Public Relations Review 38 (2012) 288–293 Contents lists available at SciVerse ScienceDirect Public Relations Review Research in brief The impact of internal communication on strategic and economic effects in Serbian companies Milan Nikoli ´ c * , Edit Terek 1 , Jelena Vukonjanski 2 , Dragica Ivin 3 Department of Management, University of Novi Sad, Technical Faculty, “Mihajlo Pupin”, Djure Djakovi´ ca bb, 23000 Zrenjanin, Serbia a r t i c l e i n f o Article history: Received 14 August 2011 Received in revised form 20 November 2011 Accepted 13 December 2011 Keywords: Internal communication Strategic effects Economic effects Multivariate analysis Serbia a b s t r a c t This paper presents the research results in relation to examining and defining dependences and the impact of internal communication on certain strategic and economic business effects. Serbian companies were the focus of this research. The data were collected by polling 100 managers from 100 companies. Afterwards, multivariate regression and cor- relation was carried out in the aim of the final determination of requested dependences. This research confirmed a strong positive relation between internal communication and strategic and economic business effects. © 2011 Elsevier Inc. All rights reserved. 1. Introduction According to (Baskin et al., 2000), PR can be observed and interpreted as a profession, process, communication with the general public and practice. Its objective is to build up good relationships with various segments of the general public on the basis of publicity, building up a positive corporate image and resolving problems generated by unfavourable rumours and events. By establishing an efficient PR function, a company is able to impact on forming, maintaining and developing its image in a positive direction. In addition, a company should also pay due attention to building up positive interpersonal relationships within the company itself (internal PR and internal communication). The development of PR is particularly important in companies operating in countries in transition. However, PR is still in the early stages of establishing itself on the Serbian market. At the same time, not enough attention is paid to internal PR and internal communication in Serbian companies. According to (Taylor, 2004), a somehow more favourable situation is present in referent neighbouring countries (Croatia, Bosnia and Herzegovina, Hungary, Romania, and Bulgaria). The most favourable PR situation in the CEE region is in Slovenia (Verˇ ciˇ c & Tkalac Verˇ ciˇ c, 2007; Verˇ ciˇ c, Tkalac Verˇ ciˇ c, & Laco, 2006). This research was motivated by the need to carry out research into the impact of internal communication on strategic and economic aspects of business in Serbian companies. * Corresponding author. Tel.: +381 0 64 248 5763; fax: +381 0 23 550 520. E-mail addresses: mikaczr@sbb.rs (M. Nikoli ´ c), terekedita@gmail.com (E. Terek), jelena.vukonjanski@gmail.com (J. Vukonjanski), ivin bd@hotmail.com (D. Ivin). 1 Tel.: +381 0 63 893 2625; fax: +381 0 23 550 520. 2 Tel.: +381 0 63 520 707; fax: +381 0 23 550 520. 3 Tel.: +381 0 62 801 9764; fax: +381 0 23 550 520. 0363-8111/$ – see front matter © 2011 Elsevier Inc. All rights reserved. doi:10.1016/j.pubrev.2011.12.014