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Review article

THE THEORETICAL FUNDAMENTALS AND METHODICAL APPROACHES TO ECONOMIC SAFETY ASSESSMENT OF INNOVATIONS TO FOREIGN MARKETS

Svetlana Labunska ; Department of Accounting
Oleksandr Dorokhov orcid id orcid.org/0000-0002-0737-8714 ; Department of Information Systems Kharkiv National University of Economics
Olena Prokopishyna ; Department of Accounting


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Abstract

It is widely perceived that expanding to foreign markets creates additional opportunities to enterprise. But in this strategic decision-making process it is crucial to be conscious of additional unique threats that are inherent in foreign market entry. Inappropriate innovation can significantly deteriorate enterprise safety and seriously affect its wellbeing; the absence of innovation activity also can threaten the enterprise safety. The present work is aimed at examining the interconnectivity of innovations and economic safety of an enterprise activity on foreign, primary new markets and on this ground developing the methods of assessing the economic safety of innovation activity. It is proposed to distinguish two components of an enterprise economic safety: the static component (economic safety of enterprise state) and the dynamic component (economic safety of enterprise activity). Following this differentiation special assessment methods are proposed. It is stated that while making decision on promoting to external markets it is reasonable to estimate the level of economic safety of enterprise initial state, of innovation adoption and of enterprise final state. As conclusion a set of specific requirements to management to ensure the target level of economic safety of promoting new product to a foreign market is developed and proposed in the paper.

Keywords

economic safety of enterprise; innovation; foreign market

Hrčak ID:

104536

URI

https://hrcak.srce.hr/104536

Publication date:

28.6.2013.

Article data in other languages: croatian

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