APPLICATION OF HIERARCHY ANALYSIS METHOD FOR SELECTING THE PLACE OF ENTERPRISE RELOCATION

Authors

  • Andrii Aliluiko cand.sc.(phys.-math.), assoc. prof., associate professor at the department of application mathematics, West Ukrainian National University, Ternopil
  • Valerii Yeromenko cand.sc.(phys.-math.), assoc. prof., associate professor at the department of application mathematics, West Ukrainian National University, Ternopil
  • Stepan Babii senior lecturer of economic cybernetics and Informatics, West Ukrainian National University, Ternopil

DOI:

https://doi.org/10.37332/2309-1533.2022.2-3.5

Keywords:

hierarchy analysis method, decision-making methods, relocation of the enterprise, relocation.

Abstract

Aliluiko A.M., Yeromenko V.O., Babii C.V. APPLICATION OF HIERARCHY ANALYSIS METHOD FOR SELECTING THE PLACE OF ENTERPRISE RELOCATION

Purpose. The aim of the article is to study the possibility of using the method of analysis of hierarchies for making managerial decisions regarding the relocation of enterprises during the martial law in Ukraine.

Methodology of research. Methods of general scientific and empirical techniques based on a systemic approach were used in the process of research. In addition, the following methods of scientific knowledge were used to solve the tasks: methods of analysis and observation were used to group the main factors influencing decision-making, the method of evaluations for processing expert information, the method of analysing hierarchies for solving planning and decision-making problems.

Findings. The state of implementation of the Relocation Program, which was introduced by the Cabinet of Ministers of Ukraine, was studied. Criteria have been formed that can be taken into account by the management of enterprises when choosing a region of relocation from the war zone. Using the method of analysing hierarchies based on the data of expert evaluations among specialists of IT companies, it was established that such companies prefer to relocate to the westernmost regions of Ukraine, which are relatively safe and characterized by significant financial and economic support from the regional authorities. The need to introduce new organizational and economic methods of management activity in the field of enterprise accommodation is substantiated.

Originality. The application of the method of analysis of hierarchies is proposed for the study of the multi-criteria management problem in the field of enterprise placement in the context of their relocation under martial law. A set of criteria that can be taken into account when making decisions regarding the choice of the place of relocation of enterprises is proposed.

Practical value. The obtained results of the study are the basis for improving the organizational and economic mechanisms of management activity in the field of enterprise accommodation.

Key words: hierarchy analysis method, decision-making methods, relocation of the enterprise, relocation.

References

Knoben, J. and Oerlemans, L.A.G. (2005), The effects of firm relocation on firm performance: a literature review, ERSA, Free University Amsterdam, Netherlands, 25 p.

Pellenbarg, P.H., van Wissen, L.J.G. and van Dijk, J. (2002), Firm relocation: state of the art and research prospects, University of Groningen, SOM research Report 02D31, Netherlands, 42 p.

Department for Business, Energy and Industrial Strategy (2019), “Drivers of firm relocation – Final report: BEIS Research Paper”, available at: https://assets.publishing.service.gov.uk/government/uploads/ system/uploads/attachment_data/file/777000/Drivers-of-firm-relocation.pdf (access date June 15, 2022).

Kapitsinis, N. (2018), “Interpreting business mobility through socio-economic differentiation. Greek firm relocation to Bulgaria before and after the 2007 global economic crisis”, Geoforum, no. 96, pp. 345-347.

Conroy, T., Deller, S. and Tsvetkova, A. (2016), “Regional business climate and interstate manufacturing relocation decisions”, Regional science and urban economics, no. 60, pp. 155-168.

Needham, Ch. (2013), Business relocation in the EU Library of the European Parliament, available at: https://www.europarl.europa.eu/RegData/bibliotheque/briefing/2013/130501/ LDM_BRI(2013)130501_REV1_EN.pdf (access date June 15, 2022).

Cabinet of Ministers of Ukraine (2022), Resolution of the Cabinet of Ministers of Ukraine “About the peculiarities of the work of the joint-stock company "Ukrposhta" in the conditions of martial law” dated 17.03.2022 no. 305, available at: https://zakon.rada.gov.ua/laws/show/305-2022-%D0%BF#Text (access date June 15, 2022).

Cabinet of Ministers of Ukraine (2022), Order of the Cabinet of Ministers of Ukraine “On the approval of the plan of emergency measures for the relocation, if necessary, of the production facilities of business entities from the territories where hostilities are taking place and/or there is a threat of hostilities to a safe territory” dated 25.03.2022 no. 246-p, available at: https://zakon.rada.gov.ua/laws/show/246-2022-%D1%80#Text (access date June 15, 2022).

Olenin, A. (2022), “The economy is going west: how Ukrainian business is saved from the war”, available at: https://lb.ua/economics/2022/05/11/516454_ekonomika_ide_zahid_yak_ryatuietsya.html (access date June 15, 2022).

Saaty, T. and Kearns, K. (1991), Analiticheskoe planirovanie. Organizatsiia sistem [Analytical Planning. The organization of Systems], Radio i sviaz, Moscow, Russia, 224 p.

Downloads

Published

2022-11-28

Issue

No. 2-3 (2022): INNOVATIVE ECONOMY

Section

Economy and competitiveness of the enterprises

License

Open-access articles (open-access journals)

Authors whose articles are published in open-access retain all rights to the content of the articles.

Open access articles are committed to be published under Creative Commons Attribution (CC BY) 4.0. This license allows others to distribute, edit, correct and build upon your work, even commercially, as long as they indicate your authorship. Detailed information at Creative Commons site: https://creativecommons.org/licenses/by/4.0/

Permissions for open-access journals

If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 (which was possible till the 15th of December, 2018) licenses, users may reproduce it in accordance with their terms.

Additionally, if the article had been published under CC BY-NC 4.0 (this license authorizes others to download your works and share them with others as long as they indicate your authorship, but they can’t use them commercially in any case.), the use for the following commercial purposes requires permission:

– reproduction of content in a work or product intended for sale;

– reproduction in presentations, brochures or other marketing materials used for commercial purposes;

– distribution of the content to promote or market a person, product, course, service or organization;

– text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;

– use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;

– linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.

For further details and permission requests, please contact.

How to Cite

“APPLICATION OF HIERARCHY ANALYSIS METHOD FOR SELECTING THE PLACE OF ENTERPRISE RELOCATION”. INNOVATIVE ECONOMY, no. 2-3, Nov. 2022, pp. 29-35, https://doi.org/10.37332/2309-1533.2022.2-3.5.