Coevolutionary approaches to organizational development of innovative-active enterprises

The paper is devoted to a deeper understanding of the organizational boundaries of innovation-active enterprises in the domestic economy, which operates under wartime conditions, based on the demarcation of their structure as organizational and technological systems. The logic behind decision-making in this study is grounded in the efficiency of exchange and the execution of transactions, while the essence of the enterprise is defined by the alignment of incentives, property rights, and rigorous control mechanisms. This approach reveals a more diverse perspective on the boundaries of the enterprise and its technological systems, as well as its theoretical logic and internal organization. Within the framework of an alternative approach, four directions are proposed for discussion:the space of potential efficiency, the domain of organizational influence, the competence-based advantages of innovative production, the identification of the enterprise within an innovation environment. From a legal perspective, the boundaries of an innovation-active enterprise are determined by the following constraints: the effective location of transactions, the conceptualization of influence on other enterprises, the consideration of the enterprise's resource portfolio, the employees' awareness of emotional and cognitive alignment in relation to the innovation process. The "space of potential efficiency" focuses on decisions regarding boundaries as choices about the most effective location for transaction management within the enterprise. The "domain of influence" shifts the notion of organizational boundaries from that of transactional limits to broader boundaries of control. The consideration of alternative theoretical approaches draws attention to additional concepts of firm boundaries and to the business entities themselves, especially in cases where the traditional logic of efficiency (based on equilibrium) loses its relevance. Moreover, such approaches contribute to the formation of a new understanding of the interaction between institutional and administrative processes (IAP) and the crisis environment of the national economy. Fundamental concepts that consider organizational boundaries merely as a demarcation between the firm and its external environment and treat them as a central decision about the location of a transaction – based on the logic of exchange efficiency, where the essence of the firm is reduced to incentive alignment, allocation of property rights, decision-making, and careful monitoring – we propose an alternative theory, which offers a more balanced view of firm boundaries. The methodological and informational basis of the study consists of scientific works by domestic and foreign experts, materials from periodicals, Internet resources, and other sources. The research employs methods such as the systemic and institutional approaches, as well as methodological and structural-functional analyses.

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Publication Details

Journal
Economics Finances Law
Published
2025-07-30
DOI
https://doi.org/10.37634/efp.2025.7.13
Primary Topic
Economic Development and Digital Transformation
Type
article
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Coevolutionary approaches to organizational development of innovative-active enterprises

Vitaliy Zakharchenko, Dmytro MERKULOV
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Economics Finances Law
Economic Development and Digital Transformation
article

Coevolutionary approaches to organizational development of innovative-active enterprises

Vitaliy Zakharchenko, Dmytro MERKULOV
article en

Abstract

The paper is devoted to a deeper understanding of the organizational boundaries of innovation-active enterprises in the domestic economy, which operates under wartime conditions, based on the demarcation of their structure as organizational and technological systems. The logic behind decision-making in this study is grounded in the efficiency of exchange and the execution of transactions, while the essence of the enterprise is defined by the alignment of incentives, property rights, and rigorous control mechanisms. This approach reveals a more diverse perspective on the boundaries of the enterprise and its technological systems, as well as its theoretical logic and internal organization. Within the framework of an alternative approach, four directions are proposed for discussion:the space of potential efficiency, the domain of organizational influence, the competence-based advantages of innovative production, the identification of the enterprise within an innovation environment. From a legal perspective, the boundaries of an innovation-active enterprise are determined by the following constraints: the effective location of transactions, the conceptualization of influence on other enterprises, the consideration of the enterprise's resource portfolio, the employees' awareness of emotional and cognitive alignment in relation to the innovation process. The "space of potential efficiency" focuses on decisions regarding boundaries as choices about the most effective location for transaction management within the enterprise. The "domain of influence" shifts the notion of organizational boundaries from that of transactional limits to broader boundaries of control. The consideration of alternative theoretical approaches draws attention to additional concepts of firm boundaries and to the business entities themselves, especially in cases where the traditional logic of efficiency (based on equilibrium) loses its relevance. Moreover, such approaches contribute to the formation of a new understanding of the interaction between institutional and administrative processes (IAP) and the crisis environment of the national economy. Fundamental concepts that consider organizational boundaries merely as a demarcation between the firm and its external environment and treat them as a central decision about the location of a transaction – based on the logic of exchange efficiency, where the essence of the firm is reduced to incentive alignment, allocation of property rights, decision-making, and careful monitoring – we propose an alternative theory, which offers a more balanced view of firm boundaries. The methodological and informational basis of the study consists of scientific works by domestic and foreign experts, materials from periodicals, Internet resources, and other sources. The research employs methods such as the systemic and institutional approaches, as well as methodological and structural-functional analyses.

Economics Finances LawVol. 7/2025(-)
Odessa National Polytechnic University (UA)
Openalex Percentile: Top 62%
Economic Development and Digital Transformation
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