Factors of networked economy development in Ukraine: economic and legal context
Under the influence of information technology, the features and content of organization forms of economy change; new kinds of production and forms of doing business are created, a main base of functioning networked economy is formed. The expanding of network approach for organization of economic r...
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irk-123456789-1501482019-04-02T01:25:15Z Factors of networked economy development in Ukraine: economic and legal context Pushak, Ya. Kravchuk, I. Makeieva, O. Economic Theory and History Under the influence of information technology, the features and content of organization forms of economy change; new kinds of production and forms of doing business are created, a main base of functioning networked economy is formed. The expanding of network approach for organization of economic relationships creates real changes in market and competitive structures, requires a necessity of changing aims and methods of entrepreneurship. The issues of networked economy forming and development were studied by both foreign researchers (J. Galbraith, A. Toffler, P. Druker) and native scholars (V. Bazylevych, V. Heyets, I. Besedina). The whole imagination about the process of networked economy forming is impossible without learning the factors, which define it, with taking in count specificity of native market environment, which is not researched enough in the national scientific field. Research of the factors of networked economy development based on analysis of international indexes of information environment development; determination of threats of information security in doing business. The analysis of advantageous and deterring factors of expanding network approach in doing business is carried out, the disadvantages of its law providing are defined, a forecast of Ukraine’s networked readiness is constructed. The threats of expanding network economy in business and society are explained. The main factors, which prevent development of ІCТ in Ukraine’s economy, are the low rate of adoption them by government, business; the low rate in law securing of network economy. Following the criteria of information security in network economy facilitates stabilization in relationships towards market’s stakeholders and will become one of the main parts in business development. Статтю присвячено дослідженню факторів розвитку вітчизняної мережевої економіки на основі аналізу міжнародних індексів розвитку інформаційного середовища; обґрунтуванню загроз інформаційної безпеки ведення бізнесу. Проведено аналіз сприятливих та гальмуючих факторів поширення мережевого підходу до ведення бізнесу, здійснено SWOT-аналіз інфраструктури та регуляторного середовища готовності участі підприємств у мережевій економіці, визначено недоліки її нормативно-правового забезпечення, побудовано прогноз мережевої готовності України. Обґрунтовано загрози поширення мережевої економіки в бізнесі і у суспільстві. Основними факторами, що стримують розвиток ІКТ в економіці України, є: невисокий рівень їх освоєння урядом, бізнесом; недостатнє законодавче забезпечення мережевої економіки. Статья посвящена исследованию факторов развития сетевой экономики на основе анализа международных индексов развития информационной среды; обоснованию угроз информационной безопасности ведения бизнеса. Проведен анализ благоприятных и тормозящих факторов распространения сетевого подхода к ведению бизнеса, осуществлен SWOT-анализ инфраструктуры и регуляторной среды готовности участия предприятий в сетевой экономике, определены недостатки ее нормативно-правового обеспечения, построен прогноз сетевой готовности Украины. Обоснованы угрозы распространения сетевой экономики в бизнесе и в обществе. Основными факторами, сдерживающими развитие ИКТ в экономике Украины, являются: невысокий уровень их использования правительством, бизнесом; недостаточное законодательное обеспечение сетевой экономики. 2018 Article Factors of networked economy development in Ukraine: economic and legal context / Yа. Pushak, I. Kravchuk, O. Makeieva // Економічний вісник Донбасу. — 2018. — № 4 (54). — С. 38-42. — Бібліогр.: 15 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/150148 330.144.2 + 351.7:342.9 en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
| institution |
Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| collection |
DSpace DC |
| language |
English |
| topic |
Economic Theory and History Economic Theory and History |
| spellingShingle |
Economic Theory and History Economic Theory and History Pushak, Ya. Kravchuk, I. Makeieva, O. Factors of networked economy development in Ukraine: economic and legal context Економічний вісник Донбасу |
| description |
Under the influence of information technology, the features and content of organization forms of economy change; new kinds of production and forms of doing business are created, a main base of functioning networked economy is formed.
The expanding of network approach for organization of economic relationships creates real changes in market and competitive structures, requires a necessity of changing aims and methods of entrepreneurship.
The issues of networked economy forming and development were studied by both foreign researchers (J. Galbraith, A. Toffler, P. Druker) and native scholars (V. Bazylevych, V. Heyets, I. Besedina).
The whole imagination about the process of networked economy forming is impossible without learning the factors, which define it, with taking in count specificity of native market environment, which is not researched enough in the national scientific field.
Research of the factors of networked economy development based on analysis of international indexes of information environment development; determination of threats of information security in doing business. The analysis of advantageous and deterring factors of expanding network approach in doing business is carried out, the disadvantages of its law providing are defined, a forecast of Ukraine’s networked readiness is constructed. The threats of expanding network economy in business and society are explained.
The main factors, which prevent development of ІCТ in Ukraine’s economy, are the low rate of adoption them by government, business; the low rate in law securing of network economy. Following the criteria of information security in network economy facilitates stabilization in relationships towards market’s stakeholders and will become one of the main parts in business development. |
| format |
Article |
| author |
Pushak, Ya. Kravchuk, I. Makeieva, O. |
| author_facet |
Pushak, Ya. Kravchuk, I. Makeieva, O. |
| author_sort |
Pushak, Ya. |
| title |
Factors of networked economy development in Ukraine: economic and legal context |
| title_short |
Factors of networked economy development in Ukraine: economic and legal context |
| title_full |
Factors of networked economy development in Ukraine: economic and legal context |
| title_fullStr |
Factors of networked economy development in Ukraine: economic and legal context |
| title_full_unstemmed |
Factors of networked economy development in Ukraine: economic and legal context |
| title_sort |
factors of networked economy development in ukraine: economic and legal context |
| publisher |
Інститут економіки промисловості НАН України |
| publishDate |
2018 |
| topic_facet |
Economic Theory and History |
| url |
http://dspace.nbuv.gov.ua/handle/123456789/150148 |
| citation_txt |
Factors of networked economy development in Ukraine: economic and legal context / Yа. Pushak, I. Kravchuk, O. Makeieva // Економічний вісник Донбасу. — 2018. — № 4 (54). — С. 38-42. — Бібліогр.: 15 назв. — англ. |
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| fulltext |
Yа. Pushak, I. Kravchuk, O. Makeieva
38
Економічний вісник Донбасу № 4(54), 2018
UDC 330.144.2 + 351.7:342.9
Yа. Pushak,
DrHab (Economics),
L’viv,
ORCID 0000-0003-1369-8770,
I. Kravchuk,
PhD (Economics),
Chernivtsi,
ORCID 0000-0002-3069-6462,
O. Makeieva,
PhD (Law),
Kyiv,
ORCID 0000-0001-6101-2951
FACTORS OF NETWORK ECONOMY DEVELOPMENT IN UKRAINE:
ECONOMIC AND LEGAL CONTEXT
Urgency of the research. In modern conditions of
global economy development, non-material factors of
production, in particular information and knowledge,
become the main factor of innovative development of
the economy and the basis for increasing the country
competitiveness. The use of information and communi-
cation technologies (ICT) as one of the most important
mechanisms for managing the network economy, pro-
vides a reduction in transaction costs and production ef-
ficiency increasing, more efficient business model use,
reduction in the production and sales cycle, more accu-
rate forecasting of the economic conjuncture. In turn, the
network economy allows enterprises to use their poten-
tial more widely and reach set goals.
Target setting. Today, when competition becomes
a global phenomenon, the success of developed econo-
mies depends to a large extent on the ability to acquire,
develop and disseminate knowledge, information and
introduce advanced technologies. In order to ensure the
process continuity, it is necessary to clearly identify the
network economy catalyzing and constraining factors,
which will help to generate greater economic benefits
and will manage the risks and negative consequences of
the ICT spread in business and society.
Actual scientific researches and issues analysis.
When studying the network economy development fac-
tors, the following works are of great importance: the
studies by M. Castells [1], in which the author analyzed
current trends leading to the network economy for-
mation in details, and by K. Kelly [2], who determined
a number of features and principles of the "network
economy" in market conditions. Practical aspects of this
problems in Ukrainian scientific thought were investi-
gated by Belyatskaya T.N, Knyazeva L.P. [3], Vyshnev-
sky A.S [4], Zybareva O.V., [5] Prognimak O.D. [6],
Sokolova G. B. [7].
Uninvestigated parts of general matters defin-
ing. The issue of economic development factors of eco-
nomic structures, considering the specifics of the net-
work principles of the functioning of the economic
mechanism and the peculiarities of the domestic market
environment requires sufficient studying.
The research objective is to identify the network
economy development factors in Ukraine that deter / fa-
cilitate the business development in Ukraine on the basis
of analysis of international indexes of the information
environment development, to justify threats to infor-
mation security of doing business in Ukraine.
The statement of basic materials. The factors de-
termining the willingness of Ukrainian enterprises to
participate in the network economy on the basis of the
dynamics analysis of the network readiness (NRI 2010-
2016) and doing business (DB 2010-2018) indexes us-
ing SWOT analysis are described in Table 1.
Table 1
Network readiness of Ukrainian enterprises in 2010-2018
Strengths Index
Change in
dynamics
Opportunities
International Internet traffic, Kb / s
per user
NRI2016 63 ↑33
Open access to Internet resources
Availability of digital content NRI2016 48 ↑9
Receiving e-services due to affordable tariffs
for telecommunication services
Monthly subscription fee for fixed
(wired) broadband Internet access
NRI2016 2 ↑9
Introduction of intellectual information and
information-analytical technologies, inte-
grated systems of databases and knowledge
Ownership registration DB2018 64 ↑100
Quick and transparent procedure for regis-
tering real estate rights
Yа. Pushak, I. Kravchuk, O. Makeieva
39
Економічний вісник Донбасу № 4(54), 2018
Ending of Table 1
Weaknesses Index
Change in
dynamics
Threats
Effectiveness of legislative bodies
work
NRI2016 120 ↑13
Protracted process of modernization of the
material and technical base
Legislation on ІCТ NRI2016 74 ↑23
Insufficient protection of information re-
sources
Independence of courts NRI2016 131 ↑2 Inability to use modern e-democracy tools
Effectiveness of legal system for dis-
putes settlement
NRI2016 123 ↑14
Difficulty in obtaining an equitable solution
while disputes settlement
Protection of intellectual property NRI2016 120 ↓8
Decrease in the number of inventions, indus-
trial designs, rationalization proposals, etc.
Efficiency of ICT use by government NRI2016 122 ↑8
Non-involvement of enterprises in the for-
mation, discussion and implementation of
public policy
Dealing with construction permits DB2018 140 ↑146
Growth of investment risks due to delaying
procedures in obtaining permits
Protection of minority shareholders DB2018 81 ↑14
Deteriorating corporate governance and pro-
tecting minority investors' rights
International trade regulation DB2018 119 ↑20
Additional barriers when entering new mar-
kets or market segments
Contracts enforcement DB2018 82 ↑71
The growth of time and financial costs in re-
solving a commercial dispute in the local
court of first instance
Insolvency resolution DB2018 149 ↓3
Enterprise closure due to the complexity of
enterprises solvency restoring procedure
Electrical connection DB2018 128
↑41 com-
pared with
2012
Duration of the procedure of putting into op-
eration new divisions of enterprises, ware-
houses, etc.
Electricity production, kW / person NRI2016 51
0
same place
as in 2010
Growth of current expenses due to signifi-
cant energy intensity production
Conclusions:
- positive dynamics of infrastructure development and affordable tariffs for telecommunications services;
- regulatory environment does not create favorable conditions for the use of ICT in business.
Source: created by the author.
In general rating of 139 countries around the world
in terms of the ICT development level in 2016, Ukraine
has taken a 64 rating position [8], having improved by
7 points compared to last year, ahead of even EU mem-
bers, such as Romania and Bulgaria, which indicates the
ICT development is promising.
This was facilitated by the availability of tariffs for
mobile communications and telecommunications ser-
vices; high level of literacy and awareness of adult in
ICT; the growth in sales of smartphones (which are mul-
tifunctional and high-tech devices that can replace other
accessories), especially in small towns and villages; ac-
cessibility of a high-speed 3G network and the recent
launch of 4G network (LTE).
In recent years, the facilitating factor of the regula-
tory environment has become simplification of the
mechanisms for obtaining permits and registration pro-
cedures, which affected their number, duration and cost
(the Unified State Register of Legal Entities and Indi-
vidual Entrepreneurs, whose information is open and
available for public was created, electronic registration
of business entities was introduced) [9]; Expansion of
free electronic access for the population to individual
registries (in particular, from 2015 to the State Land Ca-
dastre through the Public Cadastre map map.land.gov.
ua).
Among the main constraints in the development of
the infrastructure and the regulatory environment of net-
work readiness for the period 2010-2018, the insuffi-
cient legislative support for the development of the in-
formation society formation issues, the network econ-
omy, e-government, e-commerce, etc. should be noted.
At the same time, the following issues remain
open: the independence of courts; the effectiveness of
legal system for disputes settlement; the strengthening
judiciary responsibility to society; the implementation
of the updated constitutional principles of justice at the
legislative level to ensure the independence (depolitici-
zation) of the judiciary; the establishment at the law
level of a mandatory pre-trial procedure for the settle-
ment of disputes in specific cases, which will provide
Yа. Pushak, I. Kravchuk, O. Makeieva
40
Економічний вісник Донбасу № 4(54), 2018
the basis for alternative methods of disputes resolution
development, such as mediation, etc. [10].
The problem of protecting intellectual property
also remains urgent. In recent years particularly acute is
the issue of software piracy and plagiarism, high level
of unlicensed software and computer games use.
To analyze the level of network readiness of both
the state and business, it is important to legislate and im-
plement it in practice. The study of Ukraine's rating in-
dicators made it possible to establish the presence of a
certain pattern: low positions in the rating are where real
business processes are evaluated (international trade,
taxation, connection to power networks, partially it is
construction and bankruptcy), it is a little higher in the
case of exclusively legislative activity.
The positive dynamics of Ukraine's network readi-
ness for 2010-2016 allowed the construction of its fore-
cast for 2017-2020 (since the number of countries par-
ticipating in the NRI Index has changed over the years,
the NRI estimate was used for the forecast, but not the
place in the ranking) (Figure 1).
Fig. 1. The forecast of Ukraine's network readiness for 2020
Source: created by the author
The forecast of Ukraine's position in the world ra-
ting is to some extent an indicator of the state regulation
mechanism effectiveness in the field of ICT and enter-
prises prospects. The positive trend line shows the
growth of Ukraine's network readiness in 2020 to 4.85.
The obtained forecast indicator corresponds to the cur-
rent value in the rating with 32-35 places and an estimate
of 4.8 to such countries as Latvia, Saudi Arabia, Malta,
Spain. Ukraine can reach the top 20 leaders – Austria,
Israel, Estonia, Belgium, according to this trend, only in
2024 with a score of 5.4. However, the level of techno-
logy is changing at a rapid pace, so it is necessary to
build a clear strategy to achieve the results of these
countries.
Under condition of the ICT spread in business and
society, information security measures become im-
portant, since the network economy not only brings
many advantages and creates additional opportunities
for business development, but also generates a number
of threats that are destructive for both the individual and
the region and country as a whole.
The main threats for spreading the network eco-
nomy in modern conditions are: information terrorism
(through the use of the media, spreading rumors, dis-
semination of false (distorted, presented in a favorable
context) information, activities of unfair competition);
cyberterrorism (because of the infiltration of citizens,
enterprises, government agencies, political parties into
the computer networks, that can influence the violation
of the world order); information attacks (through the
spread of fakes (about military conflicts, the ecological
situation, social and humanitarian problems in certain
territories, anti-advertising of competitors, dissemina-
tion of compromising materials (often false infor-
mation) about business structures, that often precedes
raider seizure, etc.); intentional point impact on a partic-
ular population group, which is most vulnerable to this
information (pensioners, national minorities, ATО ve-
terans, adolescents, etc.); the religious and public organ-
izations use; use of memetic weapons (primarily
through social networks in order to impose stereotypes
of thinking and behavior in business and society); the
problem of protecting personal data (penetration
through social networks (for example, recent events
with Facebook) into the personal information space of
citizens in order to use their personal data and manipu-
Yа. Pushak, I. Kravchuk, O. Makeieva
41
Економічний вісник Донбасу № 4(54), 2018
late both consciousness and behavior in society); infor-
mation overload (through "pollution of the information
space" and the constant imposition of unnecessary infor-
mation, which often makes it difficult to sort it out); par-
tial or complete replacement of a person with artificial
intelligence in a professional and public environment
(for example, running a robot in mayoral election in Ja-
pan); influence on the psychological state of the popula-
tion through the formation of phobias through the Inter-
net network.
The reaction of the European Union to the scandal
with the leakage of information via Facebook is indica-
tive as for increasing information security of protecting
the personal information space and personal data in this
case: since May 2018, the new General Data Protection
Regulation (GDPR) comes into force (created and
adopted in 2016) [11], which is intended to guarantee
the safety and protection of personal information of ci-
tizens of the EU and other countries whose data are used
on the territory of the European Union. The energy, fi-
nancial companies, telecom operators and reservation
services, e-shops and social networks falls under the
terms of the GDPR2016 regulations first of all. Effective
financial sanctions are provided for the regulations vio-
lation: 20 million EUR or 4% of annual income for vio-
lation of GDPR2016 key provisions, personal data sub-
jects rights, standards for the personal data transfer, etc.
A feature of the new GDPR regulation is that it includes
an IP address to the personal data; prohibits the collec-
tion of redundant personal data, inaccurate information
must be updated or deleted on time; provides monitoring
of behavioral personality activity in social networks,
geolocation for targeting and personalization of adver-
tising; a data leakage statement is required within
72 hours to the European Data Protection Board
(EDPB), the only regulatory body in the EU [12]. Under
the conditions of European integration, Ukrainian enter-
prises should carefully review their own information
policy in the field of storage, processing and use of per-
sonal data in accordance with the standards of doing
business in the EU.
Conclusions. The main factors constraining the
development of ICT in the Ukrainian economy is insuf-
ficient level of their use by the government, business;
insufficient legislative support of the network economy,
problems with the intellectual property protection; a low
level of new technologies adoption in business; insuffi-
cient level of ICT influence on the emergence of new
business models, which is probably connected with un-
favorable business environment, while the low govern-
ment readiness can be explained by the lack of a clear
official ICT strategy and inadequate ability to use it.
It should be noted that not only the fact of passing
the law, but also the communication campaign is im-
portant, therefore, digital strategies should be aimed not
only at developing the ICT infrastructure, but also at cre-
ating the necessary conditions for the ICT effective use
in order to increase innovation, competitiveness, greater
social integration.
Effective development of the information space is
impossible without taking into account the observance
of information security conditions for the implementa-
tion of electronic transactions on the Internet, electronic
document management, mind-maps use, digital signa-
ture mechanisms. Therefore, in the system of infiltration
of the network economy into all spheres of economic
activity, it is important to observe the criteria of infor-
mation security, which will contribute to stabilization in
the relations between the market holders and become
one of the key components of business development.
State policies and company strategies with the aim
of maximizing the economic and social effects of the
network economy should be aimed at coordinating ef-
forts among stakeholders in the field of ICT dissemina-
tion, emphasizing the key focus on the development and
strengthening of public-private partnership.
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society, the information age: economy, society and culture.
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42
Економічний вісник Донбасу № 4(54), 2018
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Пушак Я. Я., Кравчук І. П., Макеєва О. М.
Фактори розвитку мережевої економіки в Україні:
економіко-правовий аспект
Статтю присвячено дослідженню факторів роз-
витку вітчизняної мережевої економіки на основі ана-
лізу міжнародних індексів розвитку інформаційного
середовища; обґрунтуванню загроз інформаційної без-
пеки ведення бізнесу. Проведено аналіз сприятливих
та гальмуючих факторів поширення мережевого під-
ходу до ведення бізнесу, здійснено SWOT-аналіз ін-
фраструктури та регуляторного середовища готовності
участі підприємств у мережевій економіці, визначено
недоліки її нормативно-правового забезпечення, побу-
довано прогноз мережевої готовності України. Об-
ґрунтовано загрози поширення мережевої економіки в
бізнесі і у суспільстві. Основними факторами, що стри-
мують розвиток ІКТ в економіці України, є: невисокий
рівень їх освоєння урядом, бізнесом; недостатнє зако-
нодавче забезпечення мережевої економіки.
Ключові слова: мережева економіка; індекс мере-
жевої готовності; фактори мережевої економіки; інфо-
рмаційна безпека.
Пушак Я. Я., Кравчук И. П., Макеєва О. М.
Факторы развития сетевой экономики в Украине:
экономико-правовой аспект
Статья посвящена исследованию факторов разви-
тия сетевой экономики на основе анализа международ-
ных индексов развития информационной среды; обос-
нованию угроз информационной безопасности веде-
ния бизнеса. Проведен анализ благоприятных и тормо-
зящих факторов распространения сетевого подхода к
ведению бизнеса, осуществлен SWOT-анализ инфра-
структуры и регуляторной среды готовности участия
предприятий в сетевой экономике, определены недо-
статки ее нормативно-правового обеспечения, по-
строен прогноз сетевой готовности Украины. Обосно-
ваны угрозы распространения сетевой экономики в
бизнесе и в обществе. Основными факторами, сдержи-
вающими развитие ИКТ в экономике Украины, явля-
ются: невысокий уровень их использования правитель-
ством, бизнесом; недостаточное законодательное обес-
печение сетевой экономики.
Ключевые слова: сетевая экономика, индекс сете-
вой готовности, факторы сетевой экономики, инфор-
мационная безопасность.
Pushak Ya., Kravchuk I., Makeieva O. Factors of
networked economy development in Ukraine: economic
and legal context
Under the influence of information technology, the
features and content of organization forms of economy
change; new kinds of production and forms of doing busi-
ness are created, a main base of functioning networked
economy is formed.
The expanding of network approach for organization
of economic relationships creates real changes in market
and competitive structures, requires a necessity of chang-
ing aims and methods of entrepreneurship.
The issues of networked economy forming and deve-
lopment were studied by both foreign researchers (J. Gal-
braith, A. Toffler, P. Druker) and native scholars (V. Ba-
zylevych, V. Heyets, I. Besedina).
The whole imagination about the process of net-
worked economy forming is impossible without learning
the factors, which define it, with taking in count specificity
of native market environment, which is not researched
enough in the national scientific field.
Research of the factors of networked economy deve-
lopment based on analysis of international indexes of in-
formation environment development; determination of
threats of information security in doing business.
The analysis of advantageous and deterring factors of
expanding network approach in doing business is carried
out, the disadvantages of its law providing are defined, a
forecast of Ukraine’s networked readiness is constructed.
The threats of expanding network economy in business and
society are explained.
The main factors, which prevent development of ІCТ
in Ukraine’s economy, are the low rate of adoption them
by government, business; the low rate in law securing of
network economy. Following the criteria of information
security in network economy facilitates stabilization in re-
lationships towards market’s stakeholders and will become
one of the main parts in business development.
Keywords: networked economy; Networked Readi-
ness Index; factors of networked economy, informational
security.
Received by the editors: 13.11.2018
and final form 14.12.2018
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