After the program of fiscal consolidation ended successfully in 2018, the macroeconomic momentum in Serbia is significantly shifting. This edition of Ekonomika preduzeća addresses a spectrum of subjects in the new macroeconomic setting. In the Introductory paper, a trio of authors, S. Popović-Pantić, D. Semenčenko and N. Vasilić, acknowledges the impact of digital transformation on business performance. Of course, the idea of doing well in business by implementing digital transformation has proved to be a challenge, particularly in case of the women-owned companies. This involves equal measures of creativity and discipline, aspiration and practicality, including the balance between financial and social goals.
In the Economic Growth and Development section, a duo of authors, O. Gavrić and Đ. Mitrović, analyzes the impact of the green economy concept on the performance of EU economies by using four indicators that are relevant for the composite index, the Green Economy Development Index. The results are relevant for policymakers in Serbia who are in the stage of industrial policy formulation based on green economy and circular economy principles. In the second paper in this section, a trio of authors, N. Tomić, V. Todorović and A. Pešterac, measures the effects of Brexit on stock prices in the capital markets. The authors used parametric and non-parametric tests in three sectors (finance, technology and food). In the third paper in the Economic Growth and Development section, a trio of authors, S. Ljajić, V. Kostić and M. Nikolić, presents a benchmark analysis of small and medium-sized enterprises sector in Serbia and selected EU countries. This analysis is valuable in terms of making certain corrections in Serbia’s current development strategy in the segment of small and medium-sized enterprises.
In the Strategic Management section, Z. Aničić presents results of an empirical analysis of intrapreneurship (or corporate entrepreneurship) and business performance based on a sample of 136 medium-sized and large enterprises operating in Serbia. It is an extremely delicate subject because business metrics are inherently imperfect, particularly when used to quantify intangible goals such as research and innovation as a proxy of corporate entrepreneurship.
In the Accounting and Auditing section, a trio of authors, D. Rajin, M. Džunić and T. Radojević, indicates the importance of compatibility of the accounting system and financial reporting in private and public sectors. The analysis is based on experiences of the developing countries.
In the Marketing section, a trio of authors, M. Bakator, D. Đorđević and D. Ćoćkalo, analyzes the impact of brand awareness on business performance and macroeconomy in Serbia, all based on a sample of 418 units.
In the Tourism section, a trio of authors, J. Šuleić, A. Đorđević and B. Zečević, offers an analysis of the impact of transportation services in package tours configuration based on a sample of 400 participants from Serbia’s hospitality market. The analysis confirms that transportation service is a key success factor for package tours.
Ekonomika Preduzeća has addressed the importance of investments for the completion of transition many times. In the Introductory paper of this issue, a duo of authors, I. Nikolić and M. Kovačević, acknowledged the importance of investment efficiency for the aforesaid issue. Based on an empirical test of investment efficiency, the authors claim that sustainability of fiscal balance comes not from investments in infrastructure and real economy, but from investments in services. Although overstated, that view is well founded. The remarkable results of this analysis could force some experts from the field to change their opinion.
In the Transition and Restructuring section, we published two articles. A duo of authors, V. Milovanović and S. Janošević, analyzed quality management as a tool for value creation. Until recently researchers have concentrated on operational and tactical aspects of the analyzed problem. The specificity of this empirical study is its focus on the strategic perspective. The authors confirmed that in this field questions matter more than answers. In the second article from this section, a trio of authors led by V. Lukić used factor analysis followed by regression analysis to explore mobile banking in the segment of young adults.
The Finance and Investment section also comprises two articles. In her paper, M. Pantelić presents an empirical test of implementation of fair value accounting in Serbia. The analysis was structured according to the size of companies pursuant to the Law on Accounting (large, medium-sized and small). B. Čegar’s research topic was the comparative analysis of legal settings for interim financial reporting in case of Southeast Europe. The comparison between IAS 34 and US ASC 270 is particularly important.
In the Marketing section, a trio of authors led by K. Radosavljević discussed the role of marketing channels in the field of agri-food products. International benchmarking with empirical justification of key performance indicators was conducted with the help of the Minitab software. The last article in this issue written by S. Mašić et al. is dedicated to consumers’ proclivity towards posting online reviews in hospitality industry as one of the fastest growing industries in the global economy.
Accelerated expansion of new technologies and business models triggered by the Industry 4.0 and omnipresent global mega trends has so far inspired an array of papers dedicated to emerging challenges in micromanagement and macromanagement. This edition of Ekonomika preduzeća starts with the Introductory paper by J. Prašnikar and T. Redek, who explore the effects of new technologies on productivity growth in emerging economies and propose a policy approach that stimulates companies to adopt Industry 4.0 technologies.
In the Accounting and Auditing section, S. Vučković Milutinović analyzes auditors’ opinions expressed in independent auditors’ reports for the 2015-2017 period for listed companies in Serbia. The author showed that the percentage of modified audit opinions was well above the level in the developed countries, confirming weak market and regulatory incentives to improving financial reporting practices. The analysis also revealed that the impairment of assets is the main reason for auditors’ modifications, reflecting unfavorable economic reality of many companies. In the second paper in this section, Lj. Tanasić analyzes instruments of transfer pricing taxation in former Yugoslav countries. The author shows that there are large oscillations in tax approach to the control of implementation of transfer pricing when conducting transactions between related legal entities, and that these differences are conditioned on the level of development and structure of legal regulations.
In the Finance section, a duo of authors, I. Janković and B. Živković, explore the possibilities of FX risk management for Serbian corporations. The authors argue that standardized instruments for FX risk hedging have not been developed, while non-standardized contracts are modestly used. In these circumstances, appreciation of foreign currencies relative to RSD may create significant systemic consequences through spillover of FX risk into credit risk and other related risk categories.
In the Law and Taxes section, M. Perović offers an overview of the key distinguishing features of regulations governing commercial contracts in Serbian law. This highly informative paper presents the general legal framework relevant to commercial contracts in the Serbian legal system and analyzes the main specific features of commercial contracts, as well as certain rules on the right of pledge applicable to commercial contracts.
In the Transition and Restructuring section, we have been committed to industrial policy and new growth-stimulating policy framework for many years. In this edition, Lj. Savić and M. Lutovac analyze the factors most affected by state aid in 72 successfully completed projects for attracting investments in the industry of Serbia from the beginning of 2006 to March 2017.
D. Borovčanin, M. Knežević and S. Čerović analyze revenue management in hospitality industry in Serbia in the Tourism section. Besides time management in pricing strategy, the research shows that the price is dominantly influenced by room supply, which is, as it was shown in the research, very static in comparison to demand. Furthermore, research results reveal that the market is witnessing a strong decrease in average daily rate. In the second paper in this section, I. Kovačević, B. Zečević and B. Hristov Stančić explore the meetings industry from the perspective of destination development. The authors have shown that in 2017 the international association meetings market generated impact of $12 billion, while only in Serbia this market generated over $26 million, signaling vast but unused economic potential.
The last paper in this edition belongs to the Information Technology section. Z. Sagić, Lj. Diković, Lj. Trumbulović and S. Vujović present the significance of intellectual capital and information technology for modern business and society.
After successful implementation of the program of fiscal consolidation in the 2014-2017 period, what new policy challenges await Serbia? When thinking about growth, most macroeconomists probably perceive the problem of sustainability of fiscal balance. Besides sustainability of fiscal balance, the core challenge for microeconomists is implementation of the new model of economic growth. The leitmotif of this edition is related to the question: Is the global economy moving too fast for Serbia to keep up? Without adequate growth, structural inflation could easily return. Transition and restructuring are in the spotlight of this issue of Ekonomika preduzeća. The purpose is to promote a new way of thinking about economy in the era of the Fourth Industrial Revolution.
Acknowledging the shift in the theory, a duo of authors, D. Đuričin and I. Vuksanović Herceg, present the heterodox view. They argue that the new model of growth is moving beyond neoliberal framework with the aim of keeping the fiscal balance sustainable and implementing a new policy set, with industrial policies for tradable sectors in the center and automatic stabilizers for core macro policies in the background. The Chairman of the Fiscal Council P. Petrović, in collaboration with D. Brčerević and M. Gligorić, argues that the current output gap in Serbia is a combining effect of underperforming institutions, low investment and education gap. In his paper, M. Labus introduces statistical and analytical novelty into input-output analysis with the aim of calculating investment multipliers. The main conclusion is that in the last period FDI has not been directed towards sectors with the greatest investment multiplier. In the counterargument, D. Malinić states that infrastructure development, and particularly its model of financing, has a critical role to play in the new model of growth. This time, D. Vujović, the architect of fiscal consolidation, pointed out to two great challenges in the Fourth Industrial Revolution: the struggle to turn vast amounts of information into useful insights and the mounting fear that automation is going to wipe out current jobs.
As J. Tabaković, the Governor of NBS, explains, full-fledged inflation targeting has, as a key policy tool, impacted price and financial stability, particularly in the last five years. It is a prerequisite for the reduction of imbalances (both internal and external), as well as investment intensification (investment follows confidence). N. Savić and co-authors argue that, in time of digital disruption, business organizations need to constantly launch strategic initiatives so that they can exploit transient advantages before they disappear. J. Atanasijević and co-authors particularly stress the role of digitalization in tax reform. G. Pitić and co-authors explore the same territory in their article. S. Kisić and S. Petković have advocated the causes that are not obviously related with the fiscal stability mantra, but are crucially important for sustainable and inclusive growth. Entrepreneurial education in the digital era is in the spotlight of this article. M. Obradović and co-authors are in the antitrust territory, exploring the link between protection of public interest and protection of competition. G. Petković and co-authors stress the role of cultural tourism in the new model of growth as a valuable initiative correlating Roman emperors and the Danube wine route.
We hope that all articles will deepen the discussion about the growth model and economic policy platform in the context of the new normal and accelerate the government’s search for a better solution.
Savez ekonomista Srbije je (SES) nevladino i neprofitabilno udruženje ekonomista Srbije osnovano 1947. godine radi ostvarivanja ciljeva u oblasti unapređenja ekonomske nauke i prakse u Srbiji. SES okuplja ugledne ekonomiste iz akademskih i poslovnih krugova, kao i najznačajnije kompanije iz realnog i finansijskog sektora.
SAVEZ EKONOMISTA SRBIJE
Bulevar Mihajla Pupina 147/3, 11070 Novi Beograd
Dobrinjska 11, 11000 Beograd
Poreski broj 101668038 Tel: +381 11 3613-409; 2644-980 Fax: +381 11 3629-689 E-mail: email@example.com