Possibilities of Sustainable Business Operations of Economic Entities in Conditions of Extraordinary External Influences

Abstract

The author’s interest in studying this topic was inspired by new extraordinary external influences, such as the COVID-19 pandemic and war operations in Europe, which have a direct impact on economic entities and therefore on the economies of many countries in the surrounding area and beyond. The aforementioned external, unpredictable factors appeared unexpectedly. As soon as they appeared, they caused major disruptions in business operations and a crisis on the market, which could not be influenced beforehand, nor could its occurrence be prevented. The impact of external shocks on economies will vary depending on individual countries’ exposure to Russian energy sources, food security, as well as their own economic structure, geographic location, and the degree of flexibility of their public finances. Empirical findings show that there are relatively significant differences in the reactions to the resulting conditions, between large companies that still take into account the durability and publicity of development indicators and others, which are characterized by the absence of a long-term perspective and its reduction to a set of short-term goals that are sought to be achieved in the framework of the visible future. In addition to the standard theoretical analysis, the authors conducted research by surveying selected business entities in Serbia, which provided an insight into the current state of the company and indicated the necessary directions for changes both at the level of business entities and at the level of the entire economy. Based on the conducted research, the authors came to the knowledge that economic entities can solve economic instability by implementing one or more reorganization models.

Citation

Rajnović, L. and Cico, S. (2024), "Possibilities of Sustainable Business Operations of Economic Entities in Conditions of Extraordinary External Influences", Andrei, J.V. and Grigorescu, A. (Ed.) Emerging Patterns and Behaviors in a Green Resilient Economy (Lab for Entrepreneurship and Development), Emerald Publishing Limited, Leeds, pp. 169-186. https://doi.org/10.1108/978-1-83549-780-720241009