Abstract
The paper examines an approach to developing a strategy for the Russian gas industry’s sustainable growth based on the system economic theory’s methodology. The aim of the study is to evaluate the current state of the industry by calculating sustainable growth indices. Grey Relational Analysis (GRA) reveals a deep relationship between sustainable growth indices and Return on equity ( ROE ), Lambert Energy Index ( LEI ), Return on environmental investments (ROEenv ), and Return on social investments (ROEsr ). The system balance index ( SBI ) is calculated, which expresses the intensity of links between the financial, energy, environmental and social subsystems of the gas industry. The results show that the Russian gas industry companies are characterized by a low level of ROEenv or ROEsr , negatively affecting the SBI value. The authors conclude the importance of environmental protection and social responsibility for achieving sustainable industry growth should not be underestimated. This circumstance should be taken into account when setting strategic goals for companies in the gas industry. According to the authors, applying system economic theory to achieve sustainable growth goals has huge potential to overcome economic phenomena and improve company management practices.
Highlights
The paper addresses the theory of sustainable growth under the system paradigm
Sustainable growth is treated as a system, where the result concerns the interconnection among energy, environmental, economic and social subsystems [1]
grey relation analysis (GRA) results The authors have tested more than twenty energy, environmental and social indicators that influence four types of sustainable growth coefficients
Summary
Sustainable growth is treated as a system, where the result concerns the interconnection among energy, environmental, economic and social subsystems [1]. Kleiner [6,7,8], the concept of system paradigm in economics was developed and created a model of a tetrad — a stable complex of four basic types of systems (object, environment, process and project). The systems approach in dealing with complex problems is the best way to develop methods for achieving sustainability [10]. System thinkers, such as Senge [11], Wheatley, Bertalanffy [12], Wilber and Meadows [13], claimed that everything has interconnections and need to develop complex methods for evaluation processes [14]. Waldrop (1992) indicates that systems can organize themselves spontaneously into complex structures [18]
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