Building a business model of enterprise’s innovative development based on economic security as an element of urban management

Abstract

BACKGROUND AND OBJECTIVES: Social and economic processes, which create a combination of capital and intelligence, influence the development of the urbanization process. Urban areas develop together with economic growth. The main factor influencing the growth of the economy is the increase in production, which should be based on quality management through the implementation of a business model for the innovative development of the enterprise in the context of economic security. Thus, the purpose of the research is to define and characterize the components of the business model of an enterprise’s innovative development based on economic security and to describe the main practical aspects of its implementation.METHODS: Using general scientific and special research methods, the theoretical and categorical content was analyzed and specified, namely, the essence of urbanization, innovative activity, innovative development, and business models of the enterprise’s innovative development were revealed. The main principles contributing to the effective operation of innovative enterprises were defined.FINDINGS: It was substantiated that strategic business development provided a business model in which all business processes were identified and analyzed, and development was optimized considering correlations. The main features of the business reflected in the business model were specified. Considering that during the implementation of the innovative development strategy, the business model is aimed at managing the chain of innovative value creation, the basic background for the implementation of the business model was determined. To form a model of innovative development in the context of economic security, the aspects of adaptability of innovative development were investigated. The business model of the enterprise’s innovative development in the context of economic security was formed, and its components and their significance were determined. The main practical aspects for implementing the business model of the enterprise’s innovative development were highlighted. It was noted that in the conditions of a dynamic market environment, full of dangers and threats, 40% of the success of further implementation should be based on taking into account well-known theoretical and methodological aspects, and 60% should be the ingenuity of the personnel of the enterprise on which the business model is being formed.CONCLUSION: The business model ensures the transformation of innovative technologies into economic benefits for the company. The practical application of the proposed business model with selected components would contribute to the increase of the enterprise’s innovative potential and its development during current activity and in the future.

Keywords

• business model
• economic security
• enterprise
• innovative development
• urbanization