Economic Enterprise Research Articles

Research on LAN Networking Solution for Small and Medium-sized Enterprises Using Huawei Communication Equipment

Against the background of imported communication equipment occupying the main market in China, this paper takes the network requirements of small and medium-sized enterprises as the research object and explores the feasibility of a LAN networking scheme based on Huawei's communication equipment, aiming to improve the network performance, security, reliability, and economy of small and medium-sized enterprises. This paper first introduces the basic concepts and characteristics of LANs, as well as the network requirements and characteristics of small and medium-sized enterprises; then it introduces the main products and functions of Huawei's communication equipment, as well as its advantages and applicability in LAN networking solutions; then it elaborates on the design principles, steps, and examples of the small and medium-sized enterprise LAN networking solution based on Huawei's communication equipment; and finally, through experimental tests and data analysis, it Finally, through experimental tests and data analysis, the performance, security, reliability, and economy of the small and medium-sized enterprise LAN networking scheme based on Huawei's communication equipment are evaluated and compared, and some meaningful conclusions and recommendations are drawn.

The role of internal auditors as a tool to boost competitiveness of Greek firms

The role of small and medium-sized enterprises (SMEs) in the modern economy is crucial, and they have emerged as the most alluring and inventive system. To investigate and assess SMEs’ operations, internal auditing was formed as an independent assessment. Internal auditors’ planning and implementation of a quality program of internal audits can result in several advantages to SMEs. The current study investigates how internal auditors might help SMEs become more competitive. To fulfill the study’s requirements, 200 employees of Greek SMEs who were relevant to the internal audit function in their business environment were invited to answer a questionnaire. Internal auditors are viewed positively by most of the (100) employees who responded. Ranging from 34% to 53% in part B of the questionnaire (the role of internal auditors), they strongly agree with the positive role of internal auditors in Greek SMEs. Regarding the evaluation of internal auditors, most respondents gave a relatively negative opinion. From 31% to 34% respondents in part C of the questionnaire (evaluation of internal auditors) agree a little with the positive evaluation of internal auditors in Greek SMEs. Furthermore, the results showed that internal auditors must be professionals, comprehend the audited activities in-depth, offer ways to remedy problematic activities, and voice their thoughts objectively to succeed in the competitiveness of Greek SMEs.

Sustainable Water in Mining? The Importance of Traditional Owner Involvement in Commercial Water Use and Management in the Pilbara Region of Western Australia

AbstractThe mining industry is a significant water user, an issue that gains a particular prominence in arid zone mining regions, such as the Pilbara region in Western Australia (WA). Mining companies extract vast amounts of water from the groundwater aquifers to access orebodies and to dewater the mine pits. Much of this water is dumped in creeks, injected back into the aquifer downstream or used in mining processing. There is increased awareness from community members for sustainable water use in mining beyond life of mine, and the emergence of Environmental, Social and Governance (ESG) principles in the mining and metals sector signals a shift towards recognizing the importance of water stewardship. Much of the land subject to dewatering in the Pilbara is also subject to native title determinations. For Traditional Owners, important cultural values are associated with water. However, water is not adequately covered in native title, especially in relation to commercial use. We argue that Traditional Owner involvement in design and management of the use of excess water from a mining proponent's water licence (dewatering) can assist in sustainable use of groundwater, as well as provide opportunities in social and economic enterprises. As a provocation style piece, this paper is based on secondary literature, rather than ethnographic data. It explores the political and regulatory landscape of mine dewatering and outlines the limitations that have existed historically and currently and which inhibit Traditional Owners to participate in water management or commercial water interests. We also provide a high‐level analysis of several mining proponents' public policy commitments to water stewardship to assess the sustainable use of water which involves stakeholders such as Traditional Owners in water decision‐making. Finally, we identify possible opportunities and provide some recommendations, for water futures in this dry region where iron ore mining and gas extraction, already massive, are expanding further.

Research on an eco-safe filtration plant for wastewater treatment made of natural raw materials

Purpose. To develop a new eco-safe filtration plant for wastewater treatment based on natural and secondary raw materials, which will allow rational use of natural resources with further mathematical modeling of hydrodynamics of mixing treated wastewater in bioponds to predict removal of residual concentrations from the filter. Methodology. A complex of modern methods of theoretical and experimental research was used to solve the tasks. Concentration of pollutants was determined using methods of atomic adsorption spectroscopy, titrimetry and gravimetric methods, as well as pyrometric analysis. A laboratory installation was created, which included a receiving tank, a filter column, and a tank for collecting purified wastewater. Prediction of distribution and mixing of treated effluent in bioponds was carried out using mathematical and computer software. Findings. An environmentally safe filtration plant (containing sand, fallen leaves of linden, poplar, and plastic residues separated by a polymer mesh) was created to purify wastewater from suspended substances and nitrates. Kinetics of changes in concentration of suspended solids and nitrates in urban wastewater were studied. When using the filtration plant, concentration of suspended solids decreased by 85–92 %. Concentration of nitrates in purified water processed with such a plant is reduced from 12 to 0.25–0.05 mg/dm3. A mathematical model concerning distribution of purified water in a biopond was obtained, which allows predicting possible migration distributions of residual concentrations in purified water during its natural movement downstream. Originality. For the first time, influence of the species origin of fallen leaves on the performance indicators of wastewater filtration plant of urban sewage treatment constructions was investigated, which made it possible to substantiate a new way of disposal of this type of waste. For the first time, it was established that wastewater treatment using an eco-safe filtration plant based on natural and secondary raw materials, containing layers of sand, fallen oak, linden, and poplar leaves, gives an opportunity to reduce contents of suspended solids in wastewater by 1.5 times of the maximum permissible concentration; and such treatment also reduces concentration of nitrates by 4 times from the initial level. Pollutants from wastewater are mechanically fixed in pockets (microcracks, cracks) of fallen leaves, formed during drying of leaves, which is explained by hardening of intercellular spaces with formation of a specific geometry of holes. For the first time, mathematical modeling of purified wastewater movement in a biological pond with a complex geometry was performed, which allows estimating the concentration of the pollutant at its outlet from the pond. Practical value. The created environmentally safe wastewater filtration plant gives an opportunity to perform not only filtering, but also an effective biological purification of wastewater from nitrates on the surface of layers of fallen leaves. The wide use of the proposed installation will allow attracting plastic of polyethylene bottles used in everyday life as a secondary raw material. Based on the proposed mathematical model of movement of purified liquid containing residual concentrations of pollutants, it is possible to carry out qualitative forecasting and optimization of the process of cascade wastewater treatment at industrial and economic enterprises.

Research on the Management Innovation of Smes from The Perspective of Strategic Management

With the constant change of the current world situation and the rapid development of China's national economy, the competition of the market economy of enterprises is becoming more and more fierce, and the reform and innovation of enterprises is particularly critical for the development of enterprises. Enterprises need to timely and quickly adapt to the new social and economic situation, constantly for new development direction, change the traditional management mode, according to the actual situation of the enterprise own new innovation strategy, solve the problems existing in the enterprise economic management, in order to improve the effectiveness of enterprise economic management, so as to achieve the purpose of promoting enterprise development forward. In the new social situation, the innovation of enterprise management economy is the inevitable trend, therefore, we must start from the internal management and external development of the enterprise, and carry out the reform and innovation of enterprise economic management according to the development status of the enterprise itself.

Home country and firm-specific advantage influences on HRM replication versus adaptation in EMNEs operating in advanced economies: A qualitative comparative analysis

This article examines a variety of home and host-country factors and explains how they influence the global integration versus local adaptation of human resource management (HRM) in subsidiaries of emerging multinational enterprises (EMNEs) in advanced economies. The study draws on data collected from 15 multiple case studies using semi-structured interviews with senior directors and managers working in Australian subsidiaries of Indian multinational enterprises (MNEs) operating in the information technology (IT) services industry. The findings reveal that despite originating from weak institutions, Indian IT service MNEs do not face hurdles in replicating their home-country HRM model to their subsidiaries in Australia. International staffing of expatriates was a key industry-specific resource and capability enabling reverse country-of-origin effect to allow the Australian subsidiaries to be managed ethnocentrically. This article challenges the notion that EMNEs struggle to adapt their indigenous HRM systems and model due to weak institutions as it sheds light on the reverse relationship that exists between management practices and country-of-origin in leveraging home-country institutions. It also demonstrates that EMNEs derive competitive advantages mainly from their traditional firm and industry-specific resources and capabilities which allow them to achieve global integration of HRM.

Strategic status quo and trend of enterprise economic management innovation based on media group

The article is devoted to an overview of Midea Group's activities in the home appliance industry. The Midea Group comprises three listed companies and four industrial groups, making it one of China's most prominent white goods manufacturing and exporting centers. Over the years, the company has expanded its portfolio into five business segments: smart home, building technology, industrial technology, robotics and automation, and digital innovation. The company operates in more than 200 countries and regions. The article discusses the importance of effectively managing the enterprise economy in the modern business landscape. Skillful economic management has been vital for optimizing resource allocation, increasing profitability, and ensuring sustainable development. The importance of innovations in economic management is determined, and an analysis of various indicators of economic management for different periods is provided. Midea Group's economic analysis uses the POWERSWOT analysis method, which characterizes several factors contributing to its success. Midea Group's management decisions are found to be practical, and the company uses incentive plans to motivate employees, which has led to a dramatic increase in operating income. The Midea Group's commitment to compliance with regulations and seizing policy opportunities that have helped it maintain steady growth in ROI and R&D while supporting sustainable operations is clarified. The company's use of non-operating investment gains has contributed to diversified growth despite prudently managing its debt. Midea Group focuses on sophisticated incentive plans and a people-centric approach, extending stock incentive plans to employees of various positions. The company prioritizes sustainable development, using the principles of economic management to improve its long-term prospects and sustainability in the global market. Keywords: globalization, enterprise development, strategic practices, Midea Group, global market, competitive advantage, cultural adaptation, global value chain, innovation.

What is affecting the improvement of green innovation efficiency in the old industrial base: evidence from Northeast China.

Green innovation is an important driving force for high-quality development and is vital for reinvigorating the old industrial bases in Northeast China. As such, this study investigates the spatial-temporal evolution characteristics and factors influencing green innovation efficiency (GIE) in Northeast China from 2005 to 2020, using the super-efficient EBM-Malmquist model, kernel density estimation, and random forest model. The results show the following. (1) The "growth effect" of technological change is the main force driving GIE improvement; the "horizontal effect" of pure technical efficiency change has started to play an important role; and the club convergence characteristics of GIE in Northeast China have started to be optimized. (2) GIE in Northeast China shows significant spatial differentiation. The urban agglomeration of Mid-southern Liaoning and Harbin-Changchun has had high values for GIE, indicating that green innovation has a cyclic cumulative effect and the spatial pattern of green innovation needs to be further optimized. (3) The random forest model is more accurate and provides more trustworthy results compared with the traditional multiple linear regression model. The results of random forest model measurement illustrate that the number of digital economy enterprises, public finance expenditure, GDP per capita, and vegetation coverage play a positive role in promoting GIE. The proportion of the non-farm population and industrial agglomeration plays a negative role in GIE. In the same period, the contribution of the number of digital economy enterprises≥0.41, public expenditure ≥0.47, GDP per capita≥0.39, and vegetation coverage≥0.36 to GIE reach maximum values and then remain unchanged.

Circular Economy a Footstep toward Net Zero Manufacturing: Critical Success Factors Analysis with Case Illustration

Increasing populations and the extravagant consumption of virgin resources are key issues in developing economies these days. The Paris Climate Accords of 2015 have also highlighted the importance of resource conservation and sustainable consumption. Developing economies, which rely on linear practices and traditional resources, require urgent attention regarding such issues. Practices of the circular economy (CE) provide an edge to achieving self-sustainability in materials and energy and lead a guiding path towards net-zero manufacturing. Net-zero manufacturing practices can significantly reduce environmental impact, conserve resources, and contribute to a more sustainable economy. In the current research paper, the authors have studied the critical success factors (CSFs) for implementing the circular economy in Indian small and medium enterprises (SMEs). The authors identified the CSFs through a literature review and expert opinions. To categorize and establish a structural model among the identified CSFs, the authors used Fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) techniques. The model’s robustness and expert bias were checked through predisposition analysis. To verify and validate the findings of the analysis, the authors conducted a case study of an Indian SME using the Strengths, Weaknesses, Opportunities, and Threats (SWOT) methodology. The authors of the current study observed that government policies and regulations on CE, consumer awareness and demand for CE products, economic incentives available for CE products, and new global business opportunities due to CE are the leading cause groups of CSFs. A reduction in energy and waste-related costs, the availability of infrastructure for CE practices, and an improvement in information-sharing transparency among supply chain members are the leading effects of CSFs. The influence graph shows that ‘Govt. policy and regulation on CE’, ‘Consumer awareness and demand for CE products’, ‘Economic incentives available for CE products’, and ‘New global business opportunity due to CE’ have a higher out-degree influence on other factors. From the case study, the authors observed that the strategic implementation of CE practices, green policy, reverse logistics, staff training, and new technology adoption have improved the use of repaired and refurbished materials in the case organization from 1–2% in 2019 to 9–10% in 2023. The findings of the current study imply that management commitment and strategies for building a ‘Green image’, coordination with suppliers, technological upgrades, reverse supply chain practices, workforce skills and training, and customer awareness and demand for CE products are crucial factors in successfully adopting CE and transitioning towards net-zero manufacturing.

Pengaruh Kedisiplinan Kerja terhadap Kinerja Karyawan di Dinas UMKM Koperasi Kabanjahe Kabupaten Karo

Medium enterprises are productive economic enterprises that stand alone, carried out by branches of individuals or business entities that are not subsidiaries with a total net worth of more than Rp. 500 million to Rp. 10 billion and a total turnover of Rp. 2.5 billion to Rp. 50 billion. The purpose of this study is to analyze the influence of work discipline in improving employee performance at the UKM Cooperative Kabanjahe Karo Regency. This research uses quantitative methods. This type of research is research that takes samples from a population and uses a questionnaire as a data collection instrument. Thus this research is categorized as explanatory research. The influence of work discipline possessed by employees and the greater the performance given, the higher the work productivity of employees which will have a positive effect on the performance of employees in the company as a whole.

Exogenous crises and SMEs resilience: The Dynamic Open Innovation Funnel

In the fall of 2019, a global coronavirus pandemic (COVID-19) negatively impacted the economy of small and medium-sized enterprises (SMEs) worldwide. It is essential to identify effective resilience strategies to help SMEs overcome economic and financial crises caused by pandemics or other exogenous crises. This paper delves into this aspect by asking the following research question: How can Open Innovation and dynamic capabilities be leveraged by SMEs to develop resilience during an exogenous crisis?. The study employs a mixed methods approach to investigate the experiences of SMEs located in the Free State of Bavaria (Germany). Based on the quantitative and qualitative data collected and analysed, this study proposes an innovative framework, named Dynamic Open Innovation Funnel, which integrates the managerial constructs of Open Innovation and dynamic capabilities to support SMEs resilience during exogenous crises.

Building Sustainable Village-Owned Enterprises: The Institutional Change of Microfinance in Banyuwangi Regency

of a government-driven program, namely involving the transformation of DBM (Dana Bergulir Masyarakat) into Village-Owned Enterprises (BUMDesa). This research will hopefully help in developing the best transformation model to enhance policy effectiveness and empower BUMDesa as the primary pillar in the spirit of partnership, by taking into account BUMDesa policy after the publication of the village law and its derivative regulations in the face of complex policy challenges. The Nawacita agenda, recognition-subsidiarity principle, and granting local autonomy at the village scale were the core principles of the preceding BUMDesa policy shift. BUMDesa’s current job is to change the government-centric agenda into practices that reflect the delegation of local power at the village scale, at both the village and rural area levels. Understanding the Berdesa tradition is essential for the broader policy agenda to promote village economic enterprises so that it is carried out in practice and still recognizes, respects, and elevates communities in Indonesia. Elinor Ostrom (1990) provides a thorough understanding of institutions in the management of common goods to achieve sustainability, and her work complements the conceptual framework developed by Douglass C. North and Bromley to understand the relationship between institutions and policies in the context of resource management. This study is guided by the theory of institutional change, and uses a qualitative approach with a case study design.
 Keywords: institutiional transformation, village credit agency, microfinance institution

Board Informal Hierarchy and Digital Transformation: Evidence From Chinese Manufacturing Listed Companies

Board informal hierarchy plays a crucial role in board governance and corporate strategic decision-making. The article empirically examines the impact of board informal hierarchy on corporate digital transformation based on relational contract theory, using a fixed-effects model with Shanghai and Shenzhen A-share listed manufacturing companies from 2012 to 2019 as research subjects. The findings of this study demonstrate a positive correlation between board informal hierarchy and digital transformation. Specifically, the presence of a chairman with the highest rank in the informal hierarchy strengthens this relationship, while the presence of a CEO with the highest rank weakens it. Mechanistic analysis shows that informal hierarchy accelerates digital transformation through three channels: improving board decision-making efficiency, mitigating management myopia, and facilitating information communication. This study extends existing research. On the one hand, this paper explores the drivers of digital transformation in manufacturing firms at the level of corporate governance and board characteristics. The findings provide empirical evidence to support the understanding of transformational change behaviors of manufacturing enterprises in the digital economy. On the other hand, it also opens up the “black box” of the internal operation of the board and provides valuable lessons for strengthening board governance. JEL Classification: D21; M12; Z13.

Przedsiębiorstwa państwowe we współczesnej gospodarce – cele i uwarunkowania efektywności działania

Celem artykułu jest określenie warunków, pod jakimi przedsiębiorstwa państwowe funkcjonujące we współczesnej gospodarce kapitalistycznej mogą być korzystne dla gospodarki. To określenie warunków powiązane jest ze zidentyfikowanymi dwoma problemami związanymi z funkcjonowaniem tych przedsiębiorstw, jakimi są: cele przedsiębiorstw państwowych i ocena ich realizacji oraz pogoń za rentą w nich przez polityków. Analiza została przeprowadzona na podstawie krytycznego przeglądu współczesnej literatury i badań empirycznych w zakresie własności państwowej. Fundamentalnym warunkiem efektywności i innowacyjności przedsiębiorstw państwowych i ich pozytywnego wpływu na wzrost gospodarczy jest wysoka jakość instytucji państwa i dobra polityka właścicielska. Bez tego warunku wszystkie patologiczne działania urzędników i polityków będących agentami obywateli – faktycznego właściciela ujawniają się z całą mocą i doprowadzają do obniżenia efektywności działania tych przedsiębiorstw.

Research on the Impact of ESG Information Disclosure on the Green Innovation Performance of New Energy Enterprises under the Background of "Double Carbon"

Under the background of "dual carbon", ESG performance is an important indicator to measure the sustainable development of the green economy of enterprises. ESG information disclosure is the behavior of enterprises to disclose information to internal information users and external stakeholders, and it is the guarantee for enterprises to improve internal risk governance and strengthen external risk management and control. This paper will analyze the status quo of ESG information disclosure of new energy companies on the basis of elaborating the relevant content of ESG information disclosure, and study the impact of ESG information disclosure on green innovation performance of new energy companies. ESG information disclosure has a more significant positive impact on the green innovation performance of new energy companies.

Digital transformation as a factor of changes in the organizational behaviour of international companies

Digitalization is an essential process for enterprises in the post-industrial economy, which contributes to increasing their competitiveness and opens up new opportunities for involvement in global digital value chains. Digitalization practice provides for developing recommendations and algorithms for overcoming and preventing errors within the scientific discourse, thus the aim of the article was to determine the impact of digital technologies on the organizational behaviour of international companies and generalize causes of digital transformation failure. Changes in organizational behaviour under the influence of digitalization have been systematized using the generalization method. The causes of unsuccessful digital transformations in organizations have been structured using the five-stage digital transformation model. The main factors of failures at each stage have been discovered. At the stage of automation errors result from the failure to understand the mission and value of the business and to implement digital technologies. At the isolated stage the negative factor is the insufficient support of priority changes and the wrong choice of what exactly needs to be transformed. It has been discovered that at the stage of partial synchronization systemic digital transformation is hindered by an ineffective change management strategy or an insufficient number of transformation projects for adequate change of the overall operation. Problems with the organizational structure or digital literacy can lead to the disruption of digital transformation at the stage of full synchronization. The risks of continuous transformation stage result from losing the priority, ensuring the transformation, due to inflexible culture, lack of discipline regarding the constant identification of new business disruption risks and responding to them. The practical significance of the present research is stipulated by the proposed recommendations for changes in the organizational behaviour of companies that will reduce the risks of failures in particular and failures of digital transformation as a whole

Rewards, Penalties and Real Case References: Improvement of the Last Mile Delivery in USA

The growth of the platform economy has fueled the rapid growth of the cargo transportation industry. However, while it continues to scale up, many problems of the existing freight transportation industry are being exposed - environmental damage, harming consumers, and even depriving producers of profits. The last-mile problem is particularly significant. The United States and China, two of the world's largest countries, have representative platform economy enterprises, namely Amazon and Taobao. These two companies' different freight models represent the two existing mainstream freight models in the world - free home delivery and stagecoach containers. By comparing the two companies' existing last-mile delivery problems and analyzing the two countries' different cultural backgrounds, this paper tries to solve the existing last-mile problems by introducing reward and punishment mechanisms and applying the two models to each other. In this way, enterprises in each country can learn from each other's distribution models and find the optimal solution for the platform economy distribution model.

Corporate and Society: A Symbiotic Relationship of Service and Sustainability

Business is an economic enterprise and that it must ultimately justify itself on economic performance or achieving its objectives of profit making. It is also true that business is an organ of society and as such it must justify its continuance by fulfilling its role and responsibilities to society. Business depends upon society for inputs like man, money and technology. Earlier, that business organization was considered good which was high profit for its owner but today, the situation has changed. Today responsibility of business is not limited to its owners alone, rather it has assumed larger dimensions. Business has to look to the interests of many other interested groups. Now a days there is feeling that business should help in overcoming social problems. It should try to help the society even at the cost of reducing its profits. After all, it is society consisting of workers and consumers which enables business to earn profits, as saying goes, ‘a tree must protect the land on which it stands’. In this paper I have taken initiative to understand the fundamental changes in paradigm of corporate social responsibility and new innovative practices being applied for its implementation in the last decade in India. An attempt has been made to establish the symbiotic relationship between corporate and society on the basis of secondary study.

KINERJA BUMDESA DALAM PENGEMBANGAN EKONOMI KREATIF DAN KESETARAAN GENDER

The purpose of this study was to analyze the factors that support and inhibit the development of village-owned enterprises (BUMDESA), the role of BUMDESA in the development of creative economic enterprises and gender equality. This study uses a qualitative analysis technique with a descriptive explanation level, namely an analysis technique that describes qualitative data in the form of the development of BUMDESA, the manifestation of the role of BUMDESA in the development of the creative economy and gender equality as well as the factors that encourage and inhibit BUMDes. The population of this study were all BUMDESAs in coastal village tourism objects in Badung Regency, using the convenience sampling method, so the samples were 4 BUMDESAs that had developed and 6 creative economies in coastal village tourism objects in Badung Regency. Data for 2022, in Badung Regency the formation and types of BUMDes businesses vary because Badung Regency is very synonymous with tourism objects and the creative economy in it, including; savings and loans, waste management, cooperatives, drinking water management, organic fertilizer management, and in tourist areas there are rental boats, bicycles and others for tourists. Here the community provides boats, bicycles for rent and is managed by BUMDESA, so the community can be involved in it. The role of BUMDESA in the creative economy sector is manifested in the form of providing capital loan assistance with conditions and low interest rates for Balinese culinary culinary businesses and fruit culinary businesses, so that these culinary businesses can increase business volume and absorb more labor, especially housewives. . Likewise, the creative economy of surfing board crafts can increase business volume more broadly. For gender equality, namely BUMDESA has the role of absorbing labor in the village, especially women so that it provides the same proportion as the role of men in the village. Many women work in BUMDes units and even as BUMDESA administrators so they can improve gender equality

INNOVATIVE METHODS OF COST MANAGEMENT IN MODERN BUSINESS CONDITIONS

An important function of the economic mechanism of any enterprise is the management of its costs. This is due to the fact that any activity, and especially production, requires significant expenditure of resources. The functioning of the enterprise and its competitiveness directly depend on the level of operating costs. In a market economy, costs are the basis for choosing the best of alternative options for the development of an enterprise and making balanced management decisions, a guideline for setting the price of products and a prerequisite for increasing the enterprise’s capital. The effectiveness of adaptive actions of manufacturing enterprises to changes in the economic situation in the country or the immediate industry and their ability to work stably depend to a large extent on the provision of information management systems about the state and prospects of business, existing and potential problems, and alternative directions of development. On the one hand, costs are a necessary condition for the full functioning of any enterprise, and on the other hand, they directly affect the financial result of its activity, as the foundation of the enterprise’s development, and characterize the efficiency of the use of available resources. They are diverse, constantly changing under the influence of both the internal and external environment, and have different dynamics in different periods of time. All this prompts active current and strategic cost management, the purpose of which is to realize the competitive advantages of the manufacturing enterprise and secure it in positions of stable development. Such orientation should stimulate the introduction of the latest cost management technologies, which, in turn, will contribute to successful integration into the global and European economic space. At the same time, the effective functioning of domestic management will be ensured by innovative tools that have been tested at enterprises of the developed world economy and require adaptation to the real conditions of functioning of domestic enterprises. Therefore, the problem of cost management is relevant in the economy of European and world-class enterprises and is too relevant for domestic production to ensure stable profitable activity and competitive advantages in the market of goods and services.