European Journal of Management Issues

3-14

Authors: Falkiewicz, S., Wohlgemuth, V., & Bogodistov, Y.

The article is a part of a larger analysis of the scientific literature on the subject of entrepreneurship and related trends of scientific research. The main purpose of writing this article is a review of international scientific literature on entrepreneurship with emphasis on the aspects of an individual and the society and resource management. For a comprehensive review, 100 topical research papers were selected in the following categories: individual, economics, theories, building relations, mistakes, opportunities, internal entrepreneurship, strategy, resource management and family enterprises. The article focuses on the actual definition of entrepreneurship and its aspects, namely "individual and society" and "resource management". The analyzed subjects provide material for future research. Suggestions on interesting topics for further scientific research are attached. It is proved that a common concept of entrepreneurship, “an entrepreneur is born, not made”, is false. Despite the fact that the term "entrepreneur" has existed for more than 200 years now, a radical development of the concept has become obvious of late. Entrepreneurship today occupies a central position in the economy, and every economy grows thanks to the small and medium enterprises and their innovativeness. Special attention is paid to the modern interpretation of entrepreneurship in scientific journals. A review of current scientific trends through the lens of the concepts of "individual and society" and "resource management" is proposed.

23-33

Authors: Bеlopolskyi, M., & Kuzmina, O.

The purpose of writing the article is presenting the results of the study of theoretical and methodological aspects of the development of the stages of strategy of sustainable development of an industrial enterprise and determining main directions of this development. The research was performed using the methods of synthesis and analysis, deduction and induction. The essence of the concept of strategy of sustainable development of an enterprise and its components was revealed. The strategy for sustainable development is proposed to be considered in two aspects: economic and social. It was established that an enterprise enters new levels of competitive management and the operational effect of synergy occurs. It was proven that the formation of development of an enterprise should be based on synergetic harmony with the terms and objectives of the enterprise as a whole and with each functional unit. Main stages of formation and implementation of the strategy of sustainable development of an industrial enterprise were characterized. The paper considered the specificity of defining strategic position, formulating an enterprise development strategy, identifying opportunities and peculiarities of application of an express test for the actual financial state, allowing detecting signs of imbalance at the enterprise without significant calculations for the diagnosis of the actual financial status. In order to ensure prompt and unbiased testing of the actual financial state, it is advisable to restore the practice of social certification in the industry. It was proven that an important aspect in the formation and implementation of balanced development strategy is the development of the concept of sustainable strategic management of industrial enterprises. The concept allows establishing methodological bases of management principles and methodological bases of management technologies and tools for individual companies. It was established that the strategy of sustainable development of industrial enterprises should be based on a long–term program of sustainable development, which is a strategic document that contains a number of steps, coordinated in space and time, to engage resources. It was proven that the implementation of a balanced strategy of development involves purposeful improvement of economic, organizational, technical, technological, production, market, social, administrative, environmental and other components of the system. Transformations that occur in the course of implementing the strategy under the influence of external factors acquire new quality, both economic efficiency and competitiveness of the enterprise in the market increase. The scientific novelty of the research lies in the development of the concept of strategic management of the balanced development of an industrial enterprise based on purposeful improvement of economic, organizational, technical, technological, production, market, social, administrative, environmental and other components of the system, which collectively provide a synergistic effect. The practical significance of the work is in the possibility to form and implement a strategy of sustainable development of an industrial enterprise as an efficient system of management, which will provide for a timely forecasting of purposeful and gradual improvement of economic, organizational, technical and technological, production, social, administrative, market, environmental and other components of this system, which will acquire new qualities during the process of implementation of the novelties.

44-54

Authors: Goley, Y.

The aim of the research is to improve the management of innovative potential in the field of Housing and Communal Services (HCS) under conditions of establishment of decentralization of the regions and the formation of measures to provide reforms in this area. Theoretical and methodological basis of the research is the scientific papers and designs of local and foreign authors; the State program of reforming HCS. To achieve the set purpose, we applied general scientific, as well as comparative and analytical methods. The need to manage the innovative potential under conditions of growing competition among national manufacturers in their pursuit of integration into the world economic space was researched. The performed analysis found technical–technological and financial state of HCS in the regions unsatisfactory. Formation of measures to implement the State program of reforming and development of HCS was substantiated. It was demonstrated that the way to engage foreign investments stumbled into certain obstacles, related to the excessive centralization of financial resources and their insufficiency for economic freedom of the regions. Special attention is paid to the fact that innovation activity in Ukraine has low level of development that can be explained by insufficiency of financing of scientific activities (applied research, designs), as well as the lack of incentives for its implementation. Unfavorable macroeconomic situation and the activities of the government bodies to withdraw working capital, increasing taxation burden lead to decrease in innovation activity of enterprises. It was demonstrated that the priority fields of the economy of the state, which need stimulation of investment and innovation, also include HCS, which remains one of the most technically backward industries of the national economy. It was proven that the current state of technological infrastructure did not meet the requirements of a market-driven economy. The qualitative analysis of technological backwardness of HCS in Ukraine by the leading foreign specialists was cited, in particular by the Friedrich Ebert Foundation. The scientific novelty of the research lies in the need to improve the management of innovative potential and to develop proposals of consistent reforms in the area of HCS. Practical significance of the work is to provide recommendations to the urban residents regarding the implementation of the advantages of setting up ACMAB. The prospect of further research is the analysis of existing ACMAB in the regions and preparation of proposals for elimination of the shortcomings in their activity.

68-77

Authors: Evtushenko, N.

The paper is devoted to the study of the current state of taxation system in the period of its reform and to further designs in the field of fundamental bases of taxation. The purpose of writing this article is an in–depth study of the nature, the essence of risks in the sphere of taxation, consideration of the content of the system of the risk management and substantiation of conceptual bases of the efficiency of the taxation risk management by introducing a systematic approach under conditions of a large share of the shadow economy. The study was conducted with the use of the methods of deduction and induction, system approach, analysis and synthesis on the basis of the legislative framework of Ukraine, data by the state fiscal service of Ukraine, data by the state statistics service of Ukraine, papers by domestic and foreign economists, materials of the authors’ research. The nature and position of taxation risks in the system of their management were studied. It is proven that the taxation, as well as economic, risks are usually too overestimated, because as far as the cost is concerned, the measures to improve the performance results of human capital are very vague and formed under imperfect information conditions. The need for a systematic approach to managing taxation risks was identified. The main elements of the management system of taxation risks were considered. The influence of human capital and information on the efficiency of taxation risks management was proven. Special attention is paid to the feasibility study of taxation risks in the system of their management and to minimization of countermeasures. It is proven that such a system can be described as a set of certain methods, procedures and measures that makes it possible to forecast the deficit of tax payments and to take measures in regard to minimizing abuses in the taxation field. The main elements of the taxation risks management system were considered. This system is a set of interconnected and interrelated elements such as: 1) the essence and the original sources of risk; 2) analysis, evaluation and description of the risk; 3) methods of minimizing risks; 4) monitoring of measures of prevention and counteraction of risk. It is proven that the method of systematization of the taxpayers is applied according to the standards for determining the taxation risks in the system of their management. This approach will allow implementing into practice a new strategy of organization of the control and revision work with significant reduction in the cost of implementation of planned inspections. It is stressed that the taxation risks should be considered as a scientific basis for the design of the criterion of the efficiency of creating systems of national taxation security. Like any risk, taxation risks must not be identified only, but kept to a minimum. To do this, it is advisable to apply a taxation risks management system as a set of certain methods, procedures and activities. The use of human capital and information software will provide for reaching the necessary level of efficiency. The application of a systematic approach in the theory and practice of taxation will help to anticipate the negative consequences of the impact of the external environment; will contribute to the efficient monitoring of the risks and their practical management. The fiscal service may increase the amount of tax revenue to the budget by reducing tax abuses (tax evasion). This, in turn, will promote the exit of the economy out of the shadow. Scientific novelty of the research is in the deepening and determining the nature and the essence of taxation risks, as well as the substantiation of conceptual bases of the efficiency of their management through the implementation of a systematic approach. Adopting a systemic approach will allow fiscal services to efficiently manage taxation risks. A promising area of research is to review regulating documentation of the state fiscal service on the basis of a systematic approach and consideration of taxation risk as a measurement of results of human capital performance and imperfect information provision.

87-96

Authors: Meshko, N., & Shitov, D.

Growing international competition on the world market increases relevance of the problem of development of high technological potential of the country. The most dynamic sector of the world economy is knowledge–intensive services that belong to the most science–intensive and technology–intensive sector of the world economy. The purpose of writing this article is to systemize scientific and practical bases of research into the area of knowledge–intensive services in the context of global economic integration. General scientific and special research methods were applied: the method of historical analysis, method of abstract–logical analysis, theoretical generalization, systematic approach. The paper defines knowledge–intensive services as the main factor in the rapid development of the national economy. Their connection to the increasing importance of knowledge and to their converting into a separate factor of production was substantiated, which directly affects the formation of the national competitiveness of the economies of countries and increase in their productivity. A historical review was performed and it was discovered that the model of innovative development of national economy transformed into the concept of the "knowledge economy”, because scientific and technological innovation is just the final result of a wide range of socio–economic factors, many of which form and operate outside the productions facilities, where innovations are directly implemented. It is shown that innovations form the basis of the development of the global economy: companies perceive them as an efficient means of increasing profits and entering new market segments, while the governments – as a means of accelerating economic growth through competitiveness in global markets. It is stressed that the knowledge–intensive services are an integral part of the economy. They are based on knowledge and are an important driver in the development of the world economy under conditions of global economic integration. The main factors were investigated that influence the pricing of knowledge–intensive services. The factors of the formation of the market for knowledge–intensive services were substantiated. The scientific novelty of the research lies in the systematization of scientific and practical bases of the development of knowledge–intensive services in the context of global economic integration. The practical significance of obtained results is the application of materials of this article by domestic scientists to analyze the pricing and competitiveness of knowledge–intensive services of Ukraine in the world market. Analysis of the drivers of creation of the export potential of the knowledge–intensive services of national economies of leading countries is a relevant scientific task for further studies.

103-113

Authors: Nosyk, О.

Exploring the peculiarities and trends in innovation development in modern conditions is based on defining its new characteristics caused by postindustrial transformations. The aim of writing this article is to study the main elements of open national innovation systems and trends of their integration into international innovation cooperation. In the course of performing the set tasks, we used methods of system and structural–functional analysis to substantiate the main components of open innovation systems and the trends in their formation and operation. It was stressed that the main characteristics of open innovation systems are innovation entrepreneurship, innovation networks, innovation cooperation and partnership, innovation clusters and ecosystems. The driving force of modern innovation process is the entrepreneurial innovation activity, covering all stages and areas of system innovation process, relying on innovations in technology, management, market, social and providing for innovative development of the society. It was discovered that the innovative collaboration involves its participants in the innovation process with the use of such forms as technology transfer, information exchange, research and educational programs, commercial exchange of innovative products. Innovation partnership combines innovation resources and activities of the participants – setting up innovative enterprises, joint implementation of innovative projects. In the modern period, innovation collaboration and partnership develop at the level of corporations, industries and sectors of national economy and on the international level. Development of innovative cooperation and partnership depends on the formation and status of innovation ecosystems as the medium of open innovations. Influenced by global factors, the development of innovation clusters is characterized by the trend of internationalization of innovation activities on the basis of international cooperation among clusters of different countries. Innovation development leads to certain transformations in the human capital, growth in the level of its innovativeness and innovation. Internationalization of human capital in innovation occurs on the basis of the development of international scientific and technical cooperation and implementation of social humanitarian programs. Directions of formation of open innovation systems are the development of innovation entrepreneurship, innovation networks, innovation cooperation and partnership, innovation ecosystems and clusters. The core of open innovation systems is the human capital of innovation development. The scientific novelty of this research made it possible to determine the conditions and factors for the innovation systems to reach various levels of open nature and substantiation of their components and areas of internationalization. The practical significance of the obtained results is application of the materials of this paper by the subjects of innovation activity for managing the innovation process based on the principles of open innovations. Further research into defined scientific problem will be focused on the substantiation of features of renewal of human capital of open innovation systems.

123-130

Authors: Slivenko, V.

The aim of the research is the analysis of efficiency of the processes associated with the innovations in the sphere of activity of the prosecution service during the reform of the law enforcement system of the state, the study of important factors of reformatting and dynamics in further changes in the system. To achieve the goal, we used a set of methods: comparative, of structural analysis, synthesis, induction and deduction. The processes associated with the realignment of the law enforcement institutions of the state were analyzed with their legal status clarified. The directions for reformatting of the law enforcement institutions of the state were identified, the innovations in the management of the law enforcement activity during the reform of law enforcement areas were illustrated: formation of new principles of personnel policy of the department (independent and transparent competitive mechanism of appointments to vacant positions), arranging the system of motivation, increasing the level of independence in decision making, getting rid of not inherent functions and improving the disciplinary liability of employees. It was noted that the reforms in the field of management of the law enforcement service were carried out with regard to international experience and the European standards of law enforcement. The scientific novelty of the research lies in the review of innovations in the sphere of the law enforcement activity in the period of radical reform of the society: formation of new principles of personnel policy in the department, independent and transparent competitive mechanism of appointments to vacant positions, arrangement of system of motivation, improvement in monitoring systems, increase in the level of independence of employees in decision–making, freeing employees from the unofficial "pressure" by the leadership, organization of independent and democratic bodies of the law enforcement service – Council of prosecutors and qualification board, getting rid of not inherent functions (general supervision over the law) and increase in disciplinary responsibility. Practical significance of the obtained results allows taking the conclusions into account in further reformatting of the prosecution service to a new law enforcement structure that meets the requirements of a legal state. Further research in this direction will contribute to the search for innovative ways of solving the problems of the reform of law enforcement system of our state.

144-153

Authors: Yaniv, L., & Zinchenko, O.

In the period of crisis situation in the economy and socio–economic instability in Ukraine, the problem of the budget deficit is very acute. In recent years the state budget of Ukraine has faced such a big problem as the deficit, due to the excess of spending over income of the state budget. The purpose of writing this article is to research into existing problems of the deficit of the state budget of Ukraine, substantiate causal relationships in the system of insufficient funding of state activities and development of ways of its optimization. During the study we analyzed scientific papers by Ukrainian scientists and experts who explore the problem of the deficit of the state budget, legislative and government materials. We used the following general scientific methods: method of cognition, method of analysis, method of analysis and synthesis, as well as the method of comparison. The essence of the deficit of the budget system and the reasons of its occurrence in Ukraine was considered. Underlying causes of budget deficit in Ukraine are slump in production, decrease in the efficiency of functioning of industries and businesses, unreasoned socio–economic policies, which led to a decline in the volume of gross domestic product and national income. This naturally caused a decrease in the volume of financial resources in the state and reflected in the indicators of the budget in the form of long–term deficit. We defined the dependence of the budget deficit on the government debt. It is established that there is a close relationship between the size of the budget deficit and state debt. Budget deficit increases national debt, and rising debt, in turn, requires additional expenditures for its service and thereby increases the budget deficit. The links of budget deficit to the country's economy were identified. We discovered the consequences of raising interest rate, which, on the one hand, reduces investment attractiveness in the domestic market of the country, on the other hand increases the attractiveness of the foreign financial investments in the country. Significant currency flows lead to the growth of the debt and, as a result, the growth of the currency exchange rate, reduction in the net exports of goods and decreased indicators of investment activity. This reduction is the reason for reducing the level of labour productivity and real income in all of its forms that provokes a decrease in investor confidence, and hence, reduces foreign investment programs and increases the withdrawal of capital abroad. The ways of overcoming budget deficit were substantiated that are based on improving the taxation system, attracting personal savings of the population to the investment sphere, providing financial support to small and medium businesses, enhancing the responsibility of businesses, strengthening control over the payment of state money, reforming taxation system, improving normative and legal support of the budget process. The scientific novelty of the research lies in the establishment of causal relationships of budget deficits for the scientific substantiation of budget management in the period of the structural transformation of the economy. The practical result is to identify ways of reforming the budget system of Ukraine and its transition to the investment model. A promising direction for further research in this area is developing a model of the budget process on the basis of causal relationships, which is capable of detecting the risks of deficiency and minimizing their impact.