Innovative Development as Determinant of Corporate Economic Security

Abstract

The current challenges of globalization provide business entities of various economic systems with multifaceted opportunities, while creating new threats to economic security. These and other challenges require enterprises to pay attention to innovation, and improve their economic security. The study substantiates the importance of innovative development as a determinant of corporate economic security. The main purpose is to assess the innovative development state of enterprises, and evaluate its impact on economic security based on the available information and analytical support. To achieve the set goal, the authors proposed an assessment approach for corporate economic security based on the innovative component, and developed a monitoring algorithm for the factors affecting corporate development. The systemic approach was employed to consider the innovative component as a subsystem of corporate economic security, and to measure its impact on corporate development. In this way, the innovative component of corporate economic security could be calculated comprehensively. The methodology takes account of the systemic approach, as well as methodical support for the analysis of components, which is based on rating evaluations, systematic expert evaluations, and ranking scales. Industrial enterprises that pay special attention to innovative development were selected to test the proposed methodical support. In addition, the Harrington scale was adapted to establish the level of corporate economic security. Based on the calculations, it was determined that the studied enterprises have an average and below average level of economic security due to component innovation. Overall, this research presents a suitable algorithm for assessing the level of corporate economic security.