Academic journal article Academy of Strategic Management Journal

Justification of Business Entities Development Based on Innovative Principles

Academic journal article Academy of Strategic Management Journal

Justification of Business Entities Development Based on Innovative Principles

Article excerpt

(ProQuest: ... denotes formulae omitted.)


Today the development of port economy of the country is complicated by several factors, including: competition from foreign ports that constantly reinforced in recent years, globalization of the economy that deepens the world specialization, requirements for reducing transport costs for transportation and improving the environmental safety.

The port should be able to develop during the cargo flows growth, master the cargo handling with minimal time and finances compared to its competitors to operate effectively. Competition in ports sufficiently dynamic has a large number of participants, that acting independently or as part of large transnational transport corporations and respectively has more opportunities for development.

Improving the quality of services in such circumstances is a key tool for obtaining victory in the competition. The creation of additional competitive advantages is possible only by using the innovation activity in its technology. Providing and development of innovative potential of the port is the main strategic task. Its successful solution is important not only for enterprise but also for increasing of economic growth. So, today the activity of sea commercial ports must meet the criteria of innovation development that brings global business environment. Without this it is impossible to carry out integration into the world transport system with the preservation and expansion of own impact on the developed foreign countries.


Effective use of innovation potential requires constant search for ways to improve and strengthen it. Leading researchers (Freeman, 1982; Rothwell & Gardiner, 1985; Drucker, 2009; Schumpeter, 2008) offer a number of ways to improve the innovation potential: the development of new technology and technologies; introduction of the most progressive technologies of storage of raw materials and resources; development of progressive forms of organization of production; technical restructuring of enterprises; continuous improvement of the level of qualification of personnel of all categories according to the modern level and directions of knowledge; optimization of the personnel structure of the personnel. So Chukhrai & Lisovska (2016) argue that the innovation potential forms two main elements: the material resources of innovation activity and intellectual potential. Chukhno (2015) highlights the innovation potential of material resources and intellectual potential. Other researchers in their researches focus on the peculiarities of the technological potential of companies (Tetiana et al., 2018a: 2018b). Many researches are devoted to the strategic resource of the enterprise-the staff as a component of the innovation potential (Nakashydze & Gil'orme, 2015). But, in our opinion, these definitions do not fully reflect the factors that influence the formation and use of these components, which requires clarification of the definition of the structure of innovation potential.


The main purpose of the article is the research and justification of the link between the entities competitive development on the example of seaports and their existing innovation potential.

The expert analysis and statistical simulation have been used in the research. Separation of the factors of the company's innovation potential was carried out on the basis of expert analysis. The elements of the Ishikawa concept in constructing Fishburne have been used while calculations. The formation of an expert group was carried out on the basis of a competent approach, taking into account the rank of positions this allows forming a group that, in accordance with official duties, has the opportunity to build a system for assessing innovation potential in accordance with the objectives of the enterprises. The method of assessment of the competence of experts is the mutual evaluation of competence based on the method of pair-wise comparison. …

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