Identification of Internal Interconnections as a Precondition for Economic Strength of an Enterprise
Journal Title: Проблеми економіки - Year 2014, Vol 2014, Issue 4
Abstract
The study substantiates the necessity of taking into account the degree of interconnection among the elements and components of economic strength of an enterprise and analyzing the internal cause-and-effect relations linking the indicators describing each of the economic strength components: the costs, the production, the financial component, functioning in terms of the life cycle, stability on the produce and capital goods markets while addressing economic strength issues. For such an analysis, it is recommended to use multivariate statistical methods which permit identifying the interconnections among individual indicators, among the components, which allows establishing the rating of the cross-system interrelationships among the indicators, namely factor analysis and canonical analysis. Methodological guidelines for analysis of the internal interconnections in the economic strength of an enterprise were developed. These guidelines propose the following sequence of stages: determination of the conceptual content of the economic strength of the enterprise; formation of systems of individual indicators describing the components of economic strength; singling out internal latent factors for each of the components in order to identify close inter-element links; detailed economic analysis of the most significant indicators; identification of the internal cross-system interrelationships among the economic strength components and rating the influence of the indicators; singling out the most significant indicators ensuring close intra-systemic connections for maintenance of the economic strength of the enterprise.
Authors and Affiliations
Ludmila Malyarets, Olga Smoliakova
Keywords
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