IMPORTANCE OF INNOVATIVE MANAGEMENT PRACTICE: SOLUTION FOR CHALLENGES IN BUSINESS ENVIRONMENT AND PERFORMANCE IN LARGE ORGANIZATIONS IN SERBIA

The main research problem in this paper is the determination of the main causes of the existing gap between management practices and demands of business operations. The identified problem is the consequence of complex business circumstances constantly setting new tasks before managers. Managers are forced to abandon the established management practices and the existing business framework so as to enhance or merely maintain the attained level of organizational performance. The main research objective is to establish the degree of impact of innovative management practices on the attained organizational performance. The second segment of the research intention is reflected in the analysis of business environment as the determinants of innovative aspiration within the existing management activities. To this end, research methodology based on binary and multinomial logistic regression and Spearman’s rank correlation coefficient were applied. The sample comprises large enterprises on the territory of the Republic of Serbia. The obtained research results pointed to the sequential impact of innovative management activities on organization performance on the one hand and the connection between business environment and innovative management practices on the other. The scientific contribution of the paper is the choice of an insufficiently represented topic and research problem across all dimensions, which can be concluded observing the research results obtained so far. The scientific contribution of the paper is also emphasized by the complexity of defining and measuring the research variables of the set research problem. The fact that all business achievements are determined by the management’s abilities additionally points to the importance of the paper.