Methodology of innovative strategies formation and selection

Economic Annals-ХХI: Volume 147, Issue 1-2(1), Pages: 36-39

Citation information:
Kovtun, O. (2015). Methodology of innovative strategies formation and selection. Economic Annals-XXI, 1-2(1), 36-39. https://ea21journal.world/index.php/ea-v147-09/

Oleg Kovtun
PhD (Economics),
Associate Professor,
Lviv Academy of Commerce
10 Tuhan-Baranovsky Str., Lviv, 79000, Ukraine
okovtunsr@gmail.com

Methodology of innovative strategies formation and selection

Abstract. A strategy of innovations is proposed as a universal instrument of organizing effective and competitive business in modern conditions (global competition and Euro-integration, liberalization of external economic activity and negative synergy as a consequence of simultaneous negative effects of cyclical, structural, conjectural, financial, monetary, managerial and other crises in the national economy of Ukraine) for domestic enterprises. Herewith, author submits his own conceptual interpretation of the   overall strategy-system and its key sub-strategy – subsystem – the innovative strategy, particularly as logic of business conduct of an enterprise regarding key factors of its functioning and development in long term based on the innovations imperative.

Author proposes to utilize a semantic network of windows-frames for the presentation of enterprise strategy as a system in the form of a certain «strategic toolset» of innovative content and specifically the innovative sub-strategy as its imperative. The proposed frame model is considered as a systemic, universal, and sufficiently presentational means of delivery of knowledge/information about the object and subject of research (management), and therefore of management decisions justification, including strategic ones, which comprise the specific contents of the enterprise strategy.

As added procedures within the frames of review of strategic alternatives and justification of adequate selection, author offers modified methods of strategic business-space modelling, an enterprise positioning in the business-space, and appropriate strategic position of the innovative behavior strategy selecting among discrete options, which ultimately are reduced to the following alternatives-decisions regarding investment in innovation based on the key factors of enterprise business success: increase of investments in innovations, maintenance of investments at the existing level (stabilization), decrease investments in innovations, refusal from investments in innovations based on conventional factors of business success of an enterprise, and investment in innovations based on atypical factors of business success of an enterprise. Herein, in author’s opinion, innovations (and thus investments in innovations) at domestic enterprises must first of all impact technologies of production (more widely – business), managerial decisions, personnel and management methods, and technologies of market access.

Frame approach enables justification and selection of effective and cogent strategy for any enterprise based on innovations with utilization of information technologies and all available databases on both the internal and external environment of an enterprise as well as simultaneous application of various alternative methods of the strategic space modeling and generation within such space strategic alternatives, their review and selection the most suitable, adequate, and effective ones, which will be determining innovative logic of the business conduct of the enterprise regarding key factors of business success in long term.

Keywords: Strategy of Enterprise; Innovation Strategy; Case of Innovative Strategies; Frame Model; Managerial Decisions

JEL Classіfіcatіon: D21; L10; L19; L20; O31

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Received 22.11.2014