The Strategic Management in Terms of an Enterprise’s Technological Development

Abstract

The objective of this research was to focus on a new approach to consequence assessment of a company’s technological development. In view of the impact of a company’s technical and technological development regime on the efficiency of its operation, we used the method of assessing the core business along with pairwise comparisons to assess the basic business potential of a single company and related groups. Our proposed method for evaluating the business core was based on the technique of pairwise comparisons using the work of T. Saaty along with Fishburn’s method. We analyzed the hierarchical structure of the chosen enterprises using the following metrics: products, consumers, intangible assets, distribution channels and capital. In order to identify the technological basis of the enterprise’s competitive advantages, we first initiated a decomposition of the enterprise’s technological structure: business core, periphery and prospects. We used data obtained from the machine-tool sector of Ukraine, a country which demonstrates how a lack of effective technological development along with inadequate tools for the development and implementation of technological strategies can lead to significant destructive effects on national competitiveness. In particular, we pointed to a decrease in rates of return and profitability of production. In conclusion, we argue that a passive management policy of an enterprise with regard to its technological development can lead to catastrophic consequences for competitiveness in terms of innovation and development.

Keywords

• management
• technological development; competitiveness
• business core concept; technological development strategy
• strategic management model of enterprise’s technological development