Strategic Management for Regional Economic Development and Business Sustainability: Countries in Transition
Purpose: The aim of this research paper is focusing on strategic management approach toward balanced regional economic development (RED) in transition countries. The specific aim of the research is to develop an strategic model for regional economic development in Kosovo that will positively impact and support the business environment as well impacting the overall development of the country through coordinated project management and synergy creation among the communities, local authorities and businesses. Design/Methodology/Approach: The article used a mixed-methodological approach including both qualitative and quantitative data collection and appraisal, which included desk review covering existing literature at national and international level, semi-structured interviews with key, group discussions, relevant reports and other related documents. Findings: Policies and strategies actually leave a gap at the regional level. Most of regions and municipalities lack the capacities to create an effective environment for private sector development and job creation for all communities. There is some dissatisfaction among stakeholders regarding the functioning of existing regional development structures and processes. Neither the Regional Development Agencies (RDA) nor central body recognized as Association of Regional Development Agencies (ARDA) have achieved a satisfactory level of cooperation among themselves, and with their key stakeholders. Practical Implications: The future approach to RED should be based on balanced distribution of responsibilities between the central and local government levels with clear roles and responsibilities. The central government enables the environment and designs the legal framework. A central liaison body facilitates coordination between the regions and municipalities together with regional development agencies who establish solid linkages with the private business sector to develop and implement interventions. Originality/Value: The research aims to establish the regional economic development model that will serve as one stop shop at regions supporting the business development and increasing employability in the country.