Companies In Various Industries Research Articles

RISK MANAGEMENT IMPLEMENTATION PRACTICES IN RUSSIAN INDUSTRIAL COMPANIES: RESULTS OF AN EMPIRICAL STUDY

The article analyzes the practice of implementing risk management in Russian industrial companies. The study conducted a survey of 96 industrial companies in various industries in order to identify the features of implementing a risk management system in Russian industrial organizations. The main goals of implementing risk management systems in industrial companies, the features of organizational risk management structures, the amount of costs for maintaining risk management systems, risk assessment methods, the activities of industrial organizations that integrate risk management processes, and the level of automation of risk management systems were identified.The method of assessing the level of maturity of risk management is proposed: absent, managed, quantitatively managed, optimized and advanced levels.Using cluster analysis, groups of Russian industrial companies in various industries were identified by the level of process maturity of the risk management system. The most developed in the field of risk management systems are companies in the mining industry, mechanical engineering, as well as those engaged in the production of consumer goods. Companies with the least developed level of risk management include companies in the furniture, pulp and paper, cosmetics, and pharmaceutical industries, as well as those that produce building materials.On the basis of the survey identified the main barriers introducing a comprehensive system of risk management of industrial companies.The described research areas will help to increase the effectiveness of the risk management system, which will help to increase the strategic stability of the company.

DETECTION OF GOING CONCERN AUDIT OPINION BASED ON DISCLOSURE, FINANCIAL CONDITION AND OPINION SHOPPING

Going concern shows assumptions in the financial reporting of an entity relating to the viability of an undertaking. Therefore, the role manager is critical to realize its business continuity. This research aims to analyze the influence of disclosure, financial condition, and opinion shopping on the acceptance of audit opinions going concern on manufacturing companies of various industries listed on the Indonesia Stock exchange for a period of years 2014 – 2016. This article uses the verificative method and the sample selection using the purposive sampling method. Sample selection results obtained 90 company data. This study used the analysis of logistic regression, and the results showed that the opinion shopping influence on the acceptance of the audit opinion of going concern while the disclosure and financial condition does not affect the acceptance of the audit opinion Going concern.

Earning Per Share, Return on Asset Serta Dampaknya atas Tobin's Q di Perusahaan Sektor Industri Manufaktur Tahun 2017

This study aims to determine the effect of Earning Per Share and Return On Assets in sectors of manufacturing companies in the period 2017. This study is classified as a causative study. The research sample was determined using the purposive sampling method to obtain 37 sample companies. The type of data used is secondary data obtained from www.idx.co.id. The analytical method used is a moderated regression analysis (MRA).
 Based on the research results shows that EPS and ROA variables together have a significant effect on Tobin, s Q. Adjust R Square value of 0.590 so it can be interpreted that the magnitude of the contribution of Earning Per Share and Return On Asset variables to Tobin's Q in 2017 manufacturing companies in various industries is 59% while the remaining 41% is determined by several other factors beyond the Earning Per Share and Return On Asset variables.

THE EFFECT OF INVOLVEMENT OF SENIOR MANAGEMENT AND CORPORATE COMMUNICATION SYSTEMS ON EFFECTIVE IT GOVERNANCE AND ORGANIZATIONAL PERFORMANCE

Recently, information technology governance has become a critical issue for many companies in various industries; this is even more important for enterprises due to the more complex business processes, more specified tasks and departments. Many companies suffer from extra costs of IT and other processes due to failure inefficient alignment between IT and business strategies which in turn, leads to low performance of the company. To overcome this problem, organizations need to have an effective ITG to make IT resources management more valuable, less substitute, rarer, and less imitable. To do so, firms need to use IT governance initiatives factors (Involvement of Senior Management in IT and Corporate Communication Systems) to increase their effectiveness and organizational performance. Thus, this paper is aimed to establish a framework, testing the role of Involvement of Senior Management in IT and Corporate Communication Systems on effective information technology governance (ITG) and organizational performance in the manufacturing companies; which should help managers to better understand how Involvement of Senior Management in IT and Corporate Communication Systems and effective ITG, impacts on organizational performance. 357 data were obtained from managers in the Malaysian manufacturing industry. Structural equation modeling (SEM) was used in this study to analyze the measurement and structural models simultaneously to test the role effect of ITG between information technology governance initiative factors (Involvement of Senior Management in IT and Corporate Communication Systems) and organizational performance. Limitations, implications, and suggestions for future studies were discussed.

Educating the Concepts of Retention Factor of a Company with the Case of Employee Engagement Level Increase

The current socio-economic situation creates similar conditions and rules for companies in various industries around the world.in this vein, the study and educate the retention factors of the company are of a great importance. The task of staff productivity increase and the overall effectiveness of its activities is relevant. The most important role in addressing the issue of employee productivity and performance increasing, as well as his retention is played by employee engagement. The researchers studying engagement at work recognize that this phenomenon is multifaceted and define it as an employee's physical, cognitive and emotional state, causing excessive performance of his functional duties. Involvement is interconnected with the motivational potential of work, therefore, the conditions for the engagement development are the following ones: work significance and diversity, the comparison of work with its result. The authors of the article conducted the study of engagement at work in the enterprises of fishing and fish processing industries. We determined the problems that impede the growth of staff engagement. The authors of the article implemented the program of corrective actions aimed to improve the factors affecting the engagement at work and retention of staff. We determined the interdependence of involvement level and the coefficient of staff turnover, as well as the return of employees to some holding.

The impact of the publication of non-financial statements on the financial performance of companies with the identification of intersectoral features

Investor expectations, rather than fundamentals, are increasingly influencing the value of a company. At a time when non-financial assets are becoming an important component of determining the value of the company, the disclosure of non-financial statements as a source of more extensive and meaningful information than financial statements, is becoming an increasingly popular topic of discussion of the scientific and business communities. Non-financial reporting includes types of external reporting provided by organizations to their stakeholders and covering those aspects of the organizations that go beyond the historical framework of financial performance. The information contained in non-financial reports can help investors form an opinion about the intellectual, financial, natural, human and social capital of the company and make a decision about investing. In the developed world, the publication of non-financial statements has become a common norm, while in Russia only a small proportion of companies still issue this type of reporting. The study of publishing non-financial reports dedicated to both theoretical and empirical literature, most empirical studies showed a positive effect of issue of non-financial reporting on the financial stability of companies. However, these studies do not focus on the impact of the publication of non-financial statements on the financial performance of companies in Russia. The purpose of this article is to study the impact of the publication of non-financial statements on the financial performance of Russian companies with the identification of intersectoral features. As a result of this study, it will be possible to understand how the disclosure of non-financial information affects the financial performance of Russian companies. From a practical point of view, this can help managers of companies in various industries to realize the importance or, conversely, the absence of the need to publish non-financial statements as a factor that can increase the credibility of the company in the eyes of investors and positively affect the financial results.

Economic analysis of using green accounting and environmental accounting to identify environmental costs and sustainability indicators

PurposeManufacturing and service companies are likely to make a variety of costs possible. Environmental costs are one of those costs. Environmental performance is one of the most important factors in assessing a company’s success. For environmental accounting, companies need to work together as teams of system designers, chemists, engineers, production managers, operators, employees, purchasing circle and accountants (those who may have never worked together before).Design/methodology/approachNowadays, most of the companies are facing environmental issues and are seeking an appropriate way to report and disclose the information to the public. The environmental pollution issue is among the most important problems of today’s human society. Therefore, this is very important to use environmental accounting as an attempt towards protecting the environment.FindingsGreen accounting is a type of accounting that attempts to factor environmental costs into the financial results of operations. Apart from answering the question whether the economy has performed sustainably during one or more accounting periods, green accounting indicators [green gross domestic product (GDP)] can be used in policy formulation and evaluation. Green GDP calculations can contribute to raise awareness for sustainability concerns among national governments/policy-makers, who tend to concentrate on their countries’ fast economic development.Practical implicationsEnvironmental accounting can be applied to large and small companies in various industries, as well as in manufacturing or service sectors. Environmental accounting can be applied on a large or a smaller scale in a systematic manner for the required bases.Social implicationsEnvironmental accounting requires the collection of information from all the groups. People of various groups need to talk to each other to achieve a common vision and understanding of environmental accounting and to realize this vision.Originality/valueUndoubtedly, to establish an ideal system of environmental accounting in the country, accountants can become a powerful forearm of the government regarding economical and financial controls. To achieve this goal, environmental accounting objectives and tasks should be identified and defined in detail, and the standards, rules and criteria should be grounded and codified based on reasonable and practical principles.

The impact of job-based HR on the attitude of employee

최근의 경영환경은 한국 기업들이 가지고 있던 전통적인 연공서열 중심의 인사관리에 대한 변화를 요구하고 있다. 인사제도는 각자 장점과 단점을 가지고 있지만, 연공 중심의 인사관리로 인해 한국 기업들은 여러 가지 어려움을 겪고 있다. 예를 들어, 고직급자의 증가, 임금공정성 문제, 동기부여 부내, 전문가 육성 체계 부재, 혹은 채용과 배치에서 개인과 직무의 부적합으로 인한 부작용 등을 안고 있다. 그 대안으로 직무중심의 인사관리가 활발하게 논의 되고 있다. 직무중심 인사관리는 체계적인 직무정보의 수집과 직무평가에 기반하여 직무를 인사관리의 기본 단위로 한다. 인력계획, 채용, 평가, 개발, 보상, 이직 등 제반 인사시스템을 직무의 내용과 정보를 토대로 운영하는 인사제도를 지칭한다. 실무진과 학계에서는 직무를 기준으로 하는 체계적ㆍ합리적 인사관리가 기존의 연공 중심의 인사관리의 대안이 될 것이라는 주장이 많다. 그러나 지금까지의 논의는 탐색적 연구이거나 실무적인 관점에서 다루어지고 있어서 직무 중심 인사관리가 한국 기업에 어떤 영향을 줄 것인지에 대한 실증적인 연구는 부족한 실정이었다. 이러한 연구 배경을 토대로 본 연구에서는 직무중심 인사관리가 구성원 태도에 미치는 영향력을 실증 분석하였다. 일의 의미와 직무열의, 개인-직무 적합성, 직무소진을 종속변수로 설정하고 직무중심 인사관리가 각각의 태도 변수들에 미치는 효과를 분석하였다. 가설 검증을 위해 다양한 산업에 있는 101개 기업의 자료를 수집하였다. 동일방법편의를 피하기 위해 기업 수준의 정보와 직무중심 인사관리 문항은 인사담당자를 통해 측정하였고, 개인 수준 변수는 기업 내 구성원에게 측정하여 분석에 활용 하였다. 직무중심 인사관리와 구성원의 태도는 다수준 구조로 이루어져 있기 때문에 위계적 선형모형 (HLM)의 분석 방법을 사용하였다, 분석 결과, 직무중심 인사관리는 일의 의미, 직무열의, 개인-직무 적합성에 유의한 정의 효과를 미치는 것을 확인하였다. 그러나 직무소진에는 직무중심 인사관리의 유의한 영향을 확인하지 못하였다. 분석 결과를 토대로, 결론에서는 본 연구가 갖는 이론적 시사점과 직무중심 인사관리의 현장 활용 방안 및 효과적인 운영을 위한 실무적 시사점을 제시하였으며 연구의 한계 및 향후 연구 방향을 제안 하였다.The recent management environment calls for a change in HR based on traditional seniority in Korean companies. Although the HR practice has advantages and disadvantages, Korean companies are suffering from various difficulties due to seniority-based HR. For example, there is an increase in high-position employees, problems of pay equity, lack of motivation, lack of professional training system, or side effects due to unfit of individuals and jobs in recruitment and placement. As an alternative, job-based HR is actively discussed. Job-based HR is based on systematic collection of job information and job evaluation. It refers to a HR system that manages all kinds of HR practices such as personnel planning, recruitment, evaluation, development, compensation, and turnover based on the contents and information of job. There are many arguments that the systematic and rational HR system based on job will be an alternative to the existing senior-based HR. However, the discussion so far has been lacking in empirical studies on the effects of job-based HR on Korean firms, as it is an exploratory study or a practical view. Based on these backgrounds, this study empirically analyzed the impact of job-based HR on employee attitude. The meaning of work, job engagement, person-job fit, burnout were set as dependent variables. And we analyzed the effect of job-based HR on each attitude variable. In order to verify the hypothesis, we collected data from 101 companies in various industries. To avoid the common method bias, organizational level information and job-based HR items were measured through HR managers. Individual level variables were measured and analyzed by the members of the company. Because the job-based HR and employee attitudes are composed of multi-level structure, HLM analysis method is used. The results of the analysis show that job-based human resource management has a significant positive effect on work meaning, job engagement, and person-job fit. However, job-based human resource management did not have a significant effect on job burnout. In conclusion, we suggested theoretical implications and practical implications for the practical utilization and successful operation of job-based human resource management. Furthermore, we discussed the limitations of this study and directions for future research.

The extremes of franchising in a post-communist country

Purpose Franchising has become an increasingly popular overseas expansion strategy for companies in various industries. A successful development in a transition economy such as Serbia has been exclusively associated with McDonald’s, which raises concerns about the ability of other international franchises to penetrate the Serbian market. The purpose of this paper is to explore the customer-based constraints that may hamper the spread of franchising in a post-communist country. Specifically, factors such as country-of-origin (COO) effects, longevity and brand localness/globalness that may affect consumers’ preferences are considered. Design/methodology/approach This paper uses mixed methods, that is to say a combination of qualitative and semi-quantitative approaches. Primary data were collected using (45) semi-structured interviews with local customers. The (success) story of McDonald’s in Serbia serves as the reference point. Findings The findings suggest that COO and localness are both relevant in explaining consumer preferences. Longevity signals the ability to adhere to international standards as well as regular local engagement. The results also stress that, contrary to widespread belief, global franchise names do not have an advantage over local players. Research limitations/implications Further investigation is needed to empirically examine the relationships between several key variables identified in the present study (longevity, COO, tradition, patriotism, trust, emotional attachment, perceived quality, authenticity, satisfaction, behavioral intentions). These may influence franchise system penetration and, ultimately, its performance. Practical implications Although post-communist countries have become highly appealing for international fast-food and coffee-shop chains, these countries are hard-to-please environments for setting-up and operating a franchise business. These findings advocate franchises to find the right balance between their global name and a quick integration of indigenous attributes to compensate for their late entry. Franchise marketing managers must develop a brand narrative that includes both local brand associations and global/international standards to increase franchise brand awareness and generate a positive consumer attitude. Originality/value Despite the call for more studies on franchising in emerging markets and their realities, not much attention has been paid to (local) customer-related constraints. The inclusion of a temporal perspective appeared to be highly relevant in investigating the potential effect of longevity on the local development of the franchise system. Moreover, there is a scarcity of scholarly branding research in the franchising sector. Local competition, although a neglected dimension in prior studies, has been examined through consumer preferences toward global and local brands. The chosen research methodology responds to the recent call of scholars for more diverse approaches. Finally, as a post-communist, transition and emerging economy, Serbia serves as a stimulating and yet uncovered research setting, given its tumultuous history with Western countries, as well as the long successful history of the McDonald’s franchise.

Green Marketing and Environment

Green revolution is protecting our earth, people and many more through a natural phenomenon in everyday life. Green marketing is a tool used by many companies in various industries to follow this trend. There have been a lot of literature review on green marketing over the years, here analysis of the aspects of green marketing on customer value addition, satisfaction, environmental safety, sustainable development, benefits to stakeholders, prospects are presented. This can be used by researchers who need to study green marketing on these issues.

Japanese Women Managers’ Employee-Oriented Communication Styles: An Analysis Using Constructivist Grounded Theory

The number of women managers in Japan remains small, and little empirical research has been conducted on their communication styles. Therefore, this article reports the results of a qualitative study using the constructivist grounded theory to analyze data gathered on the communication styles of Japanese women managers. It enumerates the results of semistructured interviews with 27 participants comprising women managers and their male and female employees in both foreign-affiliated and Japanese companies in various industries. The findings indicate Japanese women managers go beyond the traditional dichotomies drawn between task- and relationship-oriented communication to engage in employee-oriented communication by facilitating an open and friendly work environment while motivating their employees to collaborate as a team to achieve their professional goals. Japanese women managers are often encouraged to communicate in such a style because it reflects the stereotypical female role in Japanese society and, as such, is well received by their colleagues.

Network structures and credit risk in cross-shareholdings among listed Japanese companies

This study assesses the network structures of cross-shareholdings among listed Japanese companies using a dataset of 2936 companies for the fiscal years 2008–2015. First, I analyze the network structure of cross-shareholdings on the Japanese stock market using centrality measures. Financial institutions and companies in the motor manufacturing industry are central in the network in terms of degree centrality. By contrast, companies in various industries play a central role in terms of betweenness centrality. Second, I use credit risk analysis to investigate the effects of cross-shareholdings using a panel regression. The results show that an increase in the share of foreign companies does not increase the counterparty credit risk in the network. In addition, an increase of a direct centrality measure (i.e., degree or eigenvector centrality) indicates that the connections among cross-shareholdings become denser in a neighboring area and increase credit contagion risk. By contrast, an increase of an indirect centrality measure (i.e., eccentricity or farness centrality) shows that the connections among cross-shareholdings become dispersed at the global level and decrease credit contagion risk. The results could provide senior managers with an important signal for credit risk management related to cross-shareholdings.

The effects of knowledge management processes on human resource management

PurposeManaging knowledge effectively and efficiently is considered to be a key success factor to gain sustainable competitive advantage for organizations. This study aims to analyze the impact of knowledge management (KM) processes on human resource management (HRM).Design/methodology/approachTo test the relationship of KM processes on HRM, a case study was conducted using structural equation modeling based on data collected from employees and managers of a Telecom company in Turkey. The survey instrument is a self-administered questionnaire composed of 37 questions. Three of them are demographic questions; 20 questions aim to reveal KM processes and 14 for HRM practices. The questionnaire was distributed via google survey link to employees and managers in headquarters office and two branches in Istanbul.FindingsIn this paper, the authors tried to investigate the impact of KM practices on the HRM performance of a company. The results indicate that companies with better KM practices tend to perform better at HRM. The main contribution of this paper lies in pointing out that, among the dimensions of KM, knowledge sharing and knowledge utilization have direct impact on HRM, whereas knowledge generation and knowledge sharing have indirect impacts.Research limitations/implicationsThe main limitation of this study lies in the fact that data are collected from a single company in telecom industry. Therefore, it is difficult to generalize the results. Although the research findings are aligned with those of the previous studies, further research using data from numerous companies in various industries is still needed to generalize the research findings.Practical implicationsThe paper includes implications for the development of knowledge utilization generated and stored within the company. The knowledge can create improvements in the company’s HRM performance if it is shared and used effectively. The paper addresses an important subject and the findings may be used by human resources and KM practitioners interested in the development of organizational knowledge through human resource practices.Originality/valueThis paper fulfills an identified need to investigate the impact of KM practices on the HRM performance of a company.

Performance implications of cross-functional coopetition in new product development: the mediating role of organizational learning

Cross-functional coopetition, the simultaneous occurrence of cooperation and competition across firm functions, has been shown to be vital for firm performance. However, the literature has lacked insight into how competitive advantage emerges under such conditions, and which contingencies affect the coopetition-performance relationship. In the context of new product development, this study (a) assesses whether organizational learning translates coopetition among functional units into firm performance, and (b) investigates the moderating role of power sharing. Based on survey data from 331 German companies in various industries, our findings confirm that organizational learning mediates the association between cross-functional coopetition and firm performance. In addition, the results show that power sharing moderates the relationship between cross-functional coopetition and organizational learning. This study extends the limited literature on cross-functional coopetition, and contributes to the current debate on whether intra-firm competition constrains or promotes learning in new product development.

Network Structures and Credit Risk in the Cross-Shareholdings Among Listed Japanese Companies

This study assesses the network structures of cross-shareholdings among listed Japanese companies using a dataset of 2,936 companies for fiscal years 2008-2015. First, we analyze the network structure of cross-shareholdings in the Japanese stock market using centrality measures. Financial institutions and companies in the motor manufacturing industry are central in the network in terms of degree centrality. By contrast, companies in various industries play a central role in terms of betweenness centrality. In addition, the implementation of Japan's Corporate Governance Code (JCGC) had a limited effect in reducing cross-shareholdings. Second, the credit risk analysis investigates the effect of cross-shareholdings using a panel regression. The result shows that the increase in the share of foreign companies did not increase the counterparty credit risk in the network. JCGC implementation could potentially counteract the control of cross-shareholdings of companies in the same sector. In addition, if a direct centrality measure increases, the connections via cross-shareholding become denser and increase credit risk. By contrast, if an indirect centrality increases, the connections become sparser and decrease credit risk. The results could give senior managers an important warning in terms of credit risk management related to cross-shareholdings.

Modern approaches to product competitiveness evaluation for companies of various industries

This study is aimed at forming modern approaches to product competitiveness evaluation for companies of various industries. Relevant task is to obtain a quantitative evaluation parameter for product competitiveness that enables to adequately compare competing products. The study was performed using the methods of systems and structural analysis, strategic modeling and general principles of economic studies. The paper includes review of the existing approaches to product competitiveness evaluation based on its qualitative and quantitative assessment. Key groups of parameters that effect competitiveness of the manufactured product were determined, and an approach based on Harrington desirability function was suggested for its evaluation.

Emerging phenomenon of corporate social and environmental reporting in China

PurposeThe purpose of this paper is to explore the motivations underpinning recent evolving corporate social and environmental reporting (CSER) among enterprises in China through the lenses of senior managers.Design/methodology/approachUsing the interpretive tenets of engagement research, semi-structured in-depth interviews were adopted to explore the perceptions of senior managers from 21 large companies in various industries. The aim is to make sense of the emerging CSER phenomenon occurring in the field through engagement, observation and penetrating interviews.FindingsThe findings identify the main enablers driving CSER in China as: regulations and government influence; management awareness; benefits to company image; peer pressure/reporting by peers and public pressure on controversial companies. Guided by a system-based theoretical framework in terms of motivations for CSER, this study offers insights into the effectiveness of using widely adopted Western-based theoretical approaches in a Chinese context where companies operate against a different socio-economic, political, regulatory and cultural backdrop.Research limitations/implicationsThe deep-rooted face (Mianzi) culture has the potential to influence managers to portray a positive image about their companies and themselves.Originality/valueThis engagement-based study is one of the few initiatives exploring managerial perceptions of CSER in China that adds to the scant literature pertaining to rich “emic” data in accounting, encompassing cultural influence by applying systems-oriented theoretical framework. The stimulus for CSER identified are useful for regulators and organizations to better comprehend how to set effective policies that promote CSER and fit the distinctive institutional characteristics of China.

Supply Chain Coordination in the Presence of Gray Markets and Strategic Consumers

The practice of diverting genuine products to unauthorized gray markets continues to challenge companies in various industries and creates intense competition for authorized channels. Recent industry surveys report that the abuse of channel incentives is a primary reason for the growth of gray market activities. Therefore, it is crucial that companies take the presence of gray markets into consideration when they design contracts to distribute products through authorized retailers. This issue has received little attention in the extensive literature on contracting and supply chain coordination. In this study, we analyze the impacts of gray markets on two classic contracts, wholesale price and quantity discount, in a supply chain with one manufacturer and one retailer when the retailer has the opportunity to sell to a domestic gray market. Our analysis provides interesting and counterintuitive results. First, a classic quantity‐discount contract that normally coordinates the supply chain can perform so poorly in the presence of a gray market that the supply chain would be better off using a wholesale price contract instead. Second, the presence of gray market can also degrade the performance of the wholesale price contract; therefore, a more sophisticated contract is needed for coordinating the supply chain. We show that contracts that solely depend on retailer's order quantity cannot coordinate the supply chain, and provide the conditions for coordinating the supply chain with price‐dependent quantity discount contracts. We also provide comparative statics and show that when there is a gray market, coordinating the supply chain enhances total consumer welfare.

Challenges of Measuring Performance of the Sales and Operations Planning Process

The purpose of this study is to identify and structure challenges of measuring performance of the Sales and Operations Planning (S&OP) process. A multiple case study methodology was applied. Qualitative data was collected via 22 structured interviews with managers from six case companies in various industries. A process oriented framework was proposed by structuring the challenges based on two key areas of process performance (effectiveness and efficiency) and different maturity levels of the process. A major challenge for all the cases, regardless of their maturity level, relates to defining of cross-functional trade-offs measures. Another major challenge was alignment of measures with business strategy and reward system. Additional common challenges for the different maturity levels were also found. While confirming some challenges from previous research, this study also finds new challenges, especially for more mature levels. Examples are standardization to support unbiased decision making, but also customization of measures for various organizational levels, and visualization of findings from the measurement to facilitate analysis. However, future research must validate and extend the results in other industries. The results offer challenges from a process oriented view and can serve as insights for managers when designing and implementing the S&OP process measures, or advancing from one maturity level to another. This research enhances understanding of the challenges to measure the S&OP process performance and adds to the S&OP literature and performance measurement literature.

Consolidation of the capital and its implication for the development of vertically integrated companies in Ukraine

The article substantiates the necessity to strengthen the key role in the economic development of Ukraine's large corporate sector. Links established between the corporate enterprises vertically, that are subordinated to the achievement of the final result of the activities of many small and medium-sized companies, are the backbone of the economy. Due to such relations, interdisciplinary exchange of capital is facilitated. It is proposed to continue the development of vertically integrated companies in the Ukraine through the consolidation of capital companies in various industries. This will reduce the transaction costs associated with the cross-sectoral interaction of economic agents; reduce organizational risks associated with the interaction of these entities; minimize the chance of turning them into monopolies.