THE IMPACT OF TOURISM ON RURAL DEVELOPMENT - EXAMPLE OF UNDEVELOPED VILLAGES IN REPUBLIC OF SERBIA

The aim of the research in this paper is to determine which factors the local population identifies as those that can, through the development of tourism, most influence or predict rural development or revitalization in the Republic of Serbia. In order to examine this, the survey was conducted during 2019, on a total sample of 680 respondents, in 45 rural municipalities in the country. The authors used a modified questionnaire, containing four groups of factors, with adequate 22 questions for research on a given issue. The SPSS AMOS software, version 26.00, was used for data analysis and processing. The authors checked the reliability of the questionnaire, whose value proved to be very good, and confirmed the grouping into exactly four groups of factors by Factor analysis. Descriptive statistical analysis yielded average scores for given items. The obtained suitability indices indicated the agreement of the Structural structural equation modeling (SEM) with the data, as well as the quality of the research and the confirmation of the hypotheses. The obtained results of the SEM analysis showed that there is no statistically significant difference in the impact of given factors in predicting rural development, and that the local population has a positive attitude about the impact of tourism on rural development.

EFFICIENCY ANALYSIS OF THE INSURANCE SECTOR IN BOSNIA AND HERZEGOVINA

We analyzed the efficiency of the insurance industry in Bosnia and Herzegovina (BiH) in the period from 2015 to 2019 in order to identify good and bad practices, sources of inefficiency and to propose guidelines for the necessary efficiency improvements based on the results. Efficiency measurement was performed using the nonparametric Data Envelopment Analysis (DEA) technique as the most commonly used tool for efficiency analysis in finance. We used one output and two input variables according to the input-oriented approach assuming a variable return to scale (VRS). Empirical research was conducted on all insurance companies from BiH, which are grouped according to the size of assets, type of insurance, and headquarters in order to determine whether there are differences in the efficiency of insurance companies in terms of their size, type of insurance, or depending on whether it operates in the Federation of Bosnia and Herzegovina (FBiH) or Republic of Srpska (RS). The results of the analysis indicate significant inefficiencies in the insurance sector in BiH, but also differences among the observed groups. The insurance sector is more efficient in FBiH compared to RS, and insurance companies in the composite insurance market are significantly more efficient than companies in the non-life insurance market. Finally, the research has showed a relatively high level of positive correlation between the size of an insurance company and its efficiency. According to all efficiency indicators, there is significant potential for efficiency improvement. Based on the analysis, the main causes of inefficiency were identified and guidelines for improving efficiency were proposed.

COOPERATIVE R&D WITH DIFFERENTIATED PRODUCTS IN VERTICALLY RELATED INDUSTRIES

This paper studies the impact of cooperative R&Don innovation, welfare, and profitability in vertically related industries with differentiated products. The model incorporates two vertically related industries, with horizontal spillovers within industries and vertical spillovers between them. Upstream firms produce a homogeneous intermediate good, while downstream firms provide differentiated products. Three types of R&D cooperation are studied: no cooperation, horizontal cooperation, and vertical cooperation. The comparison of cooperation settings in terms of R&D and profitability shows that although vertical cooperation yields higher innovation and welfare, it may lead to over– investment in R&D.

REVISITING KEYNES’ INVESTMENT AND SAVING MODEL IN INDONESIA

This study aims to analyze the Keynes’ investment and saving model in Indonesia from 1981 to 2018. The researchers use the econometric test from the Granger causality test to find the short-run causal relationship and the Vector Error Correction Model to reveal both the short-run and long-run effects in the model. The result of Granger causality test demonstrates that there is no short-run causal relationship between these two variables. In the short-run, the increase in saving affects the consumption loans more compared to the investment loans. Besides, increased consumption compared to saving has more influence in raising investment. However, the Vector Error Correction Model proves that saving negatively affects investment in the long-run. This model empirically supports the long-run Keynes’ investment and saving model. Consequently, the Indonesian government needs to consider saving as a policy instrument to increase investment in the longrun.

ANALYSIS OF HOUSEHOLD SAVING FACTORS IN BOSNIA AND HERZEGOVINA-APPLICATION OF ARDL METHODOLOGY

Most papers in the field of private saving deal with the analysis of private saving as a whole without special consideration of its individual components. This paper is, therefore, focused on the analysis of one of the components of private saving and its factors, and that is the household saving. The analysis was conducted on household saving in Bosnia and Herzegovina (BiH), which, viewed as the sum of saving and time deposits, recorded a cumulative growth of 97% from the outbreak of the global financial crisis until September 2016. The aim of this research is to determine which factors favored the positive trends of household saving in BiH in the period 2000q1-2016q3. As a methodological tool for achieving the research goal and testing the defined hypothesis, the ARDL methodology was used. By applying the ARDL methodology, the work hypothesis was confirmed. Macroeconomic factors have an impact on household saving in BiH.

DIVERSITY MANAGEMENT AND PERFORMANCE: EVIDENCE FROM NIGERIAN MULTINATIONAL COMPANIES

This study examines the relationship between diversity management and the performance of Nigerian multinational companies. A single crosssectional design was adopted for the study and a well-structured questionnaire was administered to 318 randomly chosen senior managers from Mobil Oil, Guinness, Coca-Cola, Nestle, MTN, and Cadbury Plc within Lagos Metropolis. The research instrument was tested for validity and reliability using confirmatory factor analysis and Cronbach’s alpha. The independent variable is diversity management while performance (dependent variable) was measured with Employees' Productivity (EP), Profitability Level (PL), and Employees' Innovativeness (EINV). The data collected were analyzed using Correlation Analysis and Structural Equation Modelling (SEM) factor to determine the relationship between diversity management and performance of Nigerian Multinational Companies. The results revealed a significant and positive relationship between diversity management and the performance of Nigerian multinational companies. The study concluded that diversity management motivates employees to put in their best to achieve a high level of productivity which leads to improved profitability due to employees’ innovativeness. Therefore, the study suggests that multinational companies in Lagos Metropolis should ensure proper management of diversity in the workplace.

DIGITAL LITERACY AND ERP TECHNOLOGY ADOPTION IN BOSNIA AND HERZEGOVINA

Even though the Enterprise Resource Planning (ERP) technologies have been significantly addressed in managerial literature, few studies investigated the effects of digital literacy. This study aims to explore the relationship between digital literacy and ERP technology adoption in Bosnia and Herzegovina (BiH), as well as the mediating effects of business innovativeness within that relationship. A valid and reliable structured survey has been prepared and delivered to companies in BiH which use ERP technologies. Based on the recent literature, first order structural equation model has been proposed and tested. The empirical data was based on 82 questionnaire responses from companies in BiH which use ERP technologies. Once the data has been collected, factory data analysis has been performed to purify scales through items' loadings and Cronbach's Alpha values. The resultant scales have been tested for convergent validity through partial least-square path modelling using Smart PLS 3 software. The results indicated that effects of digital literacy on actual system use are significant and positive, and that business innovativeness partially mediates the relationship.

FINANCIAL CONTROLLING STATUS AND POTENTIAL IN MEDIUM-SIZED ENTERPRISES OF TUZLA CANTON, BOSNIA AND HERZEGOVINA

The paper focuses on financial controlling in the role of improving business performances of medium-sized enterprises in the Tuzla Canton, Bosnia and Herzegovina, active in manufacturing, trade, transport and storage, construction, etc. All the processes accompanying these activities are significantly faster and do not run in a classical way, which is why the management system nowadays requires that information requested within plan, analysis, and control run simultaneously. It is emphasized that financial controlling is important as it provides the necessary coordination and outgoing information for the management of a medium-sized enterprise. The authors also researched and identified unique common indicators used for determining and establishing financial controlling in medium-sized enterprises in the Tuzla Canton, analyzed the obtained results, and identified mutual dependence of financial controlling and performances of medium-sized enterprises. The conducted research points to the basic conclusion that the function (department) of financial controlling in modern organization of medium-sized enterprise is needed and has a positive effect. The authors therefore confirmed the hypothesis that financial controlling, if properly implemented in practice at the level of medium-sized enterprise, gives efficient results.