ISSN 2221-1055  •  e-ISSN 2413-2322

Adaptation of business entities in the agrarian sector of the economy to activities in wartime conditions

Received: 27.08.2022 Revised: 19.11.2022 Accepted: 13.12.2022
Abstract

The need for business entities to exit from an extreme state activates the development of processes of adaptation of business entities to functioning in wartime conditions. The purpose of the article is to substantiate the theoretical and methodological principles, socio-economic and legal problems of adaptation of business structures to activities in extreme conditions. System analysis and institutional economic theory served as the methodological basis of the research. Normative, graphic, abstract-logical methods and approaches to summarizing the results were used. Prospects for the development of entrepreneurship have been determined. It was established that during the period of economic recovery, issues of material and technical and financial support of production facilities and logistics routes will be problematic. The economic difficulties of large corporate structures are revealed (destruction of assets, disruption of logistics connections, blocking of sales markets). The essence of adaptation of business entities to activities in the conditions of armed conflict, functioning in wartime conditions, and integration-cooperative structures from the point of view of systemicity is substantiated. The concept of “adaptation” of business entities is clarified as a process of development and application of strategies for reflection by the enterprise and its structures of the effects of the consequences of the war in the management decision-making system to ensure competitiveness and efficiency of functioning. It was established that the adaptation of business entities to risk conditions in the post-war period will contribute to the development of integration structures (cooperatives, simple societies, cluster associations), the growth of independence in determining the programs of their economic activity, ensuring the interest of peasants as commodity producers with the rights of formal bearers of entrepreneurial status to meet their economic and social needs. It was found that the most adapted to the crisis conditions associated with military operations are farms and private peasant farms. The results of the study can be taken into account when developing programs for determining the priorities of the development of agrarian entrepreneurship subjects, in particular, integration-cooperative structures; development of regulatory and legal acts for the formation and development of cooperation and integration in the agrarian sphere of the economy

Keywords
subject of entrepreneurial activity; adaptation to the conditions of martial law; agricultural cooperative; integration-cooperative structures; integration associations; mechanism of integrated structures; integrative formations; agricultural holdings; clusters
Details
DOI https://doi.org/10.32317/2221-1055.202206028
Pages 28-40

[1] Berdar, M., & Yevtushevska, O. (2020). Innovation activity management of enterprises under self-development. Baltic Journal of Economic Studies, 6(2), 25-31. doi: 10.30525/2256-0742/2020-6-2-25-31.

[2] Bitkowska, A., Dziembek, D., & Gzik, T. (2022). Towards cloud agile business process management. Communications of the IBIMA, 2022, article number 821632. doi: 10.5171/2022.821632.

[3] Bondarchuk, N., Minkovska, A., & Kriuchko, L. (2022). Updata of marketing and KPI approaches to improving staff motivation in agricultural businesses to insure financial and economic security. Baltic Journal of Economic Studies, 8(1), 21-27. doi: 10.30525/2256-0742/2022-8-1-21-27.

[4] Dabrowski, D. (2022). The impact of a new product’s novelty and meaningfulness on its commercial performance. IBIMA Business Review, 2, article number 998442. doi: 10.5171/2022.998442.

[5] Dmytriiev, I., Levchenko, I., Prokopenko, M., Beketov, Y., & Malikov, V. (2022). Development of a marketing strategy to improve the market activities of agricultural and processing enterprises on the example of company policy. Scientific Horizons, 25(8), 125-133. doi: 10.48077/scihor.24(11).2021.92-100.

[6] Dymczyk, R., Shpykuliak, O., Hrytsaienko, M., Sакоvska, O., & Hrytsaienko, H. (2021). Social capital of the agricultural sphere: Indicators of measurement for conditions of formation and results of use. Agricultural and Resource Economics, 7(4), 115-137. doi: 10.51599/are.2021.07.04.07.

[7] Fedosieieva, H. (2019). Sustainable development of agricultural producers is a ciondution for their successful functioning in the world market. Baltic Journal of Economic Studies, 5(1), 218-223. doi: 10.30525/2256-0742/2019-5- 1-218-223.

[8] Gerasymenko, A., Ozhelevskaya, T., Lebedeva, L., & Moskalenko, O. (2022). Agricultural service cooperatives in Ukraine: Institutional development drivers. Scientific Horizons, 25(6), 89-99. doi: 10.48077/scihor.25(6).2022.89-99.

[9] Hrosul, V., Zubkov, S., & Mkrtchyan, T. (2021). The development core of enterprise: Theoretical aspect. Baltic Journal of Economic Studies, 7(3), 73-81. doi: 0.30525/2256-0742/2021-7-3-73-81.

[10] Kazak, O., & Obelets, T. (2022). Remote employment: a short-term strategy for adapting to the crisis or the new reality of human resourse management. Baltic Journal of Economic Studies, 8(2), 98-104. doi: 10.30525/2256- 0742/2022-8-2-98-104.

[11] Kovalenko, S., & Bykovets, N. (2022). Support for cluster initiatives and cluster policy (case study of the Euroregion “The Lower Danube”. Baltic Journal of Economic Studies, 8(1), 62-69. doi: 10.30525/2256-0742/2022-8-1-62-74.

[12] Kononenko, L., Atamas, O., Nazarova, H., Selishcheva, E., & Kononenko, S. (2022). Optimization of small agricultural producer’s taxation by creating innovative-integrated structures. Scientific Horizons, 25(6), 100-110. doi: 10.48077/scihor.25(6).2022.100-110.

[13] Krasnostanova, N., Yatskevych, I., Zhuravel, O., Vasyutynska, L., & Akymenko, N. (2022). Directions of monitoring the financial activity of agricultural enterprises. Scientific Horizons, 25(7), 82-89. doi: 10.48077/scihor.25(7).2022.82-89.

[14] Kravchenko, S., Malik, M., & Malik, L. (2022). Adaptation of the mechanism of functioning of agricultural business entities to competitive conditions. In Theoretical foundations in economics and management (pp. 184-192). Boston: Primedia eLaunch. doi: 10.46299/ISG.2022.MONO.ECON.2.

[15] Kravchuk, N., Kilnitska, O., Lavrynenko, S., & Yaremova, M. (2021). Infrastructural support of socio-economic development of rural territories of Ukraine. Scientific Horizons, 24(10), 58-71. doi: 10.48077/scihor.24(10).2021.58-71. [16] KSE Center for Food and Land Use Research. (n.d.). Retrieved from https://www.kse.uam.

[17] Kvach, Y., Piatka, N., & Koval, V. (2020). Management of sustainable entrepreneurship adaptation to tax changes in environmental investment. Baltic Journal of Economic Studies, 6(5), 96-105. doi: 10.30525/2256-0742/2020-6-5-96-105.

[18] Lopes, J.M., & Gomes, S. (2022). Innovative and sustainable business strategies: The case of portuguese SMEs. IBIMA Business Review, 2022, article number 714613. doi: 10.5171/2022.714613.

[19] Lupenko, Yu., Khodakivska, O., Nechyporenko, O., & Shpykuliak, O. (2022). The state and trends of agricultural development in the structure of the national economy of Ukraine. Scientific Horizons, 25(6), 121-128. doi: 10.48077/scihor.25(6).2022.121-128.

[20] Malik, M., Kravchenko, S., & Malik, L. (2022). Modeling of the processes of adaptation of the economic mechanism of the functioning of agricultural business entities to the market. In Scientific foundations in economics and management (pp. 186-193). Boston: Primedia eLaunch. doi: 10.46299/ISG.2022.MONO.ECON.1. 

[21] Natorina, A. (2019). The adaptive management system of marketing commodity policy. Baltic Journal of Economic Studies, 5(1), 131-136. doi: 10.30525/2256-0742/2019-5-1-131-136.

[22] Odnorog, M., Kraus, N., & Kraus, K. (2019). The features of entrepreneurial interactions in the agricultural sector in terms of institutional transformations. Baltic Journal of Economic Studies, 5(4), 171-181. doi: 10.30525/2256- 0742/2019-5-4-171-181.

[23] Penkova, O., Lementovska, V., Sokovnina, D., Korman, I., & Semenda, O. (2021). Developing a marketing strategy to improve the market activities of agricultural and processing enterprises, using the policy of “Goodvalley” as an example. Scientific Horizons, 24(11), 92-100. doi: 10.48077/scihor.24(11).2021.92-100.

[24] Potapov, A.P. (2020). Modeling the impact of resource factors on agricultural output. Economic and Social Changes: Facts, Trends, Forecast, 13(4), 154-168.

[25] Pylypenko, N., Klietsova, N., & Stoianenko, I. (2019). An empirical analysis of competitiveness factors of the region’s agrarian sector. Baltic Journal of Economic Studies, 5(5), 128-135. doi: 10.30525/2256-0742/2019-5-5-128-135.

[26] Rudenko, V., Pohrishchuk, H., Dobizha, N., & Moskvichova, O. (2022). The role of fiscal mechanism in regulation of households’ investment activity in EU countries and in Ukraine. Scientific Horizons, 25(5), 86-100. doi: 10.48077/ scihor.25(5).2022.86-100.

[27] Sakovska, O. (2020). Agricultural cooperation: Experience of foreign countries for Ukraine. Baltic Journal of Economic Studies, 6(1), 118-124. doi: 10.30525/2256-0742/2020-6-1-118-124.

[28] Semenenko, O., Minochkin, A., Vasylenko, S., Klepikov, V., & Pravdyvets, O. (2021). Assessment of the impact of the armed conflict in Ukraine on the development of the agricultural sector and price setting. Scientific Horizons, 24(7), 68-80. doi: 10.48077/scihor.24(7).2021.68-80.

[29] Semenenko, O., Marko, I., Chernyshova, I., Koverga, V., & Pekuliak, R. (2021). Methodological aspects of the military-economic significance of agriculture and modern problems of military food resources in Ukraine. Scientific Horizons, 24(8), 81-97. doi: 10.48077/scihor.24(8).2021.81-97.

[30] Shpakov, A., Stetsenko, S., Shpakova, H., Sorokina, L., & Akselrod, R. (2021). Assessment of the influence of adaptability factors on the effectiveness of managing changes in enterprises by fuzzy logic. Scientific Horizons, 24(10), 72-82. doi: 10.48077/scihor.24(10).2021.72-82.

[31] Shpychak, O., Varchenko, O., Svynous, N., Semysal, A., Ostapenko, S., & Prystеmskyi, O. (2022). Foreign economic priorities for the development of agro-food enterprises in European integration business partnership. Scientific Horizons, 25(4), 75-88. doi: 10.48077/scihor.25(4).2022.75-88.

[32] Shpykuliak, O., & Bilokinna, I. (2019). “Green” cooperatives in the formation of an institutional mechanism of development of alternative power engineering in the agrarian sector of the economy. Baltic Journal of Economic Studies, 5(2), 249-255. doi: 10.30525/2256-0742/2019-5-2-249-255.

[33] Shpykuliak, O., & Sakovska, O. (2020). Agricultural cooperation as an innovation for rural development. Baltic Journal of Economic Studies, 6(3), 183-189. doi: 10.30525/2256-0742/2020-6-3-183-189.

[34] Trusova, N., Polishchuk, N., Sakun, A., Prystеmskyi, O., & Morozov, R. (2021). Anti-crisis stability of breakeven development potential and its resource support in agribusiness. Scientific Horizons, 24(6), 62-80. doi: 10.48077/scihor.24(6).2021.62-80

[35] Vinichenko, I., & Shutko, T. (2019). The matrix model for assessing the investment attractiveness of agricultural enterprises. Baltic Journal of Economic Studies, 5(3), 9-16. doi: 10.30525/2256-0742/2019-5-3-9-16.

[36] Vinichenko, I., Tkachenko, S., Sereda, O., Prus, Yu., & Pochernina, N. (2021). Imperatives of efficient use of land and resource potential of the agricultural enterprises of Ukraine. Scientific Horizons, 24(4), 72-89. doi: 10.48077/scihor.24(4).2021.72-89.

[37] Zinchenko, O., Privarnikova, I., & Samoilenko, A. (2022). Adaptive strategic management in a digital business environment. Baltic Journal of Economic Studies, 8(3), 78-85. doi: 10.30525/2256-0742/2022-8-3-78-85.

[38] Agrarian News Agency. (n.d.). Retrieved from https://www.agravery.com.

[39] Agroportal. (n.d.). Retrieved from https://www.agroportal.ua.

[40] Stock market data. UkrAgroKonsalt. (n.d.). Retrieved from https://www.ukragroconsult.com.

[41] The Supreme Council of Ukraine. (n.d.). Retrieved from https://www.zakon.rada.gov.ua/laws/show/722/2019#Text.

[42] Hrinchenko, R.V. (2019). Methods and tools for forming a mechanism for adapting an enterprise to changes. Scientific Bulletin of Kherson State University. Series “Economic Sciences”, 34, 53-58. doi: 10.32999/ksu2307-8030/2019-34-11.

[43] Panuhnik, O.V., & Holich, N.V. (2020). Features of the use of adaptive modeling of strategies for the development of small businesses in the context of decentralization. Chasopis Ekonomichnyh Reform. Naukovo-Vyrobnychyi Zhurnal, 3(39), 17-29. Retrieved from https://elartu.tntu.edu.ua/handle/lib/33028.

[44] Economic foresight. (n.d.). Retrieved from https://www.mind.ua/publications/20245288-sutinki-agroholdingivyak-vijna-zminit-silske-gospodarstvo-ukrayini/.

[45] Ivanko, A.V. (2018). Improvement of management of economic activity of agricultural enterprises in the context of formation of equilibrium in the market of agro-food products of Ukraine. Nizhin: Vydavets PP Lysenko М.М.

[46] Lupenko, Yu.O., Malik, M.Yo., Shpykuliak, O.H., Mamchur, V.A., & Korinets, R.Ya. (2021). The concept of development of family farms for the period up to 2030: A project. Kyiv: NNTs “IAE”.

[47] Lupenko, Yu.O., & Kropyvko, M.F. (2013). Agroholdings in Ukraine and strengthening the social orientation of their activities. Ekonomika APK, 7, 5-21. Retrieved from https://eapk.com.ua/uk/journals/tom-20-7-2013. 

[48] Lupenko, Yu.O. (2021). Theoretical and methodological support of economic development of the agricultural sector and rural territories. Ekonomika APK, 6, 6-15. Retrieved from https://eapk.com.ua/uk/journals/tom-28-6-2021.

[49] Malik, M.Y. (2021). The role business, cooperation and integration in stabilized development economics. Ekonomika APK, 7, 50-62. Retrieved from https://eapk.com.ua/uk/journals/tom-28-7-2021.

[50] Ministry of Agrarian Policy and Food of Ukraine. (2022). Retrieved from https://www.minagro.gov.ua/ua/ napryamki/fermerstvo-i-kooperaciya/kooperaciya.

[51] Ministry of Finance of Ukraine. (2022). Ministry of Finance: 13,316 concessional loans worth UAH 52.98 billion were issued during the period of martial law within the State Program “Affordable Loans 5-7-9%”. Retrieved from https://www.mof.gov.ua/uk/news/minfin_za_chas_dii_voiennogo_stanu_v_mezhakh_derzhavnoi_programi_ dostupni_krediti_5-7-9_vidano_13_316_pilgovikh_kreditiv_na_5298_mlrd_grn-3633.

[52] Official webcite of the National Academy of Sciences of Ukraine. (n.d.). Retrieved from https://www.nas.gov.ua/ EN/Messages/Pages/View.aspx?MessageID=9288/.

[53] Results of the monthly survey in Open Data format. (n.d.). Retrieved from https://www.bank.gov.ua.

[54] Kalinichenko, L.L. (Ed.). (2018). Problems of adaptation of socio-economic systems to exogenous changes. Harkiv: FOP Panov А.М.

[55] Malik, M.Yo., Shpykuliak, O.H., & Mamchur, V.A. (2019). Development of agricultural cooperation and integration processes in the agricultural sector of the economy. Kyiv: NNTs “IAE”.

[56] Lupenko, Yu.O., Malik, M.Yo., & Bulavka, O.G. (2020). Strategic directions of modern development of rural areas until 2030. Kyiv: NNTs “IAE”.

[57] Taran, N.V. (2019). Adaptive market behavior and development strategy of agricultural enterprises. Harkiv: HNTUSH.

[58] Ukrainian Institute of the Future. (2022). Ukraine 2022: How not to lose your chance to become a strong state. Retrieved from https://www.uifuture.org/publications/ukrayina-2022-yak-ne-vtratyty-svij-shans-staty-sylnoyuderzhavoyu.

[59] Salun, M., & Palyanychka, Ye. (2018). Features and principles of monitoring of industrial enterprise competitiveness. Economics of Development, 17(3), 74-82. doi: 10.21511/ed.17(3).2018.07

[60] Uryadoviy Kurier. (2022). Retrieved from https://www.ukurier.gov.ua/media/newspaper/adv/2022-09- 12/197_7318r.pdf.

[61] Rakovich, O. (2018). Integration of management by enterprise potential of rural territoriesScientific Horizons, 11(72), 62-72.

Malik, M., Kravchenko, S., Shpykuliak, O., Malik, L., & Yuzhykova, V. (2022). Adaptation of business entities in the agrarian sector of the economy to activities in wartime conditions. Ekonomika APK, 29(6), 28-40. https://doi.org/10.32317/2221-1055.202206028