In English the Passive Voice is used much more frequently than in Serbian. In this sentence you have a Passive construction where "written" is omitted - A book (written) by Ivo Andrić.
If you want to translate it literally, BY is OD STRANE. It is not very common, but you can come across such examples in Serbian.

- The crime is investigated BY the police.
- Zločin se istražuje OD STRANE policije.

Dva policajca divljački prebijena od strane građana na Novom Beogradu!
http://www.dnevne.rs/zuta-stampa/dva-policajca-divljacki-pre...

However, in your particular example it would sound more naturally to say "Knjiga koju je napisao Ivo Andrić." (Relative clause) or, as Dušan suggested, "Knjiga Ive Andrića." (Genitive case without the preposition OD)



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Note added at 1 day5 hrs (2014-04-19 19:38:20 GMT)
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I've just noticed that the language combination here is English to Bosnian. I suppose the rule I've described applies to Bosnian too, but I wish a colleague from Bosnia could confirm that.