Value Creation Chain Research Articles

The Functional Controller for Sustainable and Value Chain Management: Fashion or Need? A Sample of Job Advertisements in the COVID-19 Period

This article aims to present a profile of functional controllers created in German-speaking countries in the context of their competences and tasks for sustainable management and value chain creation. Sustainable chain management requires finding a balance between the economic, social, and environmental spheres, inside and outside the organizations, in all business functions/processes related to value chain formation. Managers for sustainable management need to have adequate and high-quality financial and non-financial information. They are crucial during the pandemic COVID-19 period. Functional controllers can provide this. Content analysis of job advertisements was used as a research method. The identification of competences was based on Cheetham and Chivers’ model. Tasks were referred to as essential functions of controlling. Descriptive statistics and the Student’s t-test with Cochran–Cox correction and the Wilcoxon-Mann–Whitney test were used to analyze the data. In terms of the studied controllers, more functional than meta competence was identified. There were more hard skills than soft skills. In terms of tasks, studied controllers are preoccupied with analysis, coordination and optimization, participation in management, definition of new tools, and reporting. The results confirm that functional controllers have an impact on sustainable development and value chain creation.

An Autonomous Cybersecurity Framework for Next-generation Digital Service Chains

Today, the digital economy is pushing new business models, based on the creation of value chains for data processing, through the interconnection of processes, products, services, software, and things across different domains and organizations. Despite the growing availability of communication infrastructures, computing paradigms, and software architectures that already effectively support the implementation of distributed multi-domain value chains, a comprehensive architecture is still missing that effectively fulfills all related security issues: mutual trustworthiness of entities in partially unknown topologies, identification and mitigation of advanced multi-vector threats, identity management and access control, management and propagation of sensitive data. In order to fill this gap, this work proposes a new methodological approach to design and implement heterogeneous security services for distributed systems that combine together digital resources and components from multiple domains. The framework is designed to support both existing and new security services, and focuses on three novel aspects: (i) full automation of the processes that manage the whole system, i.e., threat detection, collection of information and reaction to attacks and system anomalies; (ii) dynamic adaptation of operations and security tasks to newest attack patterns, and (iii) real-time adjustment of the level of detail of inspection and monitoring processes. The overall architecture as well as the functions and relationships of its logical components are described in detail, presenting also a concrete use case as an example of application of the proposed framework.

ОЦЕНКА КОНКУРЕНТОСПОСОБНОСТИ ПРОИЗВОДСТВА КАРТОФЕЛЯ В CЕВЕРНОМ РЕГИОНЕ (ПО МАТЕРИАЛАМ РЕСПУБЛИКИ КОМИ).

Studying the competitiveness of potato production in the Komi Republic is important for a deeper understanding of ways to ensure a stable financial state of the region's agriculture and an uninterrupted supply of local food to the population of the region. Purpose of the article: identification of the strengths and weaknesses of potato production in the Komi Republic, determination of market opportunities for the development of potato growing as a branch of specialization of agriculture in the region. Research hypothesis: there are four types of suppliers (agricultural organizations, farmers, personal subsidiary plots, importers) and five types of consumers (retail market, education and health care, public catering, wholesale trade, export) in the potato market of the Komi Republic. Market equilibrium is determined by the choice of win-win strategies by market participants. The article analyzes the main groups of potato producers in the Komi Republic, identifies the main groups of relations between them. A SWOT-analysis of potato production in the region was made. The main trends in the potato market in the Komi Republic are formulated. A decrease in consumption of fresh potatoes determines the development of its processing in the region and to complement the animal husbandry, logging etc. with potato growing. The authors recommend improving and creating new types of products and medicinal plants in the region for integration with potato growing. The article shows that in the potato market of the Komi Republic relations of cluster interaction, market division, mutual displacement, creation of value chains, strengthening of interaction and coordination on the part of local municipal and regional governments are formed. The practice of organic technologies and the brand of local products have a positive effect on the competitiveness of potatoes produced in the Komi Republic. The scope of the research results: state authorities and administrations of the Komi Republic, enterprises and organizations that sell and buy potatoes on the market of the Komi Republic.

Energy Recovery from Invasive Species: Creation of Value Chains to Promote Control and Eradication

The use of biomass as an energy source presents itself as a viable alternative, especially at a time when the mitigation of climate change requires that all possibilities of replacing fossil fuels be used and implemented. The use of residual biomass also appears as a way to include in the renewable energy production system products that came out of it, while allowing the resolution of environmental problems, such as large volumes available, which are not used, but also by the elimination of fuel load that only contributes to the increased risk of rural fires occurrence. Invasive species contribute to a significant part of this fuel load, and its control and eradication require strong investments, so the valorization of these materials can allow the sustainability of the control and eradication processes. However, the chemical composition of some of these species, namely Acacia dealbata, Acacia melanoxylon, Eucalyptus globulus, Robinia pseudoacacia and Hakea sericea, presents some problems, mainly due to the nitrogen, chlorine and ash contents found, which preclude exclusive use for the production of certified wood pellets. In the case of Eucalyptus globulus, the values obtained in the characterization allow the use in mixtures with Pinus pinaster, but for the other species, this mixture is not possible. From a perspective of local valorization, the use of materials for domestic applications remains a possibility, creating a circular economy process that guarantees the sustainability of operations to control and eradicate invasive species.

Toward performance measurement systems based on business models

Emerging research in the field of Management Control calls for abandoning out-dated performance measurement systems (PMSs) to emphasize the value chain of companies' value creation. Business model (BM) concepts can help to highlight this causal chain and convince companies to reframe their PMSs. However, little is known about how BM information is entered and used in companies' accounting information systems (AISs). In this study, we investigate whether companies im-prove their AISs by institutionalizing BM information, and we look at ways in which they can combine this information into their PMSs. We statistically test the coercive, mimetic, and normative forces influencing the institutionalization of BM information and the changes in AISs using the content analysis of the corporate reports and websites of 86 listed firms. Our results show that firms adjusted their AISs to communicate BM information, resulting in AISs conducive to the re-placement of traditional PMSs with new BM-based frameworks. Despite this change, we offer some reflections on whether and how these changes may happen in practice, and on ways in which combining BM information can give rise to new cognitive and accounting frameworks to reshape PMSs. This study enriches the theoretical research on the determinants shaping the institutionalization of new corporate information. It highlights the cognitive effects resulting from designing PMSs by advocating the need to consider cognitive and psychological aspects when capturing and portraying value creation in synoptic tools.

Įmonių socialinės atsakomybės pagrindu sukurtos mainomosios vertės matavimas vertės kūrimo grandinėje

The paperwork provides formulas for measuring value (created through CSR) gained by company, its partners (members of VCC) and employees. As far as expert survey confirmed, customers gained value generally might be evaluated by more favourable purchase decision and justification of higher price. Therefore it is suggested to pay main attention on customer’s gained use value – the value which is expressed through more favourable purchase decision and justification of higher price is already calculated as value gained by company.KEYWORDS: corporate social responsibility, value creation chain, value measurement.

INNOVATIVE TRANSFORMATIONS OF THE VALUE CHAIN OF PHARMACEUTICAL ENTERPRISES

The research is devoted to the substantiation of the necessity of innovative transformations of the value chain of pharmaceutical enterprises. The current state of the international pharmaceutical market and its development scenarios developed by the WTO were analyzed, taking into account the changes caused by the COVID-19 coronavirus pandemic. The typology of value chains is considered and their element-by-element characteristics are given. A new, modern model of interaction in the chain of value creation of products is proposed. The substantiation of efficiency of creation of such chains is given. Based on the correlation analysis, the presence of a linear relationship between the indicators of Pharmaceutical R&D Spend and Revenue was established. To maximize the effect of R&D costs, pharmaceutical companies are recommended to carry out innovative transformations of the value chain, involving external manufacturers of high-tech devices, applications, etc.

THE EFFECT OF CHAIN VALUE CREATION ON INCREASING THE FASHION INDUSTRY BUSINESS PERFORMANCE IN BANDUNG CITY

The era of globalization causes increasingly competitive competition towards the creative economy. This creative economy is driven by an industrial sector called the creative industry. Creative industries that have optimal business performance are creative industries that apply value chains to each of their business processes. The value chain provides value delivery that offers superior value to the creative industries. However, this value chain is not owned or fully functional as it should be in the creative industry of the Binong Jati UMKM knitting center in Bandung. This article discusses aspects of business performance that are affected by value chain creation. This study uses descriptive-verificative survey research. The sampling technique used is probability random sampling. The results showed the influence of the value chain on business performance. So it can be concluded that the better the value chain, the higher the business performance at Binong Jati Knitting Center, Bandung City, and vice versa.

PECULIARITIES OF BUILDING THE VALUE CHAIN OF THE IT-INDUSTRY OUTSOURCING ENTERPRISES

The active development of information and communication technologies and the enhancement of their impact on the world economy requires the search for new and adaptation of existing tools and mechanisms of competitiveness management for the needs of the IT-industry subjects. The peculiarities of building the value chain of the IT-industry enterprises have been considered and the volumes of the global IT-companies market have been analyzed. When using the value chain concept, an enterprise has the ability to identify and focus efforts on generating high-order competitive advantages, which are relevant for high-tech IT-companies. The value creation chain helps to divide all kinds of activities into strategic groups for a detailed analysis of the company, on the basis of which managers can better evaluate the stages at which the value of the product is created and where the work of the enterprise can be optimized.
 The necessity of adjusting the management of these IT-companies to determine their competitive advantages has been substantiated. The competitiveness of the company has been evaluated in the context of the influence of the main competitive forces and the main threats have been identified. The directions of value chain modification for the needs of TEAM International Services Inc. have been determined. An IT-industry value chain has been offered. It consistently demonstrates the main and accompanying activities that shape product value on the example of US outsourcing company TEAM International Services Inc. It is defined that in the process of building a value chain for an outsourced IT-company, it is expedient to take into account the main stages of a software product pricing. Such approach allows influence the company competitiveness, isolate sources of international competitive advantages of the IT-industry enterprises, namely: continuous technological modernization, use of qualitative licensed software, adaptability of corporate policy and culture, wide opportunities for company employees.

The impact of global value chains on the development of the global economy

This article is devoted to the impact of value chains on the development of the global economy. The author considers the essence of value chains, their connection with the process of economic globalization and their types. The article deals with the problem of the global crisis associated with the corona virus pandemic, its impact on global value chains, the author proposes three ways to overcome the consequences of this crisis. Special attention is paid to Russia and its involvement in the processes of globalization and the creation of value chains, as well as development prospects.

THE CONCEPT OF DIGITALIZATION AND USAGE IT SOLUTIONS IN FINANCIAL SECTOR

The era of Industry 4.0 has a great impact on the nature of finance and interaction between market participants. Industry 4.0 has already made a global contribution to improving and automating production through various physical and digital technologies. But one of the main questions today remains how companies can effectively use digital technologies in the financial sector. The paper considers the role of digitalization and the process of its implementation on real cases of companies around the world, as well as software used by companies. Based on the data received from Google Scholar and Statista, the demand for electronic document management, which became extremely popular during the Covid-19 pandemic, was confirmed as a solution and facilitation of the work remotely. The essence of the digitalization process study has been substantiated and the possibilities and prospects for the further development of this topic have been put forward. Further technological development and digitalization of financial services will be associated with the use of innovative financing methods and the development of FinTech startups that ensure the use of several online financial services directly to key market participants, excluding the participation of financial intermediaries. This could lead to a personalized system that will be used not only in the financial sector, but also in related sectors such as supply chain management and value chain creation.

Position change strategies in the current global value chains: a micro-level aspect

The study includes an analysis of various levels of strategies for changing the positions of companies in the existing global value creation chains. First of all, companies in the technology sector of the economy in the Asian region, including companies of South Korea and China, have been considered. As the result of the research, some factors influencing the change in the subordinate position of companies in global value creation chains, -have been presented. In addition, the impact of these factors on changing positions of companies in the high-tech sector in global value creation chains has been analysed. The most frequently repeated factors have been structured and presented as a table.

The combined social analysis of knowledge and value chains

The article considers two groups of chains: knowledge chains (disciplinary, innovative, personnel, production, technological chains and knowledge chains as such), value chains (vertically integrated added value chains, global value chains, international value chains, world value chains, industry value chains, regional value creation chains, smart value chains). The common features characterising each of the above groups of chains are revealed. The «overlapping chains» phenomenon is described, characterising multiple instances of the chains from different categories being merged. The possibility of using a combined social analysis for studying and combining of knowledge chains and value chains in the process of creating integrated corporate structures is substantiated.

The value creation chain: diagnostic restrictions and challenges

The article presents an approach to diagnosing constraints in the operating value chain. The presented approach is based on the requirements and recommendations of quality standards for the application of the process approach. Based on the definition of the value stream, an optimization problem is formulated: increasing the stream value of products and services through improving the properties of the main processes, taking into account the resource limitations of the organization. The method of constraint analysis is applied to the formulated optimization problem, three types of constraints of the operating value chain are considered - in terms of effectiveness, efficiency and resource intensity. Diagnostics of the restriction of the flow of value was carried out using the methodology for assessing customer satisfaction. This made it possible to formulate an integral satisfaction rating for the value chain based on the estimates of its constituent operations according to the criteria of “Importance” and “Satisfaction”, as well as the “critical” parameter of the operation-restriction through the description of the process model and the formation of score scales for certain process parameters. The results of expert evaluations will help to form clusters of stakeholder’s opinions, which will help in initiating and managing improvement projects. The proposed approach to the diagnosis of restrictions on the flow of value of products and services can be applied to various industries and services: construction, energy, medicine, transport logistics, etc.

Business model in non-financial information reporting. Research results of selected Polish listed companies

The purpose of the article is to determine the scope and form of information currently disclosed by enti-ties under the concept of a "business model" based on the disclosure of non-financial information in the annual reports of fourteen WIG20 index companies. The study involved analysing disclosures about the business model, analysing the content of annual reports of companies, and checking the scope and con-tent of the disclosed information in the section of the report regarding the business model. In total, 28 annual reports for 2017 and 2018 were analysed. The survey included 22 types of non-financial infor-mation systematically disclosed under the definition of “business model”. The study used descriptive analysis, comparative analysis, and deduction methods. As a result of the research, it was found that information on the business model disclosed in annual reports can be comparable between entities and can be and often already are comparable over time – when the same entity reports the information over two different years. In addition, it was found that in the set of reported information about the business model, there was clearly a common part in all the surveyed companies, which was information on the value creation chain. The article is the result of an original empirical study and closes the gap in scientific research on the mandatory disclosure of information about the business model in annual reports. The survey is one of the first attempts to analyse non-financial information compulsorily disclosed by Polish companies after 2018.

ALTERNATIVE STRATEGIES FOR CONSTRUCTION OF THE ORGANIZATIONAL STRUCTURE OF MANAGEMENT OF THE MARINE INDUSTRY CLUSTER IN UKRAINE

The purpose of the paper is to to elucidate the authors' attitude to the nature of clusters that have become widespread in marine economic activity, find out the motives that lead to their initiation, to demonstrate the variants of their organizational structure of management and the sources of funds needed to perform the delegated functions, in the context of current Ukrainian legislation. Methodology. Towards this goal the authors collected, systematized and analyzed a number of facts obtained from numerous publications in writing and electronic domestic and foreign publications. Results. Commodity diversity, which is so welcomed by consumers in developed countries, is the result of a strenuous competitive battle between suppliers at the market of alternative products and services. It is carried out not only among consumer goods producers, but also covers shipbuilding corporations and many related firms, among which there are medium and small ones in value creation chains. Often, they are concentrated in specific regions and in one way or another determine its industrial specialization. Competition does not bypass any country, although sometimes there is a sense that only those who keep marching the thorny paths of economic, political and social reforms are affected. For this reason, everyone is constantly looking for tools to reinforce their strengths over opponents in the fight for solvent purchasers. Clusters occupy a valid place among such tools, and it is generally recognized. In the countries of the European Union, clusterization has been raised to the level of public policy, strategies of behavior of entire industries and certain enterprises. In domestic areas, it is often that not everybody can clearly understand even the nature of clusters. Practical implications. The word "cluster" is etymologically derived from English and means "association" or "union". The Ukrainian legislator, while building the institutional basis for economic development, does not use this term, but outlines its varieties and formalizes procedures for starting unions. For this reason, domestic clusters are single and are rather examples of an initiative of the territorial communities. One of such initiatives can be considered an offer from a number of enterprises, organizations and authorities created in the Mykolaiv region. It is formalized in the form of the Mykolaiv maritime service cluster. Value/originality. Observing the first steps of the initiators shows that the enthusiasm of the pioneers is unlikely to be enough to solve all the tasks that have already been set up, and even more the tasks for the cluster to be solved in the future. Thus, there is nothing to do without creating at least a small administration. Since the top of the cluster is an unprofitable organization, according to the current legislation, it is most viewed by such organizational and legal forms as a cooperative (servicing) or a public union. If you consider them, you have an opportunity to create a budget and use the funds received for the implementation of approved plans, programs and projects.

Оцінка участі галузей промисловості України в глобальних ланцюгах створення доданої вартості

The article aims at assessing the Ukrainian industries’ participation in global value-added chains and identifying prospects for intensifying these processes. The research methods used are the following: statistical analysis, comparison, and graphical analysis. The rise of the role of exporting products with high added value, as well as that of their integration into global value creation chains has been identified. A methodical approach to assessing the Ukrainian industries’ participation in global value creation chains is proposed, making it possible to determine the level of the country’s involvement in the process of international labor division by industries. The export pattern of Ukrainian industries has been analyzed, and the industries that have a significant export share in total exports and in the output composition have been identified. The main indicators of the country’s participation in global value-added chains have been calculated, namely: the national value added in the country’s exports by industry; the contribution of certain sectors of the economy to the national value added of gross exports; the share of the total national gross exports value added accounting for the national value added in specific industries. The positioning of industries in the plane of coordinates ‘share in the exports pattern – share in the national value added in exports’ has been carried out. It has been determined that the share of national value added in the exports of Ukrainian extractive industries is higher than the average one in the countries surveyed, while in the manufacturing sphere it is lower, which confirms the nearly total lack of knowledge-intensive and innovative stages of manufacturing in the latter, thus raising the share of low-grade products in exports. Several directions of the rational integration of Ukraine’s economy into global value added chains have been suggested. State policy measures to intensify the involvement of Ukrainian producers in global value added chains have been designed

Industry aspects of farm access to high value-added supply chains

This paper examines the factors characterizing the access of farms to the supply chains of agricultural products with high added value. Indicators of statistical reporting on farm activity grouped by type of products are analyzed, on the basis of which the influence of production size on opportunities selling products at a higher price is assessed. It is concluded that for various sectors of agriculture the level of product sale prices’ dispersion by individual farmers differs, which characterizes differences and opportunities of farmers to increase own share in the added value creation chain. Identified types of agricultural products, producers of which must increase production volumes to gain access to more profitable trade channels of products, as well as types of products where significant production volume is not a prerequisite for higher sales prices. These conclusions can be taken into account in assessing the feasibility of establishing marketing or processing consumer cooperatives of farmers.

The Main Trends in the Development of Methods and Models for the Use of Digital Technologies in the Creation of Value Chains

In the modern world, value-added reproduction chains (VARC) are among the most important economic structures that have a mostly decisive impact on the production use and development of digital technologies (DT). This article analyses the features of their application, related problems and opportunities for their solution. The study showed that within the framework of different types of organisational and economic models of VARC, effective use of DT has its limits. They are driven by the specific nature of these models and require specific targeted actions to overcome and/or expand these limits. Mandatory participants in such processes include both the VARC and the state. The measures taken in this regard are integral complexes and should be carried out within the framework of the state policy of technological development in cooperation with the participants of the chains. Neglecting model features in the development and implementation of such actions is fraught with a reduction in the effectiveness of the efforts made and unjustified expenditure of resources. Taking into account the features of different models of DT use in the VARC is vital for the implementation of the economic policy of technological development of Russia. It makes it possible to increase the effectiveness of efforts to achieve the goals set by the President and the Government of the Russian Federation to ensure the transition of our country to the digital economy and accelerate this process. In this regard, the promising areas are the allocation of various organizational and economic models of the use of DT in the VARC of our country and/or in the international VARC with the participation of Russian entrepreneurs, as well as the formation in relation to them of particular sets of measures from different levels of government.

Proposal of the Inventory Management Automatic Identification System in the Manufacturing Enterprise Applying the Multi-criteria Analysis Methods

Abstract The effect of logistics has increased steadily in recent years. In regard to the concept of logistics, it is not only referred to as transportation of goods from place A to place B, as many people believe. Logistics covers a wide range of enterprise (supply chain) processes. It is a whole value-creation chain including not only material flows, but also energy, human resources and valuable information. The objective of this research study is to find issues and risks in the current state of supply, inventory management and warehousing process in the given enterprise. In the study, proposals to streamline the current state in terms of inventory management identification system in particular manufacturing enterprise, which is the primary purpose of the submitted paper, are outlined. The specific result is to develop the proposal to increase efficiency and reduce risk regarding the current situation of inventory management identification system applying suitable techniques of the multi-criteria analysis, in particular by the TOPSIS method and by the WSA method.