Grin'ko Tatiana Doctor of economics, professor,

Head of Department of economics and enterprise management Oles’ Honchar Dnipropetrovsk National University, Ukraine

PECULIAR FEATURES OF THE STRATEGIC MANAGEMENT OFCOMPANY’S INNOVATIVE DEVELOPMENT

In the context of globalization, the position of a country in the international community is increasingly determined by the level of its competitiveness, which indicates the degree of society’s development and the living standard of its population. In the modern system of economic relations the key factor that provide a competitive economic growth is quality and intensity of innovation. One of the key issues is associated with the development of strategic innovation management where the company is the main driving force. The company plays a key role in shaping the innovation management system and key control elements. Sources of innovation are not exclusively internal or external, their formation is influenced by a range of factors.

In modern science innovation is considered at five levels:

• macroeconomic level (innovation refers to countries’ policies and strategies for the development of science, technology and R&D and aimed at creating a favourable environment for innovation at lower levels);

• mesoeconomic level (institutional innovation, which in many cases is reflected in the so-called regional innovation systems);

• microeconomic level (applies to companies as a major driving force of the innovation process: products, processes, services and business models);

• The level of organizational innovation (is necessary in terms of management of changes in organizations designed to adapt to the new competitive conditions of the environment and focused on the strategic management of innovative technologies and knowledge arising from innovation);

• The level of social innovation (if innovation does not lead to life quality improvements in the above levels, so the “success” of innovation does not matter. Innovations at any level should strive to increase productivity, which should lead to improvements in population’s quality of life).

At the macro level innovation is a key factor of international competitiveness, and hence determines the growth of the national economy as a whole.

At the micro level, innovation is considered as a factor that enhances the company's ability to implement and realize new knowledge of all kinds, not just new technologies to gain and maintain the competitive position.

Innovation should be a factor generating differentiation at each of these levels. And therefore, the important role belongs to the innovation value chain, which includes:

- identification of sources of innovation (where it originates: in the internal or external environment of the enterprise);

- identification of “innovation as a process” (what types and kinds of innovations have been undertaken);

- strategic management of innovation (development of strategic management, where its core consists of two phases listed below);

- identification of innovative projects portfolio (represents the starting point for innovation in various areas of the enterprise’s activity);

- previous stage arises the necessity of development of “Strategic Plan for Innovation”, which should reflect the goals, objectives and outcomes of the innovation process.

There are several ways to activate the innovation process: innovation may arise due to so-called “demand inflation” in response to the market demand or due to the “technology push”. Relationships among suppliers, producers and consumers lead to innovations and, accordingly, we can conclude that the process of innovation does not happen consistently but its different stages are interconnected through several feedbacks.

It should be noted that the production rate of innovation and ideas is a function of the number of employees in the research sector and the stock of knowledge available to these researchers.

M. Porter emphasizes that the microeconomic foundations of innovation in the context of national industrial clusters depend on the interactions among local demand conditions, the presence of unique factors of production, the presence and orientation of serving and supporting industries, as well as the nature of competitive rivalry. Focusing on the analysis of industrial, rather than individual segments of the industry, this point of view emphasizes the level of innovation depends critically on the dissemination of knowledge (spillovers) and the nature of technological interdependence between the relevant sectors [1].

In its turn, the innovative development also depends on: the structure of the workforce and infrastructure, financial structure, market strategy, alliances with other business entities, and especially on the innovative potential of the enterprise. Many of these aspects are complementary. For some authors the innovative potential of enterprises refers to the ability of the enterprise to innovate. This potential depends on the synergy relationships among organizational culture, internal processes and the external environment of the enterprise.

In modern conditions, it is an innovative development which is considered as a driving force operating the companies in the long run and which leads to renovation of the production structures and the emergence of new sectors of economic activity. Accordingly, the innovation-active enterprises have a number of features that can be divided into two large groups of skills:

- Strategic skills: long-term vision, the ability to identify or even anticipate market trends, the willingness and ability to collect, process and integrate economic and technological information;

- Organizational skills: risk management, internal coordination between different functional departments and external agencies, consulting, participation in the process of change and investment in human resources.

Empirical evidence suggests that the success of innovation is closely linked to business performance. First, the introduction of new products or processes enhances the competitive position relative to its competitors. Nevertheless, profitability and growth will be part-time and will last only until the company is able to defend its position over competitors. Second, the process of innovation is fundamentally transforms the business entity by strengthening its internal capabilities making it more flexible and adaptive to the impacts of market factors.

Thus, we can conclude that a competitive advantage is a function of efficiency and is achieved by a business entity to control the value chain of the enterprise.

Real competitive advantage is inherent in the company that has the ability to identify sources of innovative development to identify threats and opportunities and to interpret these signals in order to develop a strategy, acquisition or knowledge creation and technological resources that should be applied for implementing the changes.

Strategic innovation management becomes a tool of the first order, which provides a significant contribution to the success and development of the enterprise.

N. Roberts defines the strategic innovation management as “Organization and management of resources, both human and financial, in order to create new knowledge, methods for generating ideas for new products, processes and services or improving the existing ones and also the transmission and the same ideas in phases of production, distribution and use” [2].

That is, in order to remain on the market, the company must be in a state of flux, and the initiator of these changes should be the enterprise itself.

Innovative development is the result of complex and diversified activity with many interacting components at national and institutional levels. Innovation, understood as the successful application of knowledge or new ways or methods to achieve new goals. In its turn, innovation requires strategic thinking, which always seeks to improve the response to the needs of buyers, whose goal is to get ahead and beat the competitors. Innovation is imperative for survival in turbulent conditions in global markets and the changing dynamics.

The list of references:

1. Портер М. Э. Конкуренция / М. Э. Портер. – М. : Вильямс, 2002. – 496 с.

2. Roberts H. Statistical versus clinical prediction of the stock market / H. Roberts. – Unpublished manuscript, CRSP, University of Chicago, 1967.

3. Трифилова А. А. Управление инновационным развитием предприятия : монография / А. А. Трифилова. – М. : Финансы и статистика, 2003. – 173 с.

4. Черноіванова Г. С. Інноваційний потенціал у концепції розробки інноваційної стратегії підприємства / Г. С. Черноіванова // Вісник економіки транспорту і промисловості. – 2011. – №34. – С. 344–347.