Model assessing the sustainability of industrial enterprise development based on real option dynamic management model of innovations generations

• Published in: 2017 XX IEEE International Conference on Soft Computing and Measurements (SCM) pp. 868 - 870
• Main Authors: Pogrebova, O. A., Konnikov, E. A., Kurbanbaeva, D. F.
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01-05-2017
• Subjects: Bankruptcy; Economics; financial condition; Indexes; industrial enterprise; octant; Predictive models; real option; Stability criteria; sustainable development
• DOI: 10.1109/SCM.2017.7970749

The purpose of this research was to form an effective model for assessing the sustainability of an industrial enterprise development. Regression analysis of macroeconomic indicators time series have shown that the sustainability development of industry primarily depends from the financial stability of industrial enterprises. In that time, main drawback of financial condition evaluation models is their momentary properties. This was proved by analysis of 13 most popular models. All of them have shown the low efficiency of predictions. These models have been disaggregated, and was formed the system of evaluating the financial condition, based on available indicators. Each indicator has a standard value. Standard values are reflected the specific of industry. The research have shown that new system is more efficient than examined models. Next, the authors created a forecasting tool of the indicators. This tool is based on the theory of "real options". Based on the projected algorithm for assessing the sustainability of the industrial enterprises development, was developed a tool for recommendations formulating for the adoption of managerial decisions. It was called "The octant of sustainability development of enterprises".