Theoretical aspects of implementation of the innovation component evaluating model for small business enterprises

Authors:
A.I. Ivashchenko1, Y.A. Polischuk1, Y.V. Sybirianska1
1. Kyiv national economic university named after Vadim Hetman (Kyiv, Ukraine)
Section:
Innovative Management
Pages:
160 - 171
Language:
English
DOI:
10.21272/mmi.2017.2-15


Annotation

The purpose of this article is to analyse the development of innovation activity among Ukrainian enterprises, to create the mechanism of innovative potential identification of small enterprises and development of innovation component evaluating model of small enterprises.

Results. The article describes the main components of the definition of the innovative potential of small enterprises, its impact on the economy development of country and identifies the characteristic features of small innovative enterprises (SIE). The mechanism of innovation potential identification of SIE was developed, where the main activity risks, advantages and disadvantages were underlined.  The authors analysed the main characteristic features of SIE and their innovative capacity. The present state of business in Ukraine, the share of innovative enterprises in business, types of innovation and the level of innovative activity of small enterprises were considered. The author developed the new model for identification and analysis of the effectiveness of innovative components aimed at improving the level of investment attractiveness of the enterprise. The mentioned model is taken into account the positive sides of existing assessment models of innovation and consists of 2 stages. The first stage step means express evaluation based on indicators of innovative component identification inside the enterprise at point scale, which is determined by the total score of the enterprise and included 10 question assessment about the different sides of enterprise activity, including its innovation type. Entity received for positive or negative answer to every question 1 or 0 point respectively. The company can be considered as innovative only in case of matching the calculated score for the scale criteria, namely the value that is greater than or equal to 4 points. Due to achieving this result by the firm it is reasonable to conduct the second stage of assessment for evaluating the effectiveness of existing innovative components, that consists of enterprise analysis according to six groups as evaluation of property, analyses of liquidity and solvency, effectiveness of the implementation of activities, including innovation, human capital in the development of innovative enterprises,  qualitative composition of the innovative components, business and financial activity; each of which contains certain coefficients (relative parameters). As a result the integrated indicator is calculated for evaluating the level of innovative effectiveness, which is compared with the average value that is within 50 %. The importance of calculation of the integral indicators is convergence of different indicators of enterprises activity to one, which allows to compare different types of companies. Integral indicator is calculated as a result of analysis of coefficients of proposed groups, which is compared with the average value that is within 50 %. According to the developed scale for the assessment of innovative components of the enterprise it is possible to assess the level of efficiency of innovative activity of the enterprise like low, sufficient and high. The use of this model will help the investors to determine the level of enterprise innovative component efficiency based on integrated indicator perceiving the target to choose high quality investment project while making their managerial decisions.

Conclusions. Despite the low level of innovation activity of small enterprises of Ukraine, primarily due to inadequate funding, the assessment of efficiency of activity of enterprises, including innovation, is one of the most important components in decision-making by investors, financial institutions or government agencies regarding funding into the investment projects with the existing innovative component. Application of the proposed model of identification and evaluation of innovative component efficiency will allow the company to determine the level of innovativeness of the enterprise and efficiency of its innovative activity both for the enterprise and for external users. The calculation of the mentioned indicators will determine the performance of activities, including innovation and to reveal the extent and quality goals using scorecards. Compliance indicators developed evaluation criteria, in particular 4 or more points on the first stage and 50 or more percent for the second stage will improve the level of investment attractiveness of the enterprise and become an indicator for different types of investors to allocate funds.

In the future research the authors plan to consider the certain model for identification and analysis of the effectiveness of innovative components according to the branch which every enterprise represents in order to improve the accuracy of integrated indicator calculations.


Keywords
innovation component, innovative activity, innovations, small innovative enterprise, innovative potential


Links
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