This study aims to investigate the occurrence of conflicts in family businesses, particularly focusing on their impact on founder behavior and organizational culture. Conducted in Bosnia and Herzegovina, the research employs a qualitative methodology to gain an in-depth understanding of conflicts within family businesses. The study utilizes semi-structured interviews as the primary data collection tool, engaging with 5 founders and 12 successors across various family owned businesses. The sample, comprising 17 participants, offers diverse perspectives on conflict dynamics between founders and successors. The interviews, designed to explore recurring key themes, delve into the nature and characteristics of task and process-based disagreements within these family enterprises. Key findings from this study include the observation that task or process-based disagreements, commonly arising between family members, can act as catalysts for founders to re-evaluate their behavior, potentially influencing the shaping of the organizational culture. The research highlights the importance of fostering a culture of open communication, critical thinking, and respect within family firms. Such a culture can play a significant role in reducing relationship conflicts and aid in reaching constructive resolutions. Additionally, the study reveals that the features of organizational culture within family businesses can be instrumental in managing conflicts effectively. This research underscores the complexity of family relationships in business settings and emphasizes the necessity of examining these dynamics from multiple angles. Given the prevalence of family members in key positions within family firms, the study sheds light on the importance of addressing diversity and conflict among family members, considering their long-term implications on the culture and future of these firms.

Purpose: The aim of this paper is to determine, theoretically and empirically, which strategies are most commonly used to manage conflict situations and to what extent conflict management strategies have an effect on knowledge transfer between owners and successors in family businesses in Bosnia and Herzegovina. This research empirically establishes a link between conflict management strategies and knowledge transfer. Methodology: In addition to theoretical conceptualization, the paper presents quantitative empirical research confirming the validity of the proposed hypothesis. Results: The results of the research show that owners who tend to use the integrating, obliging and compromising conflict management strategies, attach more importance to succession planning and transfer of knowledge and experience to successors. In contrast, dominant leaders are less willing to plan for succession, as they would prefer to retain all the crucial information and decision-making authority and are therefore reluctant to share their knowledge and power. Conclusion: Relevant conflict management strategies can be implemented to help maintain family relationships and ensure business continuity. Learning effective conflict management techniques is important for anyone involved in a family business. Thus, managing conflict is important for the success and longevity of family businesses.

This study investigates the digital transformation within companies in Bosnia and Herzegovina, aiming to assess the level of digital integration and its impact on business operations across manufacturing, trade, and services sectors. Employing a quantitative analysis of responses from 82 managers or owners, the research focused on attitudes towards digitalization, the adoption of software solutions (ERP, CRM, DMS, WMS, eCommerce), and the impact of digitalization technical aspects. The findings reveal significant disparities in digitalization levels across sectors, reflecting a diverse digital landscape within the Bosnian economy. Despite the initiation of digital transformation efforts, a considerable gap remains between recognizing its importance and its practical implementation. The study underscores the urgent need for continued efforts towards embracing digital transformation to enhance operational efficiency, competitiveness, and adaptability to changing market demands and consumer expectations, highlighting the critical role of digital transformation in securing a competitive edge and ensuring responsiveness to market and consumer dynamics.

In the world economy, small and medium sized entreprises (SMEs) dominate in the number of overall enterprises (90-99% of all enterprises, depending on the definition used) and in economic contributions (GDP growth, productivity, job creation, innovation, level of competition, etc.) (Lundström & Stevenson, 2001). Because small businesses generate jobs, tax revenue, functional products, charitable donations, technological development, and social contributions to communities, their success and sustainability are important for social and economic development. In addition to the impact on public health, coronavirus disease 2019 (COVID-19) caused a major economic shock and the greatest consequences were felt by the small and medium-sized enterprises. Due to the crisis caused by the Covid-19 pandemic, countries and their companies are facing major problems of human and business capacities sustainability. Although governments have enacted private sector policies, there are constraints that have direct implications for economic growth potential. In this paper, we investigate the impact of COVID-19 on SMEs in Bosnia and Herzegovina, focusing on the impact of the Law for mitigation negative economic consequences, better known as the Crown-Law. We first examined how the companies performed this year compared to the previous year, and then we examined whether there were barriers to the implementation of the Crowv-Law and if so, whether they were internal or external. The results of this research point to the fact that the Crown-Law is not good enough. The measures are not in line with the strategic needs of SMEs, there is a time limit and the measures are short-term. The SME development strategy should be coordinated based on the mechanism of public-private dialogue. SMEs need business services to improve their competitiveness (information, consulting, training, accounting, legal services, advertising, marketing, technical and technological services, including testing standards and certification requirements abroad, product upgrades, etc.). The results of this research provide some information of the business results and expectations of SMEs in times of crisis, while offering insight into measures designed to aid recovery. The results highlight the role that the length of the crisis will play in determining its final impact, which policymakers should consider when considering the scale of interventions needed. On the other side, the Covid-19 pandemic has opened up new challenges, but also opportunities for SMEs, such as technological advances that create new products and transform almost every phase of the business from manufacturing to marketing, procurement and logistics. Currently, only a small part of the SME sector is able to recognize and seize these opportunities and meet the challenges.

The authors in this article primarily seek to clarify the functioning of the legal and economic factors for the future integration of Bosnia and Herzegovina into the European Union. Accordingly, under the conditions of modern market and technological change, it is difficult to imagine the integration process in the sense of globalization, without the more active role of developed countries to assist countries in transition on their European path. Thus, diplomacy has a major impact on economic and legal and political integration in the EU, and on the other hand, Bosnia and Herzegovina has a political, legal and economic interest in joining the EU, and has already started using EU funds according to programs, based on the Framework Agreement between the EU and Bosnia and Herzegovina. It is quite logical that the EU funds are invested with intention to create a competitive B&H economy for the EU Single Market (internal market). However, economic co-operation is only the “first pillar” of the European integration process. A big step forward, with regard to foreign-political cooperation and security, was achieved through the Maastricht Agreement, by introducing the “second pillar” within the European Union. So, it is quite logical to conclude that the Maastricht Agreement joined the security to the Foreign Policy, which then allowed Member States to actively and unreservedly support the realization of the “second pillar”. The foreign policy and security of the EU member states cannot be at an adequate level if no internal security is established in each country. For this reason, it is very important to establish appropriate judicial cooperation and cooperation between the police, in the creation of a European judicial space, whose constituent part Bosnia and Herzegovina tend to be a part of. In this way, a “third pillar” of co-operation in the field of law and internal affairs is created.

This chapter explores emotional intelligence (EI) as a driver of migrant entrepreneurial adaptation in changing socio-economic environments. Migrant entrepreneurs face challenges related to cultural adaptation, communication barriers, unfamiliar institutions, limited networks, and access to resources. The chapter examines how EI competencies, including self-awareness, self-regulation, motivation, empathy, and social skills, can support resilience, intercultural communication, relationship building, leadership, and business sustainability. EI is considered an adaptive resource interacting with cultural intelligence, social capital, and institutional conditions. The analysis also addresses sustainable HRM, well-being, labour market inclusion, and social integration. Selected practices from Bulgaria, Slovenia, and Bosnia and Herzegovina illustrate different approaches to migrant integration and entrepreneurship support.