Adaptation of business entities in the agrarian sector of the economy to activities in wartime conditions

Mykola Malik, Svitlana Kravchenko, Oleksandr Shpykuliak, Larisa Malik and Valentina Yuzhykova

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2022, vol. 29, issue 6

Abstract: The need for business entities to exit from an extreme state activates the development of processes of adaptation of business entities to functioning in wartime conditions. The purpose of the article is to substantiate the theoretical and methodological principles, socio-economic and legal problems of adaptation of business structures to activities in extreme conditions. System analysis and institutional economic theory served as the methodological basis of the research. Normative, graphic, abstract-logical methods and approaches to summarizing the results were used. Prospects for the development of entrepreneurship have been determined. It was established that during the period of economic recovery, issues of material and technical and financial support of production facilities and logistics routes will be problematic. The economic difficulties of large corporate structures are revealed (destruction of assets, disruption of logistics connections, blocking of sales markets). The essence of adaptation of business entities to activities in the conditions of armed conflict, functioning in wartime conditions, and integration-cooperative structures from the point of view of systemicity is substantiated. The concept of “adaptation” of business entities is clarified as a process of development and application of strategies for reflection by the enterprise and its structures of the effects of the consequences of the war in the management decision-making system to ensure competitiveness and efficiency of functioning. It was established that the adaptation of business entities to risk conditions in the post-war period will contribute to the development of integration structures (cooperatives, simple societies, cluster associations), the growth of independence in determining the programs of their economic activity, ensuring the interest of peasants as commodity producers with the rights of formal bearers of entrepreneurial status to meet their economic and social needs. It was found that the most adapted to the crisis conditions associated with military operations are farms and private peasant farms. The results of the study can be taken into account when developing programs for determining the priorities of the development of agrarian entrepreneurship subjects, in particular, integration-cooperative structures; development of regulatory and legal acts for the formation and development of cooperation and integration in the agrarian sphere of the economy

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 2022
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