Impact of quality and innovation strategies on business performance of Bosnian B2B and B2C companies

Abstract

The aim of this paper was to compare two business models, namely business to business and business to customer. The first model is oriented towards the delivery of intermediate goods ordered by an immense foreign market leader that is outsourcing a part of its business. The second model is consumers oriented and is more about innovation and the creation of goods ready to be immediately sold on the market. Bosnia is a developing country, and often a place for establishing B2B businesses. However, we are lacking in innovation, our own know-how, and the creation of challenging business opportunities. It also faces the problem of brain drain; therefore, it is in a need of a plan for retaining the youth within the country. The analysis aimed to show how the boosting jobs and living standards in Bosnia, are affected by the investments, exports, and salaries within the B2B and B2C companies. The results showed that Bosnia has a significant potential for raising living standards, employment and salary, if investments are directed towards innovations, knowledge-intensive and B2C businesses instead of labor-intensive investments.