Formation of an economic mechanism for developing business processes in digital transformation

The formation of an economic mechanism for developing business processes in digital transformation is driven by profound changes occurring in global and national economies under the influence of digital technologies. Digitalization encompasses virtually all areas of economic activity, reshaping business models, principles of customer interaction, resource management, and internal process organization. Under such conditions, traditional economic management mechanisms are losing their effectiveness, necessitating their revision and adaptation to the new digital reality. This article examines forming an economic mechanism for developing business processes in digital transformation. The study explores the features of digital transformation in business, its key advantages, and the factors hindering digitalization. It identifies the institutional foundations for managing business processes under digital transformation that must be considered when developing an economic mechanism. It is established that institutional support is the foundation of the economic mechanism upon which modern business process management policies should be built. Digital transformation risks remain declarative rather than adequate without a proper institutional environment. It is emphasized that in the current economic landscape, marked by rapid technological changes, globalization, and intense competition, a reliable institutional framework is fundamental for entrepreneurship’s stable functioning and development. It is substantiated that the economic mechanism for managing business processes in the context of digital transformation should be understood as a complex, multidimensional system that influences business operations. This system includes regulatory and legal frameworks, digital and informational infrastructure, methodological and institutional support, digital tools, impact factors, and specific operational features. It is also oriented towards shifting individual and collective value orientations toward European and Euro-Atlantic integration, economic decarbonization, restoration of territorial integrity, and the rule of law. Keywords: business, business processes, economic mechanism, institutional support, digital transformation, digitalization, national and regional economy.