Optimization of Value Chains in Regional Economic Systems
Year: 2024
Type: article
Abstract: Topicality. The development of mechanisms for managing regional economic systems (RES) is an important task in the context of decentralization. Optimizing value chains can definitely be called one of the goals of RES management. The topicality of this study is determined by the State Strategy for Regional Development 2021-2027, in particular strategic goal No. 2: "Increasing the level of competitiveness of regions", which include tactical aims dedicated to the providing of the development of a strong and capable regional economy, support for the development of local industries and economic cooperation. Aim and tasks. The aim of the article is to determine the methodological principles of increasing the efficiency of regional economic systems by optimizing economic transactions. Materials and methods. The materials are presented by the results of previous studies, official statistical data and monitoring data obtained from territorial communities in the field of community assistance of the development of economic activity, stimulating of economic cooperation and rationalization of forms and methods of cooperation of business entities on the basis of balancing of the economic interests of community members. The methods of system analysis, modeling methods and determination of patterns of formation and development of economic systems in regions and communities are used. Research results. The possibility of optimizing value creation chains in conditions of cooperation (economic cohesion) in RES is shown. Examples of such optimization using the methods of operations research and simulation modeling are given. An analogy between management in corporations and in economically cohesive regional systems is presented. The difference between management methods in corporations and economic systems based on cooperation is taken into account. These differences are primarily due to different management structures. Proposed solutions to ensure the optimization of value chains for regional economic systems in which there is no clear hierarchy, the management system is decentralized and decisions are usually made collegially. Conclusion. Cooperation relations in RES can be considered as a basis for managing economic processes with the aim of maximizing the common good, therefore, in economically cohesive RES, the task of optimizing value chains becomes relevant. Operations research and simulation modeling methods can be used to solve value chain optimization problems.
Source: Economic innovations
Authors: O.I. LAIKO, M.B. YEZHOV, O.V. VOROBIOVA
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405330952