BUSINESS ECONOMICS: DISADVANTAGES OF COUNTRY INFLUENCE TOWARDS STAFF MOTIVATION

Annotation. The priorities of business development of business enterprises through incentives and motivation are substantiated. It is established that the motivational mechanisms of any enterprise should be built with the participation of state and regional government and take into account the interests of employees. The connection between staff motivation and financial incentives is determined. The imbalance of remuneration of personnel of different professional categories on the example of energy workers is theoretically and practically substantiated. The system of remuneration of workers in the energy sector has been studied. It is substantiated that with a constant subsistence level for able-bodied persons and an increase in the minimum wage, there will be a further leveling of the prestige of professions and a disparity in wages. The legal framework for the system of remuneration and motivation of staff is analyzed and it is established that the business economy of the enterprise should be based on the principles of effective system of interaction between the state and the region, strengthening ties between other business structures and developing a rational incentive mechanism. The research conducted in this article makes it possible to form a vision of the irrational system of motivation of employees of different categories and the need for state regulation of a holistic set of tasks and goals for the effective functioning of business. The business economy of the enterprise should be based on the principles of effective interaction between the state and the region, strengthening ties between other business structures, as well as developing a rational motivational mechanism, which is supported by constituent documents at the government level and takes into account the interests of employees and owners. Such a system will help to solve the main problems in personnel management at the enterprise and with the correct interaction of motives and incentives will be interdependent elements of the overall development of business, region and state

ECONOMIC SPACE IN MODERN SCIENTIFIC DISCOURSE

The article is devoted to the study of the definition of economic space in modern scientific discourse. The urgency of the article is substantiated by the necessity to improve the methodology and practice of regional governance due to the global markets’ trends. Also the actuality of the work is determined by the specific of Ukraine regional management and necessity to modernize its methodological bases due to needs for the development of the economic space of Ukraine in terms of global competition. The aim of the study is to generalize, critically analyze and develop theoretical bases for defining the concept of "economic space". The study has used dialectical, monographic and analytical methods, and also the method of comparative analysis, system and process approaches. The comparative and critical analysis of existing theories of productive forces development has been made. Various definitions of economic space have been systematized and analyzed. It is substantiated that the system approach is the most suitable for use in the process of defining the concept of economic space. Economic space is a territory in which economic agents operate and interact within the available resource, institutional, social, infrastructural and other constraints. The concept of economic space reflects the functioning of the system, in which the object of management for a certain period keeps the structure and properties unchanged. The region is defined as a stable set of elements interconnected by socio-economic conditions, common interests, strategic goals and a single value system. The development of this system is provided by available resource potential, cross-sectoral and interregional cooperation, and active participation of public institutions in regional socio-economic processes. The relative independence of the region as a system is determined by its socio-economic unity with the national economy (quasi-state). At the same time region is a system with competitive advantages and the ability to self-development (quasi-corporation). It isn’t only a territorial unit; also it is a social basic unit of economic space due to the fact that the population, differentiated by demographic and socio-economic characteristics, is the central element of the territorial system and a single territorial community.

INNOVATIVE POTENTIAL, INTELLECTUAL CAPITAL AND ABSORPTIVE CAPACITY OF UNIVERSITIES IN ENTREPRENEURIAL ECOSYSTEMS

The article is devoted to the problem of methods and means development of knowledge exchange management between universities and innovative firms in entrepreneurial ecosystems. It is noted that the indicators of attracting business funds for research and development in higher education in Ukraine, compared to other countries, indicate a dissonance in the economic and cognitive dimension between innovative entrepreneurship and research groups of universities. Our previous research shows that, unlike leading countries, the formation of entrepreneurial ecosystems in Ukraine should be not only about targeted support for high-growth firms, but also about ensuring effective bilateral knowledge exchange of universities with all interested firms and startups. The concept of absorptive capacity of individuals and organizations, the concept of innovation potential, intellectual capital, human capital and the relationship between them are considered. It is shown that the usefulness of the absorptive capacity concept is that it contributes to the formation of methods and means to increase the efficiency of knowledge exchange in entrepreneurial ecosystems with the participation of universities. It is substantiated that the university has a more complex range of absorptive abilities of employees than organizations with a strictly dominant type of activity and field of knowledge used. It is proved that the absorptive capacity of employees in universities should be considered in the dimensions of teaching, research and development, training and start-up innovative entrepreneurship, as well as taken into account the diversity of fields and types of knowledge used. Our addition to the concept of absorptive capacity with the thesis on the limitations of cognitive communication between persons with different cognitive orientations is original. One of the main difficulties in the knowledge exchange between university scientists and employees of companies is that they deal with different types of knowledge and carry out significantly different activities. In our previous studies, this was associated with cognitive gaps that occur when transferring the mental knowledge of subjects to material media in the form of information, and then - its awareness by individuals who have experience other than the authors. The phenomena that cause them are an important factor in the problems of cognitive exchange of university scientists with entrepreneurs. Based on the wide range of knowledge, activities and absorptive capacities of individuals and communities in university, it is proposed to differentiate between measures to ensure and stimulate educational, research and innovative entrepreneurial activities in order to adequately support them. In our opinion, the indicators that indirectly represent the realized absorptive capacity include those results that are traditional for the relevant categories of employees in universities. The absorptive capacity of teachers, in particular, is realized in the content of those courses that they personally form, while the main achievement of the researcher is new scientific or related knowledge. Criteria and indicators of the realized absorptive capacity can be specified, and it will be a subject of our further researches.

DEA METHOD AS A TOOL FOR COMPARATIVE ANALYSIS OF THE EFFICIENCY OF NATIONAL ECONOMIES

The paper deals with the theory of comparative analysis of the efficiency of national economies using the nonparametric method of data envelopment analysis (DEA). The main works on the use of data envelopment analysis are studied. In order to develop the ideas of F. Caselli, W. J. Coleman II., J. Growiec it is proposed to take into account that the goal of producers in modern economy is not only to increase technical efficiency, which is expressed in reducing stock and labor intensity, but also to increase economic (in a narrow sense) efficiency that is reduction of the real prices of the used production factors. The subject of the research is an adequate representation of the interdependence of these "competing" goals in the theory of the efficiency frontiers. In the study, all efficiency frontiers were constructed in a purely nonparametric way reflecting a single period (in a standard form – a year). The goal is to solve the problem of incompleteness of a purely technological approach to the world efficiency frontiers that is to supplement the classical DEA model in a way to make it possible to build the boundaries of technical and economic efficiency using both methods – the envelopments of the actual states (points) of the countries and the envelopments of their national functions of the product distribution and its price. In accordance with the content of the proposed model of Paired Efficiency Frontier Model (PEF model), the geometric method is chosen as the main method for studying and interpreting the results obtained. Therefore, it is proven that it is possible to display a frontier using the envelopment method of functions distribution (straight lines) in one coordinate system as an envelopmentl of actual states (points) in an alternative system. This, in turn, significantly simplifies the range estimation to these borders. In the course of the research, the following goals are set: to determine the algebraic forms of linear programming problems that adequately represent the frontiers of technical and economic efficiency; to outline the main points of view regarding the construction of a global technological frontier and to justify the feasibility of complementing it with a global economic frontier. The proposed model contains four efficiency frontiers – technological and economic frontiers constructed using the envelopment method of the actual states, and similar frontiers representing the envelopments of the functions of the product distribution and its price. In accordance with the content of the proposed model, the geometric method is chosen as the main method for studying the frontiers of efficiency and interpreting the results obtained. Hence, it is possible to display a frontier using the envelopment method of functions distribution (straight lines) in one coordinate system as an envelopmentl of actual states (points) in an alternative system.

CONCEPT OF THE WORLD TECHNOLOGICAL FRONTIER: METHODOLOGY, PROBLEMS AND INTERPRETATIONS

The article is devoted to the implementation of nonparameterized method of data envelopment analysis (DEA) to the world’s economy as an array of countries with different levels of technological activity. The main purposes of this research are as follows: systematical presentation of methodological foundations of international technology frontier concept, presentation of the main controversial problems of this concept, presentation of the possible future development tendencies. Both the research itself and presented research materials are based on geometrical approach – plane geometry with the elements of projective geometry. This has allowed us to obtain important theoretical results. Firstly, the possibility of “subsequent” usage of DEA method to any data that remain after the exclusion of points with the highest relative efficiency has been illustrated. In relation to the subject at hand this has made it possible to offer the concept of world’s technological frontier with different subtypes. Countries within specific frontier form sequential groups from the most efficient to the least efficient ones. Secondly, the foundations of a new international technological frontier model (ITF model) of virtual countries have been presented. This model functions are the following: after determining the countries with the highest efficiency level, the frontier line modifies itself in a way that allows all country-leaders to move from an angular position to an intermediate position on the modified ITF section. These new sections named “national leaders’ sections” are interpreted as specific production functions that reflect conditions of ITF “neighboring” countries. Virtual countries instead of the real ones become angular points in the model. Based on the model of virtual countries, the known paradoxes, such as the paradox of equal efficiency of lateral frontier sections (which is immanent to any model based on the classical DEA method) and the paradox of technological regression arising from the intersection of ITF lines of different periods, are solved. Thirdly, based on the simultaneous analysis of countries’ states on two sections – the “capital and labor intensity” section and the section of manufacturing function parameters – the method of ITF composition as an envelopment of national manufacturing functions has been created. Comparative analysis of ITF models created with the help of this method and the ITF models based on traditional method of national technological state envelopments has been made.

PROSPECTS FOR THE DEVELOPMENT OF THE SYSTEM OF SOCIAL RESPONSIBILITY OF INTERNATIONAL BUSINESS

The article is devoted to the formulation of prospects for the development of social responsibility of enterprises in modern conditions; rethinking its essence through the inclusion of the uncertainty factor in the theory of sustainable development (basic for social responsibility); substantiation of directions of cooperation between supranational, state bodies, enterprises and academic science in the direction of increase of the efficiency of realization of projects on social responsibility in international and national business; formation of fundamental principles for the creation of uniform standards of social responsibility of international business in the form of methodological recommendations using the coefficient method. The article considers the main approaches to understanding the essence of corporate governance in the field of social responsibility, prerequisites that form the understanding of social responsibility in modern business, among which are: business ethics, ethical behavior, interaction with stakeholders, activities for society, achieving sustainable development. A list of subjective and objective problems that arise today in the implementation of social responsibility projects in international business, namely: individualized understanding of the essence of social responsibility; lack of systematicity and comprehensiveness; lack of consideration of the uncertainty factor when planning social responsibility projects and assessing its significance for the main activity; lack of supranational standards of social responsibility; inviolability of the concept of sustainable development, imperfect regulatory framework, financial capabilities of companies, is offered. Prospects for improving the system of relations in the field of social responsibility at global level and business level are proposed. A method of calculating the coefficient of social responsibility, which includes three main components: the mandatory group of factors, the sectoral part, the variable part, is proposed.

CURRENT ISSUES OF FORMATION AND IMPLEMENTATION OF THE TOURISM DEVELOPMENT PROGRAM IN CHERKASY REGION

Peculiarities of formation of program tasks of tourism development in Cherkasy region are investigated. The analysis of indicators for compiling and determining the results of the implementation of tourism development programs in Ukraine for a number of years is carried out. The main directions of tourism development in current business conditions are highlighted. The topical issues of formation and implementation of the program of tourism development in Cherkasy region are determined taking into account the influence of a complex of factors, in particular those of economic, ecological, social character. It is substantiated that in the basis of formation of program tasks for the purpose of assistance to the development of tourism in Cherkasy region it is necessary to consider strategic plans of development both of Ukraine as a whole, its regions, and features and priorities of separate administrative-territorial communities. Emphasis is placed on the need to develop appropriate identifiers and indicators to characterize individual general indicators of tourism development in the respective territories, cluster units and to form a single base of potential and actual subject-object units of the tourism segment of the region's economy. To this end, the article proposes a model for the formation of criteria for assessing the objectivity of the formation of strategic regional objectives in the field of tourism and the results of program tasks in the tourism segment of the region's economy. The analysis of methodology of the formation of program tasks at the state level and criteria of taking into account obligatory indicators of an estimation of their performance on the basis of the achievement of corresponding qualitative and quantitative indicators both at the all-Ukrainian, and at regional level is carried out. Proposals are made to improve the procedure taking into account the interests of local governments, administrative-territorial communities and professional public associations in the direction of improving adaptive program indicators for tourism development.

THE FORMATION AND EFFECTIVE USE OF INVENTORIES BY ENTERPRISES

The article considers the issues of formation and effective use of inventories by enterprises. It is confirmed that the subject of the inventory management policy consists of two main blocks: the inventory formation policy and the inventory use management policy. Inventory formation management occurs by applying inventory management models. Inventory use management performed by means of indicator calculations of reserves effective use. Inventories are grouped and classified according to the most important features. Inventory management tasks and exiting models is carried out, which takes into account the classic and modern approach to doing business. It is proved that the concepts previously used fail to justify themselves in the new conditions. It is established that most companies in the world improve the efficiency of inventory management as follows: rationalization of processes between companies, shifting ownership of inventory towards suppliers (implementation of the principle of “inventory managed by supplier”), direct delivery of finished products to the consumer in accordance with his wishes and financial capabilities, inventory management using the principle of “just in time”, introduction of flexible (lean) production, etc. Thus, the main trend of foreign firms, in contrast to domestic ones, is the spread of the concept of inventory minimization. Nine provisions (theses) have been formulated for the methodology of forming various for managing inventory values of an enterprise.

RATING ASSESSMENT IN MAKING FINANCIAL DECISIONS BY METHODS OF MULTI-CRITERIA ANALYSIS

The article attempts to reveal the problems of decision support processes by consumers of banking services. Choosing the best financial strategy always requires significant mathematical tools. The comparison of methodological tools for making management decisions has allowed us to identify groups of methods. The most common among them are game theory, multidimensional ranking and multi-criteria analysis, a fairly modern method exploring alternative options using multi-objective optimization without certain shortcomings of the first two methods. The main purpose of the study is to adapt the methods of multi-criteria analysis and to form universal tools to substantiate management decisions on the optimal financial strategy. We suggest a methodological approach based on the use of multi-criteria assessment tools, for the rating assessment of possible alternatives in making financial decisions, namely Smart method to determine the weighting factors of the evaluation criteria and TOPSIS method to assess the optimum banking institution from the perspective of bank depositors. The article pays special attention to highlighting and describing the hierarchy of the task of choosing a depository financial institution and the main features of strategic alternatives. To assess the banks’ ratings we set up the system of generalized criteria including three groups, each of which by means of decomposition is divided into 11 partial criteria, which have monotonically increasing target functions (except for "additional associated costs"). Initial data in the form of a constructed "decision matrix" according to certain particular criteria are formed on the basis of statistical and expert information. We have chosen the end of 2020 ‒ beginning of 2021 as the research period for utilizing up-to-date information. The research of rating assessment in the article is carried out in the following logical sequence: analysis of existing methods of financial decision-making support and the significance of modern methods of multi-criteria analysis among them, a thorough problem statement from the perspective of the banks’ services consumers, singling out the list of alternatives and their estimation criteria, substantiating the values of the weighting coefficients of generalized and particular criteria by the SMART method, practical application of the TOPSIS method algorithm to select the best alternative and recommendations for making a financial decision. Therefore by means of mathematical calculations the article justifies the choice of the optimum strategy by a consumer of financial services of the banking institution offering the most attractive conditions for opening an account. Thus, the study empirically confirms and theoretically proves that the use of modern economic and mathematical methods, in particular the TOPSIS method, helps the consumer of banking services in supporting of making well-considered and optimum management decisions, taking into account the previously set evaluation criteria.

POTENTIAL OF CHERKASY REGION IN THE IMPLEMENTATION OF SMART SPECIALIZATION TECHNOLOGIES

The article is devoted to reflections on what principles, approaches and diagnostic methods should be based on the choice of the type of economic activities, which will be accepted as the basic to implement smart specialization. The purpose of the article is to assess the potential ability of Cherkasy region to rapid innovative development through the implementation of the principles of smart specialization. The article determines the need and expediency of the transition to new regional administration technologies, among which smart specialization on the example of European countries has shown the highest performance. The time of origin and the context of using the term "smart specialization" in the Ukrainian legislative field have been analyzed. The principles and requirements, the observance of which will contribute to ensuring the efficiency and effectiveness of the implementation of the concept of smart specialization in the region, are highlighted. The content of the Development Strategy of Cherkasy Region for the period 2021–2027 has been analyzed. It has its focus on the implementation of the principles of smart specialization. An assessment of the potential opportunities for implementation in the region of the areas of smart specialization announced in the Strategy through the characteristics of the region's ability to innovate growth has been carried out. The assessment is based on twelve groups of indicators, which comprehensively characterize the volume of labor and the cost of its maintenance, the regional product and the net profit of enterprises, the intensity and personnel provision of research and development processes, the intensity and effectiveness of the innovation activities of the region. The "Rank" function in Microsoft Excel is selected as the main tool of quantitative evaluation. According to the results of the study of the preconditions for the implementation of a new instrument of regional governance for Ukraine, the conclusions have been made about the potential of Cherkasy region in the field of human resources and innovative activities of industrial enterprises. At the same time, scientific and educational spheres require substantial development, which could be an obstacle to the successful implementation of the concept of smart specialization in Cherkasy region.