Policies, strategies, and the rule of law as ways to increase enterprise performance

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Abstract

The main purpose of this paper is to empirically assess the impact of the interaction between information technology (IT), business models, and competitive strategies on the performance of manufacturing and service firms in Kosovo. The rule of law is also vital to the performance of firms as a facilitating factor in business activities. This research is based on the research of Kosta (2020), Neziraj et al. (2018), and Jusufi and Qorraj (2025), who used similar variables related to this issue. To support the raised hypotheses, the method of structural equation modeling (SEM) is used. The research provides a quantitative assessment of the proposed model, using data collected from 300 Kosovar businesses, 150 manufacturing, and 150 service. The relevance of this paper lies in the fact that this theme has never been elaborated on by other Kosovar authors. IT positively affects the business model. The business model positively affects the performance of the firm. The results of the study refute predictions that competitive strategies directly affect firm performance. The mediating role of business models in the relationship between information technology and enterprise performance is also confirmed. Although the rule of law as a variable is not included in the econometric model, theoretical evidence proves that it is an important factor in increasing the performance of Kosovar enterprises.

Keywords: Information Technology (IT), Business Model, Competitive Strategies, Enterprise Performance, Structural Equation Modeling (SEM)

Authors’ individual contribution: Conceptualization — F.O., A.H., and A.P.-O.; Methodology —F.O., A.H., and A.P.-O.; Investigation — F.O., A.H., and A.P.-O.; Writing — Original Draft — F.O. and A.H.; Writing — Review & Editing — F.O., A.H., and A.P.-O.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: D80, M15, O30

Received: 30.03.2025
Revised: 27.06.2025; 20.07.2025; 08.08.2025
Accepted: 04.09.2025
Published online: 05.09.2025

How to cite this paper: Osmani, F., Hajdari, A., & Pacarizi-Osmani, A. (2025). Policies, strategies, and the rule of law as ways to increase enterprise performance. Corporate Law & Governance Review, 7(3), 130–139. https://doi.org/10.22495/clgrv7i3p13