Uman NUH | today: 09/19/2019

Adaptation of the regional economic system to constantly changing factors of internal and external environment

Author(s) Brychko A.M., Candidate of Economics Sciences, , Sumy National Agrarian University
Category Economics
year 2016 issue Випуск №88. Частина 2
pages 230-238 index UDK 332.15
Abstract The process of functioning and development of territorial and economic systems takes place in interconnection and because of globalization processes. They are manifested in various areas affecting processes of global and regional development as the consequence on regional economic systems of the state. With globalization, timely and effective adaptation to changing internal and external factors of the environment is a prerequisite for maintaining a competitive condition and achieving this goal is a guarantee of the success of any regional economic system so considering this subject is relevant today. The purpose of the article is to determine the main components that help to adapt regional economies to internal and external environmental factors. The monographic method (with the full and thorough study of adapting regional economic systems to market conditions, studying best practices); scientific methods; empirical methods (measuring, comparing, monitoring), methods of theoretical studies (analysis and synthesis), as well as local (specific) method – a method of analyzing situation contributed to achieving the objective. Adaptation is the reaction of regional economic systems to changing environmental factors. We can state that for the regional economy the notion of adaptation is adapting economic activities in the region using the latest technologies to manage internal and external environmental factors. Adaptation implies such factors of changing internal environment by means of which there are not only quantitative but also qualitative changes in industrial and organizational structures. The purpose of this is to ensure effective activity of enterprises in the conditions of regions variable of quantitative and qualitative factors of the environment. Implementation of basic principles and provisions of the adaptation to the enterprise management should be carried out through a system of models and methods for making management decisions that have a single database, linked to each other with certain information links that provide sustainability of operating company and its adaptation. Adaptation carries out improving subject of the economy by creating a certain level of protection against the negative influence from factors of external and internal environment. Adaptation as a basis for functioning company warns about changes that are taking place and allows saving and stabilizing its condition. Main directions of adapting regional development in the context of globalization are defined. Characteristics of the regional economic system are emergence, integrity, synergy, compatibility, adaptability, separateness allowing the regions changing in time and space. The earlier in the region negative trends are found the more effectively the region’s economy operates. The system will be adapted if domestic challenges are discovered in time and responded; changes in management are quickly made in the initial stages. The higher level of adaptation and more efficient level of developing region the greater opportunity is to realize their existing potential. Thus, it was found that the main challenge for the economic system of the region is the adaptation of its capacity to constantly changing factors of internal and external environment. It is proved that the process of adapting regional economic system and its components includes the impact of environmental components: availability of domestic financial sources of innovations for the region; status and level of the institutional environment; degree of developing innovation infrastructure; professional staff capable of implementing innovation process; presence or absence of innovative technologies. All of these components will determine the level of adapting economic development of the region to the constantly changing factors of internal and external environment.
Key words adaptation, adaptive management, regional economic system, globalization, factors of internal and external environment.
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