ECONOMIC SUSTAINABILITY AS A PREREQUISITE FOR ENSURING THE INNOVATIVE DEVELOPMENT OF THE ENTERPRISE
Authors:   Lviv Polytechnic National University, Havran V. , Kalmuk R. ,   Lviv Polytechnic National University
Published: December 2021

Purpose. The activities of enterprises and the prospects of reaching the planned performance indicators have greatly been complicated due to the significant real and potential threats to economic stability, and the outflow of investment in combination with the COVID-19 virus pandemic. Particularly relevant in the current situation, there is a problem of developing and applying in the practice of domestic enterprises such management approaches that would ensure sustainable and most efficient operation of economic entities in the current period, as well as form the potential for their innovative development in the future. It should be noted that the essence of indicators and criteria which reveal the economic stability of the enterprise to some extent are relative, that is caused by peculiarities of the enterprise, pace of development, a stage of the life cycle, and peculiarities of the strategy. Design/methodology/approach. Methods of induction, deduction, and theoretical generalization were used to elucidate the essence of economic stability from the viewpoints of different authors. The authors have used observation, description, formalization, systematization and explanation methods to analyze the problems of choosing methodology of calculating the main indicators of enterprise stability. Findings. Understanding the nature of economic stability and its provision in a changing environment requires the formation of an appropriate management system of economic stability, which should integrate different subsystems, such as financial, production, marketing, human resources, information, etc. In a broad sense, economic stability reflects the level of the enterprise development, the efficiency of the management system, internal organizational integration of its subsystems, adaptability to environmental changes, and others. Originality/value. Prerequisites for improving the systematic framework for assessing the degree of economic stability of enterprises are considered. Possibilities of adapting methodical tools for assessing the economic stability of enterprises to modern conditions of the business entity functioning are offered. Peculiarities of ensuring the adaptability of the methodological approach to assessing the economic stability of enterprises have been studied. The authors have substantiated the efficiency of using the proposed list of indicators of the level of economic stability and formulated procedural approaches to the assessment process. Approaches to improving the economic sustainability of the object of study are suggested and analyzed. The authors have also been carried out a factor analytical research of the impact of projected changes on the systemic indicators of sustainability of the business entity, taking into account the trends of innovative development of the domestic socio-economic environment. Practical implications. The proposed approach to assessing the economic stability of the enterprise provides greater objectivity of the results in a transformational environment of the entity. The substantiated procedure of realization of the assessment methodical approach, in the context of which economic stability components have been defined, allows making well-timed and effective decisions.