Problemi Ekonomiki (Dec 2020)
Integrating the Management of Competitive and Innovation-Investment Behavior of Agricultural Enterprises into the Sustainable Development Paradigm
Abstract
The article aims at identifying promising directions for managing the competitive, innovative and investment behavior of agricultural enterprises, immanent to the general trends in the global economy performance, based on the studies in the evolution of the sustainable development paradigm. The analysis is based on the hypothesis that mitigating the impact of global challenges in the agricultural sector, associated with industrialization processes, as well as ensuring the growth of production efficiency and competitive potential, requires the sustainable development paradigm to be implemented in the activities of agricultural enterprises, thus ensuring the harmonious development of the following interrelated components: the economic, social and environmental ones. Having assessed the degree of their balance, we have discovered insufficient development of the social component, which hinders the development of human capital. It has been proved that building up the social assets of agricultural enterprises and strengthening the competitive potential are closely related to changes in the social subsystem of management. Within its framework, the phenomenon of organizational culture is recognized as a significant factor of indirect impact. The courses of the transformation in the interaction processes between society and business within the framework of the sustainable development paradigm are revealed. The authors come to conclusion that it is necessary to update a company’s mission in accordance with the principles of social responsibility, which implies the involvement of social and environmental aspects in business activities on the basis of interaction among various stakeholders (influence groups). Compliance with the principles of social responsibility positively affects the competitiveness of agribusiness entities in the following areas: improving the image and reputation of brands; increasing sales and consumer loyalty to the company’s products; reducing staff turnover rates; establishing partnership relations with the authorities; facilitating access to the media; increasing investors’ interest.
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