Economic science /10. Economics of enterprise

Brutman А

Zaporizhzhya National Technical University

Conception of instant and interval

 competitiveness of enterprises:
methodological aspects

As it follows from up-to-date interpretation of economical meaning of enterprise competitiveness conception, competitiveness as one of the most general synthetic characteristic of enterprise, is predictive assessment of mentioned enterprise “success” functioning in conditions of competitive environment in future [3, 7, 11, 12]. Furthermore the “success” of such a functioning associates justly with production efficiency [10].

As is shown in [2, 3], the process of functioning of any industrial enterprise can be introduced the utmost aggregated in the form of processes synergy of two groups:  output of products processes (1) and reproduction processes (2). First group processes (hereinafter production) using fixed production assets ensure transformation of production resources into final (for enterprise) product and have cyclical character, i.e. are repeated multiply by enterprise during the process of functioning. Second group processes (reproduction processes) are directed on change of production infrastructure, enterprise socium, production organization and management system in order to provide possibility of production processes implementation during next cycles in modified form.  Generally, the enterprise reproduction activities under the conditions of innovative model of economy and enterprises development takes form of investment and innovation activities and realized within the frames of investment program of the enterprise development.

Obviously, level of competitive capacity of enterprise is determined by both group, moreover, with stiffer competition importance of reproduction processes increases substantially. Analysis of mechanism of enterprises adjustment to competitive environment conditions, made by the author of present research in article [3], shows that whole complex of measures on enterprises competitive growth can be divided into two classes according to their internal nature: measures realizing parametric adaptation and measures realizing structural adaptation. Measures of first type are directed on mode change of enterprise operation within the framework of its production, economics and other possibilities. Such actions can be exemplified by cutting of prices of manufactured items, reduction of employees’ salary level with the purpose of cost reduction, quantity of output adjustment in response to change in demand, etc. Any investment and innovation measures can be referred to structural adaptation: construction and put into operation of new production facilities, upgrade skills of personnel, improvement of methods of material and technical supply and sale, mastering of new markets of production resources and enterprise’s products.   

Qualitative difference of production and reproduction as well as parametric and structural adaptation is that first one are determined by enterprise current state and foreign economic environment of its functioning and realized within the framework of one production cycle (conditionally can be considered per saltum or instantly), and the second have substantively more long characteristic and defined on prolong intervals of time. 

With respect to the task of estimation of enterprises competitiveness this means that, firstly, existence (or expediency of separation and independent research) of qualitatively different components of competitiveness: instant (momental) and interval (long term), and, secondly, necessity of qualitatively different methodological and methodical approaches to measurement of degree of evidence of enterprise competitiveness mentioned components.  

As far as enterprise competitiveness is specific characteristic of enterprise capability (see, for example, [5, 8, 11, 12]), possibility and expediency of estimation of enterprises competitiveness level through estimation of its production and investment and innovation capabilities is naturally follows from momental and interval concept of competitiveness. In addition, enterprise production potential reflects enterprise production capabilities, i.e. capability of enterprise as to output of products (under any permissive conditions), and investment and innovation capabilities – capabilities of enterprise to realize investment and innovation (i.e. reproduction) activities. 

Such approach allows to involve all arsenal of methodical tools of production capability quantitative measurement in tasks of evaluation of industrial enterprises competitiveness [1, 13, 14] (and, in particular, whole scale of enterprise production capacity indicators [9, 13]) and investment and innovation capabilities of enterprise [4, 6].

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