Topalova Svitlana, Candidate of Political Sciences, Associate Professor, Associate Professor of the Department of Management, Business and Professional Communications, ESI «Karazin Banking Institute», V.N. Karazin Kharkiv National University, Kharkiv, Ukraine

ORCID ID: 0000-0002-0453-0418
e-mail: svitlana.topalova@karazin.ua

Corporate Culture, Customer Orientation, Innovation as a Function of Management and Basic Prerequisites for Business Efficiency

Abstract. Introduction. The article examines customer orientation and innovation as components of corporate culture and management functionality.

Purpose. The degree of orientation to the consumer, his involvement in the process of development and implementation of innovations, a realistic assessment of the management of the company’s focus on the client are considered as the main factors influencing business efficiency.

Results. Attention is focused on the interrelationships between the type of corporate culture, the degree of its innovativeness and customer orientation, on the one hand, and the innovativeness of products or services, on the other. Attention is paid to the analysis of research on customer orientation and innovativeness of companies operating in foreign markets, a certain systematization of the results of these studies is carried out. Consumers are considered as direct participants in the process of development and implementation of innovations at all its stages. The main consequences of insufficient customer orientation are analyzed – insufficient and excessive innovativeness of products and services. Since the second one manifests itself more in modern situation, a rather vivid illustration of it using the example of products of IT Companies is provided. Emphasis is placed on differences in assessments of client orientation of managers and consumers, overestimated self-esteem of management.

Conclusions. Recommendations on strengthening the orientation of business structures on the client and balancing the level of innovativeness of products and services with the needs of the client are formulated: constant monitoring of the needs of consumers and clients; effective communication with them at all stages of development of innovative product ; “innovative enlightenment” for “pulling up” the consumers to the level of innovation of products or services. Implementation of these recommendations requires significant changes in corporate culture.

Keywords: customer orientation; innovations; corporate culture; management; business structure; business efficiency.

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