INSTITUTIONAL PRINCIPLES OF EFFECTIVE BUSINESS STRATEGY FORMATION

Abstract

The article investigates economic mentality as an informal institution that affects the motives and behaviors of employees, determines their level of economic activity, allows to create different management approaches, styles of management, helps to develop the organizational structure of the enterprise; economic mentality determines the processes of socialization of the economy, it promotes economic integration, the formation of its competitive potential, determines the level of economic freedom. Modern development economics is characterized by increased attention to the psychological determinants of economic behavior. Representatives of institutionalism and neoinstitutionalism explore the motivation of human behavior with regard to the role of the prevailing social norms and rules of behavior - economic mentality. Economic mentality has certain properties that are characteristic of any social institution, such as historicity, structuring and functionality. Economic mentality is not only dependent on other institutions, but can also produce new institutions because its media is constantly creating new rules regulating economic relations that correspond to the realities of modern economy. A prospect for future research of economic mentality is an integrated approach to the analysis of its main components, promoting its development and use of mental characteristics of society to address the priorities of social and economic policy, because it but can also produce new institutions creating new rules regulating economic relations that correspond to the realities of modern economy.

Keywords

• economic behavior
• institutional environment
• socio-economic development
• business strategy
• entrepreneurial culture