environment can encourage highly educated individuals to become the key bearers of entrepreneurial activities.
Ivan D. Trofimov
This paper examines profitability disparities across the European economies using the aggregate and sectoral data for the period from 1995 to 2019 and applying a combination of panel unit root tests and the club convergence procedure. For most of the sectors, no convergence was identified at the aggregate level. Convergence within the clubs to multiple equilibrium levels, however, was identified. This convergence pattern was the most typical in the knowledge-intensive service sectors. The exogenous shocks had temporary effects on the economies’ profit rates (thus contributing to convergence), whereas the country- and sector-specific profitability components were characterized by stochastic behavior (attesting to nonconvergence). Overall, the persistence of profitability disparities was demonstrated. The findings suggest the importance of the firm-specific and local profitability drivers and the limited effects of the macroeconomic and competition policies on profit rates.
Milena Jakšić
It is our pleasure to inform the academic community that the scientific journal Economic Horizons has been included in the List of the Categorized Scientific Journals Published by Domestic Publishers for the year 2023 in the Category M24 – A national journal of international significance.
Vallari Chandna and Tarique Newaz
Most undergraduate and graduate business programs contain a culminating capstone experience as part of the standard curriculum. So far, business capstone courses have often strived to be uniform across modalities (i.e. either online or face-to-face, they were of uniform nature) and they have been rigorous and impactful courses. Additionally, many business programs have adopted simulations or other forms of game-based learning in their capstone courses. A sample of 122 students engaged in a simulation game as part of their capstone experience was used in this study in order to examine whether modality differences did affect the students’ experiences (their satisfaction with the course and performance) or not, and also whether it helped them to be on teams comprised of different business majors or not. While, on the one hand, a hypothesis that significant differences would be seen due to a different modality and group composition was initially set, the counterintuitive findings obtained during the research were indicative of the fact that students’ experiences could be positive across the modalities and the varying composition so long as the instructor’s efforts were directed towards rigor, engagement, and uniformity of experience in the courses.
Darko Lazarov and Emilija Miteva Kacarski
The main goal of the paper is to investigate the intraregional trade performance of the Western Balkan region in the last five years and identify future intraregional trade opportunities and potentials for the period from 2023 to 2027. The methodology applied in order to explore intraregional trade is based on an analysis of the growth sources of trade at the country and product levels, while the identification of untapped regional trade potentials is based on the methodology developed by the International Trade Center (ITC), which applies the Export Potential Indicator (EPI) at the product level. The results estimated in the paper found that intraregional trade inside the Western Balkan region had had positive trends in the last five years. However, regional trade is still highly concentrated and based on a small number of traded products. The paper, however, found significant untapped regional trade potentials in the future which should be a huge motivation for each country and policymakers to work on further improvements of trade and economic conditions and circumstances for the purpose of intensifying regional trade and accelerating economic growth in these countries through it.
Teodora Tica, Bojana Vuković, Kristina Peštović and Ivana Medved
The paper aims to analyze the influence of the selected financial determinants on profitability as a key determinant of corporate performance success. The sample includes 473 joint-stock companies in the Republic of Serbia that were actively operating in period 2017-2021. Panel data evaluation revealed the presence of a significant positive influence of the company size, growth, and cash flow on profitability, as well as a significant negative influence of the capital and asset structures. In contrast, the influence of liquidity and a tax shield on profitability is statistically insignificant. The obtained results primarily serve the management who can consider the indicators of the business done by joint-stock companies in order to improve profitability and ensure proper resource allocation. They are also useful for investors in planning investment and operational activities with the aim of a more effective and more efficient achievement of profitability goals. The results are also aimed at other stakeholders who want to create a profitability growth and corporate performance strategy directed towards ensuring long-term growth.