Theoretical and methodological aspects of the formation of industry competitiveness in the conditions of strengthening international economic relations

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Chernihiv National University of Technology

Theoretical and methodological aspects of the formation of industry competitiveness in the conditions of strengthening international economic relations

Akymenko Olena

PhD in Economics, Associate Professor, Associate Professor

The Department of Accounting, Taxation and Audit

Andarak Vladyslav

PhD student

Annotation

The article summarizes the scientific material on the research topic and substantiates the idea that nowadays there is a substantial need to expand the range of Ukrainian products presented in the world markets, which requires increasing their competitiveness to the level of EU Member States. It has been given the definition of the concept of «industry competitiveness», which refers to a permanent ability to withstand competition due to the existing technical, economic and organizational conditions for mining, processing, and production of high-quality products that meet the requirements of specific consumer groups. It has been defined the principles of a systematic approach to competitiveness management, including systematic, integrity, structuring, balance, fairness, limited rationality, multiplicity, development, infinity, ensuring the attractiveness of positions, involvement, reliability of information, warnings, correspondence in time and space. There are a number of key characteristics of competitiveness, namely: relativity, objectivity, dynamism, integration, belonging to a specific competitive market, need for purposeful formation, immanence, uniformity, adequacy. It has been proved that the combination of restoration of the productive and financial capacity of industrial enterprises and the implementation of state programs on stimulation of economic development will help to increase the competitiveness of domestic industry.

Keywords: competitiveness; industry; international economic relations; integration processes; foreign markets; competitive environment, characteristics.

Олена Акименко, Владислав Андарак

Теоретико-методологічні аспекти формування конкурентоспроможності промисловості в умовах посилення зовнішньоекономічних зв'язків

Анотація

У статті узагальнено науковий матеріал з досліджуваної теми, обґрунтовано ідею про те, що на сучасному етапі гостро постає питання в необхідності розширення присутності продукції вітчизняних товаровиробників на світових ринках, що вимагає підвищення їх конкурентності до рівня держав-членів ЄС. Наведено визначення поняття «конкурентоспроможність промисловості», під якою розуміється перманентна здатність витримувати конкуренцію за рахунок сформованих технічних, економічних та організаційних умов для видобутку, обробки, переробки та виробництва продукції високої якості, що задовольняє вимогам конкретних груп споживачів. Визначені принципи системного підходу до управління конкурентоспроможністю, серед яких: системність, цілісність, стру- ктуризація, збалансованість, справедливість, обмежена раціональність, множинність, розвиток, безперервність, забезпечення привабливості посад, залучення, достовірності інформації, попередження, відповідності в часі та просторі. Наведено низку ключових характеристик конкурентоспроможності, серед яких: відносність, об'єктність, динамічність, інтегрованість, належність до конкретного конкурентного ринку, необхідність цілеспрямованого формування, іманентність, уніфікованість, адекватність. Доведено, що поєднання відновлення виробничого й фінансового потенціалу промислових підприємств та реалізації державних програм стимулювання економічного розвитку сприятиме підвищенню конкурентоспроможності вітчизняної промисловості.

Ключові слова: конкурентоспроможність; промисловість; зовнішньоекономічні зв'язки; інтеграційні процеси; зовнішні ринки; конкурентне середовище; характеристики.

Елена Акименко, Владислав Андарак

Теоретико-методологические аспекты формирования конкурентоспособности промышленности в условиях усиления внешнеэкономических связей

Аннотация

industrial competitiveness market

В статье обобщен научный материал по исследуемой теме, обоснована идея о том, что на современном этапе остро стоит вопрос о необходимости расширения присутствия продукции отечественных товаропроизводителей на мировых рынках, что требует повышения их конкурентности до уровня государств-членов ЕС. Приведено определение понятия «конкурентоспособность промышленности», под которой понимается перманентная способность выдерживать конкуренцию за счет сформированных технических, экономических и организационных условий для добычи, производства, обработки, переработки продукции высокого качества, удовлетворяющего требованиям конкретных групп потребителей. Определены принципы системного подхода управления конкурентоспособностью, среди которых: системность, целостность, структуризация, сбалансированность, справедливость, ограниченная рациональность, множественность, развитие, непрерывность, обеспечение привлекательности должностей, привлечение, достоверности информации, предупреждения, соответствия во времени и пространстве. Приведен ряд ключевых характеристик конкурентоспособности, среди которых: относительность, объектность, динамичность, интегрированность, принадлежность к конкретному конкурентному рынку, необходимость целенаправленного формирования, имманентность, унифицированность, адекватность. Доказано, что сочетание восстановления производственного и финансового потенциала промышленных предприятий и реализации государственных программ стимулирования экономического развития будет способствовать повышению конкурентоспособности отечественной промышленности.

Ключевые слова: конкурентоспособность; промышленность; внешнеэкономические связи; интеграционные процессы; внешние рынки; конкурентная среда; характеристики.

Formulation of the problem

Nowadays, in the context of the development of market relations and integration processes, the study of the prospects of entry of domestic enterprises into the markets of the European Union (hereinafter, the EU) is relevant, since there is an obvious need to intensify foreign economic activity, which plays a crucial role in terms of strengthening integration processes, provides preconditions for the development of enterprises on an innovative basis, defines competitive advantages in the world market of goods and services through the introduction of the complex of modern forms, methods of international economic relations and foreign trade [1]. In such economic conditions, there is the need to expand the range of Ukrainian products presented in the world markets, which requires increasing their competitiveness to the level of EU Member States. As a result, there is a need to study competitiveness as a complex economic category.

Actual scientific researches and issues analysis

It is true that competitiveness is considered as one of the most difficult categories in the theory and practice of management of an enterprise and socio-economic systems of a higher level (regions, industries, national economies). The research of competitiveness problems in the context of European integration and the prospects of domestic enterprises entering the European market in terms of improving foreign economic relations are the subject of research of domestic specialists, among them: I.I. Biletska [2], N.M. Bohatska [3], I.I. Vinichenko [4], T.V. Hrynko [5], V.L. Dykan [6], I.Z. Dolzhanskyi [7], T.O. Zahorna [7], M.I. Dolyshnii [8], A.S. Donskykh [9], Yu.B. Ivanov [10], A.E. Voronkova [11], I.A. Markina [12], R.A. Fatkhuddinov [13] and others. Nevertheless, it should be noted that a single comprehensive theoretical and methodological approach to the assessment of the problems in the management of industrial competitiveness is absent; and the tools for improving the competitiveness of domestic industrial enterprises in foreign and domestic markets have been studied insufficiently.

Formulation of the purpose of the article

The main purpose of this paper is to study the theoretical essence of the competitiveness of the Ukrainian industry, a European state that seeks equal and mutually beneficial partnership with the EU and the expansion of opportunities in the development of new markets along with the expansion of the competitive environment. Accordingly, securing competitive advantages is necessary to maintain certain segments of the market and the efficient functioning of the Ukrainian industry as a whole.

Presenting the main material

Relations between Ukraine and the EU were initiated in December 1991, when the Minister of Foreign Affairs of the Netherlands, as a country presiding in the EU, formally recognized Ukraine's independence in his letter on behalf of the EU [14].

The implementation of Ukraine's policy on building relations with the EU is related to the adoption of the Law of Ukraine «On the Principles of Internal and Foreign Policy», which defines that "ensuring integration of Ukraine into the European political, economic, legal space in order to become a member of the European Union. EU” (Article 11) [15] is one of the fundamental principles of the foreign policy of Ukraine. The history of building relations of Ukraine with the EU clearly shows the European integration aspirations of the Ukrainians to establish close and full cooperation with other European nations, which is natural and quite understandable. After all, it was the Ukrainians who were the first in history sacrificing their lives under the European Union flag, defending in January-February 2014 their right to a free European future (the Revolution of Dignity).

Perceiving the European integration as a rather complex social and economic process of political, legal, economic, social and cultural unification of European states, the first attempts of political and legal regulation of the issues related to this phenomenon were made in Ukraine in the early 1990s of the previous century with signing of the Declaration of State Sovereignty of Ukraine. The Declaration stated that our state "acts as an equal 11th participant in international communication, actively contributes to the strengthening of universal peace and international security, takes a direct part in pan-European processes and European structures, recognizes the supremacy of universal human values over class ones, the priority of universally recognized norms of international law over the norms of domestic law” [16].

During the years of independence, a number of political and legal documents, which reflected Ukraine's intention to build relations with the EU on the principles of integration, were decisive in the relations between Ukraine and the EU. However, it should be noted other decisive events, namely: the signing by the President of Ukraine of the Association Agreement (June 27, 2014), its ratification by the Verkhovna Rada (September 16, 2014), and the entry into force of the Association Agreement between Ukraine and the EU in full (September 1, 2014) [1]. This created significant prospects for Ukraine, as a European country seeking an equal and mutually beneficial partnership with the EU, in expanding its competitive environment in the context of enhanced international economic relations.

It should be emphasized that a deep and comprehensive free trade area between the EU and Ukraine, which is part of the Association Agreement, creates new economic opportunities for both the EU and Ukraine. This is due to the integration of Ukraine into the international economic space, as well as the penetration of powerful multinational corporations into the domestic market, which diminishes the competitive advantages of state-owned enterprises in the struggle for leadership. Therefore, the main and priority task for the Ukrainian economy is the increase in the competitiveness of the products made by industrial enterprises.

Studying the theoretical aspects of competitiveness, we have made a conclusion that there is no generally accepted definition of this category, however, there are the principles of a systematic approach to competitiveness management, including systematic, integrity, structuring, balance, fairness, limited rationality, multiplicity, development, infinity, ensuring the attractiveness of positions, involvement, reliability of information, warnings, correspondence in time and space [17].

The analysis of numerous definitions of the category of "competitiveness" has allowed us to distinguish the following features of this concept: administrative division (international, national, regional); level of competing objects (industry, enterprise, products and services); fixation time (on a specific date, current, estimated) (Fig. 1) [21].

In order to clarify the essence of competitiveness, scientists have identified the key characteristics of this category, which include the following:

relativity - definition of competitiveness towards certain competitors, the correct choice of the basis of comparison, within which the most successful competitor on the market should appear;

objectivity - definition of competitiveness for a particular subject, the parameters of which are thoroughly researched and compared with competitors;

dynamism - involves periodic changes in the subject's competitiveness parameters under the influence of operating environment;

integrity - means a full presentation of the competitiveness of all aspects of operation of the subject, demonstrating its competitive advantages;

belonging to a specific competitive market - identification of the subject's competitiveness in the relevant market depending on the size and scope of its activity;

need for purposeful formation - competitiveness is the result of successfully implemented management decisions at all levels of management system;

immanence - competitiveness of a subject is an internally predetermined characteristic by which any subject operating in a competitive market can be identified;

uniformity - identical understanding of all market participants and stakeholders about competitiveness, which will make it impossible to interpret different estimates, conclusions and indicators in a diversified way, as well as prevent the conscious manipulation of information and exaggeration of individual competitiveness parameters;

adequacy - competitiveness should reflect the real state of the market, and not be of formal importance [22].

Fig. 1. The Signs of Competitiveness

Summarizing the essence of the categorical apparatus in this area of research, we consider it advisable to pay attention to the most appropriate, in our opinion, terms that characterize the differences of specific categories. Thus, R. Fatkhuddinov considered competitiveness as an important systemic feature of a certain object, characterized by the degree of real or potential satisfaction of existing competitive need (purpose of the object) in comparison with similar objects presented in this market (in a certain sphere of human activity) [13, p. 10].

Yu. Ivanov studies this category from the point of view of a systematic approach as a specific property of production and economic systems (such as an enterprise) that reflects their ability to change the direction of development (movement) or the intended mode of functioning in the process of adaptation to the influence of the environment in order to preserve, transform or create new competitive advantages [10, p. 28-29].

A. Voronkova points out that competitiveness is a specific feature of the economic agent that manifests itself in the process of competition and allows it to take a place in a market economy to provide expanded reproduction, which involves covering all costs of production and making a profit from economic activity. Thus, the competitiveness of the enterprise is a summarising indicator of its sustainable performance, which includes the results of the activities of a variety of production, support and management units, subsystems and resources involved [11].

According to V. Sinko, competitiveness of an enterprise is a reflection of its comparative advantages with respect to other enterprises of this industry domestically and abroad [18].

Other scientists believe that competitiveness is comparative advantages of the enterprise in relation to other enterprises operating in this field, both of the national economy and the world market [12].

From A. Mazaraki's point of view, competitiveness as a category reflects economic relations regarding the creation and implementation of the complex of competitive advantages inherent in economic agents [19].

Moving on to the content of a more specific type of competitiveness - the competitiveness of the industry, we consider it necessary to emphasize the ambiguity of its definition. It happens because industry is a driving force for accelerating economic development and qualitative changes in the structure of the economy because it acts as a highly developed and leading industry of material production, the level of development of which is base for technical reequipment and intensification of all industries, increase in welfare of the population, strengthening the country's defense capability.

Today, Ukraine finds itself in an international competitive environment, to which the national economy is not fully prepared. This is evidenced by the irrational structure of production and export, its raw materials orientation, low domestic demand. Thus, the most important stage in the formation of national competitiveness is its primary level - the industry, which is one of the central welfare units of the country. Therefore, in agreement with the opinions of scientists, we understand the industry competitiveness as a permanent ability to withstand competition due to the existing technical, economic and organizational conditions for mining, processing, and production of high-quality products that meet the requirements of specific consumer groups [20-22].

Considering the fact that the Ukrainian industry is an important component of the economic complex of Ukraine, which determines the level of its economic development, specialization of the economy, the scale of participation in the territorial division of labor and the intensity of territorial and economic relations, we consider it necessary to assess systematically the competitiveness of the industry at the macro and meso-levels covering a number of structural characteristics, in particular: the level of industrialization of the economy, the specialization of industry (by types of industrial and processing activity), its internal and external efficiency. This necessitates further research in the chosen direction.

Conclusion

Therefore, the research of the essence and the signs of competitiveness in a crisis period showed that their manifestation requires joint efforts to stop the decline in production at all levels of management and it has made it possible to draw some conclusions. Ukraine will remain a supplier country of raw materials and intellectual resources to other, more developed countries until it achieves the recognized status of an equal partner in the world and European space. This should be facilitated by the development of the domestic industry, but based on the restoration of the productive and financial capacity of industrial enterprises, which should be closely connected with the implementation of state programs to stimulate economic development and increase the competitiveness of the domestic industry.

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