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.

Innovation has become a necessity in order to overcome some challenging times in the rapid changing world. The world’s paradigm is shifting towards sustainable development and shared values. Even though numerous benefits of innovating the public sector (PS) have been recognised worldwide, the concept of public sector innovation (PSI) is still new for Bosnia and Herzegovina. The complex and stratified structure of the Federation of Bosnia and Herzegovina (FBiH) and its PS has been forever standing in the way of any larger progress. The purpose of this paper is to contribute to the development of PSI in FBiH as an opportunity to enhance the performance of public services, increase their efficiency, and decrease the costs. The research was completed by using a mixed-method approach in order to analyse the concept of innovation in the PS. The primary data was collected through semi-structured interviews with the management and a survey with close-ended questions which was completed by the employees of the public sector institutions in FBiH. The method of structural equation modelling was used in order to test the research hypotheses. A part of this paper is analysing the main PSI drivers and challenges. The results show that the main obstacles to PSI are the institutional system and the regulations in the FBiH. On the other side, the manager and employees are considered the largest drivers of public sector innovation in FBiH. The paper concludes with several recommendations on how to overcome the main barriers of public sector innovation in FBiH. Keywords: Innovation management, R&D, Innovation incentives, e-Government, Institutional culture. JEL: O38, O32, O31, H11, H41

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.

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.