Coping with Crisis in the EU Periphery: The Case of Bosnia and Herzegovina

Abstract

The developmental basis of an economy is represented by its successful and flexible enterprises. However, there are many factors that are counterproductive to a company’s aspirations to develop and operate efficiently. Under the conditions of unfavourable macroeconomic stability, a growing number of companies go through a crisis, which adds pressure to an already unfavourable macroeconomic situation, especially at the level of national economic and political stability. To have the company return to normal operations, firstly it is necessary to define the indicators and causes of the crisis, and then to implement restructuring measures in accordance with the contingency plan. Many theorists have pointed out the importance of a contingency plan for overcoming a crisis. However, applicability of a contingency plan depends on whether the company operates in a politically and economically stable environment. Given that Bosnia and Herzegovina (BiH) is characterized by governmental, political and economic instability and the presence of crisis in most companies, the aim of this paper is to explore the potential for a contingency plan application in such conditions, with the ultimate aim of making a theoretical contribution and expanding the existing knowledge on the problem of contingency plan application in a country in which political and economic instability have existed for a long time.