Industrial Organization Research Articles

The Fourth Industrial Revolution: A Historical and Conceptual Review

The economic and social progress of countries around the world is linked to the development of industry. Industrial organizations also seek to improve their production processes to meet the continuous changes in customer demands and commodity specifications and improve their competition in the market. The most prominent challenges that organizations face are digital technological developments that play an important role in improving production processes and making them more flexible and efficient. The adoption of new technologies is an inevitable response. According to the world's manufacturing leaders, the developments represent the emergence of a new revolution in manufacturing, referred to as the Fourth Industrial Revolution (Industry 4.0), which represents the process of fully digitizing production processes. This paper aims to provide an overview of the historical development of the industrial revolutions that led to the emergence of Industry 4.0, with a presentation of international initiatives in this regard and a discussion of the most prominent proposals on its concept. A qualitative analysis based on a literature review was used to achieve the goal and answer the question: How did the historical development of Industry 4.0 lead to the emergence and development of the concept, and what are the basic characteristics that distinguish it from previous industrial revolutions? The reasons that led to the fourth era of the industrial revolutions are due to a group of different interrelated factors, including technological progress, economic factors, changing consumer expectations, government initiatives, and the availability of data.

APPLICATION OF AI IN MAINTENANCE AND RELIABILITY MANAGEMENT

In today's world, Globalization and fast-growing economics force enterprises and governments to keep up with the times. Stakeholders are highly interested in reducing downtime, directly impacting profitability rates and customer satisfaction. Under that pressure, maintenance managers and other stakeholders should consider how to alter their current practices and make their systems more efficient and reliable. Many industrial organizations such as ExxonMobil, BP, Chevron, Equinor, Repsol, Total, and others have already invested in AI projects related to predictive analytics to increase reliability levels and optimize their supply chain operations (Tom Mostyn, 2019).

Финансовый потенциал аграрного бизнеса Республики Беларусь в торговле с Российской Федерацией

The purpose of the article is to use the resulting approach to measure the financial potential of agricultural businesses in the Republic of Belarus. The study analyzed the share of food products in foreign trade, food products exports, the production capacity of food products industrial organizations, and the share of food products exports in the total volume of their production. The study defined that the production capacity of food industrial organizations in the regions bordering the Russian Federation (Vitebsk region, Mogilev region, Gomel region) for food products is not fully used. There is potential to increase food production and export it to the Russian Federation. The financial potential for increasing production and export of food products in the regions has been calculated with the resulting approach. The estimated financial potential for increasing meat exports by increasing the level of food production capacity is 218.92 million USD in the Vitebsk region, 312.52 USD million in the Gomel region, and 128.44 USD million in the Mogilev region. Active trade relations between the Republic of Belarus and the Russian Federation laid the foundations for integration and development in the agricultural sector. The following suggestions for realization of financial potential in the regions are outlined and characterized: cooperation of agricultural business entities in the regions in various forms; regional diversification and integration of regional agricultural business entities; production cooperation of regions within the framework of foreign trade of agricultural products and food among EAEU member states and with third countries.

THE EFFECTS OF DIGITAL TRANSFORMATION AND INTELLECTUAL CAPITAL ON ORGANIZATIONAL RESILIENCE IN THE HEALTHCARE INDUSTRY

In today's rapidly changing business world, influenced by globalization, organizations are facing increased volatility and uncertainty, leading to frequent encounters with crises and unexpected situations. This emphasizes the growing importance of organizational resilience. Digital transformation is seen as a crucial strategy for organizations to enhance their resilience. This need for digital transformation is equally important for healthcare organizations to adapt to the digital age and sustain their organizational resilience. Digital transformation in the healthcare industry involves the incorporation and management of the latest digital technologies into healthcare systems. However, there is a limited amount of empirical research on digital transformation and organizational resilience in the healthcare industry, as well as on the impact of intellectual capital on organizational resilience. This study aims to explore the influence of digital transformation on organizational resilience in the healthcare industry in Türkiye and the role of intellectual capital in this relationship. The study adopts a quantitative research method utilizing a structured questionnaire. The sample comprises 204 healthcare personnel from various types of hospitals. Regression analyses using three-step mediation analyses were conducted, and a Sobel test was performed for further analysis to assess the significance of the mediation effect. The results of the analyses indicated that digital transformation has a positive impact on the resilience of organizations in the healthcare industry, and that intellectual capital has a partially mediating effect in this relationship.

Industries, citizens, and non-governmental organizations’ positioning and arguments used in European Union initiatives for alcohol taxation and cross-border regulation

BackgroundThe European region has the highest daily alcohol consumption per capita and a high alcohol-related burden of disease. Policymaking at the European Union level is open to participation by interest groups, from public health organizations to alcohol industry representatives. This study aimed to map the interest groups present in the alcohol taxation and cross-border regulation initiatives and identify which arguments were used to support positions in favor or against them. MethodsWe used qualitative content analysis on the comments submitted on the official European Commission website during the 2017, 2018, 2020, and 2022 participation periods. Interest groups were characterized considering their positioning, and arguments were identified and compared by position and type of initiative. ResultsOpponents of changes to the structures of alcohol excise duties and cross-border regulations were mostly representatives of the alcohol and agricultural industries, and the proponents were mostly health-related nongovernmental organizations. Opponents of these initiatives used a wide variety of arguments, from economic and trade to health arguments, while proponents focused mainly on health arguments, such as the effectiveness of alcohol taxation in preventing alcohol-related morbidity and mortality. ConclusionThis study highlights the wide range of arguments used by opponents around alcohol control policies, contrasting with the health-centered arguments of proponents. It further shows that there is a lobbying network at the European Union level, combining national and international representatives of industry and non-governmental organizations. These findings provide an opportunity for better preparation for upcoming discussions on alcohol control at national and regional levels.

A CORRELATIONAL STUDY OF ORGANIZATIONAL SAFETY CULTURE, EMPLOYEES' SAFETY BEHAVIOR AND PRODUCTIVITY- A CASE STUDY OF ONGC, MAHARASHTRA

This research seeks to establish a correlation between the safety culture of ONGC in Maharashtra and their employees’ safety attitude as well as their productivity profile. Conducting this study as a correlational research, quantitative research data was collected from a sample of the ONGC human resource through structured questionnaires. This study confirmed the hypothesis that the corporate safety culture that is strong and developed has an impact on employees’ safety behaviours’ improvement. Moreover, I found that enhanced safety behaviours have a direct impact on productivity in relation to the employees. This research helps to enhance the best practices of safety culture to improve organisational safety and efficiency in the integrated oil and gas industries more effectively. The conclusions made from the research have several managerial implications with regard to the improvement of safety measures, and the general performance of the organisation. Suggestions for the future works include examining other factors which can influence the safety culture and productivity relationship in similar industrial organisations.

Towards Green Industrial Development in Ukraine: A Decision Model for Post-Industrial Production Strategies

The issue of modelling decision-making in the field of green production in a post-industrial society determines the relevance of the study. The main goal of the study is to develop a decision-making model that can help green industry organizations identify optimal strategies and actions to reduce environmental impacts, ensure sustainable efficiency, and promote development. The methodology used in the study involved a theoretical analysis, synthesis, and mathematical modelling methods. As a result, an innovative mathematical model was developed and proposed, which allows predicting the influence of various factors when choosing the optimal production strategy. The results show that the application of the developed model allows Ukrainian enterprises in the field of green production to determine optimal strategies aimed at reducing the environmental impact of production processes on the environment. It helps to ensure sustainable production efficiency, contributing to the economic sustainability of enterprises and the global economy.

A Hybrid Approach for Hierarchical Forecasting of Industrial Electricity Consumption in Brazil

The Brazilian industrial sector is the largest electricity consumer in the power system. Energy planning in this sector is important mainly due to its economic, social, and environmental impact. In this context, electricity consumption analysis and projections are highly relevant for the decision-making of the industrial sectorand organizations operating in the energy system. The electricity consumption data from the Brazilian industrial sector can be organized into a hierarchical structure composed of each geographic region (South, Southeast, Midwest, Northeast, and North) and their respective states. This work proposes a hybrid approach that incorporates the projections obtained by the exponential smoothing and Box–Jenkins models to obtain the hierarchical forecasting of electricity consumption in the Brazilian industrial sector. The proposed approach was compared with the bottom-up, top-down, and optimal combination approaches, which are widely used for time series hierarchical forecasting. The performance of the models was evaluated using the mean absolute percentage error (MAPE) and root mean squared error (RMSE) precision measures. The results indicate that the proposed hybrid approach can contribute to the projection and analysis of industrial sector electricity consumption in Brazil.

Aspects Regarding of Oil Sludge Cleaning from Crude Storage Tanks Using Robots

One of the problems of the oil industry is the accumulation of sludge at the bottom of crude oil storage tanks. Oil sludge obtained from crude oil storage tanks is a semi-solid waste. It is actually a complex emulsion made up of numerous petroleum hydrocarbons, water and solid particles or mineral impurities from the rock. Oil sludge is generated during the storage of crude oil production, but also during the transportation, storage, and refining of crude oil. Through its nature - organic and inorganic, dark brown / black in color and semi-fluid physical state - it is a very dangerous waste, as it includes many poisonous substances, such as: polycyclic aromatic hydrocarbons, xylene, benzene, ethyl benzene, toluene, but also metals heavy. Therefore, oil sludge deposition is a dynamic, long-term, and ever-changing process. The authors, under the auspices of AOȘR and AGIR, present - through this scientific paper - a modern technology used for the successful cleaning of oil sludge from crude oil storage tanks and, obviously, it can be a recommendation for organizations in the oil industry.

Market Structure as a Vehicle for its Plasticity: an Introduction to the International Cachaça Market from the Perspective of the Industrial Organization Paradigm

Objective: The objective of this study was to present how market structure serves as a vehicle for market plasticity. To achieve this objective, the example of the international cachaça market was used. Theoretical Framework: To understand the structure, we utilized the theory of the Industrial Organizations paradigm. This paradigm specifically considers three areas of concentration for its study efforts: the firm, the markets, and the industries. Method: Using secondary data provided by the English beverage magazine Millionaires, a quantitative study of the distilled beverages market, and more specifically the Brazilian cachaça market, was developed. For the empirical study of the market, measures used included the Concentration Ratio (Cr), the Herfindahl-Hirschman Index (HHI), and the Theil Coefficient (ET). Results and Discussion: In the direct competition of the international distilled beverages market, the cachaça industry stands out with 55.71% of the total market. In terms of concentration in the international distilled beverages market, the concentration ratio (Cr) of the four largest companies was 59.76%, indicating a moderately competitive market. The HHI (Herfindahl-Hirschman Index) was 928.99, which suggests a competitive market according to the standards of the U.S. Department of Justice. The Theil Coefficient (T) was 0.92, indicating a low concentration market. Research Implications: Supported by the Structure-Conduct-Performance approach, Industrial Organization enabled the identification of some dynamics of the cachaça market in this study. Finally, we believe we have contributed to the understanding of the structure of the international cachaça market and some of the influences of this structure on market plasticity. Originality/Value: As presented in this study, the market structure denotes the potential to reshape the market, promoting responses to the actions of its players.

Green Lean Six Sigma practice in the industrial and service sectors: from the systematic literature review to an integration diagram

Recently, increasing competition pressure and severe environmental situations have posed significant challenges to organizations in the industrial and service sectors. In this context, Green Lean Six Sigma (GLSS) is an important approach for helping industrial and service organizations achieve sustainability. The main objective of this study was to clarify the specific content of GLSS practices in the industrial and service sectors, including frameworks, tools, necessities, barriers, effects, and other aspects, through a systematic literature review (SLR). A statistical analysis was conducted to examine the main characteristics of these GLSS elements and the gaps in their implementation between the two sectors. Based on this analysis, an integration diagram of GLSS key elements is proposed, and it showcases core ideas and processes for implementing GLSS in the industrial and service sectors. The findings demonstrate that GLSS practices bring comprehensive improvements to enterprises in multiple dimensions and exhibit differentiated characteristics in the two sectors. Most GLSS frameworks are primarily designed for the industrial sector, and service organizations have yet to systematically grasp the application of GLSS tools. The findings have reference value for practitioners and researchers in the industrial and service sectors regarding GLSS practices.

<p>Regulation cost combination model: an approach to Mexican SMEs from 2003-2019</p>

A regulation cost combination model (RCCM) was used to explain the regulatory functioning of Mexican industrial organizations, highlighting the role of small and medium-sized enterprises (SMEs) from 2003-2009. A model is developed based on the combinatorial theory that allows evaluation of the changes to be made in the regulations to reduce evasive behaviour by agents and provides a framework for the net social benefit (NSB) that companies obtain according to their size. A regulation cost factor (RCF) is built that interacts with the number of supervisors, the regulation process, and its costs compared to the NSB. A first analysis of the results of regulatory management is not advisable because efforts to guarantee efficient compliance generate high costs that are difficult to evaluate in the context of trade-offs concerning the improvement of the NBF; however, the development of these costs is theoretical and allows us to conclude that less rigorous but effective regulations favour SMEs since they allow them to reduce their cost structure to maximize their NSB.

THE RELATIONSHIP OF EMPLOYEE EMPOWERMENT AND EMPLOYEE ENGAGEMENT: THE ROLE OF FLEXIBLE WORK ARRANGEMENTS AND CAREER DEVELOPMENT AS STIMULANTS

AbstractIn the creative industry, the relationship between employee empowerment and employee engagement has a very important role. Employees who feel empowered to contribute with creative ideas and participate in the decision-making process will feel more connected to the company's vision and values. The main aim of the research is to analyze the influence of employee empowerment, flexible work arrangements, and career development on employee engagement. The sample in this research consisted of 190 employees who worked in the creative industries in Indonesia who were determined using a convenience sampling approach. Data collection uses a questionnaire instrument which is then distributed online. Data analysis uses the SPSS application by displaying the results of data processing through validity and reliability tests, multiple regression analysis, coefficient of determination, and hypothesis testing. Based on the results of data analysis, it is stated that employee empowerment, flexible work arrangements, and career development have a positive and significant effect on employee engagement. The theoretical implications of the research explain that implementing policies and practices that support employees in terms of work flexibility and career development can significantly increase employee engagement and performance. Meanwhile, practically, organizations in the creative industries need to pay attention to the importance of creating a work environment that supports employee flexibility and career growth. This can be done through implementing policies that allow remote work, flexible work schedules, and support for skills and career development

The Importance of Cybersecurity Governance Model in Operational Technology Environments

There is a common will to unify regulation in the Western world regarding overall security, including cybersecurity. European cyber security regulations aim to create a foundation and guidelines for international standards in various industries and the operation of critical infrastructure. Protected critical infrastructure is a common goal for Western allies. Allies of NATO and EU member states mainly support the anti-aggression policy in Europe. The unstable situation in the world forces states to find solutions that represent the thoughts of the allies. Defending common values is crucial when the purpose is to protect critical infrastructure and vital functions in societies. The research will demonstrate the industrial needs of IT/OT-related cybersecurity governance. The study analyzes EU-level cybersecurity requirements and how those requirements affect standardization regarding cybersecurity governance in the operational technology environment. There will be four primary governance levels: Political, Strategical, Operational and Tactical. Many criminal state-linked operators do not care about international agreements or contracts. Some rogue states have even taken to inciting violations of international agreements. We cannot trust the loose contracts between states anymore. The research will find the main challenges concerning the cybersecurity governance of the industrial organizations that use operational technology-related technology in their daily businesses. We have seen that Information and Operational Technology are based on something other than similar threats and risk basements. Operational Technology-related threats threaten the cyber-physical ecosystem where anomalies affect the physical world, so operational functions of equipment, devices, sensors, components, and production lines are interrupted. As a result, continuity management and supply chain management are compromised. The study's primary purpose is to describe the cybersecurity governance elements of the OT environment for enhancing situational awareness. Standardizing the cybersecurity level among industrial stakeholders requires EU member states to have a national cybersecurity strategy that follows main EU-level guidelines. Despite the EU member states' implementation level of the regulation, the EU-level cybersecurity requirements obligate companies to take steps to solve future cybersecurity challenges.

Justification of a set of measures for forming an institutional environment and a management system for defense industry complex diversification

The wave-like nature of the state defense order confirms the need to diversify the defense enterprises’ activities as a way to improve their sustainability and development, which allows them to maintain the required level of the country’s defense capability and economy mobilization readiness. Diversification into the civilian goods sphere makes it possible to use the defense industry complex competencies and resources to strengthen the country’s technological sovereignty and move towards technological leadership. The purpose of the study is to substantiate a set of measures for forming institutional environment and management system of defense-industrial complex diversification. The article considers the foreign experience of defense industry diversification and identifies the principles of interest for Russian enterprises. The systemic difficulties of defense industry complex diversification of methodological, institutional, organizational, socio-economic nature have been revealed. The fundamental bases for its effective implementation have been substantiated, including institutional conditions formation with a special administrative and legal regime, strategic technology transfer system organization, scientific and technological forecasting and planning system, the creation of a defense-industrial complex diversification three-level management system and a legal framework. The basis for the latter should be the federal law “On Diversification of the Defense Industrial Complex Organizations’ Activities”, and the first step should be the preparation of the Defense Industrial Complex Organizations’ Activities Diversification Concept.

Returns to labour mobility

Abstract Returns to labour mobility have too often escaped the attention they deserve as conduits of important forces in macro-labour models. These returns are shaped by calibrations of productivity processes that use theoretical perspectives and data sources from (i) labour economics and (ii) industrial organisation. By investigating earlier prominent studies, we conclude that the focus on firm size dynamics and shocks intermediated through neo-classical production functions in (ii) yields large returns to labour mobility that are robust to parameter perturbations. In contrast, the reliance on statistics in labour economics to calibrate per-worker productivity processes in (i) can give rise to fragilities in the sense that parameter perturbations that generate similar targeted statistics can have very different implications for returns to labour mobility.

Strategies for Overcoming Internal Deficiencies: Enhancing Organisational Efficiency, Performance, and Competitiveness

In the current fiercely competitive business landscape, organisations must consistently endeavour to improve efficiency, performance, and competitiveness. The efforts were greatly hindered by internal shortcomings, including a deficiency in core competencies, poor staff morale, and an unfavourable work environment. This research aimed to tackle these difficulties by using strategic management, efficient leadership, and a dedication to ongoing development. To achieve long-term success, it was crucial to identify the strengths of the organisation and make investments in training and development to cultivate core capabilities. To enhance employee morale, which was correlated with heightened productivity and work satisfaction, effective leadership, transparent communication, and avenues for professional development are essential. This study investigated the influence of these variables on the operational effectiveness of organisations in the telecommunications industry in southeastern Nigeria, and the findings provided valuable insights into successful tactics for addressing internal vulnerabilities, strengthening organisational resilience, and cultivating a supportive work culture. Ultimately, these insights will contribute to maintaining a competitive edge over time. Keywords: Organisational culture, Performance of an organization, Strategic management, Ongoing enhancement, Telecommunications industry.

The process of declaring information security profiles

The article discusses the process of declaring information security profiles, which is an important aspect of ensuring information security in modern organizations. The main purpose of the declaration is to establish clear requirements and control measures to ensure an appropriate level of protection of information assets against potential threats and vulnerabilities. The authors of the article analyze the basic and target information security profiles, emphasizing their features, advantages and disadvantages. In particular, the basic security profile is considered as a minimum set of requirements that can be quickly implemented to ensure an initial level of protection. At the same time, the target security profile is aimed at more detailed adaptation of security measures to the specific needs and risks of the organization, which provides a higher level of protection. The process of declaring security profiles includes several stages, such as assessing the current state of security, identifying threats and vulnerabilities, defining security requirements, developing and implementing security profiles, and regularly monitoring and updating security measures. The article also discusses the current standards and regulations that govern the process of declaring security profiles, in particular, NIST SP 800-53 rev. 5, ISO/IEC 27001, and ND TZI 3.6-006-21. The article analyzes how these standards can be used to create effective security profiles that meet the specific requirements of organizations of various sizes and industries. The authors conclude that the process of declaring information security profiles is critical to ensuring an adequate level of protection of information assets. Implementation of clearly defined security profiles allows organizations to take a systematic approach to risk management, reduce the likelihood of security incidents and increase the overall level of information security.

APPROACHES TO ANALYSIS AND OPTIMIZATION OF BUSINESS PROSSES OF AN INDUSTRIAL ENTERPRISE

The article presents an analysis of the most popular global approaches to the analysis and optimization of business processes in organizations. The article contains a description of the proposed approaches and their basic principles. The proposed approaches are Business Process Reengineering, Six Sigma method, lean Management, Business Process Management, Agile software development. The considered approaches have general principles that are advisable to apply when optimizing the business processes of an industrial organization. These include optimization of operations, standardization, automation and emerging technologies, supply chain integration, continuous improvement, employee engagement, performance measurement and analysis. Classic methods for assessing business processes can be successfully supplemented with generalized principles of modern world approaches for more effective analysis and optimization of business processes of an industrial enterprise.

Neither Mergers nor Cartels: Innovation Networks and Competition Law

Abstract Organization theorists and innovation economists have been arguing for the past few decades that the locus of research and development activities has gradually moved away from vertically integrated firms to inter-firm alliances. In industries as diverse as construction and biotechnology, cooperation for innovation has given rise to collaborative forms of industrial organization varying from bilateral alliances to networks. Nonetheless, the EU competition law framework opens up limited space for inter-firm collaborations, cabined by the efficiency test of Article 101(3) TFEU and the requirements of the horizontal block exemption regulations. Building on this misfit, this article makes two contributions. First, a theoretical one, arguing that the law’s cautious approach to inter-firm collaboration is rooted in a binary vision of industrial organization which recognizes only firms and markets as modes of organizing production. Second, an explanatory one, showing how the 2023 Research & Development Block Exemption Regulation falls short of facilitating inter-firm collaborations for innovation and proposing fine-tuning suggestions.