ON ORGANIZATIONAL CULTURE IN THE WESTERN BALKANS: A REVIEW OF THE LITERATURE

Abstract

This paper reviews literary sources by highlighting studies that explore various aspects of organizational culture in Montenegro, Serbia, North Macedonia, Croatia, Bosnia and Herzegovina and Slovenia. We have chosen this approach because these countries were once part of the Socialist Federative Republic of Yugoslavia, where similar understandings and value systems regarding organizational operations were long established. The value systems that emerged are undoubtedly a result of the transition processes that these countries underwent, shifting from socialist economic systems to market economies.
In all the states that belonged to the unique area of the Socialist Federative Republic of Yugoslavia, a nearly identical understanding and long period of time established the same or similar business systems. After the collapse of the country and the formation of independent states, each country went through the same path of transition and found itself in an objectively difficult position. The transition manifested itself through economic transformation, primarily the affirmation of private property, followed by frequent minor economic changes, changes in regulations, political turmoil, crises, and disasters. Therefore, all of these factors had to impact the formation of attitudes, values and norms in the way employees think and behave. The formation of organizational cultures in their companies retained certain specificities that are the result of their national cultures.
Research into organizational culture literature reveals that many authors approach the study of this phenomenon by focusing on its impact on organizational performance. The increased importance of theoretical research into organizational culture in different contexts, as demonstrated in this work, stems from the need to consider the management strategy structure within enterprises. Organizational culture influences nearly all aspects of business operations. It affects, to varying extents, key elements such as business strategy, organizational structure, performance style, and company change. It shapes the entire organizational framework, making it a critical factor in business success.
The success of many companies has reinforced the belief that a strong organizational culture is crucial for achieving business success. According to this perspective, a strong organizational culture, characterized by a cohesive set of values, beliefs, and behavior patterns, leads to higher productivity and better goal achievement. This success is attributed not to financial capital or cheap labor but to the strength of the organizational culture.