Doctor of Economics, Professor, Professor of the Department of Management Organizations, Lviv Polytechnic National University (Lviv, Ukraine)
PhD Student of the Department of Management Organizations, Lviv Polytechnic National University (Lviv, Ukraine)
The aim of the article. The main objective of the domestic company is the development of new market mechanisms, the implementation of progressive reforms, formation of specialized structures supporting innovation-oriented management. The purpose of this paper is to develop a comprehensive approach to the principles of industrial enterprises modernization. Based on the goal, the main objectives of the study are: to identify the main objectives of modernization of industrial enterprises; to develop an algorithm modernization of industrial enterprises; to propose the approach to investment support modernization justification.
The results of the analysis. Improving economic openness of Ukraine and in particular the Agreement on free trade zone with the EU Ukraine has led to increased international competition and exacerbated the problem of how to enhance the competitiveness of domestic industry. Condition of most industrial enterprises is characterized by low innovation activity, insufficient use of outdated equipment and technology, inefficient system of organizing business processes and more. The modern vision of modernization must include the full range of interrelated elements: improving of production management system in general, the state of the environment, work with personnel, updated product range. The authors give basic provisions of the economic model of target formation modernization. The methodical base of investment planning should be target-oriented approach to basic principles which include: commitment, consistency, complexity, security, priority and timeliness. Principles of investment portfolio formation for modernization projects together are proposed. Policy principles for support are given basing on the financial condition of the company and its investment activity in financial markets. The algorithm of enterprise modernization is suggested. Practical implementation of the tasks is to implement the program of investment portfolio, the implementation of modernization measures, as well as subsequent reorganization of business processes. It is advisable to introduce modernization as a process that has certain duration, including procedures for investment, domestic turnover and redistribution and allocation of financial resources. The process of real investment covers four main stages that make up the combined cycle of investment. One of the areas of problems resolving of enterprise development is the concept of periodic review of investment planning to modernize industrial enterprises. In parallel, it should be noted that the parameters of economic model should be changed taking into account the influence of internal and external factors on the company.
Conclusions and directions for further research. Implementation of a comprehensive program of enterprise development by upgrading is a necessary condition for achieving good economic growth, technological progress and high competitiveness of domestic enterprises in Ukrainian and foreign markets.
Keywords: modernization, technology, integrated program, development strategy, investment management
JEL Classification: M11, G31.
Cite as: Petrovych У. & Borbulevych, V. (2016). Modernization of industrial enterprises and innovative implementation. Marketing and Management of Innovations, 1, 106-116. https://doi.org/10.21272/mmi.2016.1-09
This work is licensed under a Creative Commons Attribution 4.0 International License
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