FOREIGN DIRECT INVESTMENT OF TNCS AS A FACTOR OF INNOVATION DEVELOPMENT

This article considers modern approaches to the impact of foreign direct investment (FDI) of TNCs (transnational corporations) on innovative development, examines the cumulative effect of technology transfer, and highlights the main factors stimulating economic growth. The technological effect has been studied on the example of creating branches of foreign companies, intensifying competition with national companies, which stimulates productivity, as well as promotes the transfer of new forms and methods of management, skills in production, and business culture by national producers.Based on the analysis of innovative projects, statistical data from UNCTAD and other international organizations, the trend of declining FDI inflows in the world as a whole and individual countries, reducing the number of mergers and acquisitions (M&A) of TNCs in the COVID-19 pandemic investigated. Research and new technologies are considered as the basis for the success of the Top 50 – the most innovative companies that give impetus to the development of knowledge-intensive industries. The application of a comprehensive integration strategy of TNCs through the transformation of a fragmented production system in the production and distribution network is determined. The strategy is implemented at the global or regional levels. The tendencies of development of innovative TNCs at the expense of increase of knowledge-intensive technologies creation, an increase of their efficiency because of the use of advantages of the international movement of the capital, and placement of new innovative branches are defined. The importance of development research and development work (R&D) is the main factor in the progress of radical innovations that underlie the success of innovative companies around the world. The advantages of using knowledge-intensive technologies to increase the efficiency of TNC production and taking advantages of global value chains are noted. Cross-border mergers and acquisitions applied in the strategy of TNCs to develop international markets and achieve technological leadership through the effective use of global production systems are considered.

INDUSTRIAL ENTERPRISES POTENTIAL MANAGEMENT BY THE DYNAMIC CAPABILITIES CRITERION

The article is devoted to dynamic capabilities manifestation issues as a mechanism for implementing the potential of an industrial enterprise. In this context, a methodical approach to managing the industrial enterprises potential is formed, the basis of which are dynamic capabilities indicators. The emphasis on the human factor is made as a basis for the development of dynamic capabilities. The issue of "weak signals" comprehension and detection in the role of organizational changes markers is investigated. Different models of change markers work and study, their role in mutual understanding of people and enterprises are considered. The active and accurate detection of these markers changes allows us to interfere into the processes course, adjusting them with the smallest consumption of forces, material, mental and spiritual resources. The algorithm for an industrial enterprise potential managing is constructed according to the criterion of dynamic capabilities, taking into account markers of organizational changes. The method of an industrial enterprise dynamic capabilities quantitative assessment is developed on the interaction of the dynamic capabilities level and their co-care with weak signals degree. Unlike existing ones, based solely on expert estimates, the proposed method uses statistical data, which allows you to get more objective result. The external weak signals environment changes predicting method using nonlinear dynamics tools, which allows you to identify the most significant organizational markers, to predict changes in the environment and take into account these changes in the process of strategic decisions acceptance. Methodological approach implementation allows an industrial enterprise to take preventive decisions that allow you to store and increase competitive advantages. The obtained research results practical significance is the possibility of using the developed methods in the context of making a strategy for managing the industrial enterprise potential in response to rapid environment changes. Obtained results build the principles of the organizational and economic mechanism for ensuring the effective use of the potential of industrial enterprises in the implementation of domestic economy development European vector.

TRUST MODELING: A PROBABILITY APPROACH

The work is devoted to describing an application of the DeGroot model in the following analysis: is it possible to establish a consensus of opinions of members in a social group (a society). This model describes the process of changing the agents’ opinion about a certain event or statement, factoring in the effect of interpersonal trust between agents, which is modelled by Markov chains. Agents’ opinions are represented by the probability of them showing their support to a given statement (event). The interpretation of the DeGroot model is quite broad. It includes, in particular, the study of economic decision-making, the influence of public opinion on people and the fact of achieving a consensus. The paper considers the conditions under which the process of updating the opinions of agents, belonging to a social group (network), converges to a certain limit value - a consensus, i.e. a case when all agents in a social group have the same opinion on a particular issue. We also show some generalizations of the DeGroot model, namely those that concern adding time dependency to the rules of updating the opinions of agents. To test the DeGroot model, we implemented the two-dimensional case as a dynamic Microsoft Excel workbook. The paper describes 2 types of problems related to reaching a consensus, solved with the model. The first kind of problem constitutes an analysis of possibilities of obtaining the desired consensus with a given matrix of trust (interpersonal trust of agents), whilst changing the initial group members’ opinions vector about an event (statement). We also discuss a solution of the inverse problem: find the trust matrix such that the iterative opinion update process converges to the desired consensus with a given initial vector of opinions. The results we obtained may be used for analyzing the process of managing public (collective) opinion concerning certain economic decisions in a social group (network).

ESTIMATION OF THE DEFAULT PROBABILITY OF COMMERCIAL BANK BORROWERS: CASE STUDY

The paper describes the essence of the risks that banks face in their activities, first of all, that of the credit risk, the level of which is determined by the size of financial losses if a borrower does not repay credit funds and interest for using them. The models for assessing the probability of a borrower default (statistical, based on artificial intelligence and theoretical ones) are considered and compared; their advantages and disadvantages are determined. It is shown that, as a rule, one of the theoretical models underlies the application of statistical models or artificial intelligence models, and the choice of a model depends on the purpose of the assessment, information that can be used, technical and technological support and the bank's personnel potential. The analysis of a particular borrower of a bank – a firm, carrying out its activities in the field of agriculture, is done. The procedure used for assessing credit risk is based on the NBU regulation on the determination by Ukrainian banks of the size of credit risk for active banking operations. The stages of the procedure are: calculation of the integral indicator, debtor’s class determination and the probability of borrower default, calculation of the exposure at risk and the of the level of losses in case of default and the assessment of the credit risk itself. To determine the probability of a borrower's default, the classic Altman’s model was used, which made it possible to calculate an integral indicator using financial indicators of the enterprise; according to the internal rating of the bank, the class of the enterprise and the probability of default are determined. The size of the credit risk was calculated and its impact on the bank's norms was estimated. The loan provided belongs to the group of large indebtedness, therefore, the bank must constantly monitor the impact of the loan provided on certain standards of credit risk. basic recommendations for issuing and servicing a loan are provided.

ORGANIZATIONAL CHANGES IN THE ENTERPRISE: THE INFLUENCE OF EMPLOYEE REACTION

The pace of organizational change faced by business organizations continues to grow every year. This is the result of progress in the field of information and communication technologies, which increases the democratization and liberalization of the world's economies. Our study of employee response to organizational change identified three main areas: The first perspective of the study identifies different personality traits of employees as determinants of resistance or support for change. The main approaches and models to the analysis of the influence of individual characteristics (tendencies) on the effectiveness of organizational change are analyzed. For example, it turned out that employees who are afraid of the unknown and tend to be more skeptical about it are more likely to resist. The first direction showed that people with a higher level of self-esteem and self-efficacy are more likely to support any change. The second direction focuses on the relationship between the employee and the organization. Here, scholars have focused on the role of trust in managerial or organizational settings. The last direction concerns the internal communication of change processes, which keeps the organization in the period of organizational change. The role of individual tendencies in the processes of organizational change, psychological factors of perception or resistance to these changes were considered. It was noted that the variables of organizational communication perform two main tasks: first, it serves to transmit information, and secondly, the use of commands as the main links and factors of organizational adaptation. We compared Cotter's model of urgent change with other models and determined that Luke's "Seven Steps" model offers a good way to diagnose and understand the current state of the business (before the change), as well as the goal (which is pursued by the change). Therefore, it can significantly help to start the process of change and provide the necessary guidance for success. The effective use of this model depends on whether these steps are implemented.

FINANCIAL SUPPORT OF AGRICULTURE SECTOR ENTERPRISES

The development of the agricultural sector, like any other sector of the economy, depends significantly on funding. Insufficient funding is holding back a significant increase in the efficiency of agro-industrial enterprises. Information on the importance of agricultural enterprises in the development of Ukraine's economy is given. The article analyzes the results of the budget program PCECC 1201150 "Financial support of agricultural producers" in 2020, the current state and trends in lending to agricultural enterprises. Analyzing the attraction of soft loans by businesses in the agro-industrial complex in 2020, it was found that most agricultural enterprises need funds to replenish working capital, and long-term loans are in demand due to the need to upgrade fixed assets and construction and reconstruction of production facilities. Some programs confirm that the priority areas of state support for agricultural producers in 2021, as in previous years, are the development of animal husbandry, horticulture, farming, as well as cheaper loans and purchase of agricultural machinery. The results of the state program "Affordable loans 5-7-9%" are presented, according to which agricultural enterprises received almost half of the total amount of loans issued. The specific features of the agro-industrial complex presented in the article are the factors holding back their lending, so we believe that it would be appropriate to consider the creation of a specialized agricultural bank that would lend to small and medium-sized agricultural enterprises. The services of commercial banks that they offer for enterprises in the agricultural sector are analyzed. The variety of services and programs is due to the desire of banks to attract as large a range of enterprises in the agricultural sector to provide them with funds for further development.

TRUST AND EFFICIENCY OF THE PUBLIC SECTOR: THEORETICAL ASPECTS OF INTERRELATION

The issue of trust in government and its efficiency has been a controversial and much-disputed subject within economics, sociology, and public sector management. This study presents a systematic literature review of trust research undertaken with regard to government, its performance (efficiency), and the quality of public services. Theoretical and methodological principles of the interrelations between trust and efficiency of the public sector of the economy are analyzed and deepened, based on the fundamental provisions of the theories of micro- and macro-efficiency. The article considers the concept of trust in the public sector of the economy as one of the main intangible resources that can be used by the state in order to achieve socially and economically beneficial as well as public valuable outcomes. The duplex relationship between trust and efficiency of the public sector is proved, according to which trust is both a condition and a result of the government institutions functioning and services providing. Generalization of key characteristics of the main indicators of state efficiency within the concepts of micro- and macro-efficiency allowed identifying several groups of indicators based on subjective and objective assessment of economic efficiency of the state. Objective indicators that determine the economic development of the country, which is the basis of the quality of citizens’ life, and forms the level of their satisfaction and trust in the state and its institutions, include monetary indicators of macroeconomic efficiency of the state and indicators that characterize public finance and income inequality in the country. Subjective assessment of the economic efficiency of the state, the work of its institutions and the quality of public services includes sociological surveys and quantitative indicators based on self-assessment by economic agents based on their own beliefs, knowledge, life values and worldview, cultural, ethnic, religious, ideological norms, as well as previously accumulated personal life experience of intercommunion with state institutions.

ANALYSIS OF EU COUNTRY INNOVATION INDICATORS AS FACTORS OF THEIR COMPETITIVE ADVANTAGES

The results of the research and review of the literature on innovation and technology transfer are presented. Innovation is a leading force in competitiveness, growth, profitability, and the creation of sustainable values, as it is well known that competitive advantage is so desirable by any organization and country operating in a highly competitive environment. In this article, we have tried to highlight innovation through the following: identification of innovation and technology transfer; their features; comparative analysis of EU countries according to the system of innovation indicators. Statistical indicators are an excellent support for this study. Together with the knowledge that influences statistics, they provide an opportunity for in-depth and systematic analysis of the situation, causes and trends. The research materials in this article contain secondary sources of information, such as Eurostat data, Statista, business reports of the European Parliament, newsletters, and publications. The study period covered 2014-2019 and data for 30 countries. The article uses a qualitative method – indicators on the ground to assess technology transfer and the level of innovation in the economy of the European Union. We have selected the main indicators that characterize the transfer of technology and innovation by 9 parameters, namely: R&D costs of business; non-R&D innovation costs; innovative SMEs collaborating with others; patent applications; patent applications in solving social problems; export of medium and high-tech products; export of knowledge-intensive services; sale of novelties on the market and novelties for innovations; licensed and patent receipts from abroad. The study of the internal structure of the set of objects based on the values of the selected indicators was carried out using cluster analysis methods, where countries are divided into two clusters. The analysis showed that countries with developed economies have sufficient competitive advantages. And countries in the third group of moderate innovators have only one competitive advantage. All other indicators need to be improved, creating additional competitive advantages.

FACTORS OF INFLUENCE ON FOREIGN INVESTMENT IN THE ECONOMY OF UKRAINE: APPROACHES TO CLASSIFICATION

The publication deals with the issue of classification of factors influencing foreign direct investments. The purpose of the study is to develop a classification of factors and to determine the main factors influencing foreign investments in the economy of Ukraine. The paper contains an overview of studies of significant factors influencing the attraction of foreign direct investments in Ukraine and considers approaches to the classification of factors influencing foreign investments. A detailed analysis of scientists’ approaches to the classification of the factors influencing foreign investments is presented. A review of studies of significant factors influencing the attraction of FDI in Ukraine has shown that the most popular approach to classification is the division of all factors influencing the level of foreign investments demand in any country, on macro- and microeconomic ones. At the same time, macroeconomic factors in turn are detailed by the state and region levels and by the spheres of the economy. It is determined that among the authors there is no unity of views on the classification of factors. Some classifications are narrowly focused. Existing classifications of the factors do not always take into account the processes that cannot be quantified and that are important for foreign investment decision-making. In particular, these include person’s subjective attitude as one of the components of the investment process. Thus, it is necessary to include psychological factors as elements of behavioral economics. Some studies include such factors in the classification, but do not indicate the way of their measuring. Generalization of approaches to the classification of the factors showed that the determining factors for foreign capital attracting to Ukraine remain resource ones and the pace of economic development (as basic economic ones), as well as political, administrative and to a lesser extent financial factors that are specific for Ukraine. The author proposes a new approach to the classification of factors, which unlike others, divides the possible factors in terms of content into three groups: economic, organizational and psychological. There is also an additional "measurement" feature, which allows to divide the factors of each group into qualitative and quantitative ones, which is important for studying their impact using modelling. Further research presupposes dividing the shown factors on the basis of measurement on quantitative and qualitative ones.

FORMULATION OF A MULTICRITERIA PARTIALLY INTEGER DYNAMIC OPTIMIZATION PROBLEM

The problem of building of an integrated model of an enterprise, taking into account the main types of its activities, are prezented in the article. The key objective of the study is the formation of an integrated enterprise management system. The enterprise management system should be supported by mathematical models. The approach to the similar description of qualitatively different processes of enterprise functioning (production, innovation-investment and financial ones) are explained. The list of external and internal input and output parameters which characterize the state of the enterprise at each time moment is given. The author suggests establishment of input-output dependence for a given economic object, using a set of technological time-varying coefficients. For this, control variables are foreseen in the model. Control variables will regulate the distribution of resources and fixed assets between all possible production technologies. This makes it possible to unambiguously determine both the costs of all factors of production for each technology at each time moment, and the volume of production. It’s also possible to associate investment and innovation activities with production processes and with assets dynamics. Techniques for integrating technological modes within a complex dynamic partial-integer optimization model make it possible to generalize the tasks of distributing all factors of production and assets between production technologies and assets recovery and between all the stages of investment projects. Financial activity is considered as the activity of an enterprise, ensuring all the payments that are necessary for a given management strategy and operation mode. To determine the modes of the enterprise financial activity at each time moment, it is also proposed to enter control parameters into the model. The article also describes appropriate model constraints related to the implementation of all the types of activities. The choice of effective vectors of control variables values should be done by means of synchronization of the main types of economic and innovation-investment activities. The purpose of such a task is to find an effective management strategy for the enterprise. As goal functions in the multicriteria optimizing problem it is proposed to use time-integrated values of profit, costs and payback period.