Volume 7, Issue 1

The Role of Leaders in Shaping Organizational Culture and Ethics the-role-of-leaders-in-shaping-organizational-culture-and-ethics Volume 7, Issue 1 Research Article 2025 7 Within the bricks and mortar economy, organizations focused more on profitability and require managers who can design and implement strategies over time. Nowadays, within the digital economy, e-business-oriented organizations focus on competitiveness and customer satisfaction, requiring astute leaders. Leaders who rely on intellectual or knowledge resources to initiate and implement a new set of company aims based on e-business initiatives. Leaders who can develop organizational cultures, ethics, and teams that can realize the potential of cutting-edge technology (the Internet of Things, Artificial Intelligence) for their business.

Investing in technology is important, but the critical success factor is getting people to use it effectively. Not every manager is a leader. Managers, as good leaders, should link competencies and resources within the organization to create and sustain a competitive advantage. Incumbent managers as leaders must maximize the e-space available within the organization by developing strategies for shaping culture and ethics that can operate effectively in the new environment. In this direction, the main goal of the paper is through surveying, descriptive analyses and by using practical case studies, to demonstrate leaders’ role in cultivating culture and ethics within the organization. Moreover, the paper elaborates how, thanks to skillful leaders, famous and successful organizations try to create organizational culture and ethics that are aligned with their goals for success.

]]> Adobe. (2025). Ethics and integrity. Retrieved June 2025, from https://www.adobe.com/about-adobe/ethicsandintegrity.html

Adobe Code of Business Conduct (2024, November). Adobe. https://www.adobe.com/content/dam/cc/en/corporate-responsibility/pdfs/code-of-conduct-ext.pdf

Alphabet Investor Relations. (2025). Founders’ IPO Letter (2004). Retrieved June 2025, from https://abc.xyz/investor/founders-letters/ipo-letter/

Baker, C. (2023, August 21). Why is Leadership Important? Leaders. https://leaders.com/articles/leadership/why-is-leadership-important/

Daft, R. L. (2017). The Leadership Experience (7^th ed.). Cengage Learning.

Daft, R. L. (2020). Organization Theory & Design (13^th ed.). Cengage Learning.

Delaney, K. J. (2024, October 27). An Insider Explains Apple’s Use of Storytelling as a Leadership Tool. Time. https://time.com/charter/7108985/an-insider-explains-apples-use-of-storytelling-as-a-leadership-tool/

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2010). Business Ethics: Ethical Decision Making and Cases (8^th ed.). South-Western Cengage Learning.

Gomes, G. (2024, September 30). Adobe CEO Shantanu Narayen’s Blueprint for Success as a Tech Leader. CTO Magazine. https://ctomagazine.com/adobe-ceo-shantanu-narayen-leadership-tips/

Goodbread, J. (2023, May 17). Good Leadership Is Essential To Growing Your Business. Forbes. https://www.forbes.com/councils/forbesfinancecouncil/2023/05/17/great-leadership-is-essential-to-growing-bayour-business/

Hastings, R. & Meyer, E. (2020). No Rules Rules: Netflix and the Culture of Reinvention. Penguin Press.

Hellriegel, D., & Slocum, Jr., J. W. (2010). Organizational Behavior (13^th ed.). Cengage Learning.

Hitt, M. A., Miller, C. Ch., & Colella, A. (2010). Organizational Behavior (3^rd edition). Wiley.

Jones, G. R. (2012). Organizational Theory, Design, and Change (7^th ed.). Pearson.

Maxwell, J. C. (2022). The 21 Irrefutable Laws of Leadership: Follow them and people will follow you (25th anniversary ed.). HarperCollins Leadership.

Marcene, B. (2023, January 11). An Insider’s Look: Google’s Organizational Culture and What Companies Can Learn from It. Commonwealth Joe. https://commonwealthjoe.com/blogs/blog/an-insider-s-look-google-s-organizational-culture-and-what-companies-can-learn-from-it

McLaughlin, K. (2022, December 7). You Won’t Believe Work Gets Done at These Three Google Offices. Architectural Digest. https://www.architecturaldigest.com/story/inside-google-offices

Mullins, L. J. (2016). Management & Organisational Behavior. In Christy, G. (Contributor). Pearson.

Nike (2025). Life at Nike. Retrieved May 2025, from https://jobs.nike.com/life-at-nike

Protopapadakis, J. & Klapanaris V. (2021, June 16). The Ritz – Carlton: Their Employee Promise. Hospitality Ambassadeurs. https://hospitalityambassadeurs.com/the-ritz-carlton-their-employee-promise/

Rafaeli, A. & Worline, M. (2000). Symbols in Organizational Culture. In Ashkanasy, N. M., Wilderom, C., & Peterson, M. (Eds.). Handbook of Organizational Culture and Climate. 71-84. Sage Publications.

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Rosenbaum, S. (2010, June 4). The Happiness Culture: Zappos Isn’t a Company – It’s a Mission. Fast Company. https://www.fastcompany.com/1657030/happiness-culture-zappos-isnt-company-its-mission

Sinek, S. (2009). Start with why: How great leaders inspire everyone to take action. Portfolio.

Schein, E. H. (2010). Organizational Culture and Leadership (4^th ed.). Jossey-Bass.

Taxila Business School (2025). Top 10 best qualities that make a great leader. What Makes a Great Leader? Retrieved June 2025, from https://taxila.in/blog/top-10-best-qualities-for-great-leader/

Tennant, R. (2025). Inspirational leadership storytelling techniques Steve Jobs built Apple’s success on. The Storytellers. Retrieved June 2025, from https://thestorytellers.com/inspirational-leadership-storytelling-techniques-steve-jobs-built-apples-success-on/

Treviño, L.K. & Nelson, K. A. (2017). Managing Business Ethics: Straight Talk about How to Do It Right. (7^th e.d.). John Wiley & Sons.

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Yukl, G. (2012). Leaderships in Organizations (8^th ed.). Pearson.

Zappos. (2025). About Us. Retrieved June 2025, from https://www.zappos.com/c/about

]]> Key words: leaders, organizational culture, organizational ethics 2025-06-30 https://tefmj.ibupress.com/articles/the-role-of-leaders-in-shaping-organizational-culture-and-ethics 1 1-16 10.69648/KRAC5176 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/87/ibu-journal-tefmj-7-1-1.pdf Elena Parnardzieva Stanoevska International Balkan University – Skopje true Besiana Dauti International Balkan University – Skopje Trends in Economics, Finance, and Management Journal 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

Macroeconomic Drivers of Economic Stability: Evidence from North Macedonia macroeconomic-drivers-of-economic-stability-evidence-from-north-macedonia Volume 7, Issue 1 Research Article 2025 7 This paper investigates the macroeconomic drivers of economic stability in North Macedonia by applying a time series econometric framework based on Vector Autoregression (VAR) and Granger causality analysis, covering the period from 2000 to 2023. Key variables include GDP growth, inflation, money supply (M1), interest rate, unemployment, government budget balance, and current account balance. After testing for stationarity using the Augmented Dickey-Fuller (ADF) test, a VAR model with two lags was estimated, followed by Granger causality tests to identify predictive linkages.

The results reveal dynamic interdependencies, showing that monetary aggregates (M1) and fiscal balances significantly influence both GDP and inflation, underscoring the critical role of policy levers. Moreover, labor market conditions and external balances contribute to short-run macroeconomic outcomes. Granger causality tests highlight money supply as a leading indicator, while interest rates show responsiveness to inflation and unemployment, consistent with the Taylor Rule. These findings offer valuable insights into the policy transmission mechanism and provide a basis for improved economic forecasting and macroeconomic management in small open economies.

]]> Ameti, I., & Idrizi, A. (2024). Management with Macroeconomic Policies Affecting Economic Development (Case in the Republic of North Macedonia). Edelweiss Applied Science and Technology. Learning Gate, vol. 8(6), pages 1162-1171.

Dauti, B. (2024). Macroeconomic, Institutional and Financial Determinants of Current Account Deficit in North Macedonia: Evidence from Time Series*. Proceedings of Rijeka Faculty of Economics : Journal of Economics and Business.

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Kovachevska Stefanova, S., Ma, M., Popesku, A., & Sulejmani, F. (2025). Impact of International Shocks on North Macedonia and the Western Balkans: Republic of North Macedonia. International Monetary Fund.

Lazarov, D., & Simeonovski, K. (2023). Macroeconomic Stability and Economic Growth: An Empirical Estimation for North Macedonia. Economic Studies Journal.

Petrovska, M. Tonovska, J., Nikolov, M., & Sulejmani, A. (2023). Evaluating monetary policy effectiveness in North Macedonia: Evidence from a Bayesian FAVAR Framework. National Bank of the Republic of North Macedonia.

Petreski, B., Petreski, M., Bishev, G., & Bexheti, A. (2024). "Fiscal Discipline and the Efficiency of Fiscal Rules in North Macedonia: The Path to Sustainability," Finance Think Policy Studies 2024-11/53, Finance Think - Economic Research and Policy Institute.

Mojsoska-Blazevski, M. (2012). Challenges to Successful Employment Policy in the Region: Towards More Jobs, Quality Labour Force and Greater Competitiveness. Discussion Paper. (Western Balkans Investment Framework).

Mojsovska, S. (2022). Macroeconomic Stability and Growth Determinants of the Republic of North Macedonia. Economic Development. 25(5):52-63. DOI: 10.55302/ED22255052m

]]> Keywords: Economic stability, monetary policy, inflation, VAR model, Granger causality, North Macedonia 2025-06-30 https://tefmj.ibupress.com/articles/macroeconomic-drivers-of-economic-stability-evidence-from-north-macedonia 1 17-37 10.69648/HLDH6556 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/86/ibu-journal-tefmj-7-1-2.pdf Era Memeti South East European University, North Macedonia true Sulbije Memeti Karemani University of Tetova, North Macedonia Blerta Abazi Chaushi South East European University, North Macedonia Trends in Economics, Finance, and Management Journal 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

Balancing Innovation and Regulation: Comparative Approaches to AI-Driven Labour Market Planning in North Macedonia and China balancing-innovation-and-regulation-comparative-approaches-to-ai-driven-labour-market-planning-in-north-macedonia-and-china Volume 7, Issue 1 Research Article 2025 7 The aim of this paper is to understand the differing approaches to planned labor between North Macedonia and China, with a focus on the role of artificial intelligence (AI) in their labor markets. As AI advanced, so did the concern about job displacement, particularly in those sectors in which automation and machine learning could possibly replace human workers. This study aims to analyze these risks that concern AI-driven job loss and the implications that could arise for the national economies. The central question that we are addressing is whether countries like North Macedonia and China should or could adopt better and stricter governmental policies on education and labor force planning to lower these risks, or whether a more liberal one, allowing flexible labor market dynamics, would be more beneficial in the long term.

On one hand, China has a structured approach to labor and education-strict quotas, state-directed economic plans, and a big focus on preparing the workforce and society for emerging technological fields like AI. On the other hand, North Macedonia still struggles to create quotas and regulatory frameworks to address these challenges, which leaves the labor market more flexible but also potentially vulnerable to disruptive technological changes.

With the analysis of the both countries' policies, this paper examines how North Macedonia and similar countries can learn from China's model, and create a balanced approach for labor market planning that has account for AI's impact. We also explore the role of education in preparing future generations for the future demands of an AI-driven economy and propose recommendations for policy reforms.

]]> Bishev, G., Bogoev, J., Carovska, M., Drenkovska, M., Gerovska-Mitev, M., Jovanović, B., Popovski, N., Stikov, N., Tevdovski, D., Uzunov, V., &Vuchkova, I. (2020). The big picture: The Macedonian economy in the medium and long term: Economy and finance. Friedrich-Ebert-Stiftung Office in Skopje.

Fond za inovacii I tehnoloshki razvoj (FITR). (2021). Nacionalna AI strategija [National AI Strategy]. FITR. Retrieved June 24, 2025, from https://fitr.mk/национална-ai-стратегија/

Gate B. (2025). The Role of Artificial Intelligence in the Manufacturing of Agricultural Machinery. https://www.researchgate.net/publication/390298959_The_Role_of_Artificial_Intelligence_in_the_Manufacturing_of_Agricultural_Machinery

Institute for Security and Development Policy (ISDP, 2025). “Made in China-Modernizing China’s Industrial Capability. www.isdp.eu

Lin, S., Wang, M., Jing, C. et al. (2024). The influence of AI on the economic growth of different regions in China. Sci Rep 14, 9169 (2024). https://doi.org/10.1038/s41598-024-59968-7

Nakjeva Ruzhin, A., Stojova, R., & Savitska, V. (2021). Digital skills assessment - Republic of North Macedonia. ITU Report. https://northmacedonia.un.org/sites/default/files/2022-04/ITU_NorthMacedonia_DigitalSkillsAssessment_20211223_FINAL.pdf

Radonjanin, A., Lazarevska, A., & Srbinoski, F. (2024). The status and prospects of AI regulation and development in North Macedonia. SchönherrRechtsanwälte GmbH.www.schoenherr.eu

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Wang, Zhu & Chen, Chao & Guo, Bin & Yu, Zhiwen & Zhou, Xingshe. (2016). Internet Plus in China. IT Professional. 18. 10.1109/MITP.2016.47.

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]]> Artificial Intelligence, Labor policies, economic planning 2025-06-30 https://tefmj.ibupress.com/articles/balancing-innovation-and-regulation-comparative-approaches-to-ai-driven-labour-market-planning-in-north-macedonia-and-china 1 39-53 10.69648/AZYL3729 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/85/ibu-journal-tefmj-7-1-3.pdf Gjorgji Ristov Shanghai University of Finance and Economics, Shanghai, China true Trends in Economics, Finance, and Management Journal 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

Economic Volatility in North Macedonia: ARDL Modelling of the Effects on Economic Growth economic-volatility-in-north-macedonia-ardl-modelling-of-the-effects-on-economic-growth Volume 7, Issue 1 Research Article 2025 7 The purpose of this research is to investigate the economic volatility of North Macedonia over the period 1998-2023. The study employs an Autoregressive Distributed Lag (ARDL) model that intends to assess the dynamics of economic volatility over economic growth. Economic volatility is measured as the standard deviation of GDP growth over a rolling window. The empirical results reveal that government budget balance, private sector credit, current account balance, money supply, and economic volatility significantly influence GDP growth, though with varying lag structures and directions. Notably, economic volatility stands out as a critical variable, while it may temporarily correspond with higher growth, its lagged effects are profoundly negative, showing the destabilizing consequences of persistent fluctuations. To mitigate volatility, the government needs to promote sound institutional frameworks, counter-cyclical policies, and structural reforms that enhance resistance to shocks.

]]> Bilenko, Y. (2024). Macroeconomic Stability and Economic Growth in Central and Eastern European Countries: Evolution and New Challenges. Baltic Journal of Economic Studies, 10(4), 91-100. https://doi.org/10.30525/2256-0742/2024-10-4-91-100

Blanchard, O., Dell’Aricci, G. & Mauro, P. (2010). Rethinking macroeconomic policy. IMF Staff Position Note, SPN/10/03, https://www.imf.org/external/pubs/ft/spn/2010/spn1…

Campos, N. & Coricelli, F. (2002). Growth in transition: What we know, what we don't, and what we should. Journal of Economic Literature 40, 3, 793-836.

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Imbs, J. (2002). Why the link between volatility and growth is both positive and negative. CEPR discussion papers 3561.

Hnatkovska, V., & Loayza, N. (2005). Volatility and growth. In: Aizenman J, Pinto B, eds. Managing Economic Volatility and Crises: A Practitioner’s Guide. Cambridge University Press; 2005:65-100.

Lazarov, D., & Simeonovski, K. (2023). Macroeconomic Stability and Economic Growth: An Empirical Estimation for North Macedonia. Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 8, pages 78-94.

Martinez, V. & Sanchez-Robles, B. (2009). Macroeconomic stability and growth in central and eastern Europe. In: Erreygers, G. & Vermeire, M. (Eds), Macroeconomics and beyond: Essays in honour of Wim Meeusen, Garant Press, Antwerpen, pp. 130-144.

Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616

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]]> Keywords: Economic volatility, GDP growth, Shocks, ARDL 2025-06-30 https://tefmj.ibupress.com/articles/economic-volatility-in-north-macedonia-ardl-modelling-of-the-effects-on-economic-growth 1 55-65 10.69648/FDCP2495 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/84/ibu-journal-tefmj-7-1-4.pdf Blerta Kondri 1Mother Teresa University, Skopje, Republic of North Macedonia true Nimete Berisha University of Pristina, Republic of Kosovo Trends in Economics, Finance, and Management Journal 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

The Efficiency of the Banking System in the Republic of North Macedonia the-efficiency-of-the-banking-system-in-the-republic-of-north-macedonia Volume 7, Issue 1 Research Article 2025 7 The purpose of this research is to analyse the efficiency and stability of the banking system in the Republic of North Macedonia over the period 2004-2024. Using annual data from the National Bank, we estimate a linear regression model in which return on average assets (ROAA) is explained by cost-to-income ratio, employee cost-to-total-income ratio, net interest margin, and non-interest margin. The results reveal that cost-to-income and net interest margin both exert a statistically significant negative effect on profitability, whereas higher investment in human capital improves efficiency. Descriptive indicators confirm a stable system, indicating that in 2024 the capital adequacy ratio stood at 18.9 %, well above the regulatory minimum, while ROAA and ROAE reached 2.2 % and 17.6 %, respectively. Five large banks hold 82 % of total assets, and foreign capital accounts for nearly 80 % of ownership, reflecting a highly concentrated yet well-capitalised sector. Policy implications underscore the importance of further reducing operating costs and diversifying income sources to sustain profitability. Overall, the North Macedonian banking sector remains resilient, liquid, and adequately capitalized, providing a sound basis for continued economic growth.

]]> Bilalli, D. (2021). The impact of pandemic crisis on the financial stability of the banking sector in Republic of North Macedonia. Trends in Economics, Finance, and Management Journal, 3(1), 87-97.

Gogova Samonikov, M., & Josifova, V. (2024). Evaluacija za rizicite vo bankarskiot sistem na R. S. Makedonija vo periodot od 2020 do 2021 godina [Evaluation of the Risks in the Banking System of the Republic of North Macedonia for the Period 2020–2021]. Yearbook - Faculty of Economics, 24(1), 51-69.

Mishkin, F. S., & Eakins, S. G. (2006). Financial Markets and Institutions, 5^th Edition. Pearson/Addison-Wesley.

Mitreva, M., Davcev, L. & Gogova Samonikov, M. (2024). Overview of the financial system in North Macedonia. Seventh International Scientific Conference: Challenges of Tourism and Business Logistics in the 21st Century (ISCTBL) 2024. 336.71(497.7)

Naumovska, E. & Cvetkoska, V. (2016). Efficiency of the Macedonian banking sector. Yugoslav Journal of Operations Research, 26, 317–329. doi:10.2298/YJOR150228019N

NBRNM. (2025). https://www.nbrm.mk/postavienost_na_monietarnata_politika-en.nspx

Trpeski, L. (2009). Bankarstvo i bankarsko rabotenje [Banking and bank operations]. 1^st Edition, Skopje.

Trpeski, L. (2018). Monetarna ekonomija [Monetary economics]. Kosta Abrash, Skopje

]]> Banking system, efficiency, capital adequacy, monetary policy 2025-06-30 https://tefmj.ibupress.com/articles/the-efficiency-of-the-banking-system-in-the-republic-of-north-macedonia 1 67-78 10.69648/OHGT5849 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/83/ibu-journal-tefmj-7-1-5.pdf Teuta Qerimi Sadiku Department of Finance and Accounting, Faculty of Economics- University of Tetovo true Albiona Demiri Bekteshi National Bank of the Republic of North Macedonia Trends in Economics, Finance, and Management Journal 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com