Imacs 2016 imecs 2016 Proceedings (Preliminary version) of the 4
THE DEVELOPMENT OF THE INSTITUTIONAL CAPACITY MONITORING TOOLS IN THE STRATEGIC PLANNING OF THE INDUSTRIAL ENTERPRISES
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- 42.Introduction
- 43.1 Literature review
- 44.2 The development of the institutional capacity monitoring tools
- 45.Conclusion
- 46.References
THE DEVELOPMENT OF THE INSTITUTIONAL CAPACITY MONITORING TOOLS IN THE STRATEGIC PLANNING OF THE INDUSTRIAL ENTERPRISES41.Elena BykovaAbstract In the context of high uncertainty of the possible directions of the development of political events is necessary to meet the new challenges of strategic planning at the industrial enterprises. In particular, the definition of how much strongly the rules of interaction with business partners can change in the nearest period of time and is the company ready for such changes. Solving the problem of evaluating the adequacy of existing policies expected changes is possible with the development of new assessment tools. The main focus is on the principle of forming the base of the prototype machine-building enterprises, including the full value chain and collaboration with stakeholders at all levels of the socio-economic hierarchy. We suggest using Atlas institutional development of industrial enterprise for this purpose. After the formation of the analysis tool the researcher will have an opportunity to assess the institutional capacity of business strategies and predict the "problem" institutions for tactical intervention. Keywords: monitoring tools, strategic planning, institutional Atlas, industrial plant JEL Code: L 290, C 820 42.IntroductionThe main objective of strategic planning is a sustainable corporate development as an economic and social system. The concept of sustainable corporate development strategy is rather young but fast-paced in the practice of the Russian industrial enterprises management. Its peculiarity is in the fact that when considering the entire variety of strategic objectives, it is necessary to respect the interests of the entities of the business process. The entities' interests may be predicated upon formal and informal institutions. The formal institution structure may be predicated upon the analysis of the statutory instruments regulating the actions of the enterprise. Informal institutions are more complex for analysis as they may include the code of ethics, conceptual values, tier of authority, wish and opportunities to use the social and political capital, etc. By "institutional capacity" we shall basically understand the level of the correspondence of the institutional environment constitution and structure of the analyzed enterprise to the institutional Atlas of the industrial enterprise. Based on the data obtained, managers have the opportunity to define the industry-wide peculiarities of the business strategy in the institutional environment and evaluate the growth capacity. The following shall be observed in the formation of this instrument:
43.1 Literature reviewTheoretical and empirical results of the modern economic science imply the admission of the fact significance of the institutions' impact and the institutional environment, based on them, on the performance of the microeconomic system. However, it is to be noted that researches are generally conducted on the base of the classic conception, according to which the institutional environment is the basic mechanism serving the grounds for the approaches to the formal institutions formation for the solution of the questions concerning the distribution of power. For the purposes of the institutional capacity monitoring techniques in the strategic planning at the industrial enterprise, let us perform the analysis of the primary approaches to strategic planning and their interconnection with the institutions formation mechanisms. In the works of the Russian researchers, addressing the issues of the institutional project planning, strategic planning is casted in the form of the reforms development and application (Polterovich, Popov). The extent, to how strong their impact on the production and marketing activities of enterprises should be, depends on the selected institutions formation mechanism: a strictly selective effect on the branches and enterprises or less selective one, including integrated institutions developments, maintaining the innovative and infrastructural capacity (Polterovich, 2007). The appraisal indicator of formal institutions is considered to be the institutions quality indicator (Balatsky, 2007). The strategic management of the objects of the meso-economic analysis is identified with "the tools of the reallocation of tangible and intangible assets providing with the stable and irreversible process of the transformation of the current institutional constraints into the ambiguous complex terms of the development capability of the object as a purposeful system" (Terebilov). In the age of globalization and growth of ambiguity, strategic planning institutions design is generally regarded as a process of formation and implementation of the institutional innovations. Bypassing the existing variety of the objects of the meso-economic analysis (alliances, multicorporate enterprises, holding structures, and industrial and innovative clusters), while implementing the innovative principles of action, many of them demonstrate the willingness to overcome (or resolve) the system ambiguity (Dopfer et al., 2004). The appraisal indicators are defined in terms of the strategy of interaction between the entities, market environment, and institutional impacts system. For the modeling and analysis of the institutional composition the tool "Institutional Atlas" was suggested (Popov, 2011). In the context of the microeconomic level, the objects of strategic management (the production and marketing enterprise system) can be presented as the interconnected spheres of activity planning and the obtained result (Kleiner, 2008). According to this concept, structural bonds serve as an essential element. The expectations scope, where the results of an unexpected reaction of the external world to the enterprise activities (the intentions coordination, capacities or constraints analysis and forecast) are reflected, is specially defined. The significance and expediency of the development of such tools as an institutional Atlas for the enterprise was specified by G.B. Kleiner (2008) but in the works it has remained at the level of a conceptual idea. The performed analysis allows us to suggest a hypothesis that the institutional capacity monitoring tool in strategic planning of the industrial enterprises should be formed on the ground of the institutional Atlas of the industrial enterprise's development. 44.2 The development of the institutional capacity monitoring toolsAs a base for the quantitative methods of the monitoring tools formation we suggest using the structural and functional approach. Its objects will be institutional structures presenting an ordered set of institutions creating institutional matrices of the economic agents' coordination, based on the business processes of enterprises. The structural aspect problems include the composition analysis of the institutions groups forming the boundaries of the institutional matrices. Based on the transaction analysis in the institutional environment, the functional aspect enables us to define the composition and content of the institutions according to the selected decomposition criterion (according to the management functions, scopes of activities, etc.). On the initial stage of the structural-functional analysis it is essential to conduct a cluster analysis of the institutions and build a full clusters tree. Combining the objects of the analyses into clusters on each level of the analyses owing to the institutional environment uniqueness of each enterprise is possible in terms of the principle of owning a minimum intercluster distance with reference to the linguistic criteria of the reference to the group of the business process institutions in the value chain. On the ground of the formed cluster the exact amount of the groups of institutions becomes apparent. In particular, for the basic model of the institutional Atlas four groups of institutions were identified: the institutions of management, utilization of resources, cooperation, and spillover externality. The results of this stage of the analytical activity are the base for forming a list of basic institutions. As a basis, we took the model of the meso-economic development institutions, described in Popov et al. (2010), and completed it with institutions, connected with the integration and hybrid forms of the industrial and marketing activities organization. The result of the cluster analysis of institutions is represented in the Table 1. Tab. 1: The enterprise development economic institutions of the basic institutional Atlas of the industrial enterprise
Let us present the decomposition of the institutional Atlas of the industrial enterprise based on the business strategy (Fig. 1). It reflects the pacing factors of the production and marketing activities: by places of their origin, institutions can form the decomposition in reference to the market weight of the product (service) or business processes. The selection of the first principle of decomposition is formed depending on how fully the value chains are presented and which type of cooperation arrangements is presented by a particular business strategy. Fig. 1: Institutional Atlas of the industrial enterprise based on the business strategy 
The next level of decomposition is finding the institutions by the functions of management. Each function corresponds to a certain institutional amount of each scope of activities. Their quantitative representation enables us to judge of the composition in reference to each function. 45.ConclusionTherefore, the analysis of the basic institutions of strategic planning at the macro-, meso-, and micro-levels allowed us to form a new approach to the strategic planning tools development. We suggest using a structural and functional approach to forming a basic institutional Atlas of the industrial enterprise. This tool is a projection of the entire value chain within an industrial and marketing system to the groups of institutions. On the grounds of the basic institutional Atlas of the enterprise, it is possible to identify the institutional capacity of the forming business strategy of any industrial enterprise. The higher the convergence of the basic institutional Atlas and the Atlas of the business strategy is, the higher the institutional capacity is. For a manager, taking decisions on the strategic activities continuation, it may indicate the high probability of the strategic targets and low level of the risks connected with other market entities' influence on the strategy realization. 46.ReferencesBalatsky, E. "Fuzzy institutions, culture of people and institutional entropy". Public and Economy 2007: No.5-6: 37-53. Dopfer, K., Foster, J., and Potts, J. "Micro-meso-macro" Journal of Evolutionary Economics 2004, No.3(14): 263-279. Kleiner, G.B. Strategy of enterprise Moscow: Delo, 2008. Polterovich, V. "Elements of reform theory". Ekonomika Moscow, 2007 (in Russian). Polterovich, V., and Popov, V. "An Evolutionary Theory of Economic Policy: Part I: The Experience of Fast Development". Voprosy Ekonomiki 7 (in Russian): 4–23. Popov, E.V. Transactions. Ekaterinburg: Ural Branch of Russian Academy of Sciences 2011: 679 (in Russian). Popov, E.V., Vlasov, M. V., and Simakhina, M. O. "Institutions of regional development of the knowledge economy" Regional Economics. Theory and Practice 2010, 4: 2-7. Terebilov, I.O. Research in strategic management in meso-economics: assumptions, methods, practical activity. St.-Petersburg: Publishing house NPK "Rost". Walzer, Michel. Spheres of Justice. A Defense of Pluralism and Equality. New York: Basic Books, 1983. Zarnadze, A.A. "The Institutional Nature of the Coordination Economic Interests in the Enterprise Management". Economics of contemporary Russia 2014, No.2 (65): 92-102. Contact Associate professor, Candidate of Economic Sciences Elena Bykova Perm national research polytechnical university 29 Komsomolsky Avenue, Perm, Russia, 614990 Bykova555@rambler.ru
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