INNOVATIVE DEVELOPMENT OF ENTERPRISES: THE ESSENCE AND FEATURES IN THE SPHERE OF TRADE

• Main Author: К. Poliaskovska
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2014-09-01
• Series: Економіка розвитку
• Subjects: innovative development; management; innovation strategy; innovation activity; innovation policy; trade; enterprise
• Online Access: http://www.ed.ksue.edu.ua/ER/knt/ee143_71/e143pol.pdf

The relevance of the study lies in the fact that the issue of defining the essence of the concept of innovative development of a trading enterprise has been paid insufficient attention. The features of the innovative policy of commercial enterprises, conditions of their innovative strategies choice have not been properly studied either. The purpose of the research is to clarify the concept of innovative development of a trading enterprise based on a critical analysis of the definitions of the term "innovative development", to define the innovation policy features of modern trade enterprises and compare innovation strategies acceptable to them. The methods of comparative and critical analysis, systematization, observations and interviewing were used. Following the research findings the concept of innovative development of a trading enterprise was clarified which is proposed to imply such a type of development, which can only be realized with a proper level of innovative capacity and which is focused on the continuous search for the most effective use of this potential, taking into account innovation activity acceptable to trading enterprises, as defined in the innovation policy and/or innovation strategy of an enterprise. The interrelation of the innovative development of companies operating in trade (as well as in other areas and sectors of the economy) with their innovative activities related to all sorts of innovations, which cause changes in both the companies themselves and their industrial environment development was revealed. It was found that innovation management of any trade enterprise is effected through the development and implementation of the innovation policy and innovation strategy. It is proved that innovation policy is part of the general policy of a trade enterprise, it regulates the procedure of its economic activity and aims at identifying innovative approaches to the management activities of a company, development of regulations, standards and practices of this activity. Limitations in the formation of innovation policy of trading enterprises may be: type and size of a company, type of trade structure, trade equipment and selected trade technologies, lifecycle of innovations, changes in market conditions and the like. It was determined that the main feature of innovation policy of a trade enterprise is that it focuses on the process (technological innovation) related to consumer service, and marketing innovations. The expediency of the view was supported as to the treatment of the essence of the concept innovation strategy as a long-term course, which is forward-looking and involves the formation of preferences due to different kinds of innovation. The study clarified the definition of innovative development of a trading enterprise, in which, unlike the current ones the emphasis is put on the feasibility of an innovative type of development only provided an adequate level of innovation capacity and acceptalility of certain innovation achivity/innovation to trade enterprises. The following conclusions were dvawn: 1) now the main feature of innovative development policy in the field of trade is associated with a focus on marketing and technological innovation in the customer service; 2) the adequacy of a particular innovation strategy for a trade enterprise depends on the market situation and the internal capacity (especially innovation) of the company. In recent years the most common strategies of trading enterprises lave been the traditional, opportunistic and innovative offensive ones. The results obtained can be further used to study the innovative development at different stages of the life cycle of trade enterprises and model the management features of the innovative development process at these enterprises.