Designing and creating a business model is crucial for a successful firm’s operation in today’s market in a complex and changing environment. A business model is the factor that differentiates one firm from another—it defines the distinctions of the firm, how the firm deals with the competition, the firms’ partnerships, and customer relations. This paper explores the role of the business model in the creation of sustainable competitive advantage. The empirical part of the paper presents the business model of three small companies from the Information and Communications Technology (ICT) industry in Croatia using the Business Model Canvas. Additionally, business model components were also analyzed using a framework for evaluating a business model. The results of the analysis point to a few crucial components of the business model, on which small ICT firms in Croatia build their competitive advantage by creating significant distinctions of those components. These distinctions are essential for their longevity and sustainability.

Creating an external context that will have nourishing effect on the entrepreneurial activities seems to be timely, path and location dependent process. The systemic explorations of the national entrepreneurial context (environment) are still relatively underrepresented. The paper explores strengths and weaknesses of the national entrepreneurship conditions in Croatia and how stable these conditions are in the longer time frame. The aim of the study is to provide more detailed insight on the differences in perceptions among experts engaged in Global Entrepreneurship Monitor (GEM) and along the time. Findings indicate deterioration of the national entrepreneurial conditions in Croatia. Experts’ perceptions of national entrepreneurial conditions diverge between experts who have and those who do not have prior entrepreneurial experiences. The time also matters – perceptual difference in evaluating the quality of national entrepreneurship conditions is observed across 2015–2018.

Internationalization of small and medium enterprises is a specific process, which enables growth and development. However, internationalization brings both opportunities and challenges that SMEs do not always know how to deal with. The aim of this paper is to identify activities and challenges in the internationalization of small and medium enterprises in Croatia, as well as measures that could facilitate this process. In order to obtain these findings, the Flash Eurobarometer 421: Internationalisation of SMEs database was used as a secondary data source. Data were collected from the study which has been conducted by the European Commission. The paper analyzed 501 companies from Croatia, and dependence was sought between company and industry size and activities, challenges and assistance measures for internationalization. It has been proven that there are differences in relation to the size of the company, as well as to the industry. Based on the conducted statistical analyses it is shown that internationalized SMEs from Croatia still base this internationalization on imports and exports of goods and services and other international business activities are less developed. There is a noticeable advantage of the European Union market as the primary choice of Croatian companies for internationalization. Recommendations for SMEs focus on the better understanding of the internationalization process and proper preparation, while policy recommendations are oriented towards raising awareness of the importance of internationalization and providing an enabling ecosystem for internationalization.

This international scientific monograph explores contemporary challenges and opportunities in governance, sustainability, and digital transformation in an era of rapid technological advancement. Bringing together contributions from researchers across different countries and disciplines, the volume examines how artificial intelligence, ESG frameworks, corporate responsibility, innovation, regulatory developments, and digital technologies are reshaping organizations, institutions, and society. Particular attention is given to sustainable governance, responsible decision-making, organizational adaptation, and the creation of long-term value in increasingly complex environments. The chapters combine theoretical insights, empirical research, and case studies, offering interdisciplinary perspectives on the evolving relationship between technology, sustainability, and governance. By bridging academic knowledge and practical implications, the monograph contributes to current debates on sustainable development, responsible innovation, and governance transformation. It is intended for researchers, academics, students, policymakers, and practitioners interested in the future of governance, sustainability, and digital change.