The Impact of Innovation and Knowledge Management on Enterprises Revenues in Serbia
Purpose: There is a significant and positive relationship between knowledge management and the innovation of enterprises. On the other hand, innovations enable enterprises to bring new and improved products and services in the market and thus to meet customers' needs better and thoroughly, to gain loyal customers, to increase sales of products and services, to substitute outdated products, to increase their income, to improve their market share, to increase their competitive advantage, to conquer new market segments and new markets, to improve their performance, and as a result, positively affect to the economic development of the country in which they operate. This paper aims to show the importance of knowledge management and innovation for the performance of enterprises in Serbia. Design/Methodology/Approach: To determine the extent to which innovations are present in companies in Serbia and whether they are essential for the performance of companies (and especially for their revenues), this paper uses secondary data sources from various national and international bodies and organizations. For that purpose, first, the number and size of enterprises in Serbia are determined, then the share of innovative enterprises in the total number of enterprises, and finally, the share of innovation revenues in the total revenues of innovative enterprises. Findings: Innovation and knowledge management are of great importance for companies' revenues in Serbia, regardless of their size and activity. Recognizing that importance, companies in Serbia have increased their innovative activity in recent years. That progress can be seen from the data of the European Innovation Scoreboard - EIS. Practical Implications: This paper has proved the importance of innovation and knowledge management for corporate performance and can positively influence companies to increase their innovative activities to achieve more excellent performance and thus contribute to economic development in the country in which they operate. Originality/Value: This paper has proved the importance of innovation and knowledge management for the performance of companies in Serbia (and especially for increasing their revenues).