Economy of Ukraine
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№ 6/2020

Ekon Ukr. 2020 (6): 60–72
https://doi.org/10.15407/economyukr.2020.06.060

ECONOMIC MANAGEMENT: THEORY AND PRACTICE

УДК 330.837+330.1 (477)

JEL:

SERDIUK Oleksandr1

1Institute of Industrial Economics of the NAS of Ukraine, Research ID : http://www.researcherid.com/rid/B-7030-2018
OrcID ID : https://orcid.org/0000-0002-1823-7618


THE PHENOMENON OF DOUBLE ORGANIZATIONS AS A NEGATIVE CONSEQUENCE OF THE INSTITUTIONAL TRANSITION OF UKRAINE


The institutional environment of Ukraine is analyzed. It is established that it is characterized by a symbiosis of different moral, ethical and behavioral norms. It is substantiated that the formation of individualistic and collectivist worldview among the population of Ukraine was influenced not only by the formal institutional environment of the state from which it originated, but also by the nature of activity and place of residence. The fundamental differences in the worldview of the population of Ukraine are analyzed.
The institutional preconditions for the emergence and existence of dual organizations in the transition from a socialist system to a market economy are revealed. It is determined that there is no institutional balance in Ukraine, as a result of which the usual norms and rules of activity of organizations do not meet the formal requirements. An informal model of the “principal–agent” relationship is described. It is hypothesized that a sharp transition to absolute individualistic institutions will lead to an increase in the number of double organizations. Given this likelihood of a radical transformation of the institutional environment, low returns on transaction capital should be expected, at least in the short run. With the change of generations, which will form their own worldview in the new (individualistic) formal institutional environment, we should expect both a reduction in transaction costs and an increase in their profitability. It is revealed that in the conditions of institutional transition transaction capital acquires exceptional importance.
Recommendations for resolving the problem of dual organizations within the institutional transition of Ukraine are given. It is proposed to apply a set of measures to strengthen state control over organizations where there is actually a model of relations “principal-agent” or a threat of one emerging. State control over organizations must be of a partnership nature. At the same time, it is recommended to gradually decentralize formally collectivist organizations, while maintaining control over compliance with decentralization requirements.
It is substantiated that the strategy of institutional transition should include measures to stimulate individualistic relations within the organization, which will contribute to the effective use of mature individualistic institutions in the future.


Keywords:institutes; institutional environment; worldview; organizations; society; transaction costs; transaction capital

Article original in Ukrainian (pp. 60 - 72) DownloadDownloads :130
The article was received by the Editorial staff on February 25 , 2020

References

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