Structural links of institutional mechanism of regulation for business entities development
Economic Annals-ХХI: Volume 155, Issue 11-12, Pages: 50-54
Citation information:
Olifirenko, L. (2015). Structural links of institutional mechanism of regulation for business entities development. Economic Annals-XXI, 155(11-12), 50-54. https://ea21journal.world/index.php/ea-v155-11/
Liliia Olifirenko
D.Sc. (Public Administration),
Professor,
Chernihiv National Technological University
95 Shevchenko Str., Chernihiv, 14027, Ukraine
olifirenkoliliya@gmail.com
Structural links of institutional mechanism of regulation for business entities development
Abstract. Introduction. From the perspective of researching the problem, both institutional reforms to decentralise public administration and the formation of globally competitive national corporations are actualised by understanding the relationship between the institutional mechanism and mechanisms of business, market, economic and state regulation.
The purpose of the article is to justify structural links of the institutional mechanism with business, market, economic and state mechanisms as a complex mechanism for regulating business entities development and to improve the basis of implementation of public administration systemic reforms.
Methods. The usage of system analysis allowed us to consider the institutional mechanism by systemic characteristics.
Results. An institutional mechanism is a subsystem of business, market, economic and state regulatory mechanisms and is specifically defined for a certain activity of a business entity. Consequently, an institutional mechanism as a system of institutional norms and rules, creates certain links to coordinate state and market influence on activities of business entities, providing limitations within organisational and legal framework (as a business mechanism) for their multi-vector needs and interests (as an economic mechanism), taking into consideration that economic feasibility is determined by the level of total expenditure during the period of making decisions and their implementation.
Conclusions. It is concluded that the institutional mechanism is a structural component of business, market, economic and state regulatory mechanisms; it is created by certain institutions that differ by content and mode of operation; it is improved through the institutionalization of business entities’ activities and creates new conditions for their activities. These mechanisms have different nature and origin, thus cannot be universal for all business entities. However, the influence of the state on the process of law enforcement of institutions in open economies converts the regulation mechanisms into the universal ones that actualises their improvement in the context of public administration reform.
Keywords: Institutional Arrangement; Economic Mechanism; Market Mechanism; Economic Mechanism; Mechanism of State Regulation
JEL Classification: О17; О29
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Received 10.11.2015