ISSN / EISSN : 2413-9610 / 2663-2365
Published by: LLC CPC Business Perspectives (10.21511)
Total articles ≅ 48
Latest articles in this journal
Development Management, Volume 18, pp 30-40; https://doi.org/10.21511/dm.18(4).2020.04
Increasing the role of an employee as a determining factor in the economic growth of an enterprise makes managers change the philosophy of management, directing it towards the realization of employees’ unique abilities. The effective implementation of the strategic direction of action depends on the knowledge, skills and personal characteristics of specialists, i.e. competencies that are a source of competitive advantage and a strategic factor in the enterprise development. In this regard, it is necessary to study the competency-based approach features in order to identify the opportunities for application in the strategic management of an enterprise. The purpose of the study is to clarify the essence of the competency-based approach and substantiate the need for its application in strategic management. The object of the study is the process of strategic enterprise management. The following methods were used: abstract-logical, analysis and synthesis – to clarify the essence of the competency-based approach; formation of conclusions; and graphical technique – to visualize the results. The views on the essence of the competency-based approach are analyzed and the lack of research on its importance for ensuring effective strategic management at different levels is noted. Taking into account the transformation of the essence of strategic enterprise management and the significant dependence of its effectiveness on professional competence of strategic decision developers and executors of their decisions, the essence of the competence-based approach is specified. It provides for the involvement of specialists with the necessary knowledge, skills, ability to objectively perceive information, use experience and intuition in determining promising areas of action, and take responsibility for decisions to achieve strategic goals for the implementation of the stages of strategic analysis and strategic selection. This will allow managers to involve employees in the process of making strategic decisions, focusing not only on their job positions, but primarily on the availability of a set of competencies necessary for strategic management and the appropriate level of their manifestation in professional behavior. A likely result can be a reduction in the time for the implementation of the relevant stages of strategic management and an increase in the likelihood of achieving strategic goals due to a correctly chosen strategy of future actions.
Development Management, Volume 18, pp 1-9; https://doi.org/10.21511/dm.18(4).2020.01
Corporate culture is a unique attribute of the enterprise that positively affects the socio-economic results of its activity and develops under the influence of external and internal factors. The paper suggests a group of factors influencing corporate culture that determine the effectiveness and speed of its development. This group includes the level of competence of HR managers; the level of influence on staff of formal and informal leaders and their attitude to changes; the presence of cultural bugs, the attitude of the existing culture to changes, the degree of hierarchy, the speed of communication channels, the level of staff satisfaction with the situation, the presence of feedback. An analysis of global trends of enterprises’ corporate culture development allowed formulating the following areas of its improvement for the domestic enterprises: formation of a passionate employee, ensuring a balance between work and personal life, an individual approach to personal development and the effectiveness of staff activities, the organization of a virtual office, diversification as a part of teams, and reduction of hierarchy levels. The assessment of the domestic enterprises readiness to implement measures in the framework of the identified areas indicates that the most enterprises are ready to introduce modern tools for the development of corporate culture. At the same time, the necessity was revealed to introduce the individual approach to identify areas for improving professional skills and ensuring a balance between work and personal life of employees.
Development Management, Volume 18, pp 19-29; https://doi.org/10.21511/dm.18(4).2020.03
In a modern turbulent economic environment, strengthening the principle of quasi-stability, globalization and competition, corporate social responsibility is becoming a driving force in establishing market proportions and business development prospects. This substantiates the importance of developing corporate social behavior as a strategic aspect of achieving financial stability in the practice of market participants. The study is aimed at developing a theoretical and methodological justification of the role of corporate social responsibility in optimizing the company’s costs and its impact on basic financial indicators, as well as identifying the relationship between the costs of corporate social behavior and the increase in company value. The research object is corporate social responsibility as one of the tools to achieve business financial performance. The theoretical basis was the analysis of works and publications of leading scientists, research data on CSR practices of successful Ukrainian and international companies, determination of the relationship between the current decline in company profits due to socially oriented costs and sustainable business development. The results obtained made it possible to demonstrate the CSR model of a financially stable company and to characterize the advantages and sources of reducing the company’s costs due to the effective CSR implementation by Ukrainian companies. The practical value of the results can be important not only for the company’s management system, but also for stakeholders such as consultants, shareholders, scientists, authorities, since the results show a positive relationship between CSR and financial performance, and stakeholders can exert some pressure on companies that do not have a CSR policy and thus encourage them to change.
Development Management, Volume 18, pp 55-64; https://doi.org/10.21511/dm.18(3).2020.05
The article examines the systems of risks of various types of financial institutions and focuses on the absence of the risk of legalization among them. This risk is considered separately within the framework of a special system of relations in the field of combating money laundering, financing of terrorism and financing the proliferation of weapons of mass destruction. The evolution of criteria for assessing the risk of a financial institution to be involved in legalization is analyzed, risk-oriented indicators of the activities of financial institutions used to assess their risk profile are generalized. It is established that one of the regulators in the financial services market, the National Securities and Stock Market Commission, uses outdated, formal, and ineffective criteria for assessing the risks of a financial institution to be involved in money laundering. However, the other regulator, the NBU, has already carried out the process of adapting state financial monitoring to the requirements of FATF and AMLD4 and developed risk-oriented indicators of financial institutions’ activities, used to assess their risk profile. Strengthening the control by the subjects of state financial monitoring over the risk profile of a financial institution and its overall financial monitoring system will help to increase the efficiency of state financial monitoring. It is proposed to unify risk-oriented features and introduce identical financial monitoring mechanisms for all participants in the financial services markets, considering the specifics of their activities, as well as including the risk of legalization in the risk system of a financial institution in order to improve the efficiency of the financial monitoring system.
Development Management, Volume 18, pp 37-54; https://doi.org/10.21511/dm.18(3).2020.04
In the current conditions of development of the international and national economy, an important task of statistical research is to conduct an objective and timely assessment and modeling of the relationship between indicators of economic and social development. Based on the results of these studies, reasonable management influences of the state on the adjustment and regulation of the country’s development are accepted. The article is devoted to the study of the relationship between the main components of economic and social development of the country and the construction of a set of models for forecasting the prospects of the country. The object of the study is the socio-economic condition of the country. The article proposes an algorithmic model for assessing the impact of economic development on society, which allows to identify key economic indicators that influence and shape the social development of the country. The practical value of the algorithmic model is to develop a system of evaluation and selection as a result of modeling the most significant factors that shape the social development of the country. The study confirmed the hypothesis of the dominant impact of economic development on society and determined that the main economic factors are the level of competencies that satisfy the modern labour market, technical development of businesses and their competitiveness in markets.
Development Management, Volume 18, pp 28-36; https://doi.org/10.21511/dm.18(3).2020.03
In the context of European integration, the importance of state policy in the field of innovation of enterprises, especially small and medium-sized businesses, is growing. Therefore, the state of the regulatory framework should promote the development of Ukraine’s innovation system, which will increase the amount of foreign investment and increase the welfare of the population. All this requires effective coordination between legislative institutions. The dynamic formation of the legal basis for the development of innovation activities of small and medium enterprises shows positive trends, but attempts to intensify innovation activities have not been implemented in full. The article generalizes the Ukrainian legislative and regulatory support to support the innovation activities of small and medium enterprises. The structure of the institutional basis for supporting the innovation activities of small and medium enterprises was drawn up. Problems of functioning of the national innovation system are revealed. In the process of research the following methods were used: analysis and synthesis, induction and deduction, comparison, graphical and tabular method, system method. The state of the innovation system of Ukraine in relation to the world level is determined on the basis of international indices. The directions of solving the revealed problems of innovative activity of small and average enterprises are proposed, which should be solved by means of state policy tools.
Development Management, Volume 18, pp 1-13; https://doi.org/10.21511/dm.18(3).2020.01
The primary task for Ukrainian business at the present stage of it development is the development and implementation of effective mechanisms to improve the welfare of owners, which can be achieved through the management of investment projects. The realization of the outlined tasks depends on the investments that owners and investors are ready to invest in the development of business entities. The urgency of the issue of information and communication support of project management processes and the value of the enterprise is amplified in the context of the spread of information technology in all areas of enterprise activity. The place of information and communication support in the process of managing the value of the enterprise and projects is specified. Modeling of the business process of enterprise value management is carried out. The tools for improving the efficiency of enterprise project management taking into account project constraints are systematized. The expediency of using information and communication support of project and project management processes for the development and implementation of enterprise cost management strategy is proved. The study results allow combining the approaches to enterprise value and project management based on the use of modern information and communication software, which satisfies the requirements of modern times and modern market economy, oriented towards implementing the innovative instruments of business entities’ financial management.
Development Management, Volume 18, pp 33-42; https://doi.org/10.21511/dm.18(2).2020.04
Since the end of the twentieth century, a new, relevant, and promising trend in economic science has been actively developing – the economy of happiness that arose at the junction of psychology and economics. Understanding the essence and content of social well-being is associated with such a development of a society where the social and spiritual needs of people are met, the resources and benefits of society are used as effectively as possible and favorable conditions for a full-fledged life and comprehensive development of each person are created. If earlier the main task and priority of any national policy was considered an intensive GDP growth, now the GNH – Gross National Happiness is increasingly considered as a priority, that is, the level of satisfaction with the life of the population, as evidenced even in the resolution of the UN General Assembly. However, the methodological ap¬proaches to assessing the economy of happiness are not perfect, first of all because this area is new in economic science. The study aims to summarize and further develop the principles and approach¬es to assessing the economy of happiness. The article analyzes existing practical approaches to the economy of happiness. A test was developed to assess the level of happiness of citizens from different countries; a survey was conducted based on this test from 2017 to 2018. Methodical approaches to assessing the economy of happiness have been improved based on obtaining correlation-regression models that show the dependence of happiness level on creativity, level of health, level of prosperity, level of satisfaction of needs, which enables to define creativity as the main factor affecting the level of happiness; and, unlike the known ones, it allows regulating the level of happiness as a final economic indicator.
Development Management, Volume 18, pp 43-56; https://doi.org/10.21511/dm.18(2).2020.05
The paper deals with the assessment of the socio-economic development of Ukrainian regions using Data Science methods and multidimensional analysis, including taxonomy, n-dimensional classification, and ensemble decision trees methods. The methodological bases of economic regions devel¬opment by the economic and mathematical modeling methods were investigated. The necessity of improving and further developing estimation models of the regional economic development using business analytics tools and multidimensional scaling methods was investigated. The ensemble decision trees methods was applied for the classification model of economic development of the Ukrainian regions according to the conceptual base of the research on regional econom¬ic development. It will increase the quality level of administrative decisions making on regional de¬velopment asymmetry equalization. It is determined that in Ukraine, there is a significant imbalance of regions clusters with high and low economic level. Here was investigated the relationship between the two groups of economic development indicators – the indicators of the economic development regional performance and the group of economic potential. The results of the classification model allow identifying the set of indicators that have significant impact on the overall economic development. The developed ensemble model allows carrying out qualitative recognition and prediction of the state probability of economic development. It will improve the quality of decision making pro¬cesses on equalization of regional development asymmetry. The further research gives the possibility to develop the system of levers directions of regional development imbalance equalization, to determine priority vectors of sustainable development of both the regions and the country.
Development Management, Volume 18, pp 23-32; https://doi.org/10.21511/dm.18(2).2020.03
In the context of the sectoral policy of Ukraine’s economic development, experts identify the IT sector as one of the drivers of economic growth. The sector is characterized by higher than the global aver¬age economic growth rates, growth rates of tax deductions to local and state budgets, and growing growth rates in the share of exports in the overall structure of Ukraine’s exports. It was revealed that, along with positive trends, the development model of the IT sector in Ukraine remains extremely vulnerable to external “shocks”, since about 98% of orders are generated from the external market. In addition, outsourcing rather than product specialization is inherent in the IT sector of Ukraine. And in this case, the level of operational and financial efficiency, as shown by global statistics, is the lowest. This model of development of the IT sector is due to the low level of competitiveness of IT companies, a decrease in competitiveness in the global market, which necessitates the development of adequate mechanisms for managing the competitiveness of companies in the Ukrainian IT sector. The mechanism of forming an adaptive strategy in cognitive management of IT companies’ competitiveness is offered. This mechanism, in contrast to the existing ones, takes into account the contour of anticipation (warning), which allows determining the stability of competitive positions of companies in Ukraine’s IT sector and developing a proactive adaptive strategy aimed at maintaining a high level of competitiveness of IT companies in both local and global markets, increasing their business value. The blocks structure of the mechanism, the range of problems of each block and methods of their solution are determined.