Organizational and economic mechanism of a business security as a guarantee of its sustainable development
DOI:
https://doi.org/10.34021/ve.2019.02.04(4)Keywords:
economic security, enterprise, efficiency, business security, development, management, organizational and economic mechanismAbstract
In the process of the writing of this article, it was established that the organizational and economic mechanism of a business security ensuring involves the use of various techniques, methods, and tools. Their combination is necessary to ensure a reliable security system and stable sustainable development of a business activity as a whole. It has been established that enterprises of different sizes, types, volumes of activity possess unequal organizational and financial capabilities. In addition, various is the level of risk under which business entities are engaged. However, the conclusion is definite that the implementation of the organizational and economic mechanism for the enterprise security ensuring is vital in financial and economic aspects and can be organized in different business areas in different ways. It is proved that the security mechanism action from the point of view of financial and economic aspect implies enterprise adaptation to innovations under the following conditions: the innovations are to be maximally ready for implementation; the motivation to implement them is the need to protect the enterprise interests; the probability of obtaining a positive result in the implementation of innovations should be high. It has been established that significant factors in the process of increasing the level of a business security are the financial and economic measures, which aim to cover losses and to eliminate the causes of their occurrence, to recover (preserve) the liquidity and solvency, to reduce the amount of debt, to improve the working capital structure, etc. It is proved that further research in the field of planning and implementation of tactical measures for ensuring the financial and economic security of business is needed. It is aimed at the assessment and analysis of the level of a business security and its dynamics, which will allow to determine the effectiveness of the implemented measures; an assessment of the efficiency of utilization of the enterprise financial potential, which is the main basis for the implementation of measures to ensure the organizational and economic mechanism of a business security. Since the implementation of organizational and economic tools into the security field often requires the allocation of significant financial resources and opportunities (financial potential), the substantiation of scientific recommendations for assessing cost-effectiveness become significant. It was found that the organizational and economic mechanism of a business security ensuring would effectively use corporate resources, create preconditions for achieving business targets, timely identify and optimize all possible hazards, threats, and risks of the enterprise activity in the conditions of acute competition and changing environment. It is recommended to propose the following measures to enhance business security: development and implementation of security system (structure) in business processes of the enterprise activity; improvement and optimization of the existing enterprise security service; business security outsourcing services; services of the enterprise personnel security; provision of services to provide economic and internal security of the enterprise; providing necessary data and information for the business functioning security insurances; checking (auditing) of existing security services of enterprises for their effective work and reliability; services for the enterprise security employees training (advanced training); personnel selection of professionally trained staff for the enterprise security service.
Downloads
References
Allen, W.A., & Wood, G. (2006). Defining and achieving financial stability. Journal of Financial Stability, 2(2), 152-172. https://doi.org/10.1016/j.jfs.2005.10.001
Andrushkiv, B.M., & Maliuta, L.Ya. (2016). Ekonomichna ta mainova bezpeka biznesu: navchalnyi posibnyk [Economic and property security of business: a textbook]. Ternopil: FOP Palianytsia V.A. [in Ukrainian].
Bertay, A.C., Gong, D., Wagner, W. (2017). Securitization and economic activity: The credit composition channel. Journal of Financial Stability, 28, 225-239. https://doi.org/10.1016/j.jfs.2016.01.010
Bilomistna, І. І., Bilomistniy, O. M., Kramska, M. (2014). The system to ensure the financial security of businesses. Financial and Credit Activity: Problems of Theory and Practice, 2(17), 106-114. https://doi.org/10.18371/fcaptp.v2i17.37326
Boiko, V., Kwilinski, A., Misiuk, M., & Boiko, L. (2019). Competitive advantages of wholesale markets of agricultural products as a type of entrepreneurial activity: the experience of Ukraine and Poland. Economic Annals-XXI, 175(1-2), 68-72. https://doi.org/10.21003/ea.V175-12
Bondarenko, O. O. (2014). Finansovo-ekonomichna bezpeka pidpryiemstva: teoretychnyi ta praktychnyi aspekty [Financial and economic security of the enterprise: theoretical and practical aspects]. Efektyvna ekonomika - Efficient economy, 10. Retrieved from http://www.economy.nayka.com.ua/?op=1&z=3580 [in Ukrainian].
Buse, D.P., & Wu, Q.H. (2007). IP Network-based Multi-agent Systems for Industrial Automation. Information Management, Condition Monitoring and Control of Power Systems. London: Springer. https://doi.org/10.1007/978-1-84628-647-6
Chen, Y.-L., Chuang, Y.-W., Huang, H.-G., & Shih, J.-Y. (2019). The value of implementing enterprise risk management: Evidence from Taiwan’s financial industry. The North American Journal of Economics and Finance, 100926. https://doi.org/10.1016/j.najef.2019.02.004
Collins, S., & Gallagher, E. (2016). Assessing the credit risk of money market funds during the eurozone crisis. Journal of Financial Stability, 25, 150-165. https://doi.org/10.1016/j.jfs.2015.12.001
Cyert, R. M., & March, J.G. (1992). A Behavioral Theory of the Firm, 2nd Edition. Oxford: Blackwell.
Demirgüç-Kunt, A., Horváth, B.L., & Huizinga, H. (2017). How does long-term finance affect economic volatility? Journal of Financial Stability, 33, 41-59. https://doi.org/10.1016/j.jfs.2017.10.005
Drucker, P.F. (1986). Management: Tasks, Responsibilities, Practices. New York: Truman Talley Books.
Dzhafarova, M. V., Shevchuk, T. A., Kalinovskaya, M.V., & Stashchak, A.Yu. (2019). Ekonomichna bezpeka ukrainy: ekonomiko-pravovyi aspekt [Economic security of Ukraine: economic and legal aspect]. Financial and Credit Activity: Problems of Theory and Practice, 3(30), 78-84. https://doi.org/10.18371/fcaptp.v3i30.179511 [in Ukrainian].
Dźwigoł, H., & Wolniak, R. (2018). Controlling w procesie zarządzania chemicznym przedsiębiorstwem produkcyjnym [Controlling in the management process of a chemical industry production company]. Przemysl Chemiczny, 97(7), 1114-1116. https://doi.org/10.15199/62.2018.7.15 [in Polish].
Dzwigol, H., Aleinikova, O., Umanska, Y., Shmygol, N., & Pushak, Y. (2019a). An Entrepreneurship Model for Assessing the Investment Attractiveness of Regions. Journal of Entrepreneurship Education, 22, (SI1), 1-7. Retrieved from https://www.abacademies.org/articles/An-entrepreneurship-model-for-assessing-the-investment-1528-2651-22-S1-339.pdf
Dzwigoł, H., Dzwigoł–Barosz, M., Zhyvko, Z., Miskiewicz, R., & Pushak, H. (2019b). Evaluation of the energy security as a component of national security of the country. Journal of Security and Sustainability Issues, 8(3), 307-317. http://doi.org/10.9770/jssi.2019.8.3(2)
Dźwigoł, H., Shcherbak, S., Semikina, M., Vinichenko, O., & Vasiuta, V. (2019c). Formation of Strategic Change Management System at an Enterprise. Academy of Strategic Management Journal, 18(SI1), 1-8. Retrieved from https://www.abacademies.org/articles/Formation-of-strategic-change-management-system-at-enterprise-1939-6104-18-SI-1-454.pdf
Gorton, G., He, P., & Huang, L. (2010). Security Price Informativeness with Delegated Traders. American Economic Journal: Microeconomics, 2(4), 137-70. https://doi.org/10.1257/mic.2.4.137
Green, M.R., Trieschmann, J.S., & Gustavson, S.G. (1991). Risk & Insurance, 8th Edition. Cincinnati: South-Western Pub.
Hammoudeh, S., & McAleer, M. (2013). Risk management and financial derivatives: An overview. The North American Journal of Economics and Finance, 25, 109-115. https://doi.org/10.1016/j.najef.2012.06.014
Hayes-Roth, B. (1991). An integrated architecture for intelligence agents. ACM SIGART Bulletin, 2(4), 79-81. https://doi.org/10.1145/122344.122359
Hlynska, A. (2016). Sutnist kreatyvnoho potentsialu orhanizatsii v konteksti zabezpechennia yii ekonomichnoi bezpeky [The essence of creative potential of organization in the context of providing its economic security]. Financial and Credit Activity: Problems of Theory and Practice, 1(20), 51-59. https://doi.org/10.18371/fcaptp.v1i20.73176 [in Ukrainian].
Huang, Y.S., & Wang, Y. (2013). Asset price, risk transfer and economic activities: Firm-level evidence from China. The North American Journal of Economics and Finance, 26, 663-676. https://doi.org/10.1016/j.najef.2012.10.008
Iershova, N.Yu., & Tkachenko, M.O., Garkusha, V.O., Miroshnyk, O.Yu., & Novak-Kalyayeva, L.M. (2019). Ekonomichna bezpeka pidpryiemstva: naukovo-praktychni aspekty oblikovo-analitychnoho zabezpechennia [Economic security of the enterprise: scientific and practical aspects of accounting and analytical support]. Financial and Credit Activity: Problems of Theory and Practice, 2(29), 142-149. https://doi.org/10.18371/fcaptp.v2i29.172365 [in Ukranian].
Johnson, G., & Scholes, K. (1993). Exploring corporate strategy. New York: Prentice Hall.
Kadan, O., Liu, F., & Liu, S. (2016). Generalized Systematic Risk. American Economic Journal: Microeconomics, 8(2), 86-127. https://doi.org/10.1257/mic.20140244
Korchevska, L., & Kokoreva, O. V. (2016). Teoretychni aspekty synerhetychnoho upravlinnia ekonomichnoiu bezpekoiu pidpryiemstva [Theoretical aspects of synergetic management of economic security of enterprise]. Financial and Credit Activity: Problems of Theory and Practice, 1(20), 60-70. https://doi.org/10.18371/fcaptp.v1i20.73179 [in Ukrainian].
Krainer, R.E. (2017). Economic stability under alternative banking systems: Theory and policy. Journal of Financial Stability, 31, 107-118. https://doi.org/10.1016/j.jfs.2017.05.005
Кwilinski, A. (2019). Implementation of Blockchain Technology in Accounting Sphere. Academy of Accounting and Financial Studies Journal, 23(SI2), 1528-2635-23-SI-2-412: 1-6. Retrieved from https://www.abacademies.org/articles/Implementation-of-Blockchain-Technology-in-Accounting-Sphere-1528-2635-23-SI-2-412.pdf
Kwilinski, A., Dalevska, N., Kravchenko, S., Hroznyi, I., Kovalenko, I. (2019a). Formation of the entrepreneurship model of e-business in the context of the introduction of information and communication technologies. Journal of Entrepreneurship Education, 22(SI1), 1528-2651-22-S1-337: 1-7. Retrieved from https://www.abacademies.org/articles/Formation-of-the-entrepreneurship-model-of-e-business-1528-2651-22-S1-337.pdf
Kwilinski, A., Ruzhytskyi, I., Patlachuk, V., Patlachuk, O., & Kaminska, B. (2019b). Environmental Taxes as a Condition of Business Responsibility in the Conditions of Sustainable Development. Journal of Legal, Ethical and Regulatory Issues, 22(SI2) 1544-0044-22-SI-2-354: 1-6. Retrieved from https://www.abacademies.org/articles/Environmental-taxes-as-a-condition-of-business-responsibility-in-the-conditions-of-sustainable-development-1544-0044-22-SI-2-354.pdf
Kwilinski, A., Volynets, R., Berdnik, I., Holovko, M., & Berzin, P. (2019c). E-Commerce: Concept and Legal Regulation in Modern Economic Conditions. Journal of Legal, Ethical and Regulatory Issues, 22(SI2), 1544-0044-22-SI-2-357: 1-6. Retrieved from https://www.abacademies.org/articles/E-Commerce-concept-and-legal-regulation-in-modern-economic-conditions-1544-0044-22-SI-2-357.pdf
Lien, D. (2017). Business Finance and Enterprise Management in the Era of Big Data: An introduction. The North American Journal of Economics and Finance, 39, 143-144. https://doi.org/10.1016/j.najef.2016.10.002
Lakhno, V., Malyukov, V., Bochulia, T., Hipters, Z., Kwilinski, A., & Tomashevska, O. (2018). Model of managing of the procedure of mutual financial investing in information technologies and smart city systems. International Journal of Civil Engineering and Technology, 9(8), 1802-1812. Retrieved from http://www.iaeme.com/MasterAdmin/UploadFolder/IJCIET_09_08_181/IJCIET _09_08_181.pdf
Liashenko, O.M. (2011). Kontseptualizatsiia upravlinnia ekonomichnoiu bezpekoiu pidpryiemstva [Conceptualization of enterprise economic security management]. Luhansk, Ukraine: SNU im. V. Dalia [in Ukraine].
Mavrotas, G., & Vinogradov, D. (2007). Financial sector structure and financial crisis burden. Journal of Financial Stability, 3(4), 295-323. https://doi.org/10.1016/j.jfs.2007.06.001
Mishchenko, V.A., Shevchenko, M.M., Sitak, I.L., Oryekhova, K.V, & Yavorsky, S.V. (2019). Theoretical bases of providing the economic sustainability of the enterprise. Financial and Credit Activity: Problems of Theory and Practice, 3(30), 121-127. https://doi.org/10.18371/fcaptp.v3i30.179521
Momot, T. V. (2015). Finansovo-ekonomichna bezpeka: stratehichna analityka ta audytorskyi suprovid: monohrafiia [Financial and Economic Security: Strategic Analytics and Audit Support: A Monograph]. Kharkiv, Ukraine: KhNUMH im. O. M. Beketova [in Ukrainian].
Neanidis, K.C. (2019). Volatile capital flows and economic growth: The role of banking supervision. Journal of Financial Stability, 40, 77-93. https://doi.org/10.1016/j.jfs.2018.05.002
Nebava, M. I. (2017). Ekonomichna bezpeka pidpryiemstva: navchalnyi posibnyk [Economic security of the enterprise: a textbook]. Vinnytsia, Ukraine: VNTU [in Ukrainian].
Nikitina, A.V., Novikova, T.V., & Khrystoforova, O.M. (2019). Structural and functional model of enterprise economic safety management system in the global financial space. Financial and Credit Activity: Problems of Theory and Practice, 3(30), 136-146. https://doi.org/10.18371/fcaptp.v3i30.179692
Osberg, L. (1997). Economic growth, income distribution and economic welfare in Canada 1975–1994. The North American Journal of Economics and Finance, 8(2), 153-166. https://doi.org/10.1016/S1062-9408(97)90005-X
Pająk, K., Kamińska, B., & Kvilinskyi, O. (2016). Modern trends of financial sector development under the virtual regionalization conditions. Financial and Credit Activity: Problems of Theory and Practice, 2(21), 204-217. https://doi.org/10.18371/fcaptp.v2i21.91052
Savchenko, T., Basiurkina, N., Rodina, O., & Kwilinski, A. (2019). Improvement of the assessment methods of product competitiveness of the specialized poultry enterprises. Management Theory and Studies for Rural Business and Infrastructure Development, 41(1), 43-61. https://doi.org/10.15544/mts.2019.05
Silva, W., Kimura, H., & Sobreiro, V.A. (2017). An analysis of the literature on systemic financial risk: A survey. Journal of Financial Stability, 28, 91-114. https://doi.org/10.1016/j.jfs.2016.12.004
Sobolev, V.M., & Soboleva, M.V. (2015). Metodolohichni zasady doslidzhennia ekonomichnoi bezpeky v Ukraini u suchasnykh umovakh [methodological basis of research of economic security in ukraine in modern conditions]. Financial and Credit Activity: Problems of Theory and Practice, 2(19), 186-194. https://doi.org/10.18371/fcaptp.v2i19.57284 [in Ukrainian].
Tkachenko, V., Kwilinski, A., Klymchuk, M., & Tkachenko, I. (2019a). The economic-mathematical development of buildings construction model optimization on the basis of digital economy. Management Systems in Production Engineering, 27(2), 119-123. http://doi.org/10.1515/mspe-2019-0020
Tkachenko, V., Kwilinski, A., Korystin, O., Svyrydiuk, N., Tkachenko, I. (2019b). Assessment of information technologies influence on financial security of economy. Journal of Security and Sustainability, 8(3), 375-385. http://doi.org/10.9770/jssi.2019.8.3(7)
Tkachenko, V., Kwilinski, A., Tkachenko, I., & Puzyrova, P. (2019c). Theoretical and methodical approaches to the definition of marketing risks management concept at industrial enterprises. Marketing and Management of Innovations, 2, 228-238. http://doi.org/10.21272/mmi.2019.2-20
Tkachenko, V., Kwilinski, A., Kaminska, B., Tkachenko, I., & Puzyrova, P. (2019d). Development and effectiveness of financial potential management of enterprises in modern conditions. Financial and Credit Activity: Problems of Theory and Practice, 3(30), 85-94. https://doi.org/10.18371/fcaptp.v3i30.179513
Vishnevsky, V.P. & Kwilinski A. (2019a). Monetarni mechanizmy stymuluvannia ekonomiky v rozvynenych krainach: analitychnyi oglad [Monetary mechanisms of an economy stimulation in developed countries: an analytical review]. Economy of Industry, 1(85), 30-50. http://doi.org/10.15407/econindustry2019.01.030 [in Ukrainian].
Vishnevsky, V.P. & Kwilinski A. (2019b). Novitni trendy v monetarniy politytsi USA ta ii vplyv na ekonomichnyi rozvytok: analitychnyi oglad [Recent trends in US monetary policy and its influence on economic development: an analytical review]. Economy of Industry, 3(87), 125-142. https://doi.org/10.15407/econindustry2019.03.125 [in Ukrainian].
Williamson, O. (1975). Markets and Hierarchies: Analysis and Antitrust Implications. New York: Free Press.