IDEAS home Printed from https://ideas.repec.org/a/ags/areint/330357.html
   My bibliography  Save this article

Economic-mathematical model of enterprise profit maximization in the system of sustainable development values

Author

Listed:
  • Skrynkovskyy, Ruslan
  • Pavlenchyk, Nataliia
  • Tsyuh, Svyatoslav
  • Zanevskyy, Ihor
  • Pavlenchyk, Anatoliі

Abstract

Purpose. The purpose of the research is to improve the economic-mathematical model of enterprise profit maximization in the system of sustainable development values. Methodology / approach. The work uses the methods of system analysis, systematization, generalization and specification, the graphic method and the method of comparison (of processes, indicators, etc.), as well as economic-and-mathematical methods of system modeling and expert methods. Results. It was improved the structural scheme (triple-continuum model as a conceptual scheme of information technology) of managing financial and technological processes, innovation risks, which takes into account the impact of innovations on the activity (internal variables, business processes) of the enterprise, restrictions (on production, implementation, supply, finance) and conditions of their compliance with the optimal amount of production (realization), as well as a synergistic effect in the context of profit maximization, in the system “type of innovation – type of development”, in the system of values of sustainable development. This structural scheme is the basis of the proposed economic-mathematical model of enterprise profit maximization in the sustainable development values. A multiplicative criterion of management efficiency is proposed, which includes methods for determining the level of quality of enterprise development and managing enterprise development in the “type of innovation – type of development” system. It was found that the level of quality of enterprise development (in the production management system and taking into account the system of marketing goals) depends on: the level of rhythmicity and defect-free production; level of satisfaction of consumer needs with finished products. Originality / scientific novelty. The economic-mathematical model of enterprise profit maximization in the sustainable development values has been improved, which is based on theoretical and applied principles of management, marketing, takes into account the peculiarities of the system of diagnostic goals of economic diagnostics, tools for monitoring the parameters of the enterprise's activity, their relationship, and also contains separate provisions of the theory constraints, methods of optimization and economic-mathematical modeling, and, unlike the existing ones, in view of the research of operations, allows solving the general economic problem in practice - enterprise profit maximization in the sustainable development values. Practical value / implications. The results of the research can be used in the practical activities of enterprises of all forms of ownership.

Suggested Citation

  • Skrynkovskyy, Ruslan & Pavlenchyk, Nataliia & Tsyuh, Svyatoslav & Zanevskyy, Ihor & Pavlenchyk, Anatoliі, 2022. "Economic-mathematical model of enterprise profit maximization in the system of sustainable development values," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(4), December.
    • Handle: RePEc:ags:areint:330357
    DOI: 10.22004/ag.econ.330357
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/330357/files/9_Skrynkovskyy_article.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.330357?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Aparicio, Juan & Borras, Fernando & Pastor, Jesus T. & Vidal, Fernando, 2015. "Measuring and decomposing firm׳s revenue and cost efficiency: The Russell measures revisited," International Journal of Production Economics, Elsevier, vol. 165(C), pages 19-28.
    2. Hashimzade, Nigar & Myles, Gareth & Black, John, 2017. "A Dictionary of Economics," OUP Catalogue, Oxford University Press, edition 5, number 9780198759430.
    3. Vu, Quang & Nga, Nguyen Thi Thuy, 2022. "Does the implementation of internal controls promote firm profitability? Evidence from private Vietnamese small- and medium-sized enterprises (SMEs)," Finance Research Letters, Elsevier, vol. 45(C).
    4. Olga Melnyk & Andrii Todoshchuk & Marta Adamiv, 2018. "The Role Of Socio-Economic Diagnostics In An Enterprise Management System," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(3).
    5. Qingxian An & Yao Wen & Junfei Chu & Xiaohong Chen, 2019. "Profit inefficiency decomposition in a serial-structure system with resource sharing," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 70(12), pages 2112-2126, December.
    6. Anatolii Kucher & Lesia Kucher & Ruslana Taratula & Lesia Dudych, 2021. "Formation of Sustainable Competitiveness of Enterprises on Soils of Different Quality," International Journal of Information Systems in the Service Sector (IJISSS), IGI Global, vol. 13(3), pages 49-64, July.
    7. Wei Gu & Thomas L. Saaty & Lirong Wei, 2018. "Evaluating and Optimizing Technological Innovation Efficiency of Industrial Enterprises Based on Both Data and Judgments," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 9-43, January.
    8. Anna Rutkowska-Ziarko, 2020. "Profitability Ratios in Risk Analysis," Springer Proceedings in Business and Economics, in: Krzysztof Jajuga & Hermann Locarek-Junge & Lucjan T. Orlowski & Karsten Staehr (ed.), Contemporary Trends and Challenges in Finance, pages 77-88, Springer.
    9. Bernd Andreas Wiech & Athanassios Kourouklis & James Johnston, 2019. "Understanding the components of profitability and productivity change at the micro level," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 69(5), pages 1061-1079, September.
    10. Olha Kravchenko & Anatolii Kucher & Maria Hełdak & Lesia Kucher & Joanna Wysmułek, 2020. "Socio-Economic Transformations in Ukraine towards the Sustainable Development of Agriculture," Sustainability, MDPI, vol. 12(13), pages 1-16, July.
    11. Chen, Jihui & Waters, George, 2017. "Firm efficiency, advertising and profitability: Theory and evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 63(C), pages 240-248.
    12. Cherchye, Laurens & Verriest, Arnt, 2016. "The impact of home-country institutions and competition on firm profitability," International Business Review, Elsevier, vol. 25(4), pages 831-846.
    13. Ren, Jing & Sun, Hao & Xu, Genjiu & Hou, Dongshuang, 2020. "Prediction on the competitive outcome of an enterprise under the adjustment mechanism," Applied Mathematics and Computation, Elsevier, vol. 372(C).
    14. Izabela Jonek-Kowalska, 2022. "Effectiveness of Enterprise Risk Management," Springer Books, Springer, number 978-3-030-95376-8, December.
    15. E J Levin & Y Ma & R E Wright, 2004. "Profit maximization in a multi-product firm with impatient customers," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(3), pages 211-218, March.
    16. Pasquale De Luca, 2018. "Analytical Corporate Valuation," Springer Books, Springer, number 978-3-319-93551-5, December.
    17. Fedicheva, Krystyna & Kochetkov, Oleksii & Honcharenko, Stanislav & Levkina, Ruslana & Bichevin, Maksym, 2021. "Controlling, monitoring and diagnostics in identifying effective management practices of agricultural enterprises," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(2), June.
    18. Huang, Chia-Hui & Hou, Tony Chieh-Tse, 2019. "Innovation, research and development, and firm profitability in Taiwan: Causality and determinants," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 385-394.
    19. Pavlenchyk, Nataliia & Horbonos, Fedir & Pavlenchyk, Anatoliі & Skrynkovskyy, Ruslan & Pawlowski, Grzegorz, 2021. "Increasing the competitiveness of enterprises based on the use of marketing management tools," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(3), September.
    20. Junke Chen & Yifan Liu & Qigang Zhu, 2022. "Enterprise Profitability and Financial Evaluation Model Based on Statistical Modeling: Taking Tencent Music as an Example," Mathematics, MDPI, vol. 10(12), pages 1-17, June.
    21. Harald Wiese, 2021. "Advanced Microeconomics," Springer Books, Springer, number 978-3-658-34959-2, December.
    22. Gennady Shvachych & Elena Kholod, 2017. "Research Of The Enterprise Profitability Strategy," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 3(5).
    23. Izabela Jonek-Kowalska, 2022. "Assessment Model of the Effectiveness of Enterprise Risk Management: A Research Methodology," Springer Books, in: Effectiveness of Enterprise Risk Management, chapter 5, pages 67-79, Springer.
    24. Shuai Shao & Zhigao Hu & Jianhua Cao & Lili Yang & Dabo Guan, 2020. "Environmental Regulation and Enterprise Innovation: A Review," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1465-1478, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhong, Ziqi & Zhao, Elena Yifei, 2024. "Collaborative driving mode of sustainable marketing and supply chain management supported by metaverse technology," LSE Research Online Documents on Economics 121160, London School of Economics and Political Science, LSE Library.
    2. Shebanina, Olena & Burkovska, Anna & Petrenko, Vadym & Burkovska, Alla, 2023. "Economic planning at agricultural enterprises: Ukrainian experience of increasing the availability of data in the context of food security," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shebanina, Olena & Burkovska, Anna & Petrenko, Vadym & Burkovska, Alla, 2023. "Economic planning at agricultural enterprises: Ukrainian experience of increasing the availability of data in the context of food security," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.
    2. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    3. Yuanyang Wang & Yanlin Yang & Chenyu Fu & Zengzeng Fan & Xiaoping Zhou, 2021. "Environmental regulation, environmental responsibility, and green technology innovation: Empirical research from China," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-21, September.
    4. Ying Shu & Xiaobin Zhuang & Rui Ying & Guanghua Xu, 2024. "Formal Institutional Pressure and the Integration of Corporate Environmental and Financial Performance: Empirical Evidence from Listed Companies in Heavily Polluting Industries in China," Sustainability, MDPI, vol. 16(6), pages 1-20, March.
    5. Oliwia Khalil-Oliwa & Izabela Jonek-Kowalska, 2024. "Determinants of the Effectiveness of Risk Management in the Project Portfolio in the FinTech Industry," Risks, MDPI, vol. 12(7), pages 1-27, July.
    6. Sara Picas & Pedro Reis & António Pinto & José Luís Abrantes, 2021. "Does Tax, Financial, and Government Incentives Impact Long-Term Portuguese SMEs’ Sustainable Company Performance?," Sustainability, MDPI, vol. 13(21), pages 1-16, October.
    7. Buitrago R., Ricardo E. & Barbosa Camargo, María Inés, 2021. "Institutions, institutional quality, and international competitiveness: Review and examination of future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 423-435.
    8. Anna Rutkowska-Ziarko & Lesław Markowski, 2022. "Accounting and Market Risk Measures of Polish Energy Companies," Energies, MDPI, vol. 15(6), pages 1-21, March.
    9. Jia, Shaoqing & Yang, Liuyong & Zhou, Fangzhao, 2022. "Geopolitical risk and corporate innovation: Evidence from China," Journal of Multinational Financial Management, Elsevier, vol. 66(C).
    10. Xiaoming Peng & Yihao Li & Chengxin Guo & Liang Peng & Sijin Tan, 2023. "“Risk” or “Opportunity”? The High Sensitivity of Corporate Green Innovation to Environmental Policy Uncertainty: Evidence from China," Sustainability, MDPI, vol. 15(11), pages 1-18, June.
    11. Siying Long & Zhongju Liao, 2021. "Are fiscal policy incentives effective in stimulating firms' eco‐product innovation? The moderating role of dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3095-3104, November.
    12. Qi, Xiulin & Wu, Zhifang & Xu, Jinqing & Shan, Biaoan, 2023. "Environmental justice and green innovation: A quasi-natural experiment based on the establishment of environmental courts in China," Ecological Economics, Elsevier, vol. 205(C).
    13. Gull, Ammar Ali & Ahsan, Tanveer & Qureshi, Muhammad Azeem & Mushtaq, Rizwan, 2023. "Striving to safeguard shareholders or maintain sustainability in periods of high uncertainty: A multi-country evidence," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    14. Wang, Weilong & Wang, Jianlong & Wu, Haitao, 2024. "The impact of energy-consuming rights trading on green total factor productivity in the context of digital economy: Evidence from listed firms in China," Energy Economics, Elsevier, vol. 131(C).
    15. Farah, Bassam & Chakravarty, Dwarka & Dau, Luis & Beamish, Paul W., 2022. "Multinational enterprise parent-subsidiary governance and survival," Journal of World Business, Elsevier, vol. 57(2).
    16. Zeng, Juying & Pagàn-Castaño, Esther & Ribeiro-Navarrete, Samuel, 2022. "Merits of Intercity Innovation Cooperation of Environment-friendly Patents for Environmental Regulation Efficiency," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    17. Luo, Haohan & Wang, Haijun & Wu, Ying, 2023. "Advertising and corporate cash holdings," Finance Research Letters, Elsevier, vol. 58(PB).
    18. Joana Ramanauskaitė, 2021. "The Role of Incumbent Actors in Sustainability Transitions: A Case of LITHUANIA," Sustainability, MDPI, vol. 13(22), pages 1-19, November.
    19. Johannes Zahner, 2020. "Above, but close to two percent. Evidence on the ECB’s inflation target using text mining," MAGKS Papers on Economics 202046, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    20. Azeez Oyebanji Abiola & Igbekoyi Olusola Esther & Adeyemo Foluke Helen, 2024. "Environmental Risk Management and Financial Performance in Listed Multinational Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(12), pages 50-74, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:areint:330357. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://are-journal.com/are .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.