Development of a structural-functional model for the implementation of the methodological approach to assessing the business network effectiveness

Abstract

During the economic crisis, to ensure sustainable development, the use of network forms of business organization in Ukraine is one of the most effective. However, given that business networks are hierarchical organizations, the problem of continuous monitoring of economic activity is updated to make the necessary effective management decisions. In this paper, using the structural and functional modeling method, a model is developed, which is an integral part of the methodological approach to assessing the business network effectiveness. The model combines empirical, theoretical and mathematical approaches to assessing the effectiveness of the network-based business organization and is based on a combination of qualitative and quantitative characteristics of business network activity. This approach ensures the objectivity of evaluating the properties of its functioning. A system of factors for a qualitative assessment of the effectiveness of a business network functioning was determined by an expert assessment method involving 40 managers of four companies in Ukraine. Determining the result deviations, in comparison with the accepted factors of the qualitative characteristics of networks, reveals the existing trends in the development of future events in terms of the risk of certain types of the business network activity. The results obtained are practical and will be useful for business network managers in developing an effective management strategy. Valeria Dykan (Ukraine), Oleksandr Pakharenko (Ukraine)