Economics. Ecology. Socium (E-Journal) / Економіка. Екологія.Соціум
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Industrial Process Automation and Business Technology Management: A Cobb–Douglas Elasticity Perspective
Full text linkIntroduction. Technological advances and the emergence of artificial intelligence have contributed to the growing importance of industrial process automation. Furthermore, automation is a key driver of Industry 4.0, impacting industrial productivity and growth. A reliability-based approach is proposed to assess the impact of automation that quantitatively links technology investments to economic indicators, particularly the Cobb-Douglas production function.
Aim and tasks. This study aims to demonstrate a direct link between automation and industrial production using the Cobb-Douglas model. This model bridges the gap between classical production functions and modern technologies through linear and log-linear models, allowing for a more accurate assessment of the impact of automation on industry.
Results. The study found that adding one robot per 10,000 employees corresponds to a 0.055 percentage point increase in the industrial share. After applying the log-linear (Cobb-Douglas) specification, a result/coefficient of 0.53 was obtained, meaning that the industrial share would increase by 0.53% if only a 1% increase in robot deployment were realised. This result confirms that automation is a significant production factor with a proportional effect. The analysis showed that elasticity-based models can capture industrial dynamics more realistically than linear models. The empirical results provide a measurable basis for positioning automation alongside traditional factors, such as labour and capital. The comparative model approach provides evidence for the suitability of the Cobb-Douglas forms in contemporary industrial research, and the empirical findings lay the foundation for further large-scale research with broader datasets.
Conclusions. Automation contributes to the strategic development of industrial competitiveness, and its effectiveness is achieved only in conjunction with innovation, digitalisation, education, and support from institutional and economic environments. Automation increases added value, as confirmed by the Cobb-Douglas model. However, sustainable development also requires human capital, innovation, and effective environmental policies. A comprehensive approach will allow for an objective assessment of the industry's potential and the development of a sustainable development strategy
Strategic Blue Transformation of Aquatic Food Systems: Prerequisites for Partnership and Sustainable Development
Full text linkIntroduction. This study focuses on exploring the opportunities for the “blue” transformation of aquatic food systems in Ukraine and Greece, drawing on international experience. It emphasises that, in global practice, countries face significant challenges in developing comprehensive blue economy strategies, while their effectiveness depends on institutional mechanisms and innovative approaches.
Aim and tasks. This study aims to analyse international approaches and assess the opportunities for implementing an effective “blue” transformation of aquatic food systems in Ukraine and Greece. The tasks include comparing existing strategies and practices, identifying the strengths and weaknesses of national models, and justifying institutional and cluster-based mechanisms that can enhance investment attractiveness and ecological sustainability.
Results. The analysis revealed that Greece possesses substantial practical experience in aquaculture and well-developed institutional forms of cooperation, including sectoral associations and innovation clusters integrated into European support mechanisms. According to the analysis, Greece maintains stable production at around 120-140 thousand tonnes per year. In contrast, Ukraine’s marine aquaculture output remained below 5,000 tonnes until 2016, after which official data are unavailable, illustrating a complete loss of national mariculture reporting and control. This study substantiates the relevance of establishing a Greek-Ukrainian innovation cluster in aquaculture as a tool for internationalisation and integration into the European sustainable development framework.
Conclusions. It demonstrates that both countries must consider the proven effective experience of states that already have national blue economy strategies. The comparative analysis showed that the aquaculture sector in Greece generated USD 810 million in 2022 at 2020 prices, whereas the aquaculture sector in Norway generated over USD 10 billion at 2020 prices. These results confirm the significant productivity gap between leading and peripheral countries, underscoring the strategic importance of establishing transnational innovation clusters to close this gap. The application of the cluster model and international cooperation instruments creates a foundation for shaping competitive and ecologically balanced aquatic food systems
Assessment of Agricultural Biomass Potential in Sustainable Biofuel Production
Full text linkIntroduction. The depletion of fossil energy sources, climate change, and the need to strengthen energy security underscore the strategic importance of bioenergy. Ukraine’s agricultural potential creates the prerequisites for transforming its agro-industrial complex to produce renewable biofuels, which is critically important for achieving energy independence, sustainable rural development, and fulfilling commitments under the European Green Deal. The need to diversify energy sources and reduce dependence on imported fossil fuels makes agricultural biomass (agribiomass) a key resource for sustainable energy production.
Aim and tasks. This study aims to comprehensively assess the raw material potential of agribiomass in Ukraine's agro-industrial complex for biofuel production, analyse projected indicators for the development of global and European biofuel markets, and determine the prospects for the integration of Ukrainian producers into the EU market.
Results. The analysis showed that Ukraine has significant agribiomass potential, particularly from agricultural waste, such as cereals, oilseeds, sugar beets, and livestock manure. An analysis of the global and European biofuel markets revealed steady growth in demand for liquid biofuels (up to 130 Mtoe globally and 21 Mtoe in the EU by 2024), biogas and biomethane (up to 52 Mtoe globally and 28 Mtoe in the EU), and solid biomass (up to 535 Mtoe globally and 58 Mtoe in the EU). An assessment of the agricultural waste potential in Ukraine for 2024 revealed a significant potential for biofuels, amounting to 134.4 thousand tons, 1.8 thousand tons of biodiesel, and 4.1 million m³ of biogas. According to the forecast, in 2026-2030, electricity production at bioenergy plants in Ukraine will grow by 29.25%, mainly due to an increase in biomass production by 31.37%. The EU specialises in advanced biofuels and biomethane, which creates favourable export opportunities for Ukrainian producers.
Conclusions. The effective utilisation of Ukraine’s agribiomass potential, combined with technological innovations and supportive government policies, will not only meet its energy needs and strengthen energy independence. It will also significantly contribute to the decarbonisation of the European economy and the strengthening of energy security. For successful integration into the EU market, Ukrainian producers should overcome barriers such as price instability, supply reliability, and biofuel quality, which requires the creation of a transparent and competitive market and harmonisation of standards
Strategic Risk Management of Digital Transformation in the Economic Security of Industrial Enterprises
Full text linkIntroduction. Digital transformation has become a determinant factor influencing enterprises’ economic security, especially during crises and global concurrences. Despite its numerous advantages, digitalisation poses new risks, such as cyber threats, regulatory instability, and information leaks. Digitalisation as an infrastructure for innovation has become a strategic priority, primarily through the extension of digital government services, cloud resolutions, and metadata analytical tools to support the economic development of industry enterprises.
Aim and tasks. This study aims to develop an integrated system of strategic risk management for digital transformation in industry enterprises’ economic security to minimise economic losses, increase adaptiveness to digital changes, and eliminate risks in industry enterprises’ economic security.
Results. This study analyses modern approaches to ensuring economic security: systemic, risk-oriented, resource-oriented, and integrated approaches. The analysis revealed that only 25.6% of IT enterprises utilise Big Data analytics, while 7.1% employ AI technologies, highlighting the substantial untapped potential for further digital transformation. This study developed a structural model of a digital economic security management platform, including risk analytics, threat management, cyber protection, monitoring, and reporting. A formalised risk estimation model was built, considering financial, operational, and external factors. An integrated approach is suggested to build a digital platform for the management of enterprises’ economic security, which combines risk-oriented methods, cyber-protection, and big data analytics.
Conclusions. This study proposes an approach for digital transformation in economic security management, featuring module architecture to monitor, forecast, and respond to threats. It presents formalised module architecture and a platform structural model for economic security monitoring, comprising four subsystems: financial, operational, risk-oriented, and external factors. The model enables rational resource allocation, threat forecasting, and adaptive decision-making in post-conflict scenarios. Enterprise digital transformation in strategic management and economic security is a key requirement for restoring, strengthening, and safeguarding the national interest
Strategic Innovative Management and Sustainable Development of Industrial Enterprises
Full text linkIntroduction. Amidst the dynamic changes in the competitive environment, strategic management of innovative development is a decisive factor in ensuring the stability and sustainable development of industrial enterprises. Despite the importance of innovative development, many enterprises face problems implementing an effective innovation strategy and lacking an innovative culture due to successfully managing projects with a high share of research and development (R&D).
Aim and tasks. This study aims to analyse the factors that influence the effectiveness of strategic management in the innovative development of industrial enterprises and to form a case for modelling business processes by assessing the cost component of R&D and its components.
Results. The results of the study show that sustainable development of an industrial enterprise is possible under conditions of high-quality strategic management (“Technology Roadmapping” of industrial innovations and the “Open Innovation” model). The effectiveness of strategic management in the development of an industrial enterprise depends on factors such as the development of an innovation culture, investments in innovation processes, the ability of the enterprise to adapt, and the availability of information necessary for making strategic decisions. According to the results obtained in Ukraine, there is an increase in the volume of spending on scientific experiments and developments by 2.1% in 2022 compared to 2018, while spending on applied research increased by 35.3%, with a decrease in spending on scientific experimental developments by 13.1%. According to the results of calculating the correlation coefficient, it was found that there is a close relationship (0.913) between the cost of implementing innovations in production and the cost of R&D, which is the basis for coordinating the modelling of scientific and technical activities and business processes at the regional economy level.
Conclusions. During this research, the features of creating a technological map of innovation at an industrial enterprise were considered, and the open innovation model was adapted to the operating conditions of an industrial enterprise. Considering that the innovative basis of industrial content is formed in different regions of Ukraine with different dynamics, a recommendation was made regarding using interregional cooperation tools to form economic models for the sustainable development of industrial enterprises.Introduction. Amidst the dynamic changes in the competitive environment, strategic management of innovative development is a decisive factor in ensuring the stability and sustainable development of industrial enterprises. Despite the importance of innovative development, many enterprises face problems implementing an effective innovation strategy and lacking an innovative culture due to successfully managing projects with a high share of research and development (R&D).
Aim and tasks. This study aims to analyse the factors that influence the effectiveness of strategic management in the innovative development of industrial enterprises and to form a case for modelling business processes by assessing the cost component of R&D and its components.
Results. The results of the study show that sustainable development of an industrial enterprise is possible under conditions of high-quality strategic management (“Technology Roadmapping” of industrial innovations and the “Open Innovation” model). The effectiveness of strategic management in the development of an industrial enterprise depends on factors such as the development of an innovation culture, investments in innovation processes, the ability of the enterprise to adapt, and the availability of information necessary for making strategic decisions. According to the results obtained in Ukraine, there is an increase in the volume of spending on scientific experiments and developments by 2.1% in 2022 compared to 2018, while spending on applied research increased by 35.3%, with a decrease in spending on scientific experimental developments by 13.1%. According to the results of calculating the correlation coefficient, it was found that there is a close relationship (0.913) between the cost of implementing innovations in production and the cost of R&D, which is the basis for coordinating the modelling of scientific and technical activities and business processes at the regional economy level.
Conclusions. During this research, the features of creating a technological map of innovation at an industrial enterprise were considered, and the open innovation model was adapted to the operating conditions of an industrial enterprise. Considering that the innovative basis of industrial content is formed in different regions of Ukraine with different dynamics, a recommendation was made regarding using interregional cooperation tools to form economic models for the sustainable development of industrial enterprises
Cyber Resilience Key Metrics in Small and Medium-Sized Enterprises
Full text linkIntroduction. Cyber security is a dynamic, human-made environment where information, processes, and technologies converge, making cyber resilience essential for sustainable economic development. Cyber security incidents impede national security, economic stability, and digital transformation, underscoring the need to strengthen cyber capacity globally, especially among small and medium enterprises (SMEs), where each participant’s responsibility is essential in the cyber security landscape. Cyber security, being transdisciplinary, necessitates effectively managing the risks, compliance, and socioeconomic impact of cyber security incidents.
Aim and tasks. This study introduces a cyber resilience metrics framework that consolidates security controls by functional areas, aligns them with incident lifecycle stages, and clarifies the purpose and tasks of each stage.
Results. This study offers an approach for implementing and validating a comprehensive set of cyber security measures, emphasising continuous testing and proactive updates. The cyber resilience metrics framework makes compliance in the evolving cyber security landscape mandatory using a reliability assessment based on Cronbach’s alpha, which measures internal consistency reliability and the credibility of the item set. Frameworks confirm a significant correlation observed in the process of resolving cyber incidents, which means that the more accurate the information acquisition (based on metrics data), the less time is required to resolve the overall incident. Expert validation confirmed that these metrics promote compliance, competitiveness, and effective risk mitigation within a cost-effective framework. The cyber security exercise was conducted in five stages. Cyber simulation exercises and analytical hierarchy processes (AHP) are interconnected as they use a hands-on approach to the hierarchical analysis of cyber security requirements as critical elements.
Conclusions. This study identified key areas of cyber resilience based on the protection of critical infrastructure and the financial sector, using both regular testing of business continuity plans and assessments of cyber capabilities. Experimental studies adopt quantitative and qualitative data to create reliable metrics and frameworks for enhancing SMEs' cyber resilience. Thus, using the optimal cyber resilience metric framework and experiment, cyber resilience metrics can help identify organisational weaknesses in decision-making and resolve cyber incidents
GIS-Based Assessment Model of Resilient Management and Monitoring of Water Resources
Full text linkIntroduction. The management and efficient use of water resources is a crucial and extremely acute problem. This study focuses on geographic information systems (GIS) as a tool for the resilient management and monitoring of water resources. The objective was to create and implement a GIS-based model for managing and monitoring water resources by developing a system of indicators. This model presents future scenarios for Bulgaria based on the assessment of indicators for resilient management and the efficient use of water resources.
Aim and tasks. This study aims to develop and implement a GIS-based model that integrates technical, economic, social, and environmental indicators for the resilient management and monitoring of water resources in Bulgaria. This study focuses on opportunities to improve the effective management and rational allocation of water resources in Bulgaria using geographic information systems.
Results. A comprehensive system of indicators for assessing sustainable water management in Bulgaria was developed, considering economic, technical, social, and environmental criteria. The calculation of the composite index showed a low level of efficiency, and the main problems were water losses during transportation of up to 55-60%, a reduction in investments in wastewater disposal by 40% (2016-2023) and a low level of reuse of treated wastewater. The GIS-based model revealed significant territorial differences in the state of water resources and consumption in Bulgaria. Key problems include high losses in the water supply network, water use for hydropower, and poor water infrastructure, which affect the resilience of water management. Irrational consumption and storage may lead to serious water supply issues in key regions of the country.
Conclusions. Geographic information systems enable the improvement of water resource management by integrating and processing large amounts of data. In response to the identified research questions, the current state of Bulgaria’s water sector was analysed and assessed. The key factors affecting the sustainable management and use of water resources and territorial imbalances in rational water use were identified. Developing a comprehensive strategy that includes infrastructure modernisation, introducing water-saving technologies and improved management efficiency can overcome structural problems in the water sector and prevent water resource shortages
Comparative Approach and Risk Factors in Business Valuation of Shares in Non-Public Companies
Full text linkIntroduction. This study examines the methodological considerations involved in applying the comparative approach and incorporating risk factors when assessing shares in the capital of non-public companies. The lack of open market information significantly complicates the objective assessment of the value of such companies, particularly in the Bulgarian market.
Aim and tasks. This study aims to derive the value of a share of a non-public company by comparing it with public companies and making necessary adjustments with a discount for size and specific risk.
Results. This study applies a comparative approach to the valuation of companies listed on the Bulgarian capital market based on economic indicators for 2021-2023. The value of a company's share was determined based on financial multiples (IC/RI, IC/EVA, ROE, etc.) and a comparative approach, with adjustments for uncontrollability, liquidity, company size, and specific risks. Based on the calculated multiples, companies with higher profitability and efficiency indicators (ROE, ROA, and ROIC) demonstrated better financial stability and competitiveness. For example, ROE values ranged from 0.09 to 0.84, ROA from -0.013 to 0.28, and ROIC from 0.008 to 0.64, with the best performers showing consistently positive results. In contrast, companies with poor or negative performance across most ratios may face higher risk exposure and ineffective management. This is evidenced by extremely low or negative values for IC/RI (–68.99 to 14.42) and IC/EVA (–1,066.39 to 20.11), reflecting inefficient capital allocation and weak value creation. Negative ROA (–0.012) and low ROIC (0.008 to 0.039) suggest potential operational inefficiencies.
Conclusions. The comparative approach to business valuation enables the estimation of the value of a privately held (closed-type) company by applying appropriate adjustments to the financial data of comparable publicly traded (open-type) companies. This study proposes an algorithm for determining a company’s share when considering controlling/non-controlling, the degree of liquidity of a block of shares, size, and specific risk through a comparative valuation approach. Applying such an algorithm in valuation practice is primarily based on the valuer’s professional experience. It can be advantageously used when valuing privately held companies.Introduction. This study examines the methodological considerations involved in applying the comparative approach and incorporating risk factors when assessing shares in the capital of non-public companies. The lack of open market information significantly complicates the objective assessment of the value of such companies, particularly in the Bulgarian market.
Aim and tasks. This study aims to derive the value of a share of a non-public company by comparing it with public companies and making necessary adjustments with a discount for size and specific risk.
Results. This study applies a comparative approach to the valuation of companies listed on the Bulgarian capital market based on economic indicators for 2021-2023. The value of a company's share was determined based on financial multiples (IC/RI, IC/EVA, ROE, etc.) and a comparative approach, with adjustments for uncontrollability, liquidity, company size, and specific risks. Based on the calculated multiples, companies with higher profitability and efficiency indicators (ROE, ROA, and ROIC) demonstrated better financial stability and competitiveness. For example, ROE values ranged from 0.09 to 0.84, ROA from -0.013 to 0.28, and ROIC from 0.008 to 0.64, with the best performers showing consistently positive results. In contrast, companies with poor or negative performance across most ratios may face higher risk exposure and ineffective management. This is evidenced by extremely low or negative values for IC/RI (–68.99 to 14.42) and IC/EVA (–1,066.39 to 20.11), reflecting inefficient capital allocation and weak value creation. Negative ROA (–0.012) and low ROIC (0.008 to 0.039) suggest potential operational inefficiencies.
Conclusions. The comparative approach to business valuation enables the estimation of the value of a privately held (closed-type) company by applying appropriate adjustments to the financial data of comparable publicly traded (open-type) companies. This study proposes an algorithm for determining a company’s share when considering controlling/non-controlling, the degree of liquidity of a block of shares, size, and specific risk through a comparative valuation approach. Applying such an algorithm in valuation practice is primarily based on the valuer’s professional experience. It can be advantageously used when valuing privately held companies
Corporate Governance Diversity and Environmental Performance Disclosure in Sustainability Reporting of Industrial Companies
Full text linkIntroduction. As sustainability goals have become central to the global agenda, society and government institutions have become increasingly aware of the environment and are increasingly concerned about its challenges. Therefore, regulatory authorities have urged companies to be transparent and accountable for their environmental performances. In this context, increasing the number of women on corporate boards has become a central driver of designing and developing corporate sustainability initiatives.
Aim and tasks. This study examines the impact of corporate board structure and female representation on environmental disclosure, as reported in the activity, sustainability, and integrated reports of 40 manufacturing companies listed on the Borsa Istanbul in 2023.
Results. This study examines the impact of gender diversity, particularly female inclusion in audit committees and the number of female board members, on the level of environmental disclosure in sustainability compliance reports. Multiple regression analysis was employed to evaluate the influence of independent variables on environmental compliance. The study of 40 manufacturing companies listed on the Istanbul Stock Exchange in 2023 found that, on average, these companies had a high level of environmental compliance (mean = 39, range = 6–48), with 58% of the companies having a score of 40 or higher. Regression analysis (R² = 0.207; p = 0.037) showed that board gender diversity (β = 2.931; p = 0.006) had a significant positive effect on environmental disclosure, whereas the number of women on the board and presence in audit committees had no such effect. Content analysis indicates a high degree of compliance in the manufacturing sector. The results indicate that companies with female board members have more tendencies to provide high levels of environmental disclosure.
Conclusions. This study demonstrates that board diversity has a positive impact on companies' environmental performance and reporting practices. However, the number of women on boards and female representation on the audit committee were not statistically significant in relation to the level of compliance with environmental disclosure. Further research is needed to understand how board diversity influences environmental management in various industries and countries
The Role Of Quantitative Easing in Stabilising the Chinese Real Estate Market
Full text linkIntroduction. Amid declining external demand, reduced domestic consumption, and issues with excess production capacity, authorities in several countries, including China, were forced to resort to quantitative easing to support the national economies. Additionally, the potential implications of the current US tariff policy further complicate this matter. Considering the real estate sector’s paramount importance to China’s economy, it is essential to understand how monetary policy adjustments, particularly quantitative easing, will impact the market.
Aim and tasks. The study aims to analyse the effects of contemporary monetary policy in China on its real estate sector and, consequently, to understand the possible implications for the Chinese economy resulting from this type of monetary policy. This study also explores how market dynamics, property values, and overall investment trends are affected by changes in monetary policy, interest rates, and lending practices.
Results. The analysis reveals that the most significant influences on the average housing price dynamics in China from 2007 to 2023 are the average per capita disposable income of urban residents and the volume of investment in national real estate development projects. These factors explain 98.9% of the variation in housing prices (R² = 0.989), respectively. Moreover, changes in lending rates have little impact on housing prices. Simultaneously, an increase in household income by one unit is accompanied by an increase in housing prices of 0.151 units (p<0.01) and an increase in real estate investments of 0.010 units (p<0.05). The Durbin–Watson test (DW=1.367) did not reveal autocorrelation. Simultaneously, interest rates, money supply (M2), and the value added by the secondary sector had no statistically significant effect.
Conclusions. The analysis revealed a correlation between increased income levels, rising real estate purchases, and increasing housing prices. Real estate investments directly influence supply capacity and overall market dynamics, and fluctuations in these investments lead to housing price adjustments. Substantial capital inflows into real estate development intensify competition among developers, thereby driving up the prices of land and housing. As changes in interest rate expectations have only a limited impact on the market, the central bank’s ability to control housing prices through monetary policy is constrained. Ultimately, income levels are more important than construction costs