The Compensation Mechanism as an Instrument for Harmonizing Interests in the «Region – Enterprise» Relationships for the Sustainable Development of Region

Abstract

The publication is concerned with the issues of correspondence between the interests of enterprises and the regional government entities, as well as the search for compromises arising on the distribution of resources and empowerments in the «region – enterprise» relationships. The article is aimed at defining the appropriate types of compensation mechanisms that can act as a result of the search for compromise and an instrument for harmonizing interests in the «region – enterprise» relationships in favor of a sustainable development of region. The factors, influencing the readiness and willingness of the entities of regional development to compromise, are presented, and it is defined that the search for compromise plays a role in solving the problem of organizational imbalance. To address this problem, an analysis of possible correspondence of resources of performers (enterprise or region) and their empowerments is carried out, the results of which allow to determination of the equilibrium/dominance options between enterprises and region in the implementation of projects. Depending on the status of the equilibrium/dominance, the type of project distribution and the type of compensatory mechanism needed to address the problem of project redistribution depending on the status of the equilibrium/dominance is defined. Upon this basis, it can be argued that the elaboration of a technology of finding a sustainable equilibrium status between enterprise and the parties interested in a sustainable development of region takes further steps.

Keywords

• compensation mechanism
• harmonization of interests
• «region – enterprise» relationships
• sustainable development
• balance
• dominance