Simulation Modeling as a Tool for Ensuring Sustainable Development and Competitiveness of an Enterprise

DOI

10.2991/aebmr.k.211118.010How to use a DOI?

Keywords

simulation model; competitiveness; innovation activity; institutional environment

Abstract

The work performed is unique in its kind, since it represents the development of instrumental methods for studying an urgent problem – the increase in competitiveness and ensuring sustainable development of industrial enterprises. The purpose of the study is to develop a system for assessing the impact of institutional factors on the competitiveness and innovation activity of an industrial enterprise. The analytical toolkit is simulation modeling diagrammatically represented by graphical notations illustrating system dynamics model. Based on the available world research, four main components of industrial enterprise competitiveness are identified - the competitiveness of products; strategic positioning; innovation activity of both - the enterprise and the institutional environment; and resource efficiency. Based on the identified components, a methodology for their calculation and for computation of a multiplicative composite indicator describing competitiveness has been developed. The influence of the intra-firm and institutional factors on the enterprise innovation activity is discussed as a separate segment of this method. It is shown that the institutional environment to a greater extent affects the company competitiveness through its innovation activity. The intra-firm factors (such as the enterprise’s material, scientific and technical resources, organizational and corporate culture, strategic management) expand the influence of the industrial market institutional environment. Thus, all enterprises located in the same industrial market have equal conditions for their innovative activities. Based on the elaborated system, a simulation model of industrial enterprise competitiveness is developed, which shows it as a set of cause-and-effect relationships and feedback loops. The designed simulation model may be adapted to any manufacturing company and allows simple simulation experiments.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Zaneta Simanaviciene
AU  - Evgeniy Kislitsyn
AU  - Lyudmila Shaybakova
PY  - 2021
DA  - 2021/11/29
TI  - Simulation Modeling as a Tool for Ensuring Sustainable Development and Competitiveness of an Enterprise
BT  - Proceedings of the Second Conference on Sustainable Development: Industrial Future of Territories (IFT 2021)
PB  - Atlantis Press
SP  - 50
EP  - 54
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211118.010
DO  - 10.2991/aebmr.k.211118.010
ID  - Simanaviciene2021
ER  -