Within the condition of agricultural markets globalization it is needed to define the priority branches of agriculture. This will allow native manufacturers to maximum adapt to competitive conditions of environment and to create global products. It is proved empirically that Ukraine is integrated into global world market and already at this very stage its offer as for global agricultural and production products is made of eight goods positions. It is proved that one of the global products the request for which is not satisfied in full at the world markets is the beekeeping products. From the position of holistic paradigm and under the context of agriculture multifunctional development concept, the presence of optimal set of competitive advantages distinctive for beekeeping products is proved; on the basis on this the category “polyfunctional competitiveness” was offered and was mathematically grounded

Yatsenko, Olga

Яценко, Ольга Миколаївна

Яценко, Ольга Николаевна

Institutional Repository of Vadym Hetman Kyiv National Economic University

METHODOLOGICAL INSTRUMENTS OF POLYFUNCTIONAL COMPETITIVENESS EVALUATION 
(ON THE EXAMPLE OF AGRICULTURE) 
 
Yatsenko Olga 
Dr., Assoc. Prof., Department of Agricultural Economics, 
Agrarian Management Faculty of Zhytomyr National Agroecological University. 
Stary Blvd., 7, Zhytomyr, Ukraine. 
Tel. +38(067)9529916 
E-mail: yacenko_olga@rambler.ru 
        yacenko_olga@ukr.net 
 
 
Annotation 
 
Within the condition of agricultural markets globalization it is needed to define the priority branches of 
agriculture. This will allow native manufacturers to maximum adapt to competitive conditions of environment and 
to create global products. It is proved empirically that Ukraine is integrated into global world market and already 
at this very stage its offer as for global agricultural and production products is made of eight goods positions. It is 
proved that one of the global products the request for which is not satisfied in full at the world markets is the 
beekeeping products. From the position of holistic paradigm and under the context of agriculture multifunctional 
development concept, the presence of optimal set of competitive advantages distinctive for beekeeping products is 
proved; on the basis on this the category “polyfunctional competitiveness” was offered and was mathematically 
grounded.  
 
Within the conditions of the agriculture and production markets globalization there is a need to define the list 
of strategic branches of agriculture and to fulfill the deep diagnostics of their state and corresponding segments of 
the market with the aim of maximum adaptation to competitive environmental conditions and creating global 
products. Author generalization of investigations in this field let to offer the definition which is adequate to modern 
studies and approaches. We offer to understanding of the global agricultural and production product as a maximum 
adapted to the consumers’ global needs unified and standardized product of agricultural origin at a defined market 
segment taking into account manufacturer’s country specifics. We fully share O. Shvydanenko’s thought who 
indicates that the status of country and other functional subjects on a global market depends on their 
competitiveness which is characterized by the shares in global request and global offer (Швиданенко О.А., 2007).  
Ukraine is integrated into global world market and at this very stage its offer as for global agricultural and 
production products consists of eight goods items, however the raw material origin ones are prevailing according to 
statistics FAOSTAT data (FAOSTAT, 2009). Such products are sunflower, honey, barley, potato, beetroot, eggs, 
wheat and soybean. 
Within the context of agricultural and production markets globalization and the need of manufacturing global 
agricultural and production products real as well as potential branches of agriculture deserve special attention, 
beekeeping is one of such branches. Ukraine is in the four biggest honey manufacturers under the volume of gross 
manufacturing and level of the product consuming. During the last decade the product has been marked by the 
world highest rewards for quality and taste characteristics. World niches at the corresponding segment of 
agricultural and production market are not occupied, at the same time the world request for corresponding products 
keeps on growing. Beekeeping branch is able to indirectly provide domestic food security, to assist development of 
the adjacent branches of agriculture and keeping the national agricultural ecological systems, to positively 
influence the nation health state, to assist overcoming village poverty, to provide corresponding incomes to state 
and local budgets by developing agricultural business and payment of corresponding taxes, to have at sufficient 
extent the export potential, to be requested at international markets and assist developing the agricultural business 
at the branch and agricultural sector in total. From the position of holistic paradigm and under the context of 
agriculture multifunctional development concept the logics is in the conclusion that the beekeeping branch product 
has optimal set of competitive advantages, i.e. we can talk about its polyfunctional competitiveness. We offer to 
include into scientific circulation the noted category as it does not contradict the theory of agriculture multifunction 
and is not limited by only society welfares, its multi aspect and multi versatility is displayed in economical and 
social and ecological and resource contexts. The need of supplement the categorical apparatus is conditioned by 
regularity of the method of operating the notions and reflecting the noted characteristics in branch and product 
aspects with the aim to define this phenomenon in agrarian aspect. On the basis of method of terminological 
analysis and method of operating the notions it is offered to understand the concentrated expression of 
organization-and-economical, institutional-and-economical, institutional-and-management, social-and-professional, 
natural-and-ecological reserves and abilities of specific agricultural product which are implemented in  subjects of 
ownership commodity relations at agricultural and production market upon this implementing the positive effect for 
environment and development of rural territories as a polyfunctional competitiveness. Using other words this is a 
set of characteristics which are on one hand are independent on each other but on the other hand its presence and 
set create positive synergic four-in-one effect in social-and-politic as well as ecological-and-economical 
dimensions.   
The main methodological tasks of solving the issue of increasing the competitiveness of objects and subjects 
including polyfunctional are the following:  
1) Definition of the competitive advantages from positions of sector approach, determination of peculiarities 
of their forming and implementation; 
2) Definition of the criteria of polyfunctional competitiveness and creating measurement indexes system; 
3) Development of method instruments of evaluation the polyfunctional competitiveness; 
4) Development of methods of creating the algorithms for increasing the competitiveness; 
5) Back grounding the strategic and tactical direction of implementing the competitive advantages. 
Polyfunctional competitiveness is provided by the defined quantity of components which are in their turn are 
characterized by the set of competitive advantages of primary and secondary origin. Primary competitive 
advantages are provided for the sake of objective factors such as natural potential, geographic location of the 
country manufacturer and its climatic zone, aboriginal layers and kinds of fauna and flora, etc. The secondary 
competitive advantages are created  by the subjective factors such as personnel qualification, competence and 
skills, technical and technological equipment and level of informing the production processes, level of using the 
NDDCR and innovation of product/service, energy and resource capacity of production process, infrastructure 
supply, organizational form of management, using the marketing instruments, etc. (table 1).    
Each criteria item of reserves and abilities, organizational-and-economical, institutional-and-management, 
social-and-professional, natural-and-ecological consists of a set of independent variable components. Competitive 
goods items are described by the whole set of indexes. The index of polyfunctional competitiveness can be 
presented as a function of four variables, each of which is the index of competitiveness at a certain indication. The 
polyfunctional competitiveness can be mathematically presented as: 
 
𝑃𝐶 = 𝑓 (𝐾𝐸 , 𝐾𝐼 , 𝐾𝑆, 𝐾𝑁), 
where 
PC – Index of polyfunctional competitiveness (the polyfunctional competitiveness); 
E – The organizational and economic reserves and capacities; 
КЕ Index of competitiveness at the indication of this criterion (organizational-and-
economical reserves and capacities) 
I – Institutional-and-management reserves and capacities; 
КІ Index of competitiveness at the indication of this criterion (institutional-and-
management reserves and capacities) 
S – Social-and-professional reserves and capacities; 
КS Index of competitiveness at the indication of this criterion (social-and-professional 
reserves and capacities) 
N – Natural-and-environmental reserves and capacities; 
КN Index of competitiveness at the indication of this criterion (natural-and-ecological 
reserves and capacities)  
Table 1 
 
Sources of creation the advantages as a basis for polyfunctional competitiveness 
 
Criteria  
Advantage 
genesis (indexes 
system) 
Advantage factor essence 
 
R
es
er
ve
s a
nd
 c
ap
ac
iti
es
 
O
rg
an
iz
at
io
na
l-a
nd
-e
co
no
m
ic
al
 
Low expenses / 
price 
Setting up lower prices and receiving higher profits by manufacturers; 
expenses economy by consumers  
Goods 
differentiation  Uniqueness of the goods which provides its highest consuming value 
Production 
capitalization 
More productive in comparison with competitive conversion of profit into 
added capital, access to financial capital 
Effective 
managements 
Competence, effectiveness in managing and running; advantages of 
organizational form of farming; flexibility of production upon the change in 
environmental conditions; commercial art 
Speed of reaction Immediate and rapid reaction to market needs (time factor) 
Imitation 
possibility 
Imitation reserve as for strategy of creating competitive advantages, methods 
of competitiveness and production of goods analogues or substitutes.  
Market share Attaching the buyer or monopolization the marker share, economy at the production scale 
Technological 
advantages 
Ability to innovations in production processes; ability to innovation in 
products (apitherapy); level of technological equipment quality; high refunding 
Modern 
informational 
systems 
Possibility to control the production processes; competence in business 
management; possibility to react in-time for market conditions which are 
constantly transforming 
Marketing 
concept 
Powerful network of realization channels, distributors/dealers; own trading 
network; quality service; peculiarities of sales methods; complete satisfaction 
of the purchase request; enough range of width and depth of product 
assortment; attractive design and packing.  
In
st
itu
tio
na
l-a
nd
-
m
an
ag
em
en
t 
State support 
Political will; optimal combination of market and state regulation; grant and 
subvention system; business parity collaboration and co-operation of business 
and state institutions; social advertisement. 
Image and 
reputation 
Positive and favorable country of origin image and reputation; manufacturer’s; 
goods’. 
So
ci
al
-a
nd
-
pr
of
es
sio
na
l 
Workers’ 
qualification 
Competence and adequateness in all spheres of manufacturing, processing, 
promoting and realization, including the scientific researches; high labor 
productivity (especially at requiring the expenditure of much labor 
productions), effect of experience accumulation.  
Consuming 
culture Forming the request according to traditional culture and consuming norms 
N
at
ur
al
-a
nd
-e
co
lo
gi
ca
l Goods quality 
and safety  
Products certification; quality and safety control at all stages of manufacturing, 
storing, transporting and products sales. 
Geographical 
origin Natural-and climatic conditions and territorial peculiarities of product origin. 
Environmental 
protection 
measures 
Positioning by the subject of business the environment protection 
arrangements via manufacturing of own products. 
Resource 
background Accessibility of resources and possibility of their combination. 
Source: own research 
 
 
 
Main features of each criterion (𝐸, 𝐼, 𝑆, 𝑁) are described in table 1. Each index of competitiveness 𝐾𝐸 , 𝐾𝐼 , 𝐾𝑆,
𝐾𝑁 is a function from the feature of its criterion, i.e. 
 
𝐾𝐸 = 𝑓𝐸  (𝑓𝐸1,  𝑓𝐸2,  𝑓𝐸3, … , 𝑓𝐸𝑛 ),       𝑓𝐸𝑖 (𝑖 = 1,𝑛�����), 
where 
𝑓𝐸
𝑖 (𝑖 = 1,𝑛�����) Components of criteria feature E; 
n –  Quantity of components of criteria feature. 
The research differentiates: 
𝑓𝐸
1 Price 
𝑓𝐸
2 Differentiation of goods 
𝑓𝐸
3 Productive capitalization 
𝑓𝐸
4 Effective management 
𝑓𝐸
5 Speed of reaction 
𝑓𝐸
6 Imitation possibility 
𝑓𝐸
7 Market share 
𝑓𝐸
8 Technological advantages 
𝑓𝐸
9 Informational systems 
𝑓𝐸
10 Marketing concept 
 
The research of competitiveness under above mentioned advantages is not obligatory grounded by all ten 
components. With the aim of definition the competitiveness under the noted indexes it is convenient to present the 
changes of competitiveness in a form of differential: 
 
𝐾𝐸
′ =  ��𝑑𝐾𝐸
𝑑𝑓𝐸
1 𝑑𝑓𝐸
1 + 𝑑𝐾𝐸
𝑑𝑓𝐸
2 𝑑𝑓𝐸
2 + 𝑑𝐾𝐸
𝑑𝑓𝐸
3 𝑑𝑓𝐸
3 + … + 𝑑𝐾𝐸
𝑑𝑓𝐸
10 𝑑𝑓𝐸
10�
𝑛
𝑖=1
. 
Or shorter: 
𝐾𝐸
′ = �𝐾𝐸1 +𝑛
𝑖=1
 𝐾𝐸2 + ⋯+ 𝐾𝐸𝑛, 
 
where 𝐾𝐸𝑖   – competitiveness of the product dependent on 𝑓𝐸𝑖 (𝑖 = 1,𝑛�����). 
 
The components of the competitiveness calculation are defined by known methods or, for example by presenting 
the integral index of competitiveness (Стратегическое управление, 2001).  
The functions are put down by analogue method: 
 
𝐾𝐼 = 𝑓𝐼 (𝑓𝐼1,  𝑓𝐼2), 
where 
𝑓𝐼
1 − State support 
𝑓𝐼
2  − Image and reputation 
𝐾𝐼
′ =  𝑑𝐾𝐼
𝑑𝑓𝐼
1 𝑑𝑓𝐼
1 + 𝑑𝐾𝐼
𝑑𝑓𝐼
2 𝑑𝑓𝐼
2, 
or     𝐾𝐼′ = 𝐾𝐼1 + 𝐾𝐼2, 
 
where 𝐾𝐼і  – product competitiveness which is dependent on 𝑓𝐼𝑖(𝑖 = 1,2). 
Further,  
𝐾𝑆 = 𝑓𝑆 (𝑓𝑆1,  𝑓𝑆2), 
where 
𝑓𝑆
1 − Personnel qualification 
𝑓𝑆
2 − Consuming culture 
𝐾𝑆
′ =  𝑑𝐾𝑆
𝑑𝑓𝑆
1 𝑑𝑓𝑆
1 + 𝑑𝐾𝑆
𝑑𝑓𝑆
2 𝑑𝑓𝑆
2, 
or     𝐾𝑆′ = 𝐾𝑆1 + 𝐾𝑆2, 
 
 
The next component of criteria feature, natural-and-ecological reserves and capacities is defined by analogue 
method: 
𝐾𝑁 = 𝑓𝑁 (𝑓𝑁1,  𝑓𝑁2,  𝑓𝑁,3  𝑓𝑁4 ), 
where 
𝑓𝐸
1 Product quality and safety 
𝑓𝐸
2 Geographical origin 
𝑓𝐸
3 Environmental protection measures 
𝑓𝐸
4 Resource supply 
𝐾𝑁𝐼
′ =  𝑑𝐾𝑁
𝑑𝑓𝑁
1 𝑑𝑓𝑁
1 + 𝑑𝐾𝑁
𝑑𝑓𝑁
2 𝑑𝑓𝑁
2 + 𝑑𝐾𝑁
𝑑𝑓𝑁
3 𝑑𝑓𝑁
3 + 𝑑𝐾𝑁
𝑑𝑓𝑁
4 𝑑𝑓𝑁
4, 
or   𝐾𝑁′ = 𝐾𝑁1 + 𝐾𝑁2 + 𝐾𝑁3 + 𝐾𝑁4, 
 
where 𝐾𝑁і   – product competitiveness which is dependent   
on 𝑓𝑁𝑖 (𝑖 = 1, 2, 3, 4). 
 
The research of polyfunctional competitiveness is fulfilled in four directions. At each stage by analyzing the 
competitiveness for example by N factors, others are taken as unchanged. It is complicated to write the model of 
polyfunctional competitiveness which counts all criteria features; it all depends on the exact features the research is being 
done with. I.e. for example if the index of competitiveness is presented in the view of function: 
 
𝑃𝐶 = 𝑓 (𝑄, 𝑃, 𝑀, 𝑆 ), 
where  
 – Index of product quality for a certain period of time t, P – Product price for a certain period of time t, M – Index which characterizes the effectiveness of marketing strategy in relation to goods promotion; 
 – Cost of the service maintenance of manufacturing equipment.  
 
Model of competitiveness dimension definition will be of the following view (Гайнанов Д.А., Гузаирова Г.Р., 
2010).  
𝑃𝐶 = �𝛽1𝑖 𝑄𝑖22𝑛
𝑖=1
−�𝛽2𝑖 ln𝑃𝑖 +𝑛
𝑖=1
�𝛽3𝑖
𝑀𝑖
22𝑛
𝑖=1
−�𝛽4𝑖 ln 𝑆𝑖𝑛
𝑖=1
 
 
So, the model of polyfunctional competitiveness can be presented as a complex function: 
𝑃𝐶 = 𝑓 (𝐾𝐸 , 𝐾𝐼 , 𝐾𝑆, 𝐾𝑁), 
Or   𝑃𝐶 = 𝐾𝐸 , 𝐾𝐼 , 𝐾𝑆, 𝐾𝑁. 
 
Thus the methodical instrument of polyfunctional competitiveness evaluation can be presented as a compound 
function from four variable criteria reserves and capacities, organization-and-economical, institutional-and-
management, social-and-professional, natural-and-ecological each of which consists of set of independent 
components which can be researched together as well as separately. The increase of competitiveness is possible 
under condition of forming and realization of more competitive advantages and primary and secondary origin.  
 
Literature 
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прогресивних глобалізаційних тенденцій// Формування ринкових відносин в Україні: Зб. наук. пр., 
Вип. 3 (70). – К.: НДЕІ, 2007. – С. 43-51.  
2. Статистичні дані FAOSTAT, 2009. [Електронний ресурс]. – Режим доступу до докум.: 
http://faostat.fao.org/site/339/default.aspx. 
3. Стратегическое управление организационно-економической устойчивостью фирмы: Логистико-
ориентированое проектирование бизнеса / А. Д. Канчавели [и др.]; под. ред. Колобова, 
И. Н. Омельченко. – М.: МГТУ им. Н. Э. Баумана, 2001. – 600. 
4. Гайнанов Д.А., Гузаирова Г.Р. Экономико-математическая модель оценки конкурентоспособности 
предприятия / Д.А. Гайнанов, Г.Р. Гузаирова // Экономика и управление народным хозяйством. 
Весник УГТУ: Уфа – Т. 14, 2010, № 5 (40), с. 243-246. 


Methodological instruments of polyfunctional competitiveness evaluation (on the example of agriculture)

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Methodological instruments of polyfunctional competitiveness evaluation (on the example of agriculture)

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