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Synergistic Approach To The Capital Adaptation: Capital As A Multifunctional Dissipation System

Author

Listed:
  • Oleksandra Ovchynnykova

    (Petro Mohyla Black Sea National University, Ukraine)

  • Kostiantyn Netudykhata

    (Petro Mohyla Black Sea National University, Ukraine)

Abstract

The research subject of the paper is the process of capital adapting. The purpose of the article is to present capital as a multifunction dissipation system, which consists of the number of interconnected subsystems that operates being under the influence of destabilizing socio-economic factors. There is still no explicit definition of economic adaptation, and capital is not regarded as a set of tangible and intangible assets. Taking into account that the current operating environment, at both the macro and micro levels, may be characterized as unsustainable, and each system strives to organize itself to achieve the main objective, it is worth considering the process of adaptation, using a synergistic approach. This requires looking at the concept of capital as a multifunctional system, firstly, identifying which economic categories are made as subsystems of capital and which of them form capital, secondly, assessing potential areas of adaptation, thirdly, and identifying where adaptation can be targeted in the first place, fourthly. Determination of priority goals is the task of rapid financial analysis, using the results of strategic analysis it is possible to determine long-term goals of adaptation. Methodology. The article uses methods of empirical knowledge aimed at structuring approaches to the concepts of capital, their selection and analysis. Based on the empirical research, theoretical studies have been carried out. It was used such methods us analysis and synthesis, deduction, abstraction and generalization. The conceptual framework is based on the theoretical developments in various scientific fields that have studied capital, the enterprise, the economic system as an economic category, the concept of adaptation, synergies in the economy, and methods of strategic and financial analysis. By examining and analysing existing approaches to the listed issues, it has become possible to propose a definition of capital adaptation as a multifunctional dissipation system. As a result of the research, it became clear that for sustainable adaptation, it is advisable to use the tools of strategic management, and for instantaneous adaptation tools to ensure the economic and financial security of the enterprise. In the process of writing this research, it became clear that it was necessary to study issues related to the characteristics of subsystems, their assessment and analysis in order to make the adaptation process more multifaceted and effective.

Suggested Citation

  • Oleksandra Ovchynnykova & Kostiantyn Netudykhata, 2021. "Synergistic Approach To The Capital Adaptation: Capital As A Multifunctional Dissipation System," Three Seas Economic Journal, Publishing house "Baltija Publishing", vol. 2(1).
  • Handle: RePEc:bal:3seasj:2661-5150:2021:2:1:10
    DOI: 10.30525/2661-5150/2021-1-10
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    More about this item

    Keywords

    capital; capital adaptation; synergistic approach; economic system; enterprise and entrepreneurship;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O29 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Other
    • B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General

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