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Abstract This study explores the mechanism of influence of total quality management (TQM) practices on a company’s financial performance (FP), considering innovation performance (IP) as a mediator variable. In addition, the proposed model seeks to determine whether the competition intensity (CI) moderates the relationship between TQM practices and FP. Based on the sample of 593 companies from various sectors in Bosnia and Herzegovina, structural equation modeling is used to analyze the relationships between the variables in the model. The results of this paper reveal the implicit and often omitted impact of IP on FP taking into account TQM practices, suggesting that the impact of TQM practices is manifested through full mediation of IP. The moderating effect of CI in the relationship between TQM practices and FP was not supported. The results indicate the role and the importance of IP in the mechanism of influence of TQM practices.

The restructuring of state-owned and public enterprises has attracted the attention of numerous researchers in the transition and post-transition period. The goal of restructuring as a business philosophy is to change and establish a new business philosophy, a new way of thinking. The correct interpretation of this term goes beyond its narrow and misleading translation, which equates to restructuring with a measure of change in structure. This paper examines the situation with the state-owned enterprises in Bosnia and Herzegovina. Although Bosnia and Herzegovina is characterized by the presence of two completely separate systems of corporate governance (corporate governance is regulated at an entity level without any common grounds at the level of Bosnia and Herzegovina), the symptoms of the situation are identical in both entities: state enterprises are commercially inefficient in both entities, and the reasons for their inefficiency are identical. The paper attempts to identify the symptoms and causes of such a state with a set of recommendations for the restructuring of state-owned enterprises, with clear definitions that, considering the trend of expansion of state-owned enterprises in highly developed countries, state-owned enterprises are needed here. It turns out that the privatized companies do not take into account the state interest. Following the logic of the OECD Guideline No. 2 (Ownership of State), first, it is considered how the state should manage the state-owned companies, and then by following the logic of the OECD Guideline no. 6 (Responsibilities of Committee) the complete corporation of state-owned enterprises is advocated in the way that state-owned enterprises have all the prerogatives of corruption, and are sufficiently distanced from political parties in power. Such an approach will significantly contribute to the improvement of corporate governance rating in Bosnia and Herzegovina that shows the atrophy of the system.

The purpose of this paper is to provide a new theoretical insight regarding top managers' personal values in developing countries based on the Schwartz Values Theory (Schwartz, 1992, 1996, 2006; Schwartz and Bilsky, 1990) and to explore the influence of top managers' personal values on sustainability performances of successful businesses. The research describes personal values differences between top managers and their commitment to pro-social and pro-environmental responsibility who were approached through the validated and reliable questionnaire on identifying top managers' personal values (PVQ40) and questionnaire on sustainability indicators observed through the „triple bottom line“ concept which includes three measuring elements: financial, social and environmental performances (Fauzi, Svensson and Rahman, 2010). Given that top managers are very often the owners in SMEs, their values are largely reflected in the organizational values, which means that in small pro-environmentaly oriented firms, the personal values of owners-managers seem to play a much stronger part in motivating pro-environmental behaviors than in other SMEs (Lawrence at al., 2006). With regard to business sustainability, it is still insufficiently known, developed and understood in Southeast Europe and in developing countries. Therefore, this research may be used to encourage companies and local governments to include a sustainability issues in their business activities as a pre-condition for business success and competitiveness. The managers in SMEs can use this research as a guideline on introduction of contemporary principles of sustainability into their companies and to improve and direct their personal values towards sustainability.

Abstract Management innovation – the introduction of management processes, structures and practices that are new to companies, is crucial to business success. Based on the existing literature on management innovation and a rigorous theoretical approach to model design and development, a theoretical model of management innovation that is applicable to immature and underdeveloped markets was designed. Using this model, the study shows that the context in which companies operate, as well as companies’ management background (proficiency), are directly and positively related to management innovation. The main implication of the research is that the existing management innovation theory is applicable to market conditions in the Federation of Bosnia and Herzegovina with only slight adaptation. Furthermore, this research provides important insights about the factors that affect the companies’ readiness to introduce innovative management structures, processes and practices.