Abstract

The article examines the essence of the institutional and functional architecture of industrial development strategic planning, which is an ordered system of relations between various institutions in course of designing the industrial strategy. The goal of the article is to identify the features of the functional and institutional architecture of strategic planning and to determine their impact on strategic decision-making processes in the field of industrial development. The main modules of strategic planning architecture are singled out. In particular, they include responsibility centers (which can be the Ministry of Economy of Ukraine or the Ministry of Strategic Industries of Ukraine) and stakeholders, as well as their roles and functions, legislation, and flows of information and analytical data. It was revealed that there are six main functions organizations perform during the strategic planning: framework goals of higher level; strategic goal setting; analysis of environment; strategic alternatives assessment; distinction of steering and planning functions; relationship between planning and budgeting. While the government has its own vision of strategic goals which depends on the political and technical performance of the responsible institution, it is important to engage various government and non-government institutions and business in strategic planning industry development. This idea was also supported within the models of strategic decision making – the model of strategic choice oriented on internal institutional capabilities and external control model which argues the external determinants highly contribute to the variation of the strategic alternatives assessment should be combined. In Ukraine main stakeholders can be represented by business associations and trade unions, R&D institutions and universities, think tanks and civil society organizations. Organizations providing statistical and analytical information also play an important role. There were determined several ways of stakeholders’ involvement in strategic planning of industry development – through participation in working group, through public discussion and through public inquiries preparing experts assessments. Ensuring transparency and efficiency of inter-institutional interaction, trust and support from key stakeholders is also an important component for stimulating systemic change. As a result of these findings the model of functional and institutional architecture of strategic planning of industrial development was elaborated in the study.

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