Managerial Perception of Human Capital, Innovations, and Performance: Evidence from Banking Industry

Nela Milosevic; Marina Dobrota; Veljko Dmitrovic; Sladjana Barjaktarovic Rakocevic

doi:10.5755/j01.ee.32.5.26032

Authors

Nela Milosevic Faculty of Organizational Sciences, University of Belgrade, Serbia
Marina Dobrota Faculty of Organizational Sciences, University of Belgrade, Serbia
Veljko Dmitrovic Faculty of Organizational Sciences, University of Belgrade, Serbia
Sladjana Barjaktarovic Rakocevic Faculty of Organizational Sciences, University of Belgrade, Serbia

DOI:

https://doi.org/10.5755/j01.ee.32.5.26032

Keywords:

general managers, perception, banking industry, performance, human capital, innovation speed and quality

Abstract

This paper aims to examine the relationship between the managerial perception of human capital, innovations, and bank performance. We specifically sought to examine the influence of human capital on bank performance, by introducing the factors of innovation speed and quality. The study was taken in the Serbian banking industry, with the focus on the perception and the viewpoint of CEOs and general managers of different departments. We used a two-phase survey to design the questionnaire and the correlation and regression analyses to examine our hypotheses. Our findings propose that, from managers’ perspective, human capital is critical to the success of banks, and that innovation speed is more influential than its quality. The backward multiple regression model shows that human capital and innovation speed account for 67.5% of the variability of the bank performance. The findings of this research can contribute to bank management policies by revealing how to enhance bank performance by focusing on human capital and innovation agility and readiness. The proposed research model could potentially be implemented in other sectors and industries to hopefully endorse the significance of the detected relationships.

Author Biographies

Nela Milosevic, Faculty of Organizational Sciences, University of Belgrade, Serbia

Nela Milošević is a researcher and teaching assistant at the University of Belgrade, Faculty of Organizational Sciences. Her main fields of interest are managerial accounting, behavioral sciences and bank management. Nela Milošević is a PhD candidate at KU Leuven and a visiting researcher at Maastricht University and Tilburg University. She gained professional experience through number of national and international research projects, and published numerous papers in scientific journals, conference proceedings, and monographs. Nela Milošević gained practical knowledge working as an academic fellow in several banks in Serbia.

Marina Dobrota, Faculty of Organizational Sciences, University of Belgrade, Serbia

Marina Dobrota is an associate professor at the University of Belgrade - Faculty of Organizational Sciences, where she completed her PhD thesis in the field of Operational Research and Computational Statistics. She has published more than 70 research papers in scientific journals, conference proceedings, and monographs, both international and national. Her research focus is in Composite Indicators, Econometric Modeling, and Data Science. Her research interests include Statistical inference, Data Analysis, Data Mining, and Time Series Analysis. She is a member of International Statistical Institute (ISI).

Veljko Dmitrovic, Faculty of Organizational Sciences, University of Belgrade, Serbia

Veljko Dmitrović is an associate professor at the Faculty of Organizational Sciences, University of Belgrade, at the Department of Financial Management and Accounting. He finished his PhD studies at the Faculty of Organizational Sciences. He achieved his MSc degree in Financial Management at the Faculty of Organizational Sciences, University of Belgrade, BSc and MA degrees in Marketing Management at the Faculty of Economics in Subotica, University of Novi Sad. So far he has authored and coauthored more than 100 papers published in international and national journals and conferences. He has been involved in several research projects. Before the academic career he gained practical experience working for five years in a.d. “Fidelinka” Subotica. His research interests are accounting, financial and nonfinancial reporting.

Sladjana Barjaktarovic Rakocevic, Faculty of Organizational Sciences, University of Belgrade, Serbia

Slađana Barjaktarović Rakočević is an associate professor in the Department of Financial Management at the University of Belgrade, Faculty of Organizational Sciences. Her main fields of research interest are financial institutions management, financial markets, and managerial accounting. She was a visiting lecturer at the University of Maribor and also was on study visits in the United States at the University of Illinois and the New York Stock Exchange. She has published more than 100 research papers in scientific journals, conference proceedings, and monographs, both international and national. Sladjana is one of the editors of the international monograph „Innovative Management and Firm Performance - An Interdisciplinary Approach” published by Palgrave Macmillan form the UK.