Prychepa Iryna, Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Business Economics and Production Management, Vinnytsia National Technical University, Vinnytsia, Ukraine

ORCID: 0000-0002-0805-2732
e-mail: prychepa@vntu.edu.ua

Kudyna Anhelina, Higher education student of the Faculty of Management and Information Security, Vinnytsia National Technical University, Vinnytsia, Ukraine

ORCID: 0009-0002-2794-2279
e-mail: angelinakudyna8@gmail.com

Economic Efficiency of Enterprise Activities: Theoretical Principles and Modern Challenges in Management

Abstract. Introduction. The article examines the theoretical foundations of economic efficiency in enterprises and the modern challenges of their management. The relevance of the topic stems from the necessity of ensuring the effective functioning of enterprises amid an unstable external environment, increased competitive pressure, the transformation of economic processes, the digitalization of activities, and growing uncertainty in management systems. Under these conditions, rethinking the essence of economic efficiency, clarifying its characteristics, and determining its role in forming an effective management system for enterprise activities becomes particularly important. 

Purpose. The article aims to generalize and systematize scientific approaches to interpreting the concepts of «efficiency» and «economic efficiency,» clarify their meanings, identify the primary characteristics of economic efficiency, and examine the relationship between «efficiency» and «effectiveness».

Results. The research process employed scientific generalization, systematization, comparative analysis, logical generalization, and analysis and synthesis, as well as scientific abstraction. According to the study’s results, scientific approaches to interpreting the concept of «efficiency» are summarized. The place of economic efficiency in the system of economic categories was determined, and it was substantiated that economic efficiency is a type of general efficiency. The key characteristics of economic efficiency are identified: its complex nature, its dependence on internal and external environmental factors, and its relationship with the quality of enterprise management activities. The similarities between the interpretations of the concepts of «efficiency» and «effectiveness» are examined, and their meanings are defined. 

Conclusions. It is determined that effectiveness characterizes the degree to which set goals are achieved, while efficiency also considers the rationality of the resources used to obtain the corresponding result. The results of the study can be applied to the practical activities of enterprises to improve processes for assessing and managing economic efficiency and to support managerial decision-making under modern business conditions.

Keywords: efficiency; effectiveness; economic efficiency; economic efficiency management; efficiency assessment

References:

1. 1. Hovorushko, T. A. (2007). Efficiency as an economic category. Scientific Works of the National University of Food Technologies, 20, 74-76. https://dspace.nuft.edu.ua/handle/123456789/309.
   2. Kravchenko, V. O. (2024). Efficiency of enterprise activity: content, types and role in modern conditions. Economy and Society, 65. https://doi.org/10.32782/2524-0072/2024-69-20.
   3. Morshchenok, T. S. (2016). Review of approaches to determining the economic essence of the concept of “efficiency”. Еconomic Bulletin of Zaporizhzhia State Engineering Academy, 1(01), 7-13. http://nbuv.gov.ua/UJRN/evzdia_2016_1_3.
   4. Otenko, I. P. (2020). Efficiency as the main concept and criterion of enterprise activity. Business Inform, 6, 190-195. https://doi.org/10.32983/2222-4459-2020-6-190-195.
   5. Pererva, P. H., & Kravchuk, A. V. (2018). Efficiency as an economic category. Bulletin of NTU «KhPI». Series: Economic Sciences, 15(1291), 137-143. https://repository.kpi.kharkov.ua/handle/KhPI-Press/36344.
   6. Cherep, A. V., & Strilets, Ye. M. (2013). Efficiency as an economic category. Efektyvna ekonomika, 1. http://www.economy.nayka.com.ua/?op=1&z=1727.
   7. Drucker, P. F. (2006). Managing for results: economic tasks and risk-taking decisions. HarperBusiness.
   8. Momot O. I., & Demchenko A. O. (2013) On the essence of the concepts «efficiency» and «effectiveness» in economics. Ekonomichnyi visnyk Donbasu, 3(33), 207-210. http://jnas.nbuv.gov.ua/j-pdf/ecvd_2013_3_29.pdf.
   9. Ponomarenko, T. M. (2014). Effect, efficiency and effectiveness of enterprise activity. Naukovi pratsi NUKhT, 20(3), 115-122. https://dspace.nuft.edu.ua/handle/123456789/19568.
   10. Lihonenko, L. O. (2008). Discussion issues regarding the interpretation of the essence and correlation of the concepts “efficiency” and “effectiveness” of enterprise management. Actual Problems of Economics, 10(88), 207-215.
   11. Misko, H. A. (2020). The essence of the concepts of effectiveness and efficiency in management. Scientific Bulletin of Odesa National University, 3-4(276-277), 97-102. https://doi.org/10.32680/2409-9260-2020-3-4-276-277-97-102.
   12. Bahlaieva, N. S., & Sukhovieieva, Yu. A. (2020). Theoretical essence of the concept of economic efficiency of enterprise activity. Bulletin of the Student Scientific Society of the Educational and Scientific Institute of Business and Management of KhNTUSH, 2, 98-101. https://repo.btu.kharkiv.ua/items/d21174f0-193b-428f-85d6-4ff81c2add54/full.
   13. Navolska, N. V. (2018). Theoretical aspects of managing the economic efficiency of enterprises and selecting indicators for its evaluation. Economy and Society, 18, 474-480. https://doi.org/10.32782/2524-0072/2018-18-66.
   14. Chuchuk, Yu. V. (2014). Theoretical essence of the concepts of economic efficiency and activity efficiency. Efficient Economy, 2. http://www.economy.nayka.com.ua/?op=1&z=2765.
   15. Yaroslavskyi, A. O. (2018). Economic efficiency of enterprise activity: Theoretical aspect. Scientific Bulletin of Uzhhorod National University. Series: International Economic Relations and World Economy, 20(3), 174-177. http://www.visnyk-econom.uzhnu.uz.ua/archive/20_3_2018ua/38.pdf.
   16. Kutsenko, A. V. (2008). Orhanizatsiino-ekonomichnyi mekhanizm upravlinnia efektyvnistiu diialnosti pidpryiemstv spozhyvchoi kooperatsii Ukrainy. RVV PUSKU. http://dspace.puet.edu.ua/handle/123456789/749.
   17. Achkasova, L. M. (2023). Enterprise performance management system. Economics of Transport Complex, 41. https://etk.khadi.kharkov.ua/article/view/277729/272497.
   18. Hovorushko, T. A., & Klymash, N. I. (2015). Upravlinnia efektyvnistiu diialnosti pidpryiemstv na osnovi vartisno-oriientovanoho pidkhodu. https://dspace.nuft.edu.ua/server/api/core/bitstreams/c47cb4e3-a263-4eb4-95bf-363019e69fb3/content.
   19. Ricardo, D. (2015). On the principles of political economy and taxation. Cambridge University Press.
   20. McConnell, C. R., Brue, S. L., & Flynn, S. M. (2018). Economics: Principles, problems, and policies (21st ed.). McGraw-Hill Education.
   21. Mochernyi, S. V. (Ed.). (2000). Ekonomichna entsyklopediia (Vol. 1). Akademiia.
   22. Zavadskyi, Y. S., Osovska, H. V., & Yushkevych, O. O. (2006). Slovnyk ekonomichnykh terminiv.
   23. Turenko, A. M., Dmytriiev, I. A., Ivanilov, O. S., & Shevchenko, I. Yu. (2018). Slovnyk ekonomista ta pidpryiemtsia. KhNADU.
   24. Savenko, N. V. (2009). Economic essence of production efficiency of an enterprise and analysis of approaches to its definition. Innovative Economy, 2, 153-162.
   25. Yemets, Yu. H. (2013). Economic efficiency as the basis of enterprise competitiveness. Bulletin of Lviv Polytechnic National University. Management and Entrepreneurship in Ukraine: Stages of Formation and Development Problems, 769, 156-160. http://nbuv.gov.ua/UJRN/VNULPM_2013_769_25.
   26. State Enterprise Ukrainian Research and Training Center for Standardization, Certification and Quality. (2008). Quality management systems. Fundamentals and vocabulary (Standard №9000:2007).
   27. Mochernyi, S. V. (2000). Osnovy ekonomichnykh znan. Akademiia.
   28. Bazylevych, V. D. (2007). Ekonomichna teoriia: Politekonomiia (6th ed.). Znannia-Pres.
   29. Nazarenko, I. (2022). Economic content of enterprise performance efficiency. Galician Economic Bulletin, 3(76). https://doi.org/10.33108/galicianvisnyk_tntu2022.0.
   30. Surmin, Yu. P. (2010). Teoriia system i systemnyi analiz. MAUP.