The contextualized system of determining the smart online business development
Economic Annals-ХХI: Volume 195, Issue (1-2), Pages: 50-58
Citation information:
Natorina, A., Bavyko, O., & Bondarchuk, M. (2022). The contextualized system of determining the smart online business development. Economic Annals-XXI, 195(1-2), 50-58. doi: https://doi.org/10.21003/ea.V195-05
Alona Natorina
D.Sc. (Economics),
Professor,
Department of Trading Business and Logistics,
Faculty of Trade and Marketing,
Kyiv National University of Trade and Economics
19 Kyoto Str., Kyiv, 02156, Ukraine
alyonanatorina@gmail.com
ORCID ID: https://orcid.org/0000-0001-6367-879X
Oleksandr Bavyko
D.Sc. (Economics),
Professor,
Department of Entrepreneurship and Trade,
Institute of Economics and Management,
Odessa Polytechnic National University
1 Shevchenko Ave., Odessa, 65044, Ukraine
o.ie.bavuko@op.edu.ua
ORCID ID: https://orcid.org/0000-0002-0087-2656
Marіia Bondarchuk
PhD (Economics),
Associate Professor,
Department of Entrepreneurship and Trade,
Institute of Economics and Management,
Odessa Polytechnic National University
1 Shevchenko Ave., Odessa, 65044, Ukraine
bondarchuk.m.ie@op.edu.ua
ORCID ID: https://orcid.org/0000-0001-5895-4868
The contextualized system of determining the smart online business development
Abstract. Based on the analysis of today’s tendencies and trends, as well as considering the transformational shifts in the business Internet field due to COVID-19 and total digitalization, the value of implementing a smart online business development system is proven. It requires the implementation of a process approach and business processes customization for creating maximum buyers value. According to the results of generalization and systematization of data from leading scientists and economists, specialists in online retail, it is established that the problem of developing a smart system for managing and developing business in the online environment is still fragmentarily studied.
Considering the above, the purpose of the study is to develop an online business smart development system that is congruent to the context and allows to comprehensively assess and analyze aspects of product, pricing, communication, sales and logistics activities, as well as make justified management decisions. To achieve the purpose, it is used general scientific approaches and methods: complex and structural approaches; methods of system analysis and synthesis, visualization method; special analysis methods, among which logical, economic-mathematical and comparative; method of expert evaluations. For the study, it is selected 21 online stores of the biggest Ukrainian retailers divided into three clusters.
It is developed the contextualized system for determining the smart online business development (CSDSOBD), which includes product, price, communication, sales and logistics substantial subsystems. It is a complex multi-aspect system representing cyclic-continuous and discrete-linear connections and relations between retailers and buyers in the online environment. The specificity the CSDSOBD – the communication polysubjectivity and managerial decisions polyvariability based on the online buyers’ interactivity features with a symbiosis of the economic and social orientation of the strategic the enterprises’ goals. The CSDSOBD foundation – existential management of substantial subsystems based on stochastic fluctuations in the parameters of the external environment and its influence on the online buyers’ behavior. The CSDSOBD key competitive advantage – coherent mechanism for determining the online business smart development in a fluctuating marketing environment. It is proposed the scientific and methodical approach to identify the CSDSOBD development focus consists in determining the level of development of the substantial subsystems based on the results of quantitative and qualitative assessments of the relevant metrics.
After approbation of the approach, the recommended measures to improve of the CSDSOBD substantial subsystems level development for retailers are presented. The identification of the CSDSOBD development focus is carried out after a comprehensive assessment of the development level of each substantive subsystem. Taking into account the obtained results, it is formulated the activities and measures to improve the efficiency of retailers’ online businesses and make long-term sustainable benefits.
Keywords: Retail; Online Business; Smart Development; Development Focus; Contextualized System; Substantial Subsystem
JEL Classifications: L81; M1; M31
Acknowledgements and Funding: The authors received no direct funding for this research.
Contribution: The authors contributed equally to this work.
DOI: https://doi.org/10.21003/ea.V195-05
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Received 20.09.2021
Received in revised form 22.01.2022
Accepted 26.01.2022
Available online 9.02.2022
Updated version of the paper as of 27.05.2022