UDC [332.1(1-72):65.011.3].00912

Academician of Academy of Economic Sciences of Ukraine,

Corresponding Member of the Academy of Technological Sciences of Ukraine,

Doctor of Economic Sciences, Professor Timirgaleeva Rena

Candidate of Economic Sciences (PhD in Economic Sciences) Lukyanova Olena

Institute of Economics and Management of Crimean University

for the Humanities (Yalta), Ukraine

TRANSFRONTIER REGION COMPETITIVENESS DEVELOPMENT BARRIERS

Today it is imposed renewed requirements to business entities’ activities, goods and services in Ukrainian domestic economic conditions. It is also added client-focused approach, accordance to international standards and risks minimization to traditional quality concept. Strategic business units competiveness development on economy transitive stage is impossible only by partial improvement in costs reducing, inner stability increasing, macroenvironmental changes flexible reacting, marketing modernization or applying better position in peculiar market segment or niche. There is need in complex optimization for business entities competitive potential growth which will impact not only on their productive systems elements but also correlate to the other logistic macrostructure components. Special attention must be paid to overcoming of barriers, which stands on transfrontier region competitiveness development.

There are known special theoretical, methodical and practical researches in competitive potential forming by authors I. Abdulmanov, W. Chan Kim, B. Chevalier-Roignant, A. Dixit, J. Gamble, A. Gourlay, N. Govorova, L. Katchalina, G. Korshunova, R. Larina, Y. Levanova, O. Lukyanova, R. McGrath, J. Magretta, Th. Mahnken, R. Mauborgne, M. Porter, IShvets, A. Strickland III, A. Thompson, L. Trigeorgis, SVasilyeva, G. Walker and others. However it wasn’t defined problems, which impedes transfrontier region competitiveness development.

The theses purpose is to identify transfrontier region competitiveness development barriers for Ukraine.

It is very important for Ukraine to solve the transfrontier region competitiveness development task. It is based on the fact that the country is already participant member of European Outline Convention on Transfrontier Co-operation between Territorial Communities or Authorities [1; 3]. Ukraine is involved to co-operate actions, which directs to establishing and deepening of economic, social, scientific, technical, environmental, cultural and other relations between territorial communities, their representative institutions, Ukraine’s local executive authorities, other countries’ responsible authorities in the competence according to their national legislation [6]. Also the very purpose, which is given above, is very important to Autonomous republic Crimea, which is included to Black Sea Euroregion, and has special modernization scenario of Economic and Social Development Strategy of Region for 2011-2020 years [2].

We have identified peculiar barriers for transfrontier region competitiveness development. (Research was made on the first stages of organizational and economic systems management methodology and practice scientific research (0112U003074) in management department of Institute of Economics and Management in Crimean University for the Humanities and also transfrontier region competitiveness improvement innovative mechanism formations project.). The main barriers are:

comprehensive state policy absence in transfrontier region competitiveness development;

transfrontier region competitiveness development organizational, legal, economic mechanisms inadequacy and weak interagency coordination and cooperation between state and local institutions;

domestic goods and services, business entities, socio-economic sectors and subregions competitiveness low level comparing to transfrontier ones;

market mechanisms and infrastructure weakness, supplying chains deformation, integrated information-logistic mechanism absence and special regional institution is needed to manage them;

managers and employees competences level is insufficient in accordance to international requirements;

strategy, technology, tools and approaches distribution gap;

international standardization and certification are needed;

resources for all types transformations and optimizations are limited;

need of process-oriented mechanism for business units complex optimization implementation, etc.

Transfrontier region competitiveness development barriers, which have been identified above, gave the base for their overcoming possible ways generating, which results will be represented in our other articles. This theses information can be useful for regional authorities on improving economical and management innovations, business leaders and management universities students.

Literature

1. About Ukraine’s accession to European Outline Convention on Transfrontier Co-operation between Territorial Communities or Authorities [Electronic Source] – Access Mode: http:// www.zakon3.rada.gov.ua/laws/show/3384-12.

2. Economic and Social Development Strategy of Region for 2011-2020 years. [Electronic Source] – Access Mode: http:// www.ark.gov.ua/images/strategiya2011-2020new-5.pdf‎.

3. European Outline Convention on Transfrontier Co-operation between Territorial Communities or Authorities [Electronic Source] – Access Mode: http://www. conventions.coe.int/Treaty/en/Treaties/Html/106.htm.

4. Groznik A. Pathways to Supply Chain Excellence / A. Groznik, Y. Xiong. – Seattle : Amazon Digital Services, Inc., 2013.

5. Proposal for a Council Decision on the conclusion of the Association Agreement between the European Union and its Member States, of the one part, and Ukraine, of the other part [Electronic Source] – Access Mode: http://www.europarl.europa.eu/RegistreWeb/search/simple.htm?language=EN&reference=COM_COM%282013%290290.

6. Transfrontier Cooperation National Program Concept Approval for 2011-2015 years [Electronic Source] – Access Mode:  http://www.zakon.rada.gov.ua.