Article
citation information:
Poberezhna, Z. Formation of
business sustainability of the transport industry in the context of innovative
transformations. Scientific Journal of Silesian University of
Technology. Series Transport. 2024, 124,
143-156. ISSN: 0209-3324. DOI: https://doi.org/10.20858/sjsutst.2024.124.10.
Zarina POBEREZHNA[1]
FORMATION
OF BUSINESS SUSTAINABILITY OF THE TRANSPORT INDUSTRY IN THE CONTEXT OF
INNOVATIVE TRANSFORMATIONS
Summary. The paper describes the
peculiarities of the formation of business sustainability in the transport
industry, and characterizes the main factors affecting it. It was determined
that for the business sustainability of the transport industry, innovative
processes and transformations play a significant role, which encourage
enterprises to be client-oriented and provide quality service to consumers, the ability
to adapt to changes in the economic situation and new social challenges. A feature
of the modern development of the transport industry is the transition to an
innovative path of development, which will allow transport enterprises to
occupy more priority positions compared to their competitors. The impact of
innovative transformations on ensuring business sustainability of the transport
industry is characterized by the use of innovations in the implementation of
commercial activities, ensuring the quality of services (products), which will
make it competitive. The paper offers a methodical approach to choosing a
strategy for managing the business sustainability of the transport industry in
the conditions of innovative transformations, which allows choosing an
appropriate development strategy depending on the indicators of economic activity
(IEA), the level of business sustainability (IBS), risk indicators (IBR).
Keywords: business sustainability, transport industry,
innovative transformations, economic activity
1. INTRODUCTION
Integration processes and the development of
modern innovative technologies significantly change the idea of enterprise
management in modern conditions, prompting them to search for new business
models, methods and processes, forming a modern view of enterprise management.
In a rapidly changing economic situation, the ability of an enterprise to
achieve business sustainability in the market is becoming the key to
leadership. The level and dynamics of development of advanced (high)
technologies, the mechanism of penetration of innovative transformations into global
markets have become the defining characteristics of the new economic system.
Innovative transformations differ from traditional forms of strategic change in
that new technologies encourage companies to become customer-oriented and
provide quality customer service, and to be able to adapt to changes in the
economic situation and new social challenges.
A significant indicator of a country's
technological progress is the level of development of its transportation
system. Transport plays a fundamental role in the national economy as a
component of production and social infrastructure. Transport appears to be an
object of market relations, whose effective operation depends on the normal
functioning and development of all sectors of the economy served by transport,
enterprises, and their associations. It also affects the quality of life of the
population. The transportation industry is characterized by intensive
development. Globalization changes, the dynamic development of international
trade and the rapid growth of the exchange of goods lead to a significant
development of transport services [1]. The modern economy poses more and more
challenges to the transport industry related to increasing transportation
volumes, improving safety, improving the level of customer service, reducing
costs, and increasing efficiency with the help of modern Industry 4.0
technologies. The usual methods of competition are no longer sufficient and no
longer lead to the desired results, and therefore, the main competitive advantage
is the ability to innovate. The innovative activities of transport companies
should be aimed at improving the quality of services, increasing labour productivity, extending transportation distances,
increasing market share, entering new markets, and at the same time forming
business sustainability and reducing production costs. First of all, this can
be achieved through the technical development of the industry and innovative
transformations, which should be aimed at fully and efficiently meeting the existing
transportation needs. Thus, innovative transformations have a significant
impact on the formation of the business sustainability of the transport
industry through the introduction of new technologies and management methods
that must be efficient, safe, and reliable for society and the environment.
2. STATE OF THE ART FOR THE PROBLEM OF RESEARCH
The papers [2-6] discuss the
theoretical, methodological, and practical aspects of developing transport
infrastructure in order to improve the efficiency of the transport industry.
Papers [7, 8] consider the issues of
financial and institutional development of the transport industry, as well as
the peculiarities of investment support within the framework of the formation
of transport corridors.
There is still an ongoing discussion
about the key requirements for the modern innovative composition of transport
infrastructure as part of the transport industry, which is studied in paper
[9]. Researchers on the influence of factors and indicators for assessing the level
of innovative development of transport infrastructure in general and individual
components in particular are reflected in papers [10, 11].
According to paper [12],
transportation infrastructure facilitates the coordination of economic
activities among economic entities at the international, macro- and meso-levels, as well as at the level of economic sectors
and enterprises.
According to the author [13], who
points out that transport infrastructure is specific to each mode of
production, therefore, in the analysis of economic systems, the following chain
of infrastructure levels is distinguished: mega-system (world economy),
macro-system (national economy), meso-system
(regional economy, industry), micro-system (at the level of individual
enterprises) and nano-system (economic activity of an
individual).
We can agree with the opinion of the
author [14] that transport infrastructure services are not only the most
important consumer goods, but also a means of increasing productivity and
improving access to markets, the state of infrastructure also directly affects
the ability of the general population to enjoy the benefits of economic growth.
The issues of forming business
sustainability of an enterprise are covered by the papers [15, 16] and others.
In the scientific paper [15], the
business sustainability of an enterprise is defined as a system of various
areas of enterprise management (business metrics) with a certain marketing
complex. The author of the paper does not reduce the concept of “business sustainability”
to synonymously simplified and identified concepts such as “financial
sustainability” and “economic sustainability”, but proposes to consider
business sustainability as a complex of three types of consistently related
systems (organizational, market, economic systems).
In paper [17], business
sustainability is considered as the concept of price, financial, economic,
technological and organizational sustainability of an enterprise, which in
general have different effects on it.
Given the scientific and practical
significance of the publications of the aforementioned authors, it is
imperative to emphasize that it is imperative to formulate theoretical and
methodological foundations, methodological and practical recommendations for
the establishment of the business sustainability of the transport industry,
taking into account modern innovative transformations that incorporate advanced
management technologies and contribute to the implementation of potentially
effective tools for state regulation of innovation in the transport industry in
terms of strategic, coordination and integration, and financial and investment
directions of the state economic policy.
3.
MATERIALS AND METHODS
Modern trends in the development of
the transport industry are inextricably linked to the impact of digitalization
of the economy and require the definition of new approaches to management. The
transportation industry is a complex ecosystem that encompasses everything
related to different modes of transportation, namely road, rail, sea, air, and
pipeline transport. This industry includes the transportation of raw materials,
finished goods as well as passengers. The growth of international trade has a
great impact on the development of the transportation industry. It is the
planning of all functions and sub-functions in the system of movement of goods
and provision of services in order to minimize costs and maximize customer
service that constitutes the concept of business sustainability of the
transport industry. The sustainability of the transport industry is
characterized by its ability to support the mobility needs of society in a way
that is least damaging to the environment and does not disrupt the mobility
needs of future generations [18].
Sustainable development in relation
to transportation systems requires developing and strengthening the links
between environmental protection, economic efficiency and social progress.
In the environmental dimension, the
goal is to understand the mutual influences of the physical environment and
industry practices, and that environmental issues are addressed by all aspects
of the transportation industry. In the economic dimension, the goal is to
orient progress in the sense of economic efficiency. Transportation must be
economical and able to adapt to changing demands. In the social dimension, the
aim is to improve the standard of living and its quality [19].
The peculiarity of the modern
development of the transport industry is the transition to an innovative way of
development, which will allow transport enterprises to take a higher priority
position compared to their competitors with a low level of innovation potential
and make a qualitative leap to a new technological mode. The impact of
innovative transformations on the business sustainability of the transport
industry is characterized by the use of innovations in commercial activities
and allows taking a leading position in the global market, and providing
services (products) with a high degree of science intensity and novelty,
thereby making them competitive.
There is a two-way relationship
between innovation and sustainable development. On the one hand, economic,
social and environmental factors improve as a result of intensified innovation.
On the other hand, these changes lead to the accumulation of funds, knowledge,
and skills to spread innovation processes in the country [20].
It should be noted that the
formation of the business sustainability of the transport industry is proposed
to be considered as a complex of five types of consistently related
sustainability systems: economic, environmental, social, organizational, and
financial. It should be noted that the
essence of each type of functional sustainability has its own set of essential
factors that require careful analysis and are directly influenced by innovative
transformations.
Solving the problems of business
sustainability is impossible without the use of innovative mechanisms in the
management of the transport industry. The level of innovation potential has a
huge impact on the formation of managerial and technological innovations, their
application determines the efficiency of decision-making, increasing the
effectiveness of management personnel in achieving business sustainability in
the transport industry [21].
The impact of innovative
transformations significantly changes the transport industry, affecting changes
in strategy, business model, logistics process, marketing and other areas as a
result of the use of innovative technologies. In this regard, the authors
propose a system for the formation of the business sustainability of the
transport industry in the context of innovative transformations (Fig. 1).
The development and integration of
the transport network removes existing market barriers and facilitates the
interaction between various electronic systems and technological standards to
optimize processes and customer service. Long-term competitive advantages arise
only when an enterprise continuously improves its innovative technologies and
widely uses them [22].
Therefore, the priority areas in
forming the business sustainability of the transport industry under the
influence of innovative transformations are:
-
introduction
of sustainable customer-oriented business models aimed at achieving economic
efficiency, taking into account environmental safety factors, mainly aimed at
preserving natural resources and factors of social well-being – human capital
development;
-
increasing
the share of “green” vehicles;
-
selecting
more environmentally friendly modes of transport (with lower CO2
emissions) for multimodal transportation;
-
improving
delivery planning and route optimization;
-
cooperation and effective interaction with partners.
To support the efficient functioning
of the transportation industry, it is advisable to improve the efficiency of
equipment operation and maintenance.
For this purpose, operational
systems are used, which include the following components: the object of
operation, processes, procedures, algorithms of maintenance, personnel,
regulatory documents, resources, etc. [23].
A high level of business
sustainability of the transport industry is achievable with the introduction
and use of innovative technologies in the main types of transport, which
improve the quality of service and provide convenient services to consumers
without the need to create additional infrastructure. Among the main innovative
technologies in transportation are: intelligent cargo and IoT
(“Internet of Things”); technical improvement of vehicles; application of
information and automated systems; blockchain
technologies; smart storage; real-time tracking; intelligent delivery;
implementation of Industry 4.0 technologies [24].
Thus, the implementation of the Industry
4.0 concept in the transportation industry is aimed at responding quickly to
market competition, meeting customer needs, improving operational efficiency,
and reducing overproduction, energy consumption and waste, thus moving towards
a more sustainable development of the industry.
The concept of Industry 4.0 can be applied to the business models of the
transportation industry and their elements when creating value for the
customer, as well as to the assessment of the product life cycle. This translates
into the achievement of business sustainability goals, in terms of
environmental sustainability — aimed at reducing the number of materials used,
increasing the share of reused, recovered and recycled materials, as well as
reducing the total amount of waste. From a social sustainability perspective,
the concept of Industry 4.0 is related to the technological development of
production and changes in working conditions, namely to the replacement of
manual labour with automated labour.
Blockchain technologies are used to distribute
data and improve security in supply chains and manufacturing processes. These
characteristics can be used to track business sustainability-related metrics,
such as resource provenance, and make them available to stakeholders and
decision-makers.
IoT (“Internet of Things”) technology
is changing the transportation industry dramatically, providing a huge amount
of real-time data on how different vehicles operate and are used around the
world. IoT can also be used to adjust schedules and
provide personalized services on different modes of transport, help congested
cities to encourage the use of public transport instead of private vehicles and
reduce the load on the road network. Technology can reduce costs and speed up
the implementation of services.
Fig. 1. System of formation business
sustainability of the transport industry in the context of innovative
transformations
The formation of the business
sustainability of the transportation industry is proposed to be achieved in the
following ways:
-
effective
cooperation, meeting the trends of Industry 4.0, optimization of management of
integration of market participants in the conditions of innovative
transformations;
-
correspondence to the mutual interests of enterprises,
customer, market, and society. In order for the transportation industry to
become business sustainable, it is necessary to pay special attention to mutual
interests and the common good without harming the interests of others, as well
as forming environmental safety and social welfare;
-
balancing the factors of economic sustainability,
environmental safety and social well-being, profit-oriented and increasing the
welfare of society in the conditions of innovative transformations [26].
4. RESULTS
AND DISCUSSION
Business sustainability management
in the context of innovative transformations in the transport industry can be
carried out through the use of appropriate strategies. At the same time, it is
necessary to take into account the main indicators of economic activity of
enterprises in the industry, the integral indicator of business sustainability
and the integral indicator of business risks [27, 28].
We propose the following
methodological approach to choosing a strategy for managing the business
sustainability of transport enterprises in the context of innovative
transformations (Fig. 2).
Fig. 2. Methodological approach to
managing the business sustainability of the transport industry in the context
of innovative transformations
Each of the stages of the proposed
model is performed according to a specific algorithm.
Stage 1. Evaluation of the results of
economic activity is carried out according to the following algorithm:
Step 1. Creating a hierarchical model of economic
activity indicators that are factors in the formation of business
sustainability. We propose to consider the following factors: x1- level of material and technical
support; x2 -
financial stability; x3- level of
innovation activity; x4- economic
stability; x5- customer
satisfaction index; x6 -
profit level; x7- investment
volume;
x 8- transportation volumes.
Step 2. Expert assessment of the weighting
coefficients of each factor. It is proposed to base the assessment on a survey
of experts. Experts assess the priority of each factor on a 9-point comparative
scale of relative importance by T. Saaty. Based on
the expert assessments, a matrix of pairwise comparisons A is built,
each element of which is defined as follows: aij=k,
k=2,3,...,9, if the i-th factor is more
important than the j-th, 
, if the i-th
factor is less important than the j-th, aij=1, if the i-th
and j-th factors have the same priorities.
Step 3. Checking the consistency of the expert
opinion. The following indicators are calculated based on the elements of the
obtained matrix A:
- Generalized priority vector:
(1)
- The coefficient μ, which is the convolution of three
matrices:
(2)
where:
is
a column matrix transposed to 𝑉.
- Consistency Index:
. (3)
- The stochastic consistency index
is calculated by the reliability level γ, which determines the probability that an
expert opinion can be considered consistent:
(4)
is the quantile of the normal
distribution.
- Consistency ratio:
(5)
determines the level of significance of the
conclusion regarding the consistency of the expert opinion. That is, the expert
opinion can be considered consistent with a probability of at least 
.
Step 4. Evaluation of the integrated indicator of
economic performance:
(6)
Stage 2. We propose to assess business sustainability
using the following algorithm:
Step 1. Modelling the system of business resilience
formation and creating a list of factors.
As noted above, the business
sustainability system is considered as a complex of five related subsystems: s1- economic, s2-
environmental, s3- social, s4- organizational, s5-
financial. Each of the subsystems is determined by a number of factors.
Therefore, the integrated indicator characterizing the activity of each
subsystem can be defined as a function of a certain list of factors:
(7)
To study the efficiency of transport
systems, methods of increasing accuracy using segmented regression are usually
used to determine the optimal frequency of operation processes, as well as to analyse possible routes and traffic intensity [29].
Step 2. Determination of the integrated indicators 
characterizing each of the
subsystems. It is proposed to estimate the values of integrated indicators
using mathematical models of the following type:
(8)
where 
are the weighting factors, 
are the actual values of the j-th indicator.
Step 3. Building a hierarchical model for calculating
the integrated business sustainability indicator. This module can be built
similarly to the previous stage, i.e. repeat steps 2 and 3 of the algorithm of
stage 1 for business sustainability indicators. As a result of applying the
method of pairwise comparisons, we will get a set of five weighting
coefficients (
), that will determine the priority
of considering the indicators of each of the five subsystems of business
resilience formation.
Step 4. Assessment of the integrated business
sustainability indicator:
(9)
, is the integrated indicator of the i-th
subsystem.
Stage 3. Assessment of business risks:
Step 1. Determining the list of risk situations that
may affect business sustainability. We will modulate risk situations as random
events 
In the model, we
consider the events to be independent.
Step 2. Determining the expected value of the
probability of each of the risk situations 
. We propose to
estimate this value using a statistical or expert method.
Step 3. Determination of the integrated business risk
indicator as the probability of a risk-free situation:
(10)
As a result, after the third stage
of modelling, we get a set of three indicators (
. Given the construction algorithms,
all three integrated indicators have the following properties:
- their
values are normalized, i.e., they belong to the interval [0,1];
- an increase
(decrease) in the value of the integrated indicator means an improvement
(deterioration) of the component being evaluated.
Stage 4. To select a program for the development and
management of business resilience, a model based on a three-dimensional matrix
can be used. On the axes of this matrix, we will determine the values of the
indicators of economic performance, business sustainability and business risks
(Fig. 3).
Fig. 3. Three-dimensional
matrix model for choosing a strategy for the development and management of
business sustainability in the transport industry
The range of values of each of the
integrated indicators is divided by the median value into two areas. Thus, for
sets of three values of the integrated indicators, we will have eight areas,
each of which corresponds to a specific strategy (Table 1). Based on the
comparative analysis of the main indicators of the enterprise's activity, it is
proposed to consider eight strategies: four active strategies (S1 - S4)
and four inertial strategies (S5 - S8).
Tab. 1
Ranges of values of integrated
indicators for choosing a development
and management strategy
|
|
S1 |
S2 |
S3 |
S4 |
S5 |
S6 |
S7 |
S8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S1 - an offensive development strategy
that maximizes the use of the company's existing high potential. Active
business development, keeping risks at a low level;
S2 - stabilization strategy, risk
mitigation, development of existing potential;
S3 - strategy of continuing operations
with the development of business activity;
S4 - strategy of strengthening positions, development of business
activities, risk management;
S5 - strategy for restoring and developing economic performance
indicators, maintaining business activity;
S6 - survival strategy;
S7 - reduction strategy;
S8 - liquidation strategy.
Results
of the application of the proposed methodology for assessing the performance of
the transport industry of Ukraine in the year 2021 [30].
IEA = 0.71,
the value of the integrated indicator of economic activity is greater than the
median value, which means that it is advisable to choose one of the active
strategies for the development and management of business sustainability.
0,67, the
value of the business sustainability indicator is also higher than the median
value, which means that the management strategy should use the existing
potential and provide for the retention and development of business activity.
, the
value of the integrated business risk indicator is less than the median value,
which allows us to determine the optimal strategy S2
as stabilization of the existing potential with an emphasis on reducing
business risks.
The
developed model can be used to determine the optimal strategy for the
development and management of business sustainability of a transport industry
enterprise. Its advantage is the consistent consideration of three complex indicators,
which in turn include a number of factors characterizing various aspects of the
enterprise or industry. These algorithms allow for determining and analysing the performance indicators of any enterprise and
allow generalization to other industries and activities.
5. CONCLUSIONS
Solving the problems of creating
business sustainability in the transport industry is impossible without the use
of innovative mechanisms in enterprise management. The innovative activity
of the transport industry should be aimed at improving the quality of services,
increasing labour productivity, increasing the range
of transportation, increasing market share, entering new markets, and at the
same time ensuring business sustainability, and reducing production costs.
The business sustainability of the
transport industry when implementing the strategy should consider the
flexibility of management processes based on the use of innovations in
modelling economic activities. In this case, it is important to establish the
nature of the program being implemented, which, depending on the prevailing
conditions, can be active or passive. Optimizing results will allow the
management of transport enterprises to make more informed management decisions
aimed at implementing development programs in the long term.
Thus, innovative transformations
significantly affect the business sustainability of the transport industry
through the introduction of new technologies and management methods, which must
be efficient, safe, and reliable for society and the environment.
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Scientific
Journal of Silesian University of Technology. Series Transport is licensed
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