Theoretical Interpretation of the Role and Place of Private Companies in the Processes of System Formation in the Economy

Abstract

The purpose of the presented study is to develop the new theoretical approaches to determining the role and place of private companies in the processes of system formation in the economy. Within the framework of the goal set, on the basis of dialectical logic and the conclusions of system theories, the author made an attempt to dialectically connect the ability of self-sufficient companies to self-structuring their internal organization with the mechanism of downward causation, and to self-development (to endless self-motion) and with the mechanism of upward causation. Based on developments in institutional economic theory, the article examines the possibilities of self-sufficient companies for self-structuring and endless self-promotion through integration into a community of their own kind in modern economic systems. The thesis is substantiated by integration of private companies that makes it possible to understand the dialectic of interaction between the conservative structure-forming element represented by the state and always mobile, rapidly changing labile elementary composition of systems represented by modern self-sufficient companies that participate in relationships, some of which become structural. Particular attention is paid to the theoretical formulation of the issue of changing the role of private business in the context of societal crisis of post-COVID reality. It is shown that the state, as a conservative principle in the processes of system formation in the economy, is in a contradictory unity with private companies as elements of the system, without which there would be no structure, and, consequently, the state. At the same time, without the state, the system would never become integrity, since the structure is engaged in its provision, and without this, private firms would be deprived of the future, since there would be no process of system formation. In this context, it is concluded that the state and private companies represent a typical dialectical pair that predetermines the formation, change and transformation of man-made systems.