Influence of cyclicity of crises on the innovative development of the enterprise

Ensuring the functioning of companies in conditions of cyclical financial crises. Improvement of the enterprise management system. The use of innovations to increase competitiveness and the company's leading position in consideration to risks and threats.

Рубрика Менеджмент и трудовые отношения
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Дата добавления 20.07.2024
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Lviv institute of private company «Higher educational institution

«Inter-Regional Academi of personnel management»

Influence of cyclicity of crises on the innovative development of the enterprise

Mahas N.

Introduction

The innovative development of the enterprise characterizes the overall development of the country's economy (economic potential, competitiveness, financial stability, ability to use and implement innovations). Global changes in the world economy at the end of the 20th century and the beginning of the 21st century had an impact on the social-economic development of countries due to scientific and technical progress, processes of globalization and internationalization, technoglobalism and cyclical financial crises" [2,4].

The acceleration of the scientific and technical development of the world economy, the introduction of new information technologies, and the appearance of new products require business to adopt the latest perception of conducting business - innovative development as a guarantee of a high level of competitiveness, financial independence, profitability of own capital and security.

Presentation of the main material

Investigating the essence of understanding the innovative development of the enterprise, analyzing the scientific literature, they saw the absence of a unified mechanism developed by scientists for its provision and substantiation of ways of understanding this issue. Both foreign and domestic scientists have studied this issue, however, to date, innovative development remains not completely clear and clear from the point of view of its effective implementation in the enterprise.

Innovative development of the enterprise is an opportunity for a quick economic leap, which can ensure high economic results, stability, competitiveness and dynamic development.

Factors influencing the innovative development of the enterprise can be internal and external, bring both positive and negative changes in the enterprise. The owners of modern enterprises believe that the market value of the enterprise largely depends on the resource provision of the enterprise and the introduction of innovations in the activity.

The following are often considered to be negative factors influencing the innovation activity of enterprises:

- lack of competence of the management team;

- high risk of introducing innovations into the company's activities;

- problems with the real assessment of external environmental threats;

- problems with staff adaptation and training;

- insufficient education and awareness of the company's personnel in the innovative needs of the modern commodity market;

- unpreparedness of product consumers for innovations offered by the company, etc.

The management of the enterprise must understand that a certain responsibility for the development and implementation of the innovation policy rests not only on the managers within their functions, but also on all employees. Making a decision to start work on the innovation management system requires the highest coordination of transformations, therefore it should be issued in the form of an order for the enterprise.

This order determines the composition of the coordination council and the working group, approves the directions of the innovation policy, regulations on the coordination council, appoints those responsible for innovative implementation in structural subdivisions.

The policy in the field of innovative development of the enterprise is the basis of its development program and requires a clear understanding and acceptance by all personnel of the enterprise.

The impact of scientific and technological progress on the economic development of the country was investigated by the following economic schools:

• classical economic theory;

• neoclassical economic theory;

• marginalism;

• Keynesianism;

• neo-Keynesianism;

• institutionalism;

• Concepts of scientific and technical progress.

In the mid-80s of the 20th century, the scientific schools listed above created a new direction of "innovation".

"Innovation is a new scientific direction that examines all the combined concepts related to the innovation of this issue, brought to life various concepts, each of which focuses on researching one or another aspect of it" [1].

Various cyclical fluctuations of the world economy and scientific theories influenced the development of the concept of "innovative development of the enterprise".

The greatest influence on the development of innovations is the stable development of economies or global crises, which require the introduction of new management methods, types of activities, diversification of activities, and the use of new information technologies.

Many scientists and scientific schools have paid attention to the influence of scientific approaches and theories on the development of innovative activities of the enterprise [1, 3, 4] (see Table 1).

Table 1

Systematization of scientific approaches and theories regarding their influence on the innovative development of the enterprise

Scientific approach/ Theory

Scientist, the founder of this theory and its introduction into economic science

Cyclical development of the economy

M. Tugan-Baranovsky (development of production is possible only at the expense of investing borrowed funds in the main production funds)

Cycle theory

J. Schumpeter (the need for innovation arises when the return on capital invested in production becomes very low or even negligible)

Oscillation theory

M. Kondratiev (in his studies, he identified three types of fluctuations in the financial condition at the enterprise level based on the general development of the country's economy)

Theory of innovations

G. Mensh (Innovations in the company's activities should be introduced during the period of crisis processes and stages of transformation of the country's economy)

Diversification theory

M. Porter (Competition forces enterprises to develop, improve, improve the results of their activities, learn new technologies and products)

Theory of innovative economy

Peter Drucker (He singled out the theory of innovative economy, which widely develops in enterprises the desire to implement new solutions in the production of new products and services)

Social and psychological theory of innovations

H. Barnet, E. Witte, E. Denison (innovations cause business entities to want to apply innovations in their activities)

Modern theories of innovative development

E. Rogers (a person by nature seeks to learn and gain new experiences)

Cyclical development of the economy. This theory was researched and developed by the Ukrainian scientist M. Tugan-Baranovsky, who proposed the market theory, the essence of which was that due to the involvement of loan capital in the enterprise, it is possible to achieve expansion of production, as well as the introduction of innovative products into the activity, taking into account the influence of cyclical patterns changes in production development processes.

The scientist A. Spithof studied and supplemented the approach of M. Tugan-Baranovsky in his research. The essence of his research was that the development of production is possible only at the expense of investing borrowed funds in the main production funds that meet new technological requirements and achievements of scientific and technical progress, which allow expanding product sales markets, speeding up production processes, improving product quality and reduce the cost of production.

Such views of scientists increased the influence of loan capital on the innovative development of production, were quite radical and innovative, they received a fairly large range of implementations of this market theory at manufacturing enterprises and showed their effectiveness over a long period of time. management cyclical financial crises risk

The theory of the cycle was studied by J. Schumpeter, which he improved, the scientist also emphasized that the need for innovation arises when the return on capital invested in production becomes very low or even negligible, a period of crisis. The crisis requires innovation, changes in standards and revision of existing production methods. J. Schumpeter developed the theory of the cycle, determined what types of cycles exist, how they have a destructive effect on the processes of production of goods and the economy as a whole.

"J. Schumpeter based the cycle theory only on innovation as a "process of creative destruction", and he associated changes in the enterprise not with the emergence of new technologies or products that appeared due to the process of investing in a new technological base of the enterprise, but due to new structural changes next to the old base of the enterprise" [23].

The theory of oscillation. It was researched and developed by M. Kondratiev, who defined and proved the theory of large fluctuations in the country's economy, namely, the scientist identified three types of fluctuations in the financial state at the level of the enterprise, based on the general development of the country's economy:

- oscillations are short, their duration is from 3 to 5 years;

- trade and industrial oscillations, their cycle is from 7 to 11 years;

- big cyclical oscillations (48-55 years).

"Since the nature of the cyclical process is determined by the qualitative transition of the system from one state of relative equilibrium to another, the nature of economic cyclicality is closely related to the course of the systemic innovation process - waves of innovation" [5]. M. Kondratiev stressed that when carrying out economic activities by enterprises, they need to take into account the regularities of innovative development processes, which depend on the type and field of activity.

Cyclical crises affect the introduction of new development mechanisms in the company's activities as the basis of anti-crisis measures, which in turn form new innovative development.

Fig. 1. Types and characteristics of world crisis cycles Source: * developed by the author

Cycles of crises in the economic literature are divided into three types (see Fig. 1):

The first type is long Kondratiev cycles that last more than 50-60 years and are characterized by the emergence of new technologies and fields of activity. The scientist emphasized that the emergence of a new wave of crises causes radical changes and the emergence of fundamentally new inventions and radical innovations in production techniques and technologies. Kondratiev cycles cause changes in basic technologies in production, innovations in production and technology appear in groups and clusters.

The second type is Zhuglyar's medium cycles, their duration is 7-11 years, the peculiarity is that investments are made in machines and equipment, the use of new technology increases, which in turn reduces the cost of goods, accelerates the time of production of goods, reduces resource costs, improves the quality of goods and their technological characteristics.

The third type is short Kitchin cycles, their duration is about 2-4 years or 40 months. These cycles characterize the reaction of the economy to the establishment of a level of equilibrium in the consumer market and certain reorganization of productive forces.

J. Schumpeter singled out the main reasons for long cycles - innovations in the economy, technology, equipment, management, new combinations of resource use, the appearance of credit in the capital structure of the enterprise; highlighted that the main link for the introduction of innovations is the enterprise; management and motivation of personnel, its impact on labor productivity, etc.

"It is the cyclical concept of innovative development that leads to the understanding of scientific and technical progress as the most important way of improving productive forces, on the one hand, and as an innovative cycle, which is carried out through the implementation of all stages with the release of novelties to the market" [1-5].

Theory of diversification. It is quite interesting and innovative. This theory was studied by M. Porter, who emphasized that competition is the main mechanism for introducing innovations at enterprises. Competition forces enterprises to develop, improve, improve the results of their activities, study new technologies and products, research the needs and desires of consumers, meet their requirements, etc.

Competition requires diversification of activities, research of consumer needs, ability to predict their needs and desires, production and introduction of new products to the market. Consequently, competition encourages the enterprise to develop innovations that ensure the strengthening of the enterprise's vitality, the growth of competitiveness, financial stability and sustainability of economic activity.

Theory of innovations. The founder of this theory is the scientist G. Mensh, who insisted that innovations in the company's activities should be introduced during the crisis processes and stages of transformation of the country's economy. He emphasized that innovative activity largely depends on the existing mechanism of state management of innovative activities of enterprises. This includes: the credit policy of the NBU, inflationary processes, the need for innovations in the country's economy.

The problem of introducing innovations into the economic activity of domestic enterprises is that they do not understand the need and necessity at the system level of ensuring the constant renewal of the intellectual and material base at the enterprise.

"Problems with the definition of an innovative strategy and the crisis of innovative development in Ukraine and in a number of countries arise because the peculiarities of the development of each separate hierarchical level of the economic system are not taken into account" [5].

Theory of innovative economy. At the beginning of the 90s of the 20th century, the scientist Peter Drucker highlighted the theory of innovative economy, which widely develops in enterprises the desire to implement new solutions in the production of new products and services. At the same time, taking responsibility for the introduced innovations, special attention is paid not only to the modernization of the production process (techniques and production technologies), but also to the intangible active component - the intellectual development of personnel. Businesses increasingly understand the impact of the importance of intellectual capital on the efficiency and effectiveness of operations. The end of the 20th century also contributed to the development of the investment and tax climate in the process of forming the state's innovative policy.

Social-psychological theory of innovations. This is a completely new direction of development of innovative activity at the enterprise, which continues the basic components of the theory of innovative economy. This theory is based on human relations and interaction during the management of innovative activities at the enterprise. Scientists H. Barnet, E. Witte, E. Denison emphasized that the innovative activity of the enterprise cannot be achieved and implemented without established interaction at the macro level and the social aspect of relationships at each individual enterprise.

Modern theories of innovative development. They consist in the desire of people to obtain a greater amount of knowledge and skills. At the same time, the dependence of the country's economic growth on the level of innovative activity of business entities is observed.

Conclusions

Therefore, innovation is the basis of continuous functioning and survival in the conditions of cyclical financial crises, the appearance of constantly new products, the dynamic development of various online platforms that offer and advertise goods and services. The integrated management system of the enterprise is based on innovative development and continuous improvement, the rapid development of the global world, the conditions of the knowledge economy and technoglobalism require the constant updating of basic knowledge and skills, the acquisition of new skills, the ability to quickly learn and negotiate new management products. The basis of an innovative approach to enterprise management is knowledge and skills, which are a source of continuous financial success, obtaining leading positions and competitiveness in the long term, taking into account the risks and threats of the enterprise's operating environment.

References

1. Chukhno A.A. Foundations of economic theory. К.: Vyscha Shkola, 2001. 606 с.

2. Magas N.V. Management of risks of economic entities in crisis conditions. Trends, theories and ways of improving science: The 8th International scientific and practical conference (February 28 - March 03, 2023) Madrid, Spain. International Science Group. 2023. p. 214-217. URL: https://isg-konf.com/trends-theories-and-ways-of- improving-science/

3. Magas N.V. Modeling of enterprise business processes. Economic and legal aspects of forming a model of investment attractiveness of territorial communities: materials of reports of the XIV International Scientific and Practical Conference (April 11, 2023). Chernihiv 2023. С.29-33.

4. Magas N.V., Lelyk L.I. The influence of the processes of technoglobalism on the formation of financial security of economic entities. Actual issues of improvement of certain branches of Ukrainian law: collective monograph / ker. author number: L. I. Lelyk, V. G. Yavorska ; PJSC "IAPM" University. Drohobych: Posvit, 2020. C. 221-250. Kryvoruchko N.V. Structural changes and the impact and impact of cyclical economic crises on them. Access mode: https://scholar.google.com.ua/scholar?hl=ru&as_sdt=0,5&cluster=1 0139154156517788551

5. Magas N.V. Vasyltsiv T.G., Margita N.O.. Financial and economic mechanism of ensuring the competitiveness of retail trade enterprises: theoretical and applied aspects: monograph Lviv: Badikova N.O. Publisher, 2014. 218 p.

Аннотация

Влияние цикличности кризисов на инновационное развитие предприятия

Инновационное развитие предприятия характеризует общее развитие экономики страны (экономический потенциал, конкурентоспособность, финансовая устойчивость, способность использовать и внедрять инновации). Глобальные изменения в мировой экономике в конце XX века и начале XXI века оказали влияние на социально-экономическое развитие стран в связи с научно-техническим прогрессом, процессами глобализации и интернационализации, техноглобализмом и циклическими финансовыми кризисами" [2,4].

Ускорение научно-технического развития мировой экономики, внедрение новых информационных технологий и появление новых продуктов требуют от бизнеса принятия новейшего подхода к ведению бизнеса - инновационного развития как гарантии высокого уровня конкурентоспособности, финансовой независимости, рентабельности собственного капитала и безопасности.

Исследуя суть понимания инновационного развития предприятия, анализируя научную литературу, они увидели отсутствие разработанного учеными единого механизма его обеспечения и обоснования путей понимания этого вопроса. Этот вопрос изучали как зарубежные, так и отечественные ученые, однако на сегодняшний день инновационная разработка остается не до конца понятной и расчетливой с точки зрения ее эффективного внедрения на предприятии.

Инновационное развитие предприятия - это возможность быстрого экономического рывка, который может обеспечить высокие экономические результаты, стабильность, конкурентоспособность и динамичное развитие.

Факторы, влияющие на инновационное развитие предприятия, могут быть внутренними и внешними, приносить как положительные, так и отрицательные изменения на предприятии. Владельцы современных предприятий считают, что рыночная стоимость предприятия во многом зависит от ресурсного обеспечения предприятия и внедрения инноваций в деятельность.

Выводы. Поэтому инновации являются основой непрерывного функционирования и выживания в условиях циклических финансовых кризисов, появления постоянно новых продуктов, динамичного развития различных онлайн-платформ, предлагающих и рекламирующих товары и услуги. Интегрированная система управления предприятием основана на инновационном развитии и постоянном совершенствовании, стремительное развитие глобального мира, условия экономики знаний и техноглобализма требуют постоянного обновления базовых знаний и умений, приобретения новых навыков, умения быстро осваивать и согласовывать новые управленческие продукты. В основе инновационного подхода к управлению предприятием лежат знания и навыки, которые являются источником постоянного финансового успеха, получения лидирующих позиций и конкурентоспособности в долгосрочной перспективе с учетом рисков и угроз операционной среды предприятия.

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