FEATURES OF BUSINESS INNOVATION IMPLEMENTATION IN THE EU ENTERPRISES IN THE CONTEXT OF ECONOMIC INSTABILITY AND RESOURCE CONSTRAINTS
In the context of increased instability in the global economy due to the COVID-19 pandemic and the full-scale war in Ukraine, enterprises in different countries face significant resource constraints. Therefore, the implementation of new organizational, managerial, and marketing methods, which are...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | deu |
| Published: |
Alfred Nobel University
2025-07-01
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| Series: | Academy Review |
| Subjects: | |
| Online Access: | https://acadrev.duan.edu.ua/images/PDF/2025/2/17.pdf |
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| Summary: | In the context of increased instability in the global economy due to the COVID-19 pandemic and
the full-scale war in Ukraine, enterprises in different countries face significant resource constraints.
Therefore, the implementation of new organizational, managerial, and marketing methods, which are
less costly compared to new products and technologies, is of particular importance.
The study of the specific features of business innovation implementation in EU enterprises
was conducted based on the results of the Community Innovation Survey and the Oslo Manual
recommendations. It was found that during the 2020 crisis associated with the COVID-19 pandemic,
and in the context of limited funds for financing innovation activities, EU enterprises reduced the
implementation of product innovations and, conversely, more actively implemented business process
innovations. The most popular business process innovations were related to information processing and
communications, as well as organizational decision-making and the management of external relations.
In addition, enterprises have been actively implementing business process innovations related to
decision-making and human resource management, as well as marketing methods such as promotion,
packaging, pricing, product placement, and after-sales service. At the same time, innovations related to
new methods of producing goods and services (technological processes), as well as logistics, supply,
or distribution of resources, goods, or services, were much less in demand.
Based on the CIS 2020 data, the reasons for the hampering of innovation activity by EU enterprises
were revealed. It can be assumed that the most important reason for the reduced implementation of new
products and production methods by enterprises during the crisis is their desire to reduce costs in the
face of resource constraints and lack of funds to finance innovation activities. In turn, the continuous
updating of information technologies necessary for successful business, as well as the implementation
of less expensive new organizational, managerial, and marketing methods, allows enterprises to
compensate for the temporary halt in the introduction of new products and technological processes.
It is concluded that new organizational, managerial, and marketing methods can replace product
innovations and new production methods during periods of economic instability and crisis. Therefore,
these types of innovations can be considered substitutes. Moreover, during times of economic
instability and resource constraints, the introduction of less expensive new organizational, managerial,
and marketing methods becomes a priority. A comparison of the innovation activities of EU enterprises
during the 2020 COVID-19 crisis with those during the 2007-2009 financial and economic crisis led
to the conclusion that the trend mentioned above is long-term. This trend should be taken into account
when developing an innovation policy for Ukrainian enterprises, both under martial law and during
post-war recovery. |
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| ISSN: | 3041-2137 3041-2145 |