We live in a rapidly changing global society, where no one can predict the outcome of the economic, social, and political structures of the world. Changes in science, technology, and economics are particularly noticeable and are closely linked to human life. These changes create new opportunities but also challenges in new areas of everyday activity in order to achieve sustainable development. For countries to compete with each other, they must be creative and innovative in all fields to cope with domestic, national, and global issues. Current economic competitiveness is based on the capabilities of a country and their respective companies to be and stay innovative. This is the main reason why many governments place innovativeness at the center of their growth strategies so that they can foster economic progress and global competitiveness in general. The recognition and need for identification of innovation as a driver of change are evident on a company level as well. This study will use secondary data collected this year from the World Economic Forum to identify critical challenges and opportunities for B&H competitiveness. Also, the results of this research identified enabling environment and markets impact the innovation ecosystem. Practical contribution relates to concrete implications and recommendations that can be used for the improvement of Bosnia and Herzegovina innovativeness.

Drawing on dynamic capability view, this study aims to offer a conceptual framework to clarify the nature of the effects of firm’s information technology (IT) capability, knowledge management (KM) capability and human resource management (HRM) capability on organizational business performance. IT is the driver that changes all aspects of doing business in the digital era, while both knowledge and human resources (HR) are being increasingly regarded as key levers of competitive advantage in today’s global, dynamic and complex business environment.,The survey methodology was used to collect data. To clarify the relationships between IT capability, KM capability and organizational business performance, the qualitative literature review has been conducted. This review has revealed the three structural models presenting possible interactions between observed constructs. Confirmatory factor analysis has been used for the evaluation of proposed measurement models while structural equation modeling has been used for structural models’ assessments and hypotheses testing.,IT capability enhances HRM capability which enhances KM capability. As a result, KM capability together with IT capability enhances organizational business performance. In addition, there is an interaction effect of KM capability and HRM capability on business performance.,First, the sample is based on the emerging economy firms. Second, the use of a self-rating performance measure may be a limitation of the study. Third, the data are not completely normally distributed. Fourth, specificities of different industries were not the subject of analysis in this paper. This should be considered in the interpretation and understanding of the results.,From managerial point of view, the paper indicates what managers can do to master their dynamic capabilities, especially those relevant to the business in the digital era. Firms are urged to develop and improve their capabilities to face dynamic environment and intense competition, as well as business globalization. However, to improve certain capability, firms should develop others as well because of their interconnectedness.,The main academic contribution of this study is reflected through the development of the integrative model which is aimed at identifying the interrelationships among IT, KM, HRM and business performance. The results indicate the importance of observing interconnections between the firms’ various capabilities to verify the premise of the dynamic capability view. This paper identified relationships between most prominent firm’s resources for the digital era: knowledge, HR and IT. The results show causes and effects of relationships between capabilities related to these resources.

The paper presents two approaches in assessing the business continuity management (BCM) attitudes in the organizational context: qualitative and quantitative. The first approach - case study analysis is based on a series of in-depth interviews with the key people involved in the BCM processes in Croatia (Chief Information Officers – CIOs, Chief Executive Officers – CEOs and BC managers). The second approach is an empirical research that was conducted among companies in Bosnia and Herzegovina based on Confirmative Factor Analysis (CFA) which is used for psychometrically validation of the measurement scale of BCP and Structural Equation Modeling (SEM) and t-test for the hypotheses testing. The empirical research has shown that there is a statistically significant difference in terms of attitudes of respondents regarding business continuity depending of companies' size and sector that company belongs to. Specifically, financial sector is in all of BCM segments more coherent than other sectors.In addition, qualitative research revealed the results showing that business continuity plan (BCP) and disaster recovery plan (DRP) were the only IT governance areas that were implemented in business practice. The reason for that may be found in the fact that BCP and DRP are very expensive to implement especially for small companies.

The objective of article is to provide important empirical evidence to support the role of individual knowledge management processes and separate innovation types within firms. Specifically, knowledge acquisition and knowledge application are analyzed and empirically tested in relation to product and process innovation as well as business performance. The results support the direct impact of product and process innovation on business performance. In addition, the results show the indirect effect of knowledge acquisition and knowledge application on firm business performance through product and process innovation. Although KM represents a complex concept of knowledge management in a firm and can contain more processes, this article confirms that KM processes individually contribute to the innovation and indirectly on business performance. Besides, it confirms mediating effect of innovation between both knowledge acquisition and knowledge application and organizational business performance. In addition, most of the similar studies have been focused on the developed Western countries.

Abstract Background: Many studies have considered knowledge as the most important strategic resource for ensuring firm’s competitiveness. Accordingly, learning is an important concept for firms whether it is individual or organizational learning. Objectives: To provide empirical support to the impact of individual organizational learning dimensions on a firm’s knowledge management. Methods/Approach: The questionnaire survey approach is used for data collection and structural equation modeling for hypotheses testing. Besides, PROCESS procedure is employed to estimate confidence intervals of indirect effects in the model. Results: Organizational learning dimensions are antecedents of knowledge management capability. Shared values and openness influence directly and positively knowledge management capability. However, the same was not found to be the case for managerial commitment and dialogue. On the other hand, the results suggest that managerial commitment and dialog influence knowledge management capability indirectly over shared vision. Conclusions: While there has been an underlying assumption about the role of organizational learning for knowledge management, this study provides evidence on how organizational learning dimensions such as management commitment, shared vision, openness and experimentation, and dialog may be adjusted to facilitate and enhance knowledge management processes.

Business globalization pressures and rapid technology advances increase the need for firms to continuously change, improve and adapt to changing business environment. Superior business performance is increasingly a function of firm’s ability to develop and implement unique and valuable resources, i.e. dynamic capabilities. Among others, literature recognises organisational learning (OL) capability and knowledge management (KM) capability as two very important capabilities for the firms doing business in the knowledge-based economy. Thus, this study draws on dynamic capability view and organisation theory to clarify the nature of the relationships between OL capability and KM capability. The results show that OL capability positively influence KM capability. Furthermore, shared vision as well as openness and experimentation advance the KM capability while dialog and managerial commitment haven’t been revealed to significantly influence KM capability. The study provides advances in the field of organisational learning and knowledge management literature by offering empirical analysis that confirm the importance of individual constructs of organisational learning capability for successful knowledge management.

This chapter consolidates the state of academic research on the relation between information technology, globalization and human resource management. Main conclusions of the literature review can be summarized into several groups. First, there is evident flow of trends linking the development of information technology, business globalization and changes in the ways of doing business. Second, all these trends have caused the emergence of a new economic order that is known in the literature as the New or the Global economy. Third, human resources are the most valuable assets in the Global economy and it is therefore crucial for firms to successfully manage these assets. Fourth, like other functions, HRM function is heavily influenced by information technology. Fifth, the importance of information technology for HRM is evident for firms operating in one country and especially those that operate internationally. Finally, there is a lack of studies on the global HRIS.

The primary aim of this article is to identify antecedents of firm’s success in specific circumstances of the New economy. Many researchers have tried to answer the question “Why do some firms persistently outperform others?”. One of the most dominant view on this issue is a resource based view (RBV) or resource-based theory (RBT). According to this theory, sources of competitive advantage begin with the notion that differences in performance are fundamentally due to the distinctive resources and capabilities that are valuable, rare, inimitable and non-substitutable. Information technology as a resource of the company has the increasing importance for the researches and managers. Research on the information technology (IT) value within organizations and firms’ IT capabilities have expanded over the past decade. IT capability is defined as the existence of IT infrastructure, IT knowledge and IT operations within company. The purpose of this paper is to analyse the interaction impact of IT capability and firms’ innovation on business performance. The study uses survey data from managers and structural equation modelling to assess the relationships between IT capability, firm’s innovation and business performance. This study finds that both IT capability and innovation capability play important role in achieving greater business performance. The findings indicate that managers should focus on development of the IT function within company, taking into account importance of IT investment as well as IT knowledge, and promotion of innovativeness.

The primary aim of this article is to identify antecedents of firm's success in specific circumstances of the New economy. Many researchers have tried to answer the question "Why do some firms persistently outperform others?". One of the most dominant view on this issue is a resource based view (RBV) or resource-based theory (RBT). According to this theory, sources of competitive advantage begin with the notion that differences in performance are fundamentally due to the distinctive resources and capabilities that are valuable, rare, inimitable and non-substitutable. Information technology as a resource of the company has the increasing importance for the researches and managers. Research on the information technology (IT) value within organizations and firms' IT capabilities have expanded over the past decade. IT capability is defined as the existence of IT infrastructure, IT knowledge and IT operations within company. The purpose of this paper is to analyse the interaction impact of IT capability and firms' innovation on business performance. The study uses survey data from managers and structural equation modelling to assess the relationships between IT capability, firm's innovation and business performance. This study finds that both IT capability and innovation capability play important role in achieving greater business performance. The findings indicate that managers should focus on development of the IT function within company, taking into account importance of IT investment as well as IT knowledge, and promotion of innovativeness.

Abstract Background: Companies can improve their business performance, increase revenues and reduce costs by enhancing their information technology (IT) capability. On the other side, there is an increasing importance of human resource management (HRM) practices related to IT utilization, which are important for the business performance of a company in the rapidly changing knowledge-based economy. Objectives: The objective of this paper is to analyze the relations among IT capability, HRM capability and the firm’s performance outcomes. Methods/Approach: The paper uses survey data and Structural Equation Modeling to analyze the relationships among IT capability, HRM capability and firms’ performance. Results: This paper reveals that IT capability to some extent determines firms’ business performance but it plays more important role in enhancing HRM capability. In addition, HRM capability significantly impacts business performance. Conclusions: The findings indicate that managers should not focus on allocating resources only for IT investments. In order to achieve better business performances, these technologies need to be used to support all business processes including HRM activities.

According to the resource-based view, sources of competitive advantage begin with the notion that differences in performance are fundamentally due to the distinctive resources and capabilities that are valuable, rare, inimitable and nonsubstitutable (Barney, 2007; Wu et al., 2006). Information technology (IT) as a resource of the company has the increasing importance for the researches and managers. Research on the IT value within organizations and firms' IT capabilities have expanded over the past decade (Perez-Lopez et. al., 2012). Tippins and Sohi (2003) in their study defined IT capability as the existence of IT infrastructure, IT knowledge and IT operations within company. The purpose of this paper is to analyze the impact of IT capability on firms' innovativeness and the relationship among IT capability, firms' innovativeness and business performance. The study uses survey data from managers and structural equation modelling to assess the relationships between IT capability, firms' innovativeness and business performance. This study finds that both IT capability and innovation capability play important role in achieving greater business performance. The findings indicate that managers should focus on development of the IT function within company, taking into account importance of IT investment as well as IT knowledge, and promotion of innovativeness.

Abstract Over the past decade business continuity management (BCM) has been treated mainly from either technology or planning perspective. This paper goes a step further and considers BCM from the IT governance view. In addition, the standards and legislation activities that help in that sense are evaluated. Implementation of industry best practices standards and processes such as ITIL and CobiT combined with other IT-related solutions can deliver substantial risk reduction and reduce business risks and result with reduced system downtime. The cases of the implementations of main information technology (IT) standards in the banking sector of Croatia and Bosnia-Herzegovina from those two perspectives are explored.