Research Article: 2022 Vol: 21 Issue: 3
Mishchuk Ievgeniia, Kryvyi Rih National University
Adamenko Maryna, Kryvyi Rih National University
Bondarchuk Olga, Kryvyi Rih National University
Riabykina Nataliia, Kryvyi Rih National University Riabykina Yekateryna, Kryvyi Rih National University
Tkachenko Sergii, Zaporizhzhia Polytechnic National UniversityCitation Information: Ievgeniia, M., Maryna, A., Olga, B., Nataliia, R., Yekateryna, R., & Sergii, T. (2022). Economic security formation for competitive enterprise based on development of innovative potential of its staff in context of exchange trading problems. Academy of Strategic Management Journal, 21(3), 1-11.
Mutual influence of exchange trade and level of economic security of enterprise has been revealed in research of article. It was proved that ensuring economic security of enterprises is impossible without highly qualified and innovatively active personnel. It has been formed methodology for formation of economic security that was based on assessment of current and forecast level of availability and movement of personnel with 5.0 competencies. General idea of use of competence-based approach in study of development of innovative potential of personnel of enterprise was formed. It was proposed to consider competence-based approach as management tool in system of development of innovative potential of enterprise personnel for acquisition, expansion, deepening of necessary competencies and formation of behavioral model of personnel in innovative activities in formation of enterprise economic security. Concept is proposed, within of which mission, goal, objectives, methods, directions and result of development of innovative potential of personnel of enterprise are determined on basis of competency-based approach. It was shown that using innovative potential of personnel; enterprises have opportunity to withstand existing challenges and threats of exchange activities based on existing economic security.
Digital Competencies, Exchange Trade, Economic Security Ensuring, Personnel Innovative Potential, Competitiveness, Competence Approach.
It is known that exchange trading in Ukraine is carried out both on universal commodity exchanges and specialized (for example, agricultural). At the same time, exchange trading is underdeveloped, since introduction of new technologies in this area is very slow. According to experts, exchange trading for Ukrainian agricultural producers is almost inaccessible, which is associated with small batches of the same type of products, difficulty in participating in trading, dependence on traders conducting lending, and inability to play on price quotes (Lishchuk, 2018). Only those enterprises whose economic security is at sufficiently high level can withstand the listed challenges. At the same time, in today's difficult competition conditions for any enterprises, especially agricultural ones, ensuring their economic security is impossible without highly qualified, purposeful and innovatively active personnel. Enterprises whose personnel activities involve an active search and attraction of workers capable of rapidly developing, adapting and retraining will have greater prospects for ensuring the appropriate state of economic security in the long term than those whose recruiting does not take into account the dynamism of modern market space. The need to develop the personnel of enterprises, including agricultural ones, is confirmed by modern economic trends and trends in labor market. The report of the World Economic Forum notes that by 2025 there will be significant changes in the international labor market. This is due to the fact that a large number of staff acquire new competencies and master new skills and abilities. The reasons for these changes are the impact of the Fourth Industrial Revolution and COVID-19. According to the report, by 2025 the world can expect: an increase of 5.7% in number of new professions; increasing the time of execution of automated and mechanized labor to the ratio with manual labor as 50/50; the emergence of about 97 million works, adapted to new conditions of the engineering and technology development; crowding out about 85 million jobs by machines and new technologies (World Economic Forum: Report, 2020).
In competitive struggle between enterprises, the employee plays important role. Thanks to his knowledge and skills, it is possible to introduce new technologies, use new technology and automated production, and improve the organization of labor. All this ensures the competitiveness of enterprises in context of the innovative development and strengthens their economic security. Now the Ukrainian enterprises have a significant deficit of innovatively active workers capable of developing the economy according to the innovative type. There are several reasons; one of them is insufficient innovative competence, which is the result of theoretical and practical readiness of specialist to carry out professional activities based on innovations. The lack of the competitive advantage, which consists in presence of talented, creative, innovatively competent staff, makes it impossible for the further effective innovative activity of the enterprise and leads to its lag in economic development from competitors. Thus, we can say that the formation of sufficient innovative competence of staff and ensuring the development of their innovative potential has the direct impact on increasing the level of economic security of the enterprise.
Consequently, the purpose of the article is to reveal the foundations of the formation of competitive enterprise economic security based on the development of the innovative potential of personnel from the position of ensuring participation in exchange trading.
Despite the fact that the role and functions of exchange trading in the competitive environment have been studied and described in detail, and its advantages are widely known, for practitioners and scientists, the definition of relationship between the competitive enterprise economic security, the development of the innovative potential of its personnel in process of ensuring exchange trading belongs to the category of tasks for the future. Specialized international structures, including the UN agencies, have been studying various aspects of the impact of exchange trading on the development of states for a long time. One of the leaders in this direction is the UN Conference on Trade and Development, which is obviously related to the country's economic security. This is the macro level of stock trading problems. Interesting studies have been carried out by scientists (Shelyubskaya, 2013; Lishchuk, 2018), which reveal the connection between the activities of commodity exchanges and the external environment:
1. The exchange stimulates an expansion of commodity warehouses network in order to improve the efficiency of supplies and the credit management system. However, enterprises with low level of economic security will not be able to realize these opportunities;
2. The absence of credit support effective system increases the risks of lending to agricultural producers for banks reduces the attractiveness of commodity financing as lending instrument, which, in turn, further worsens the level of economic security of agricultural enterprises.
Interesting material on how countries overcome various challenges has been summarized in number of studies (UNСTAD, 2009; Maksimchuk, 2013). They analyze the experience of different countries, for most of which the agricultural sector plays an important role in providing employment.
At the micro level, the engine for formation of the enterprise economic security is its innovatively active personnel. The conducted studies have shown that in scientific literature the development of the innovative potential of enterprise and the formation of innovative competence are considered fragmentarily. So, in the article by Lutokhina, the idea was put forward that the innovative potential of personnel should be considered multicomponent, with competence being the basic component (Lutokhina, 2015). We are also inclined to believe that the development of innovative potential of the enterprise personnel should be based on competence-based approach, to determine the innovative competence of staff. Special attention should be paid to use of the competence-based approach as the basis for formation of employee competencies models. So, for example, Boyatsis proposed competency model for an effective leader, numbering nineteen managerial competencies combined into groups (goal and action management; leadership; personnel management; leadership work; caring for others; specialized knowledge) (Boyatzis, 1981). The competence model (Spencer & Spencer, 1993) lists fourteen competencies of manager focused on personal achievement with corresponding behavioral indicators. Three groups of competencies were identified by Schroder, highlighting the incoming competencies, basic competencies and competencies aimed at high manager`s efficiency (Schroder, 1989). Based on the opinion of authors of Arapova et al. (2013) article, we believe that the competence-based approach is the management tool that determines professional and behavioral requirements for staff, including in the course of innovative activities. The analysis of studies and publications has shown that it is advisable to develop the innovative potential of enterprise personnel through the formation of innovative competencies. And the competence-based approach should be considered as management tool for development through the acquisition, expansion, deepening of the necessary competencies and the formation of behavioral model of personnel in innovative activities. To understand the need to develop innovative potential of personnel of enterprise, it is necessary to carry out an analysis, the methodology of which is described in the work of (Adamenko et al., 2021). Since competence is inseparable from the employee and does not depend on the position or workplace, it is advisable to develop the innovative potential of personnel in relation to those personnel who want to develop and are potentially capable of producing and implementing innovations.
Today, modern specialists, especially those, who are involved in innovation process, have high requirements for their competence. In accordance with modern trends and demands of labor market until 2025, the development of following skills can be expected: the analytical thinking and innovativeness; the active learning and learning strategies; the solving complex problems; the critical thinking and analysis; the creativity, the originality and the initiative; the leadership, the resilience to stress, the problem solving and others (World Economic Forum: Report, 2020). As can be seen from the above list, most of these skills and abilities directly relate to innovation and the development of innovative competencies of workers. Ensuring the economic security of agricultural enterprises should be accompanied by taking into account modern innovative trends, among which, along with attracting talents, there is total digitalization of all processes, the use of artificial intelligence, the Internet of Things and Big Data. Total digitalization and robotization of agricultural enterprises cover all areas: from production and finance to logistics and sales; they are impossible without people who had the appropriate knowledge, skills and abilities to work with ground sensors, manage virtual teams and work, ensure human-robot interaction, implement satellite and aerial photography, thanks to which fertilizers can be applied only in places where it is needed, etc. Thus, more and more jobs are becoming “digital” (Mishchuk et al., 2021a). At leading enterprises, the use of agricultural unmanned aerial vehicles (drones) and sensors that monitor the state of soil, air and crops in the fields is already the norm. It is predicted that in the near future, using the information received from them, intelligent systems will be able to make decisions on plant care without involving people. A similar trend is expected in animal husbandry: thanks to sensors, farmers will be able to receive information about the well-being of each animal in real time (Liezina et al., 2020).
The study used general scientific theoretical methods: generalization, critical analysis, grouping - to analyze the views of economists and practitioners on the object of research, formulate conclusions of content analysis of primary sources, as well as to form the space of objective reality of the activities of Ukrainian agricultural enterprises. In addition, in the process of research, analysis and synthesis, induction and deduction were used to substantiate a new conceptual formation on ensuring the economic security of an enterprise on the basis of staffing the enterprise with 5.0 competencies and tools for assessing of its level; and also these methods were used in the development of competency-based approach to the development of innovative potential of enterprises personnel and elaboration of concept for the development of the personnel innovative potential.
The special mode of functioning of agricultural products market in international trade, together with the specifics of agricultural production by itself, has a significant impact on level of economic security of agricultural enterprises. In particular, both unfavorable weather conditions and good harvest determine the production volume, which means the supply and products price, the resulting of profit amount of (or loss amount) and, as a result, the level of economic security. The list of external destructive factors that have a negative impact on stock exchange activities may contain, but not be limited to the following items: natural disasters; the state of stocks of agricultural products in the world (the amount of cereals, oilseeds and other raw materials remaining after the end of the sales season affects the stability or prices volatility in the current or strategic period); seasonality of production, affecting the prices of cash market; interchangeability and interrelation of agricultural goods (competition with other goods in this sector of the world economy allows replacing one type of resource with another: the decrease in grain prices affects the cost and prices of feed, leads to reduction in the cost of livestock and poultry products; protection measures, peculiarities of trade policy in the field of agricultural products in different countries and groupings of countries; changes in the standard of living in different countries (it is known that, in accordance with Engel's law, according to the degree of country development, the share of food in the structure of population consumption decreases) (Lishchuk, 2018); other global and regional factors.
Factors that mentioned above at one time are external threats to economic security of enterprises. However, even such factors can be leveled out by agricultural producers through properly developed measures that ensure the economic security of enterprises and make them competitive in exchange trading. The best example in Ukraine is the agricultural holding PJSC “Myronivsky Hliboproduct”. It occupies one of the first places among agro-industrial complexes in rating of innovative companies in the country according to Forbes magazine. This holding is the first Ukrainian agro-industrial company, whose shares are listed on the main floor of the London Stock Exchange. The holding uses many innovations, including METEOTREK - an IoT product for monitoring weather conditions, planning technological operations in agricultural production and modeling the risks of plant diseases; MobiMill is an innovation aimed at the development of software and hardware solutions, including the digitalization of business processes in crop production and others. One example of modern IT innovations is the creation of digital thematic maps and digital elevation models; the soil analyzer based on microlaser; SaaS platform Sovtes; PROFEED is comprehensive monitoring and control system for animal feeding process. It is important that the implementation of such innovations is impossible without personnel who have the skills to work with these innovative products.
Therefore, to ensure the desired state of economic security in the future, the company today must take measures to form the availability of staff with appropriate modern competencies and qualifications. It should be borne in mind that today there are two parallel processes: the formation of digital competencies in staff of existing professions and the emergence of completely new professions. If we conditionally unite such staff, we suggest calling them “staff 5.0”. As the result of forecasts analysis we have systematized the list of the newest professions of “staff 5.0” for agricultural enterprises. Their appearance is possible in period of 5-10 years (Table 1).
Systematized List Of The Latest Professions Of Staff 5.0, Need For Which Is Due To Implementation Of Industry Tools 4.0 On Agricultural Farm
|Specialized professions for agriculture||General professions|
|Agrocybernetics; Agroengineer; Biohacker (to break the genetic code of organisms)||Specialists in robotic complex; Drone operator, cross-logistics operator; Telemetry data interpreter engineer|
|GMO-agronomist; City Farmer; Zootechnician; Engineer - zoogeneticist; Engineer in the field of synthetic biology; Cyberorganism designer||Operator for maintenance of robotic systems; Agricultural Equipment Supervisor; Robotic systems engineer;|
|3D Food Printing Engineer||Big Data Analyst; 3D architect; 3D engineer|
|Occupations related to certain types of security|
|Related to environmental safety||Related to other types of security|
|Waste disposal managers; Specialists in overcoming systemic environmental disasters||Business Continuity Managers; Renewable and alternative energy professionals|
|Eco-analytics in agriculture; Eco-recyclers in agriculture; Ecoconductor; Eco-auditor||Ergonomic designers wearing safety devices; Personal security designers; Remote security coordinators; Auditors of integrated safety in agriculture|
Source: Systematized by Mishchuk Іе (2021) based on data from Agronews (2019); AgroRobota (2019); New Education Portal (2021).
Therefore, an important step in ensuring of enterprise economic security is to assess the current, desired (necessary-appropriate to level of digital maturity of enterprise) and the projected level of 5.0 staffing. Therefore, the analysis of the processes of agricultural enterprises economic security ensuring should begin with identifying the degree of actual staffing of the above professions. It is important to point out that the emergence of large number of people with a high degree of digital competencies, increasing the level by 5.0 staffing of enterprises increases the relevance of enterprise`s cybersecurity and, consequently, the availability of relevant professionals with even better competencies. Thus, the methodology of formation and provision of economic security should take into account the expanded analytical tools for assessing the security of strategic economic interests (Mishchuk et al., 2021b) (Table 2).
Analytical Indicators For Assessing Of Security Formation Level Of Strategic Economic Interests In Field Of Personnel
|Staff acceptance level with 5.0 competencies||Ratio of number of 5.0 staff employed at enterprise for period to average number of staff for the same period.|
|Redundancy of 5.0 staff||Ratio of number of 5.0 staff, dismissed from enterprise for period to average number of staff for the same period.|
|Total level of 5.0 staff turnover||Ratio of total number of hired and dismissed staff of 5.0 for certain period to average number of staff for the same period.|
|Ratio of hired and fired 5.0 staff||Ratio of number of hired staff with 5.0 competencies for certain period to number of dismissed staff with 5.0 competencies for the corresponding period.|
|5.0 Personnel consistency level||Ratio of number of 5.0 staff, available in lists of enterprise during the entire period (3-5 years) to average number of staff for the corresponding period.|
|5.0 Staff stability level||Ratio of number of 5.0 staff with work experience at enterprise for more than one year (for certain period) to average number of staff for the corresponding period.|
|Level of internal mobility of 5.0 staff||Ratio of number of 5.0 staff, who changed jobs within enterprise to average number of staff during this period.|
|5.0 Staff involvement level on ongoing basis||Ratio of number of 5.0 staff recruited on permanent basis for certain period to average number of staff for this period.|
|Level of 5.0 staff involvement on temporary basis (or 5.0 freelancers)||Ratio of number of 5.0 staff involved on temporary basis (or freelancers) for certain period to average number of staff for the corresponding period.|
|Growth rate of 5.0 staffing||Ratio of growth rate of the company's staffing to 5.0 to growth rate of company's digital maturity level.|
|Digital maturity coefficient||1) Arithmetic mean of following coefficients:
- ratio of number of staff with digital competencies to number of digital jobs;
- ratio of number of staff classified as "5.0 staff" to total number of staff at enterprise during the assessment period;
- ratio of required (desired, specified) level of mastering digital competencies by staff of enterprise to actual level of mastering digital competencies by staff of enterprise;
- ratio of required (desired) number of staff of enterprise with digital competencies to total actual number of staff of enterprise;
- other similar coefficients.
2) The worst-case score is the lowest value of the listed ratios.
Source: Developed by Mishchuk Іе (2021).
In 2020, the Development Center of PJSC “Myronivsky Hliboproduct” implemented a corporate skills development program. The holding has launched a large transformation program called “Myronivsky bakery product CHANGES”. The Department of Innovation was formed in the holding in order to transform it from a seller of products into a culinary company focused on the customer. In 2020, the holding launched a long-term open innovation program called PJSC “Myronivsky Hliboproduct” Innovation Lab to engage local and international startups, entrepreneurs and educational institutions to join forces to meet the needs of people related to food. The project ecosystem, created in PJSC “Myronivsky Hliboproduct” for professional development and career growth of the holding's staff, received high recognition from colleagues and was included in the rating of “TOP-10 best training programs”. The Center for Evaluation and Development opens new unique opportunities for professional and personal growth. The center works in three key areas. The “Management Program” provides staff with unique opportunity to study using the technologies of the world's leading business school INSEAD, which is included in the TOP-3 of the world ranking of the best business schools, and on the basis of the knowledge of international teachers. Its graduates may in the future occupy leading positions in the holding structures. The E-learning program is the system of distance online learning with constantly updated database of unique materials (online courses, etc.), available without restrictions to every employee of the holding. Its use is possible without reference to place or time - the knowledge base is available 24X7. The Hard Skills program is an internal professional certification system that contributes to the development of professional skills of the holding's staff (Sustainable Development Report, 2020). The listed innovations made it possible to achieve such indicators (Table 3).
Individual Analytical Indicators For Pjsc "Myronivsky Bread Product" In 2020
|Indicator||Values, fractions of a unit|
|Acceptance rate of staff with competencies of 5.0||0.67|
|Layoff rate of 5.0 staff||0.31|
|Level of 5.0 staff total turnover||0.85|
|Level of 5.0 staff internal mobility||0.27|
|Level of 5.0 staff engagement permanently||0.54|
|Level of 5.0 staff engagement on part-time employment||0.13|
The data obtained do not correspond to the normative values recommended in work (Mishchuk, 2021). Therefore, it is advisable for the holding to continue staffing in the direction of strengthening the 5.0 staffing.
To ensure the economic safety of company based on the development of innovative potential of staff it is necessary to form concept (general idea) for its implementation at the enterprise (Figure 1).
Figure 1: Concept Of Development Of Staff Innovative Potential To Ensure Economic Security Of Enterprise.
A prerequisite for formation of this concept is the recognition of problem of innovative competence insufficient level of staff. Based on this, it is necessary to assess the initial state of development of the innovative potential of staff, to determine the level of initial innovative competencies of staff for their further development. This state (level) is the starting point from which there will be movement in achieving the goal and the desired results of ensuring the economic security of enterprise. To achieve the goal, the concept provides for program formation of the innovative potential development of enterprise`s staff and the implementation of relevant tasks. To do this, it is necessary to determine the priorities for the further development of the staff innovative potential. For example, in agriculture, they can be training workers in geoinformation technologies to draw up maps of current and future changes in precipitation, temperature, yield, plant health, etc. The basis for the formation of program for the innovative potential development of staff is its preliminary assessment. On its basis the strategy of development of staff innovative potential of enterprise is built, those competences which are required by innovatively active workers of the concrete enterprise are defined.
Realization of development of enterprise`s staff innovative potential occurs by means of complex of methods. The most commonly used methods in practice are self-assessment by staff, the competence interviews, the expert methods, the qualimetric assessment, the methods of modeling situations and business games, and others. According to the chosen methods and expected results of development of innovative potential of the personnel of the enterprise the mechanism of its management is formed. It is dynamic formation that includes the purpose, objectives, principles and tools for managing the development of innovation potential of staff and provides an effective process of obtaining the expected result of such development. This management mechanism also determines the areas of staff incentives to develop their own innovation potential, strategic and current planning of the learning process, its financing and more. The central place in the concept of economic security of the enterprise is given to the program of development of innovative potential of the personnel.
It is offered to consider the following main directions of development on the basis of the competence approach: the development of innovative competence of workers on professional direction and accompanying abilities; training to resist resistance to innovation; development of strategic innovative thinking in the aspect of ensuring economic security in the long run.
The study revealed the mutual influence of the exchange trade and of the level of enterprise economic security. It is determined that exchange trade is almost inaccessible to agricultural enterprises in Ukraine. This is due to both internal reasons (low competitiveness) and external (specifics of the country's trade policy and others). It is shown that only those enterprises whose economic security is at a fairly high level can withstand the existing challenges and threats. It is proved that ensuring of the enterprises economic security is impossible without highly qualified and innovative staff. The methodology of formation of economic security (which can be useful to enterprises of all branches of economy) within which the expanded analytical tool of estimation of safety of enterprises strategic economic interests which includes coefficients of presence and staff movement with 5.0 competences is offered. The general idea of application of competence approach at research of development of innovative potential of the enterprise`s staff is formed. It is proposed to consider the competency approach as the management tool in the system of development of innovative potential of enterprise personnel for acquisition, expansion, deepening of necessary competencies and formation of behavioral model of staff in innovative activity at formation of economic security of enterprise. The concept is proposed, within of which the mission, goal, objectives, methods, directions and the result of the development of the innovative potential of enterprise staff are determined on the basis of a competency-based approach. It is substantiated that for such development it is necessary to develop staff innovative competence, to form their professional behavior and innovative principles.
Mishchuk Ievgeniia: Ideas, including developed a methodology for the formation of economic security of the enterprise on the basis of providing the enterprise with 5.0 competencies staff, proposed analytical tools for assessing the current and forecast level of such formation; Adamenko Maryna: The idea of a competency-based approach to the development of the innovative potential of the company's staff; developed the concept of development of innovative potential of staff, substantiated the basic provisions of the concept; Tkachenko Sergii: Studied IT technologies in agriculture and their impact on the competitiveness of enterprises, as well as analyzed data on PJSC “Myronivsky Hliboproduct”. Riabykina Nataliia, Riabykina Yekateryna: Investigated issues related to exchange activities on the example of agricultural enterprises; Bondarchuk Olga: Conducted a review of recent publications and research.
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Received: 26-Nov-2021, Manuscript No. ASMJ-21-10063; Editor assigned: 29-Nov-2021, PreQC No. ASMJ-21-10063(PQ); Reviewed: 20-Dec-2021, QC No. ASMJ-21-10063; Revised: 14-Feb-2022, Manuscript No. ASMJ-21-10063(R); Published: 24-Feb-2022