Features of crisis management of business entities during martial law
/ 0
- Details
- Category: Content №4 2023
- Last Updated on 28 August 2023
- Published on 30 November -0001
- Hits: 2289
Authors:
R.Sharanov*, orcid.org/0000-0001-5123-7532, University of Customs and Finance, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
B.Vatchenko, orcid.org/0000-0002-6238-3719, University of Customs and Finance, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
* Corresponding author e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu. 2023, (4): 181 - 187
https://doi.org/10.33271/nvngu/2023-4/181
Abstract:
Purpose. To characterize the features of crisis management of micro, small, medium and large enterprises during martial law.
Methodology. Methods of analysis and synthesis, observation, generalization, and comparative analysis were used to fulfill the tasks and achieve the goal of the research. The methods of absolute, relative values, correlation and regression analysis were used in the development of the logit-model for estimating the probability of bankruptcy. The research’s information base was backed by the works of Ukrainian and foreign scientists, statistical materials, and Internet sources.
Findings. The economic consequences of the military invasion in Ukraine are indicated the main challenges of business operation in contemporary conditions are identified. The features of crisis management of micro, small, medium and large enterprises are determined and two types of it are proposed: urgent and traditional. The specifics of crisis diagnostics are considered, providing methodological recommendations for analyzing the performance of various business entities based on the scale of their activities. For micro and small business entities, activity assessment indicators are proposed, which are based on a minimum amount of data and simple calculations, for medium and large ones – a comprehensive assessment using ratio analysis and models for assessing the probability of bankruptcy, including the authors’ own logit model, tested at Ukrainian enterprises. Anti-crisis measures are substantiated to improve business functioning during martial law, both at the enterprise and state levels.
Originality. The concept of “urgent crisis management” has been introduced to characterize the functioning of micro and small business entities. A concept of enterprise crisis management during wartime has been developed and a methodical approach to the diagnosis of subjects of micro, small, medium and large enterprises has been improved. In particular, the authors’ logit model for assessing the probability of bankruptcy has been proposed.
Practical value. Methodological recommendations have been provided for the implementation of enterprise crisis management based on the scale of entrepreneurial activities, aiming to enhance their functioning in contemporary wartime conditions. The study introduces and validates a logit model on Ukrainian enterprises, demonstrating its effectiveness. The research findings discussed in this paper can be used by economists-researchers and practitioners to enhance business efficiency.
Keywords: martial law, small business, medium business, large business, crisis management, enterprise, logit model
References:
1. Gourinchas, P. O. (2022). Global economic growth slows amid gloomy and more uncertain outlook. Retrieved from https://www.imf.org/ru/Blogs/Articles/2022/07/26/blog-weo-update-july-2022.
2. Rabbit Hole Magazine (2022). Sergiy Nikolaychuk on the Economics of War. Retrieved from https://rabbitholemag.com/sergiy-nikolaychuk-on-the-economics-of-war.
3. Ukrainian Institute for the Future (2022). Analysis of the Ukrainian economy. Retrieved from https://uifuture.org/publications/analiz-stanu-ukrayinskoyi-ekonomiky.
4. Tereshchenko, O. O., & Stetsko, M. V. (2017). Diagnostics of enterprise insolvency as a technology for supporting financial decision-making. Efficient economy, (3). Retrieved from http://www.economy.nayka.com.ua/?op=1&z=5521.
5. Obrenovic, B., Du, J., Godinic, D., Tsoy, D., Khan, M. A. S., & Jakhongirov, I. (2020). Sustaining Enterprise Operations and Productivity during the COVID-19 Pandemic: “Enterprise Effectiveness and Sustainability Model”. Sustainability, 12(15), 5981. https://doi.org/10.3390/su12155981.
6. Pohrebniak, A. Yu. (2015). The essence of the constituent elements of the anti-crisis management mechanism at the industrial enterprise. Economic Bulletin of the National Technical University of Ukraine “Kyiv Polytechnic Institute”, 12, 300-310. https://doi.org/10.20535/2307-5651.12.2015.45627.
7. Sytnyk, L. S. (2016). Anti-crisis marketing management. Bulletin of the Khmelnytskyi National University. Economic sciences, 5(1), 176-180.
8. Shtangret, A., Melnyk, N., Shevchuk, I., Sydoruk, I., & Shyra, T. (2019). Information Support for the Management of the Economic Security of High-tech. Advanced Computer Information Technologies ACIT. IEE Czechoslovakia section, 9, 350-354.
9. Lihonenko, L. O., & Kryvonos, V. V. (2015). Anti-crisis management of a small enterprise: relevance and specificity of implementation. The young scientist, 2(6), 1184-1186.
10. Banera, N. P. (2016). Anti-crisis management as one of the ways out of the financial crisis. Global and national economic problems, 10. Retrieved from http://global-national.in.ua/issue-10-2016/18-vipusk-10-kviten-2016-r/1885-banera-n-p-antikrizove-upravlinnya-yak-odin-iz-shlyakhiv-vikhodu-iz-finansovoji-krizi.
11. Myroshnychenko, Yu. V., & Vdovichenko, A. S. (2020). Anti-crisis management in small and medium-sized businesses. Problems and prospects of entrepreneurship development, 1, 119-132.
12. Uhrimova, I. V. (2020). Anti-crisis management in small business. Strategic imperatives of modern management. 5 th International scientific and practical conference, (pp. 131-134). Kyiv: Kyiv National University of Economics. Retrieved from http://repository.kpi.kharkov.ua/handle/KhPI-Press/52411.
13. Korneyev, M., Berezhniuk, I., Dzhyndzhoian, V., Kubakh, T., & Horb, K. (2022). Business marketing activities in Ukraine during wartime. Innovative Marketing, 18(3), 48-58. https://doi.org/10.21511/im.18(3).2022.05.
14. Tymoshenko, M. V., & Petrov, V. A. (2022). Identification of risks and features of anti-crisis management in the conditions of war. Entrepreneurship and trade: development trends. 5th International scientific and practical conference, (pp. 52-54). Odesa: State University “Odesa Polytechniс”. Retrieved from https://www.researchgate.net/profile/I-Kryvovyazyuk/publication/361091934_Sistema_upravlinna_rizikami_pidpriemnickoi_dialnosti_v_sferi_optovoi_torgivli/links/629b567ca3fe3e3df85c45b2/Sistema-upravlinna-rizikami-pidpriemnickoi-dialnosti-v-sferi-optovoi-torgivli.pdf#page=52.
15. Korotun, Yu., & Tiurina, N. (2022). Anti-crisis management of business structures in conditions of uncertainty: marketing aspect. Collection of scientific papers “SCIENTIA”, (pp. 21-26). Helsinki, Finland. Retrieved from https://previous.scientia.report/index.php/archive/article/view/271.
16. State Statistics Service of Ukraine (2022). The number of active subjects of large, medium, small and micro enterprises by types of economic activity. Retrieved from https://www.ukrstat.gov.ua/operativ/operativ2022/fin/pssg/ksg_vsmm_ek_2010_2021_u.xlsx.
17. Kyiv School of Economics (2022). The total amount of direct documented losses increased to $108.3 billion, the minimum needs for the restoration of destroyed assets — $185 billion. Retrieved from https://kse.ua/ua/about-the-school/news/zagalna-suma-pryamih-zadokumentovanih-zbitkiv-zrosla-do-108-3-mlrd-minimalni-potrebi-u-vidnovlenni-zruynovanih-aktiviv-185-mlrd.
18. Opendatabot (2022). Foponomics: how Ukrainian business works during the war. Retrieved from https://opendatabot.ua/analytics/foponomics-in-war.
19. Kuzmin, O. Ye., Yurynets, O. V., Doroshkevych, K. O., & Khomenko, A. I. (2021). Use of simulation modeling to identify urgent crisis management measures on enterprises. Bulletin of Kharkiv National University named after V. N. Karazin. Series: International Relations. Economics. Country Studies. Tourism, 13, 99-107. https://doi.org/10.26565/2310-9513-2021-13-10.
20. Sharanov, R. S. (2021). Enterprise Crisis Management Algorithm. Central Ukrainian scientific bulletin. Economic sciences, 6(39), 288-296. https://doi.org/10.32515/2663-1636.2021.6(39).288-296.