The applied aspects of enterprise capability assessment
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- Category: Economy and management
- Last Updated on 08 February 2016
- Published on 08 February 2016
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Authors:
N.B. Kyrych, Dr. Sci. (Econ.), Professor, Ternopil Ivan Puluj National Technical University, the Department of Management in Manufacturing Sphere, Ternopil, Ukraine.
T.I. Kuzhda, Cand. Sci. (Econ.), Associate Professor, Ternopil Ivan Puluj National Technical University, the Department of Management in Manufacturing Sphere, Ternopil, Ukraine.
Abstract:
Purpose. To explore the main components of enterprise capability, and develop the integrated method concerning the enterprise capability assessment.
Methodology. The methodological approach concerning the socio-economic estimation of enterprise capability has been developed. Unlike existing approaches, it allows assessing the enterprise capability comprehensively through combining two kinds of estimation – social and economic, and converges them into a single integrated indicator. The results have been obtained through the following methods: to define the essence of the “enterprise capability”, the systematization and generalization methods have been used; to point out the main components of enterprise capability, the comparative research method has been applied; to determine the integrated index of the enterprise capability estimation, the method of constructing integrated indicators has been used.
Findings. In today’s highly competitive business world, the need for the efficient enterprise capability management is greater than ever. As more enterprises begin to compete on a global scale, the effective use of enterprise capability will become imperative for them to improve their business activities. The definition of enterprise capability has been given and the main components of enterprise capability have been pointed out. The comprehensive method to estimate enterprise capability that takes into account both social and economic components has been offered. The methodical approach concerning the integrated estimation of enterprise capability has been developed.
Originality. The novelty deals with the inclusion of a general indicator of the social component of enterprise capability to define the integrated index of enterprise capability.
Practical value. The practical significance of the methodological approach is that the method allows assessing enterprise capability comprehensively through combining two kinds of estimation – social and economic, and converges them into a single integrated indicator. It provides a comprehensive approach to the socio-economic estimation of enterprise capability, sets a formal basis for making decisions and helps allocate enterprise resources reasonably. Practical implementation of this method will affect the current condition and trends of the enterprise, help to make forecasts and plans for its development and capability efficient use.
References:
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4. Manne, A.S. and Markowitzh, H. (2008), Studies in Process Analysis: Economy-Wide Production Capabilities, Wiley, New York.
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