FINANCIAL FOUNDATION FOR THE GRADUAL CREATION OF BUSINESS ECOSYSTEMS OF MULTINATIONAL CORPORATIONS

Keywords: business ecosystems, multinational corporations, financial foundations, capital allocation, financial strategies

Abstract

The contemporary global economy is increasingly dominated by multinational corporations that surpass traditional industry boundaries and geographical limitations. These corporate giants have transformed from standalone entities into complex ecosystems comprising a multitude of interconnected organizations. The construction and nurturing of such intricate economic networks necessitate a strategic approach deeply anchored in solid financial foundations. This study aims to shed light on the phased financial strategies that underpin the establishment and growth of successful multinational corporate ecosystems. By integrating financial theory, organizational economics, and strategic management principles, a new conceptual framework is proposed. This model clarifies the unique financial prerequisites, capital allocation priorities, and risk mitigation strategies that are prevalent during the sequential stages of ecosystem formation, expansion, optimization, and perpetuation. The initial formation phase requires skillful financial engineering to amalgamate diverse revenue streams, foster symbiotic relationships through equity investments and incentive alignments, all while preserving adequate liquidity for opportunistic acquisitions. As the nascent ecosystem establishes itself, the expansion phase calls for a prudent balance of growth financing, whether through public/private equity, debt leverage, or internally generated cash flows, to drive scaling across the ecosystem. Upon reaching a critical size, the optimization phase entails the development of advanced financial hedging and transfer pricing mechanisms to foster synergistic efficiencies throughout the integrated network. Finally, the perpetuation phase necessitates sustainable financial models that promote ongoing innovation, enabling the multinational ecosystem to adapt dynamically and outperform traditional competitors indefinitely. By meticulously dissecting the complex financial structures underlying each phase of ecosystem maturation, this research illuminates the monetary strategies that empower multinational corporations to transcend traditional business confines. The insights derived from this study offer invaluable implications for corporate strategists, financial executives, and policymakers navigating the intricacies of the modern interconnected global economy.

References

Moore J.F. Predators and prey: a new ecology of competition. Harvard business review. 1993. Vol. 71. P. 75–86.

Adner R. Ecosystem as Structure: An Actionable Construct for Strategy. Journal of Management. 2017. Vol. 43(1). P. 39–58.

Moore J.F. The death of competition: Leadership and strategy in the age of business ecosystems. New York: HarperBusiness, 1996.

Iansiti M., Levien R. The keystone advantage: What the new dynamics of business ecosystems mean for strategy, innovation, and sustainability. Boston: Harvard Business School Press, 2004.

Adner R. The wide lens: A new strategy for innovation. New York: Penguin, 2012.

Iyer B., Henderson J.C. Preparing for the future: Understanding the seven capabilities of cloud computing. MIS Quarterly Executive. 2010. Vol. 9(2). P. 117–131.

Anderson C. Free: The future of a radical price. New York: Hyperion, 2009.

Vázquez-Bujía D., Corrales-Garay D., Hurtado-Torres N. V. Open innovation and ecosystems for the transformation of business models. Journal of Open Innovation: Technology, Market, and Complexity. 2021. Vol. 7(4). P. 231.

Kapor M. Patterns of strategy: Pattern analysis and building pattern languages for strategic models and transformations. New York: McGraw-Hill Education, 2019.

Haynie J.M., Shepherd D.A., McMullen J.S. An opportunity for me? The role of resources in opportunity evaluation decisions. Journal of Management Studies. 2009. Vol. 46(3). P. 337–361.

Kastalli I.V., Salah B. Transfer pricing in the digital economy: A critical analysis of the OECD's approach. Journal of International Accounting, Auditing and Taxation. 2022. Vol. 47(c).

Schippanger A., Scheiber C., Widrig D. Overcoming inertia in transfer pricing for platforms ecosystems. Journal of International Accounting, Auditing and Taxation. 2022. Vol. 48.

Lerner J., Tufano P. The consequences of financial innovation: A counterfactual research agenda. Annual Review of Financial Economics. 2011. Vol. 3(1). P. 41–85.

Бланк І.О. Фінансовий менеджмент: навчальний посібник. Київ : Ельга, Ніка-Центр, 2018.

Вітлінський В.В., Великоіваненко Г. . Ризикологія в економіці та підприємництві: монографія. Київ : КНЕУ, 2020.

Єрмошенко М.М. Фінансова складова стратегії підприємств: монографія. Київ : Національна академія управління, 2019.

Ільчук В.П., & Радова Н.В. Прямі іноземні інвестиції в економіці України: стан і перспективи. Економіка України. 2021. Вип 3. C. 36–51 .

Кузнецов В.А. Офшорний бізнес: правові та фінансові аспекти. Харків : Право, 2022.

Майорова Т.В. Проектне фінансування: теорія та практика. Київ : КНЕУ.

Пластун О.Л. Стратегічні фінанси: навчальний посібник. Суми : Сумський державний університет, 2019.

Федоренко В.Г., & Гой, І.В. Конкурентоспроможність економіки: світовий та національний виміри. Київ : Інститут економіки та прогнозування НАНУ, 2018.

Черваньов Д.М., & Жилкіна Л.В. Інноваційні стратегії підприємств України в сучасних умовах. Харків : Вид-во ХНУ ім. В.Н. Каразіна, 2021.

Шершньова З.Є., & Оборська С.В. Стратегічне управління: навчальний посібник. Київ : КНЕУ, 2019.

Яцура В.В., & Замроз М.В. Злиття та поглинання в Україні: тенденції, проблеми та перспективи. Львів : Видавництво Львівської політехніки, 2020.

Білоусова О.С. Міжнародні стратегії диверсифікації бізнесу. Київ : Київський національний торговельно-економічний університет, 2020.

Ковтун О.І. Глобальні стратегії ТНК: світові тенденції та українські реалії. Львів : Видавництво Львівської політехніки, 2019.

Колот А.М. Соціально-трудові відносини: теорія і практика регулювання: монографія. Київ : КНЕУ, 2021.

Семикіна М.В. Мотивація ефективної зайнятості: проблеми, тенденції, вибір стратегії. Кропивницький : ФОП Александрова М.В, 2019.

Хаджинов І.В. Управління ланцюгами поставок: інтегрований підхід. Одеса : Фенікс, 2020.

Шапран В.С. Бізнес-екосистеми: теоретичні засади та практика формування. Дніпро : Видавець Біла К.О, 2022.

Moore J. F. (1993) Predators and prey: a new ecology of competition. Harvard business review, vol. 71, pp. 75–86.

Adner R. (2017) Ecosystem as Structure: An Actionable Construct for Strategy. Journal of Management, vol. 43(1), P. 39–58.

Moore J. F. (1996) The death of competition: Leadership and strategy in the age of business ecosystems. New York: HarperBusiness.

Iansiti M., Levien R. (2004) The keystone advantage: What the new dynamics of business ecosystems mean for strategy, innovation, and sustainability. Boston: Harvard Business School Press.

Adner R. (2012) The wide lens: A new strategy for innovation. New York: Penguin.

Iyer B., Henderson J. C. (2010) Preparing for the future: Understanding the seven capabilities of cloud computing. MIS Quarterly Executive, vol. 9(2), pp. 117–131.

Anderson C. (2009) Free: The future of a radical price. New York: Hyperion.

Vázquez-Bujía D., Corrales-Garay D., Hurtado-Torres N. V. (2021) Open innovation and ecosystems for the transformation of business models. Journal of Open Innovation: Technology, Market, and Complexity, vol. 7(4), p. 231.

Kapor M. (2019) Patterns of strategy: Pattern analysis and building pattern languages for strategic models and transformations. New York: McGraw-Hill Education.

Haynie J. M., Shepherd D. A., McMullen J. S. (2009) An opportunity for me? The role of resources in opportunity evaluation decisions. Journal of Management Studies, vol. 46(3), pp. 337–361.

Kastalli I. V., Salah B. (2022) Transfer pricing in the digital economy: A critical analysis of the OECD's approach. Journal of International Accounting, Auditing and Taxation, vol. 47(c).

Schippanger A., Scheiber C., Widrig D. Overcoming inertia in transfer pricing for platforms ecosystems. Journal of International Accounting, Auditing and Taxation, vol. 48.

Lerner J., Tufano P. (2011) The consequences of financial innovation: A counterfactual research agenda. Annual Review of Financial Economics, vol. 3(1), pp. 41–85.

Blank I. O. (2018) Finansovyi menedzhment: navchalnyi posibnyk [Financial management: A textbook]. Kyiv: Elha, Nika-Tsentr.

Vitlinskyy V. V., Velikoivanenko G. I. (2020) Ryzykolohiia v ekonomitsi ta pidpryiemnytstvi: monohrafiia [Risk management in economics and entrepreneurship: monograph]. Kyiv: KNEU. (in Ukrainian)

Yermoshenko M. M. (2019) Ryzykolohiia v ekonomitsi ta pidpryiemnytstvi: monohrafiia [Financial component of enterprise strategy: monograph]. Kyiv: National Academy of Managementn. (in Ukrainian)

Ilchuk V. P., Radova N. V. (2021) Priami inozemni investytsii v ekonomitsi Ukrainy: stan i perspektyvy [Foreign direct investment in the Ukrainian economy: Current state and prospects] Ekonomika Ukrainy - Economy of Ukraine, vol. (3), pp. 36–51. (in Ukrainian)

Kuznetsov V. A. (2022) Ofshornyi biznes: pravovi ta finansovi aspekty [Offshore business: Legal and financial aspects]. Kharkiv: Pravo. (in Ukrainian)

Maiorova T. V. (2020) Proektne finansuvannia: teoriia ta praktyka [Project finance: Theory and practice]. Kyiv: KNEU. (in Ukrainian)

Plastun O. L. (2019) Stratehichni finansy: navchalnyi posibnyk [Strategic finance: A textbook]. Sumy: Sumskyi derzhavnyi universytet. (in Ukrainian)

Fedorenko V. G., Goy I. V. (2018) Konkurentospromozhnist ekonomiky: svitovyi ta natsionalnyi vymiry [Competitiveness of the economy: Global and national dimensions]. Kyiv: Instytut ekonomiky ta prohnozuvannia NANU. (in Ukrainian)

Chervanov D. M., Zhylkina L. V. (2021) Innovatsiini stratehii pidpryiemstv Ukrainy v suchasnykh umovakh [Innovative strategies of Ukrainian enterprises in modern conditions]. Kharkiv: Vyd-vo KhNU im. V.N. Karazina. (in Ukrainian)

Shershnova Z. Y., Oborska S. V. (2019) Stratehichne upravlinnia: navchalnyi posibnyk [Strategic management: a textbook]. Kyiv: KNEU. (in Ukrainian)

Yatsura V. V., Zamroz M. V. (2020) Zlyttia ta pohlynannia v Ukraini: tendentsii, problemy ta perspektyvy [Mergers and acquisitions in Ukraine: Trends, problems, and prospects]. Lviv: Vydavnytstvo Lvivskoi politekhniky. (in Ukrainian)

Bilousova O. S. (2020) Mizhnarodni stratehii dyversyfikatsii biznesu [International business diversification strategies]. Kyiv: Kyivskyi natsionalnyi torhovelno-ekonomichnyi universytet. (in Ukrainian)

Kovtun O. I. (2019) Hlobalni stratehii TNK: svitovi tendentsii ta ukrainski realii [Global strategies of multinational corporations: World trends and Ukrainian realities]. Lviv: Vydavnytstvo Lvivskoi politekhniky. (in Ukrainian)

Kolot A. M. (2021) Sotsialno-trudovi vidnosyny: teoriia i praktyka rehuliuvannia: monohrafiia [Social and labor relations: Theory and practice of regulation: A monograph]. Kyiv: KNEU. (in Ukrainian)

Semykina M. V. (2019) Motyvatsiia efektyvnoi zainiatosti: problemy, tendentsii, vybir stratehii [Motivation for effective employment: Problems, trends, and strategy choice]. Kropyvnytskyi: FOP Aleksandrova M. V. (in Ukrainian)

Khadzhinov I. V. (2020) Upravlinnia lantsiuhamy postavok: intehrovanyi pidkhid [Supply chain management: An integrated approach]. Odesa: Feniks. (in Ukrainian)

Shapran V. S. (2022) Biznes-ekosystemy: teoretychni zasady ta praktyka formuvannia [Business ecosystems: Theoretical foundations and practice of formation]. Dnipro: Vydavets Bila K. O. (in Ukrainian)

Article views: 56
PDF Downloads: 20
Published
2024-06-24
How to Cite
Packholchuk, A. (2024). FINANCIAL FOUNDATION FOR THE GRADUAL CREATION OF BUSINESS ECOSYSTEMS OF MULTINATIONAL CORPORATIONS. Transformational Economy, (2 (07), 71-75. https://doi.org/10.32782/2786-8141/2024-7-12