Assessment of China’s Macro-Readiness for Integrated Innovative Management Technologies Employment

Introduction. Economic entities should constantly apply various forms of innovation, including managerial and organizational innovations, to ensure the processes of developing and acquiring adaptive capacity. One of these innovations is integrated management technologies covering several interacting heterogeneous technological, economic, organizational, social, and psychological processes or several management functions. Aim and tasks. The study aims to elaborate a procedure for assessing a country’s macro-readiness to apply integrated innovative management technologies and qualitatively characterise its level. Results. An assessment of macro-readiness to apply integrated innovative management technologies was conducted using the case of China. In order to obtain a generalized evaluation of the country’s macro-readiness to apply integrated innovative management technologies, synthetic taxonomic indicators based on readiness components and a general synthetic indicator were generated. The synthetic human capital and research indicator changed from low (0.243) in 2016 to high (0.647) in 2020. The same trend is inherent in the synthetic indicator of ICT availability and use, which increased from 0.367 to 0.920, and in the synthetic indicator of institutional and business environment, which increased from 0.310 to 0.876. Although it has improved from 0.205 to 0.451, the synthetic indicators of financial resources and development have not yet reached a high level. Conclusion. The suggested procedure for assessing macro-readiness to apply integrated innovative management technologies is based on constructing a synthetic indicator of readiness, combining the taxonomic indicators of human, digital, financial, and institutional readiness. This procedure, implying the determination of their qualitative levels, enables us to determine a country’s readiness to support business entities’ adoption of new management technologies. The assessment of China's readiness for applying integrated innovative management technologies using the developed approach revealed that the ICT component is the best developed, while the financial component is the most underdeveloped

Analysis of the Economic and Environmental Policy of Ukrainian Defence Industry Enterprises

Introduction. The regulation of economic and environmental impacts of the entire military-industrial complex is a cross-sectoral and international problem. At the same time, research in this area is rather fragmented, which reduces the effectiveness of systematic reviews of the security and defence sector in the context of the green economy. The relevance of the issue of greening the defence industry is significantly enhanced by the need to regulate and operate domestic defence industries in the context of the country's military operations. Aim and tasks. The aim of the study is to substantiate the economic mechanism for regulating the greening of enterprises of the defence industry of Ukraine. Results. The economic and environmental security requirements for defence industry enterprises are studied, as the activity of polluting sources of enterprises, including defence enterprises in Ukraine, has generally decreased, in 2021, emissions of pollutants into the atmosphere from stationary sources decreased by 9.0% compared to 2020, to almost 2.2 million tonnes, ammunition was disposed of (235.29 thousand tonnes of ammunition were disposed of from 2014 to 2020) and liquid rocket fuel (16.7 thousand tonnes of melange). In 2021, enterprises, organisations and institutions spent UAH 41.3 billion on environmental protection, compared to UAH 43.7 billion in 2020. Of the total environmental costs in 2021, 68% were current expenses and 32% were capital investments. The strategic directions of greening the defence industry enterprises have been identified, including the introduction of resource-saving technologies, environmental monitoring of environmental impact and reduction of the negative impact of the defence industry units. Conclusion. The realisation of the greening potential will help protect the country's natural resource potential under the influence of the defence industry. A system of measures should be developed to ensure the protection and restoration of natural systems at a certain cost. Given the importance of the defence industry for the country in the context of current external threats and armed conflicts in certain parts of the territory, it is necessary to develop a strategic vision of environmental security with the involvement of all relevant organisations and taking into account the degree of responsibility and motivation for eco-oriented management

Selecting a kind of financial innovation according to the level of a bank’s financial soundness and its life cycle stage

This paper presents the recommendations for selecting a kind of financial innovation in a bank based on the results of theoretical research regarding its usage as a tool for ensuring bank financial soundness. The study is aimed at developing an approach to selecting a kind of financial innovation depending on the level of bank financial soundness and the stage of bank life cycle. The existing method of identifying a bank’s life cycle stage in the framework of the developed approach was improved: it was offered to use the criteria of the growth rates of a bank’s market share, total income, staff costs and net cash flow for grouping banks by the stage of their life cycle and conduct two-steps clustering which helps to determine those banks which are on the transitional stages and to refer a bank to a similar group (growth, stabilization and decline). The empirical results of its implementation suggest that there are three groups of Ukrainian banks that vary according to the stage of bank life cycle (growth, stabilization, decline), excepting those institutions which are on the transitional stages. By the example of banks which represent the main characteristics of each cluster, the authors recommend to launch particular kinds of financial innovation in bank operating activity, taking into account the peculiarities of each group. The empirical results confirm the relevance of the developed approach and its value for identifying the current phase of a bank’s development and managing its financial soundness. Keywords: bank financial soundness, bank life cycle stage, cluster analysis, discriminant analysis, Ukraine. JEL Classification: G21, D9

Use of causal analysis to improve the monitoring of the banking system stability

According to the stages of the banking system stability monitoring, the analysis of caus¬al links is used to identify the causes of the crisis trends spreading and the rationale for the most effective levers of regulatory influence on the banking system parameters by the central bank.The research is based on the use of the canonical correlation method for structuring causal links between the indicators for the assessment of the banking system stability, which are grouped into four sub-indices (assessing the intensity of credit and financial interaction in the interbank market, the effectiveness of the banking system functions, structural changes and financial disproportions in the banking system, activities of systemically important banks); the method of regression analysis and the calculation of elasticity coefficients is also used to assess the sensitivity of the banking system stability to changes in parameters that characterize the banking regulation instruments.The article analyzes the results of quantitative and qualitative assessment of the banking system stability (comparison of actual results of the evaluation with the data for previous years and comparison of values of stability indicators with critical values). The causes of detected deviations are determined taking into account the results of applying the canonical correlations method. Regression models have been constructed to confirm the dependence of the banking system stability index on the change in parameters that characterize banking regulation instruments, and to determine the most effective of them. Practical testing of submitted proposals is realized based on the Ukrainian banking system indicators for 2007–2016

Analyzing the Resource and Investment-Innovative Factors of Development of Industry Structures

The article is aimed at solving the actual problem of studying the factors of internal and external environment of functioning of sectoral structures. The authors analyzed an aggregate of various indicators for assessing the factors of development of sectoral structures using methods of multivariate statistical analysis. The completeness of the theoretical description of objects and objectivity of conclusions during the study of the problem of factor analysis of functioning of the mechanism of management of sectoral structures has been achieved. The problem of analysis of resource and investment-innovation factors of development of sectoral structures using factor analysis is examined. It is proposed to quantify the efficiency of functioning of the mechanism of enterprise management to use indicators of assessment of resource and investment-innovation potentials, which should be considered as indicators of outputs of the production system, transformed and obtained as a result of the influence of the management mechanism. The analysis was carried out in two directions: resource and investment-innovation. A large number of indicators characterizing the state of the internal and external environment of enterprises were processed, and using the methods of factor analysis, they were replaced with a certain set of uncorrelated parameters, which allowed to reduce the dimension of the studied totality of data. The state of resource and investment-innovation potentials of enterprises was considered as a result of the influence of the management mechanism, taking into account industry affiliation, that is, separately for enterprises of mechanical engineering, light or food industries. As result of the analysis, the following general factors were formed for light industry enterprises: economic direction of capital use; efficiency of use of the labor and material resources; efficiency of use of the equity and borrowed capital; efficiency of use of the borrowed funds. For food industry enterprises, the following factors are formed: the economic direction of capital use; efficiency of the financial and production activities; the ability of the management mechanism to provide a stable amount of profit; efficiency of use of fixed assets. Within the terms of investment and innovation direction for mechanical engineering and light industry enterprises, the most important factor is that which can be interpreted as the efficiency of research activities, the less important factor – the direction of using own investments for innovation; of the smallest importance is the direction of using investment resources for the production of innovative products

Achieving Profitability of a Bank though Determining the Stages of Development of Innovative Loan Products

The aim of the article is to substantiate the approach to ensuring profitability of a bank by elaborating a strategy for enhancing its lending activity based on determining the stages of development of innovative loan products. The article presents the calculation of the indicators characterizing the intensification of lending and the lending policy, namely: share of loans to individuals in the loan portfolio, coefficient of lending activity, loan-to-deposit ratio and interest coverage ratio, for 73 banks of Ukraine as of 01.01.2020. Moreover, the dependence of a bank’s profitability on indicators of lending intensification is empirically confirmed though constructing a model using the principles of correlation and regression analysis. Innovations in the field of lending are systematized. It is determined that Ukrainian banks mainly sell such of them as deposit secured loans, overdrafts, revolving loan facilities, commercial real estate loans, express loans. To select strategies for intensifying bank lendingwith consideration for the stage of development of innovative loan products, it is proposed to apply the matrix technique. In view of this, the authors use a modified “life cycle balance matrix”. The types ofa bank’s lending strategies depending on its positioning in the matrix are identified through the correlation of the stages of development of loan products (entering the market, market development, stabilization, market decline) and levels of efficiency of its lending activity (low, medium, high). This will allow determining the period of decline in innovation in a timely manner and reorient towards products that have greater customer demand, which will ultimately help increase the bank’s profitability

Formation of the Project Team on Introduction of Financial Controlling into Banking Activity

The article identifies order and content of stages of formation of the project team of introduction of financial controlling into banking activity. It offers a procedure of identification of the qualitative team composition, which envisages selection of candidates with the use of rules of fuzzy logical conclusion for assessing three groups of competences: personal (initiative, communication ability, creative ability, purposefulness and responsibility); common managerial (ability to work in a team, ability to manage conflicts, ability to manage, strategic thinking ability, ability to plan team work and distribute rights and obligations and co-ordinate work); special managerial (ability to justify and make decisions under conditions of uncertainty and dynamism, analytical abilities, ability to master new directions and methods of work and use them, skills and ability to form justified recommendations, special knowledge – theoretical grounds and recommendations of modern science with respect to introduction of controlling)

The Analysis of the National Legal and Regulatory Grounds for the Institutional Autonomy of Higher Education Institutions

The article identifies and systematizes the existing legal obstacles to the autonomy of higher education institution and develops recommendations to overcome them. The approaches to establishing the legal status of institutions of higher education in the current legislation of Ukraine are characterized. The impact of the legal status of higher education institution on its legal personality and the institutional autonomy has been determined. Views of scholars together with foreign experience of property titles in the imposition of property on higher education institution, were analyzed. Directions for the development of legal regulation of the system of public law legal entities in Ukraine have been defined. In order to ensure the development of the model of public administration in the sphere of higher education, it has been proposed that most of the higher education institutions should change the legal status of public legal entity – budgetary institution to the status of private legal entity – profitable or non-profitable higher education institution of the public / communal form of ownership, for which the founder would regularize property on the right of ownership. This will eliminate the conservatism, strict regulation on the part of the State, that is linked to the status of publicity, and, in order to develop the autonomy of higher education institution, will allow to take advantage of dispositivity inherent in private law entities in determining their legal personality

International Experience in Reforming the System of Higher Education Governance in terms of Increasing the University Autonomy

The aim of the article is to summarize the international experience of reforming the system of higher education governance and develop directions that will contribute to increasing the effectiveness of the Ukrainian model for governance of higher education and ensuring its autonomy. There identified common elements and trends in European higher education reforms: greater autonomy for higher education institutions with less direct administrative intervention; greater emphasis on private rather than public funding; emphasis on the quality and effectiveness of education. The tools for implementing reforms in the European higher education system are identified: the New Public Management (NPM) model, governance through networks, and new forms of governance. The changes in the university autonomy of European countries for the period of 2010-2016 are summarized. The content of the reforms in terms of increasing the autonomy of HEIs in the countries of Asia is disclosed. Possible vectors for reforming the system of higher education governance in Ukraine are identified: introduction of a model for funding HEIs on the basis of combining a one-time full budgeting and financing by results; assigning universities ownership of their buildings and their sale in the market; strengthening the decentralization of government control of higher education; development of legislative bases for the self-sufficiency of HEIs; inclusion of external stakeholders in decision-making governing bodies of HEIs; maximum involvement of students in decision-making

Benchmarking of bank performance using the life cycle concept and the DEA approach

Despite the widespread use of benchmarking as an effective tool for improving the efficiency of the bank’s functioning, its implementation does not take into account the relation between comparable performance indicators, the choice of benchmark for comparison, deviations of indicators from target values with stages of the bank’s life cycle, which cause differences in the intensity and characteristics of development of financial institutions. The procedure for identifying a reference bank for comparison is also insufficiently specified, which is important in terms of adapting its experience by the recipient bank due to the possible fundamental differences in their functioning. Therefore, the article has modified the technology of benchmarking of the bank’s performance based on the life cycle concept and the DEA approach. The research is based on the use of the DEA method to determine the most efficient bank as a reference bank in benchmarking comparison; canonical analysis – for the formation of a list of indicators of bank performance; cluster analysis – to substantiate the levels of deviations of the actual values of comparable indicators from the target ones. The study envisages, firstly, the selection of indicators for benchmarking comparisons based on the identification of causal relationships between the indicators of subsystems “Finance”, “Customers”, “Business processes”, “Personnel development” that arise at each stage of a bank’s life cycle; secondly, the choice of a benchmark bank for comparison according to the maximum value of the performance indicator calculated through the DEA method for a set of banks that are at one and the same stage of their life cycle; thirdly, definition of the range of deviations (low, permissible, critical) of the actual values of comparable indicators of the effectiveness of management of finance, customer base, business processes and personnel of the bank from the target ones. A practical testing of the benchmarking technology was carried out on the example of Ukrainian banks, whose stage in 2016 was identified as “intense growth”