Strategic Enterprise Research Articles

Retraction Note: Strategic enterprise management in the age of energy transition: a roadmap for sustainable business practices

Retraction Note: Strategic enterprise management in the age of energy transition: a roadmap for sustainable business practices

The Role of Digitalization in Enhancing Outward Foreign Direct Investment: New Advantages for Chinese Enterprises

With the rapid development of big data, cloud computing, artificial intelligence, and other technologies, digital construction has gradually become a crucial means of enterprise development, significantly impacting the operation and management activities of enterprises. Outward Foreign Direct Investment (OFDI) is one of the key pathways for Chinese enterprises to “go global,” contributing to improved economic efficiency and promoting national economic development. Therefore, studying the advantages of digitalization in OFDI activities will aid in exploring effective methods for Chinese enterprises to engage in OFDI within the digital economy and provide an important foundation for strategic enterprise planning and national policy formulation. This paper combines the current state of OFDI among Chinese enterprises, analyzes the advantages and roles of digital construction in OFDI, and explores relevant countermeasures, aiming to provide theoretical references for enterprises’ OFDI activities in the context of digitalization.

Regulatory framework for the formation of sustainability reporting

This article is dedicated to the study of the regulatory framework for the formation of sustainability reporting, the relevance of which is determined by the increasing impact of enterprisesʼ activities on the environment, society, and the economy. To date, the formation of sustainability reporting for Ukrainian enterprises is not mandatory, but in the context of enhanced European integration, understanding international and European reporting standards becomes critically important. The aim of the research is to review the current regulatory framework for the formation of sustainability reporting and to develop proposals for its implementation in the activities of Ukrainian business entities. The article analyzes the standards of the Global Reporting Initiative (GRI), European Sustainability Reporting Standards (ESRS), and the standards of the International Sustainability Standards Board (ISSB). GRI offers universal, thematic, and sectoral standards that provide a comprehensive approach to disclosing information about the impacts of an enterprise on the economy, society, and the environment. The ESRS standards, which have become mandatory for large companies and enterprises whose shares are listed on EU stock exchanges, aim at harmonizing sustainability reporting within the framework of the European Green Deal. ISSB standards, which include recommendations from SASB, TCFD, and CDSB, ensure the disclosure of financially significant information for investors. The analysis showed that all three systems of standards are largely aligned with each other, which facilitates the process of transition between them for enterprises. The use of GRI standards in Ukraine can serve as a basis for further transition to ESRS and ISSB standards in the event of Ukraineʼs accession to the EU. The article emphasizes the importance of developing methodological recommendations for the implementation of GRI for Ukrainian enterprises. The conclusions of the study indicate the necessity of actively implementing international sustainability reporting standards in Ukraine to enhance transparency, stakeholder trust, and strategic enterprise management.

Issues of protection of public interests in the law enforcement practice of bankruptcy of strategic enterprises

The article is devoted to the scientific understanding of the current state and prospects for the development of the legal institution of bankruptcy of strategic enterprises in our country from the point of view of the need to ensure a balance of private and public interests in this area. The author conducts a retroactive analysis of the development of legal approaches to key issues arising in the bankruptcy of strategic organizations, analyzes positive and negative trends in law enforcement practice in this area. Based on this analysis, the author makes specific proposals for improving the current legislation in the field of bankruptcy of strategic enterprises, justifies the need to tighten the qualification requirements for court-appointed candidates for arbitration managers of strategic enterprises and organizations.

Sustainable Supply Chain Management as a Strategic Enterprise Innovation

Sustainable supply chain management is essential in modern corporate operations due to growing environmental concerns and the demand for sustainable development. This study utilises methods of literature analysis and literature review to examine various elements of sustainable supply chain practices, encompassing sustainable sourcing, innovative logistics and operations, and the integration of modern technologies like Artificial Intelligence (AI), Internet of Things (IoT), and blockchain. The investigations in these areas attempt to understand how they collectively contribute to integrating sustainability into supply chains, hence providing strategic advantages to firms. The findings emphasise that sustainable supply chain management encompasses environmental and social responsibilities, as well as serving as a catalyst for innovation, competitive advantage, and long-term economic viability. This study emphasises the thorough incorporation of sustainability into supply chains and highlights the strategic importance of this integration for market competitiveness and business longevity. The research emphasises the importance of continuous innovation and adaptation in sustainable supply chain processes, advocating for a balanced strategy that aligns economic objectives with environmental conservation.

Strategic Enterprise Artificial Intelligence (The Conceptual Hierarchical Framework)

This paper discusses three statements: Enterprise AI strategy must be linked with the existing business strategy of the organization, Enterprise AI must be a virtual strategist of the organization, and Enterprise AI must be a virtual strategy manager for organizational performance. Based on the research on these statements, this paper will introduce the conceptual hierarchical framework titled Strategic Enterprise Artificial Intelligence (SEAI) consisting of four levels: Disconnected Enterprise AI, Linked Enterprise AI, Strategist Enterprise AI, and Integrative Enterprise AI. Disconnected Enterprise AI represents the lowest level, while Integrative Enterprise AI is the highest. This framework, with its title, can be introduced as a new field of study. If the corporate sector uses this framework tactfully, it will help the organizations to strategize Enterprise AI to achieve business results.

Mechanism for ensuring risk resistance in the system of management of enterprises in crisis conditions

The article proposes the structure and relationship of the elements of the mechanism for ensuring risk resistance in the system of managing the activities of enterprises in crisis conditions, which includes three main components: resource, organizational, and support system, each of which contains several elements. It was established that the dual role of risk resistance in the enterprise management system is that, on the one hand, risk resistance contributes to purposeful functioning and development, affecting the overall results of operations. On the other hand, it is determined by the interaction of the enterprise with higher-level systems, as well as internal and external factors that can become sources of risk in crises. It is emphasized that the structure of the mechanism for ensuring risk resistance, being complex and dynamic, requires constant improvement. Regardless of operating conditions and strategic goals, an enterprise must have a mechanism for ensuring risk resistance that best meets its needs. It is justified that the resource component of the mechanism for ensuring the risk resistance of the enterprise includes financial resources of the enterprise; material and technical resources necessary for the organization and ensuring the continuity of the enterprise's risk activities; personnel resources, which are determined by the number of employees engaged in analysis, assessment, and risk management. The organizational component of the mechanism for ensuring risk resistance includes organizing the most effective use of the resources involved, namely methods of analysis, assessment, and management of risks, as well as socio-economic relations arising in the process of a risky situation. The third component of the mechanism for ensuring risk resistance – the security system – includes regulatory and legal, information security, and corporate culture. Keywords: risk resilience, uncertainty, crisis conditions, anti-crisis management, strategic enterprise management.

Strategic enterprise management in the age of energy transition: a roadmap for sustainable business practices

Strategic enterprise management in the age of energy transition: a roadmap for sustainable business practices

SAP FICO in Financial Consolidation: SEM-BCS and EC-CS Integration

In the dynamic landscape of financial management, organizations face increasing challenges in consolidating financial statements across various subsidiaries and entities. SAP FICO (Financial Accounting and Controlling) plays a pivotal role in enabling accurate and efficient financial consolidation. Two of the most widely used SAP solutions for this purpose are SAP SEM-BCS (Strategic Enterprise Management - Business Consolidation System) and EC-CS (Enterprise Controlling - Consolidation System). The integration of SEM-BCS and EC-CS within the SAP FICO environment offers a robust framework for achieving streamlined financial consolidation, compliance with global accounting standards, and enhanced financial reporting. SEM-BCS is designed to support comprehensive financial consolidation processes, enabling organizations to collect, process, and present financial data in a consistent manner. It is particularly adept at handling complex consolidation requirements, including intercompany eliminations, minority interest calculations, and currency translations. SEM-BCS also supports various consolidation scenarios, such as legal, management, and ownership-based consolidations, making it a versatile tool for multinational corporations. On the other hand, EC-CS serves as a flexible consolidation system within the SAP landscape, offering capabilities for consolidating financial data across multiple organizational units. EC-CS is known for its ease of use and its integration with other SAP modules, such as SAP FICO and SAP BW (Business Warehouse). It provides essential features like automated data collection, intercompany reconciliation, and consolidation adjustments, ensuring that financial statements are accurate and compliant with standards such as IFRS and US GAAP.

DEFINING STRATEGIC INVESTMENT PRIORITIES IN BUSINESS ACTIVITIES

This paper underscores the role and position of investment activity within the framework of strategic enterprise management. It explores the economic essence and distinct characteristics of the investment process, which encompasses the issuance and accumulation of production resources as investment goods and services. It is argued that the investment process at an enterprise can be viewed from two perspectives: as a complex of potential alternative investment decisions based on available financial resources and the capability to attract additional funds (implemented through the development of the enterprise's investment policy strategy); and from the standpoint of each specific investment decision (the rationale and specific investment projects). The paper provides comprehensive recommendations that cover all aspects of the investment process to enhance the methodological support for selecting strategic investment priorities to ensure the enterprise's sustainable development. Distinctive features of financial and investment resources in the system of resource provision for enterprise development when forming an investment development strategy are highlighted. A matrix for defining the plan's priorities for investment provision of enterprise development is developed. It is substantiated that investment risk depends on numerous factors that directly influence the choice of investment strategy. To generalize the impact of these factors, a rating indicator is proposed, which considers the characteristics of investment attractiveness and the level of investment risk. The composition of attributes for assessing the investment attractiveness of the enterprise is justified, including the state of critical factors determining investment efficiency: technical-technological base of production; level of resource availability and efficiency of their use; economic parameters of business activity and financial condition of the enterprise; market demand dynamics and competitive intensity on the target market; level of management organization. Recommendations are provided for determining investment risk based on a summary of quantitative assessments of a complex of dangers and threats that are individual to each investment process participant.

МОЖЛИВОСТІ ІМПЛЕМЕНТАЦІЇ СВІТОВОГО ДОСВІДУ РЕАЛІЗАЦІЇ МЕХАНІЗМІВ ДЕРЖАВНОЇ ІНВЕСТИЦІЙНОЇ ПОЛІТИКИ НА РЕГІОНАЛЬНОМУ РІВНІ

The article analyzes various approaches, ways, forms and methods of state support for investment activities used in global practice. At the same time, the generalization of the relevant experience was carried out in two directions: general approaches and practices regarding the activation and efficiency of investment activities, in particular in the conditions of the crisis state of the economy, its insufficient investment attractiveness and instability; a specific toolkit used in the conditions of war and post-war reconstruction of the national economy. The purpose of the study was to generalize the world experience of implementing state investment policy mechanisms and to identify opportunities for their implementation in Ukraine at the regional level. The leading provisions of the world experience regarding the formation and implementation of regional investment policy are defined, in particular in the aspects of the goal and objectives of the regional investment policy, its mechanisms and the expected results of their implementation, the system of tools for supporting and developing investment activity. The main quality and efficiency criteria of the regional investment policy are identified, namely the volume and specific characteristics of investments, as well as the rationality of their structure, financing and use. At the same time, two conditions should be considered basic: transparency of the competitive environment and state control over strategic enterprises, types of economic activity, and sectors. It has been established that a sufficiently extensive toolkit of regional investment policy has been developed through world experience. In particular, effective tools of regional investment policy in conditions of critical instability are: insurance of military risks, their diversification; using the possibilities of concession agreements; private-public investment in defense industry and industries / sectors of critical infrastructure; support of innovative technological startups in the spheres of security, the real sector of the economy, infrastructure; stimulation of investments in the field of preservation of human potential; support for investments in business projects of demobilized people, war veterans, etc. participants in hostilities; stimulating investments in the development of export potential to preserve the country’s financial security.

Дослідження та удосконалення конкурентних переваг підприємства

In the scientific literature, there is a variety of approaches to determining the essence of competitive advantages. It is well-known to define competitive advantages as characteristics, consumer properties of a product or brand that give an enterprise an advantage over its competitors. This advantage can be achieved by providing consumers with greater benefits, whether through the sale of more affordable products or the offer of high-quality goods with additional services, at comparatively higher prices. Ensuring competitive advantages is an important aspect of strategic enterprise management in a competitive environment. The variety of approaches to defining the essence of this category testifies to its multifaceted nature. The formation of competitive advantages at the enterprise can be achieved by rationalizing the cost of production, a high level of product differentiation, reasonable market segmentation, the introduction of innovations and a rapid response to market needs. Significant factors for ensuring competitive advantages at the enterprise are also an increased level of labor productivity and personnel qualifications, quality and technical level of manufactured products, managerial expertise and strategic thinking at all levels of management. Important factors influencing competitiveness are also warranty and post-warranty service, advertising, the manufacturer’s image and the market situation, including fluctuations in demand. The process of ensuring competitive advantage requires the enterprise to identify social interaction in the market environment, in particular, responding to criticism, the ability to learn, communicate and maintain connections with stakeholders. This creates the prerequisites for the effective development of the enterprise. In the process of ensuring competitive advantage, it is important to focus on innovations that allow you to gain a competitive advantage, such as new technologies, changes in customer demands, production costs and component availability.

Управління конкурентними потенціалом та стратегією промислових підприємств

The article summarizes the views of modern scientists and presents a comprehensive vision of the process of developing and implementing a company's competitive strategy. Factors and conditions are determined, the need to take into account and comply with them at specific stages of the process of forming a competitive strategy is extremely important and contributes to the optimal use of the existing strategic potential of the enterprise. It was determined that the management of strategic potential is a complex and integrated dynamic process, the correct choice of which depends on how any enterprise seeks to use its own resources and opportunities to achieve its own overall strategy. The article highlights the main components, object and subject of strategic enterprise management. Systematization of modern principles and functions of strategic enterprise management was carried out. The main stages of the process of development and implementation of the general strategy of the enterprise are defined. A methodical approach to improving the process of development and implementation of the general strategy of the enterprise is proposed, the implementation of which is based on the introduction into its management system and assessment of the strategic potential of the enterprise. The author's model of managing the company's strategic potential is outlined as one of the main components of the process of developing and implementing a general strategy.

Enterprise Architecture Design and Implementation for IoT Integration in Manufacturing Electrical Panels

Internet of Things technology has transformed manufacturing efficiency and optimization. Electrical panel manufacturing benefits from Internet of Things for better functionality, predictive maintenance, and smoother operations. This study examines the design and implementation of an Enterprise Architecture strategy for seamless Internet of Things integration in electrical panel manufacturing. This research aims to explain Enterprise Architecture and use it as a framework for Internet of Things integration in electrical panel manufacturing. This study examines the complex relationships between Internet of Things components, their connectivity, and a broad Enterprise Architecture framework needed to organize their functionality. This integration uses Enterprise Architecture principles to optimize resource use, reduce downtime, and improve manufacturing efficiency. This effort involves analyzing existing infrastructure, identifying Internet of Things deployment points, and creating an Enterprise Architecture plan that meets business goals. This research emphasizes the need for close IT-operations collaboration to achieve a unified vision and smooth Internet of Things integration. This research addresses Internet of Things implementation challenges in manufacturing, including security, data interoperability, and scalability. Strong governance and adaptable architecture are stressed to address these challenges within an Enterprise Architecture framework. This research aims to help electrical panel manufacturers harness the transformative power of the Internet of Things. Strategic Enterprise Architecture helps businesses navigate complexity, leverage Internet of Things, and create a more agile, connected, and optimized manufacturing landscape.

Development of a social-oriented inclusive business model for strategic enterprise renewal

Research object is a business model of enterprises’ strategic renewal in the areas of economy, environmental friendliness, and sociality. Key problem: the need to develop a business model for strategic renewal of enterprises, maximally adapted to the current challenges of the market and society. Based on the prerequisites for the evolution of traditional corporate strategies to a stakeholder approach, a business model for strategic enterprise renewal has been formed. The relative nature of companies’ business activity, transformation of analysis methods and approaches to decision-making, as well as key elements, vectors, and results of interaction within the developed business model are determined and justified. The possibilities of practical application of a social-oriented inclusive business model in the implementation of business analysis are shown. Interpretation of the research results: the social-oriented business model of enterprises’ strategic renewal is developed on the basis of systematization of the relative approach, theories of stakeholders and corporate philanthropy, the concept of "charitable corporation" and orientation to socially inclusive value instead of traditional shareholder value. Along with the traditional economic aspect of the business model, the environmental and social aspects are outlined. To adapt business models of enterprises to modern challenges, it is proposed to increase the use of qualitative analysis parameters in the implementation of strategic decisions, as well as to design the development of relations with key stakeholders. Practical significance: Certain parameters of the business model can be used by enterprises to conduct a critical analysis of their own business strategies and develop effective measures to adapt them to modern challenges

Opportunities and Limitations of the “People’s Capitalism Model”

The article considers the opportunities and limitations of the so-called “People’s capitalism model” (PCM). For this purpose, the authors systematize the historical practice of implementation of PCM in different countries and available empirical assessments of the effectiveness of such initiatives. In addition, the authors undertake a theoretical analysis of PCM features, for which the interests of the company and its employees are modeled. The analysis of the model allowed us to determine the conditions of effectiveness of the people’s capitalism model, based on Базовыйwhich we formulate proposals for the introduction of a new initiative for Russian strategic enterprises in order to ensure Russia’s technological sovereignty.

The Digital Transformation of Enterprise Accounting: Big Data, AI and Financial Sharing

Digitalization is the most significant change occurring in the field of accounting. With the advancement of science and technology applications, the digital transformation of enterprise finance is gradually becoming a reality. Big data, machine learning, and artificial intelligence-based digital technology lay a solid foundation for transforming and upgrading enterprise accounting. The demands for scientific, forward-thinking, and data-driven enterprise financial management are increasing in an era of deep Internet of Things integration and digitalization. It is no longer necessary to rely on traditional module administration, manual decision-making, and one-way operation, but rather to improve data analysis, data application, and financial value improvement. Financial sharing will become a critical component of corporate operation, providing solid financial backing for strategic enterprise choices, departmental operations, and organizational change. To achieve true financial transformation, enterprises must continue integrating financial resources, increasing technology research and development, and transforming and upgrading their systems. Financial departments and personnel must accelerate their adaptation to the development requirements of digitalization, which necessitates technological iteration, functional transformation, and reform.

ФОРМУВАННЯ ДОДАНОЇ ВАРТОСТІЯК ШЛЯХ РОЗВИТКУ ЕКОНОМІКИ УКРАЇНИ

In the conditions of martial law, the economy of Ukraine found itself in a difficult situation: an almost complete stop of business activity, a fuel crisis, a sharp drop in exports, a break in logistics chains, shelling of the energy infrastructure. Ensuring the operation of key sectors of the economy, booking employees of strategic enterprises, effective use of limited resources, and the creation of a green corridor for the supply of goods became an important task for the country. Based on the results of the analysis of macroeconomic indicators, it was determined that in 2022 the budget deficit increased by 2.56 times and amounted to 495 billion hryvnias, the inflation index was 26.6%, which reflects the existence of galloping inflation, the average unemployment rate in 2022 increased to 25– 26%, the ratio of the volume of public debt to GDP was 78.4%. To improve the economic situation, we see the growth of GDP - one of the most important indicators - as one of the main tasks. The way of its increase is the formation of added value, which is added in the process of production of goods to the cost of raw materials, materials, and fuel at each stage of the movement of goods from the producer to the consumer. The article graphically displays the chain of formation of added value as confirmation of its importance. It was studied that in 2022, imports exceeded exports by 47%, while the amount of exports, compared to 2021, decreased by 17.3%, and imports increased by 18.6%. Reasons: martial law, closing of sales markets. It was determined that the main export positions in Ukraine are occupied by grain crops, sunflower oil, seeds and fruits of oil crops. Thus, Ukraine in the world market, in the vast majority, occupies a raw material niche. That is, raw materials that remain in the country and cannot be exported are the basis for the formation of added value. As a result, Ukraine should move towards the greatest possible degree of self-reproduction.

APPLICATION OF MANAGEMENT TECHNOLOGIES DURING THE FORMATION OF AN INNOVATION DEVELOPMENT STRATEGY IN THE CONTEXT OF GLOBALISATION

The article discusses the essence of strategic enterprise development management and outlines the key aspects of using management technologies in formation of an innovative development strategy in the conditions of an unstable market and globalization. It has been identified that managing weak and strong signals is a modern tool to enhance the efficiency of enterprise activities amidst uncertainty and changes in the external environment. The procedure for organizational actions in the case of weak signals regarding emerging problems is defined, and the main aspects of successful management of strong and weak signals in the enterprise are indicated. Diagnostics of the internal and external environment and assessment of the overall strategy for PrJSC “Kredmash” were carried out. The analysis of the issuer’s financial condition included the coefficients of economic stability and resource potential, which illustrate the negative trend and significant impact of the war consequences on the enterprise’s activities, and the results of the calculations revealed that 70% of own funds are used to finance the current activities of PrJSC “Kredmash”. SWOT-analysis and PEST-analysis made it clear to what extent the company can overcome weaknesses with the help of opportunities, and which environmental factors have the most significant impact on its activities. A series of solutions based on SWOT analysis were also proposed for the further development and optimization of the machinery manufacturing enterprise’s activities. A proposed strategy for the development of machine-building enterprises (in particular, the researched PrJSC “Kredmash”) has been formed along with an action plan regarding the implementation of the strategy in the current conditions of functioning.

Toward a design theory of strategic enterprise management business intelligence (SEMBI) capability maturity model

PurposeThe purpose of this study is to demonstrate that Strategic Enterprise Management (SEM) and Business Intelligence (BI) have the potential to integrate management decisions vertically through an organization’s hierarchy. This study also aims to present a design theory framework and build a model dimension using eight principles serving as mid-range theories.Design/methodology/approachThis study uses a design science perspective to posit how organizations can successfully implement SEMBI (a union of SEM and BI). This study then completes the design theory by building the method dimension using two principles. Finally, the study presents testable hypotheses for the theory and an evaluation using stakeholder attitudes and judgments as proxies for objective measures.FindingsIn the search for a prescription for SEMBI success, this study finds that the notion of the Capability Maturity Model (CMM) is a good artifact with which to organize the principles the authors are seeking. CMM has since been adapted to suit different contexts by incorporating relevant principles from those domains. Hereafter, this study refers to SEMBI–CMM as the adapted solution for SEMBI's success.Originality/valueThis study coins and uses the term SEMBI to represent the union of SEM and BI. This term retains its distinct identities and principles and forms a holistic and integrated view of SEM and BI implementation strategies. In an effort to advance this line of research, this study employs a design science perspective to address the question of how an organization can successfully implement SEMBI.