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© 2021 by the authors; licensee Growing Science, Canada
doi: 10.5267/j.ac.2021.2.001
Accounting 7 (2021) 825–836
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Integral evaluation as the basis of analytical support for managing the competitiveness of socially-oriented
retailers
Yaroslav Berezivskyia*, Vasyl Zbarskyb and Anna Zbarskab
aStepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies Lviv, Ukraine
bNational University of Life and Environmental Sciences of Ukraine, Ukraine
C H R O N I C L E A B S T R A C T
Article history:
Received: November 28, 2020
Received in revised format:
December 28 2020
Accepted: January 26, 2021
Available online:
January 26, 2021
The advantages of an integral approach to assessing the competitiveness of retailers are substantiated,
which allows obtaining a more thorough and versatile informative base for making further managerial
decisions to ensure the development of trading business. A new approach to the integral evaluation
of the competitiveness of retailers is developed. The list of functional and structural components of
competitiveness was substantiated: marketing,financial and investment, material and technical,
intellectual and personnel,innovation, logistic and social. It is proposed to use the methodological
sequence of competitiveness assessment, which involves the alternate passage of the following
stages: construction of an evaluation hierarchy, identification of the levels of the criterion importance,
definition of a set of “local vectors” by evaluation criteria, conducting comparative evaluation of
competing enterprises, hierarchical synthesis of alternative options for ensuring competitiveness. The
methods of an expert survey are used to form an information and analytical base. Using the Saaty’s
analytic hierarchy process and the Delphi method of an expert survey, a matrix of pairwise
comparisons of the criteria of the retailers’ competitiveness is formed. The Gallup Institute
methodology is used to form the sample of enterprises. A matrix of rating positions of the socially-
oriented retailers is developed to enable evaluation.On the basis of the obtained results – analytical
support of the policy(regarding the competitiveness level, state of security and coefficients of weight
of its functional and structural components), the strategic principles of managing the competitiveness
of socially-oriented retailers. A matrix of strategic decisions on managing the competitiveness of
socially-oriented retailers is developed.
© 2021 by the authors; licensee Growing Science, Canada
Keywords:
Enterprise competitiveness
Integral evaluation
Management
Development of retailers
Socially-oriented business
1. Introduction
Competitiveness is naturally considered to be one of the most generalized complex and systemic characteristics of an entity’s
functioning and development. These are not only the best qualitative or price characteristics of products, but also the productivity
of the resource use, an increase in the business activity volume and the capitalization of a business unit, the realization of its
economic potential, effective management of the development of business entities, in particular in retail trade (Apopiy, &
Dmetrenko, 2017; Uchid, & Cook, 2005; Dunning, & Lundan, 1998). Because of insufficiently managed processes of the internal
market development, its monopolization, the complexity of an access to resources and markets, activity rights, fast tendencies to
concentrate trade in networks, the tools and means of strengthening competitive positions of retail trade activity entities, in particular
small and medium and especially social-oriented ones are becoming of high importance (Maksimov, Wang, & Luo, 2017; Sipa,
Gorzen-Mitka, & Skibinski, 2015; Williams, 2007; Man, Lau, & Chan, 2002).
2. Literature review
826
The formation of qualitative managerial decisions in the sphere of competitiveness ensuring is objectively based on the results
of its evaluation. There are research findings where methodological approaches are used for such purposes, taking into account
individual key indicators – enterprise competitiveness parameters (Ryzhkova & Prosvirkin, 2015; Gunasekaran, Rai, & Griffin,
2011; Dhungana, 2003). However, much more systematic conclusions can be drawn from the application of integral
methodological approaches to assessing the level of the enterprise competitiveness (Odera, 2013; Jeppesen, 2007).
The problem of integral evaluation and formation of managerial approaches is especially relevant for socially-oriented
(specializing in supplying goods to remote, rural, depressed territories, servicing low-income buyers) retailers, as it is of social
and economic importance, solves in particular such tasks as the formation of purchasing funds of the population in less
economically developed territories and stimulating, thus, consumer demand, meeting the needs of the population for goods and
services, providing jobs to the population, investing in the economy, and supporting the development of related economic
activities (Levytska, Mulska & et al., 2020; Vasyltsiv, Lupak, & Kunytska-Iliash, 2019; Boiko, 2017; Kajalo, & Lindblom,
2010).
Therefore, the task of substantiating a new adaptive (for socially-oriented retailers) methodical approach to analyzing the level
of enterprise competitiveness, its testing and processing the results for further justification of strategic managerial decisions in
strengthening competitive positions of socially-oriented retailers (Ghosh, & Whalley, 2008). It is of particular importance that
a comprehensive approach be used in the analysis with the combination of characteristics of different competitiveness
components – financial, social, material, personnel, etc. (Salickaite, & Banyte, 2008; Saaty, 2008).
Integral evaluation mainly takes into account a wide range of criteria, which results in the justification of a number of problems
and proposing rational means for solving them. At the same time, some scientific views are related to the narrow range of
characteristics that are taken into account in integral evaluation. Thus, the enterprise competitiveness, including the retail sector,
is linked to the level of economic security, innovation development, etc. (Havlovska, Pokotylova, Korpan, & et al., 2019; Ilyash,
Dzhadan, & Ostasz, 2018; Varnaliy, Onishchenko, & Masliy, 2016; Kumar, Mudambi, & Gray, 2013).
3. Materials and Methods
To assess the competitiveness of retailers various methodological approaches that have their own characteristics (including
partial or integral evaluation, components used, competitiveness criteria and indicators, data standardization algorithms) are
used. Each methodological approach has strengths and weaknesses. However, an evaluation comprehensive result is only
provided as a result of the integral analysis.
In virtually all the cases, a number of fundamental questions arise when applying integral evaluation (Gass, 1998; Lawrence, &
Gass, 2004; Saaty, 2008):
What will the functional and structural components of competitiveness be like?
How will the weight levels of these functional and structural components be calculated?
What indices-indicators will be included in functional and structural components?
How will the weight levels among the indices-indicators be calculated?
Will purely quantitative, purely qualitative or a mixed indicator system be used?
What are the sample (critical, etc.) values that will be compared with the actual values of the indices-indicators?
Will statistical, actual for enterprises data, or the results of expert, sociological, and other types of research be used to
formulate the information and analytical basis of calculations?
As a result of studying the special features of retailers’ functioning, the identification of key components of increasing their
business activity and ensuring its efficiency, the specifics of managing socially-oriented business units, in particular in remote
less socially and economically developed territories, the list of the following functional features is substantiated: (1) marketing;
(2) financial and investment; (3) material and technical; (4) intellectual and personnel; (5) innovation; (6) logistic; (7) social.
To determine the weight levels of the competitiveness functional and structural components, it is proposed to use the method of
expert assessments, where the experts’ judgments are evaluated by the scale of relative importance (Fig. 1). The following facts
served as the arguments in favor of deciding whether to use an expert survey: firstly, a number of competitiveness components
can be calculated on the basis of financial and statistical data of enterprises (financial and investment, material and technical,
intellectual and personnel), but the others – only in the result of expert surveys (marketing, innovation, logistic, social) (Ilyash,
Yildirim, Doroshkevych, & et al., 2020); secondly, the weight levels of the competitiveness criteria can be immediately assessed
by the expert survey results (Vasyltsiv, Irtyshcheva, Lupak, & et al., 2020); thirdly, various indicators and components of the
Y. Berezivskyi et al. /Accounting
7 (2021) 827
enterprise competitiveness can be reduced “to the common denominator” only as a result of the expert survey; fourthly, the
importance of the external expert assessment is increasing for socially-oriented enterprises.
Fig. 1. Scale of assessing the relative importance of the competitiveness criteria
Source: Developed by the author according to the source (Saaty, 2008)
Fig. 2. Structural and logical scheme of the integral evaluation of the retailers’ competitiveness
Source: own processing
0
It is impossible to make comparisons It is inappropriate to make comparisons
1
The criteria are equally important Both the criteria form the same contribution to solving
analytical problems
3
The differences between the criteria are insignificant; there
is a partial advantage of one over the other Analytical evidence indicates that one criterion has little
advantage over the other
5
Significant advantage (practical value) of the criterion over
the others
Analytical evidence indicates a significant advantage of one
criterion over the other
7
Significant advantage of the criterion that shows its
continuous use
There is strong evidence of the apparent superiority of one
criterion over the other
9
There is an absolute advantage of the criterion The advantages of one criterion over the other are clearly
confirmed
2, 4, 6, 8
Performing an intermediate evaluation between successive
judgments
A compromise solution is applied when needed
Relative
values of
the
g
iven
When comparing the criteria, one of the above numbers is
assigned to one of them, while the other criterion is assigned
an inverse value
A reasonable assumption is made to solve analytical
problems
Definition
Ex
p
lanation
Stage V
Establishing the
assessment purpose and
criteria, selection of
competing enterprises and
formation of necessary
information and
analytical data
Selection of an
assessment scale and
discussion of expert
judgments on the
criteria’s importance
levels, construction of a
matrix of their pairwise
comparisons
Normalization of the
initial data of the
criteria’s pairwise
comparisons,
determination of their
“local” values and
verification of the
consistency of the
obtained results
Construction of the
matrices of pairwise
comparisons of competing
enterprises, determination
of their partial values and
verification of the
consistency of the
obtained results
Determination of rating
positions by the criteria’s
“local” values, calculation
of the integral index and
generalization of the
obtained results
Stage I
Construction of a
hierarchy of
competitiveness
assessment
Identification of the
criteria’s importance level
for competitiveness
assessment
Determination of a set of
“local criteria” for
competitiveness
assessment
Comparative assessment
of competing enterprises
Hierarchical synthesis of
alternative options for
competitiveness
assessment
Stage
ІІ
Stage ІІІ
Stage
І
V
828
As an expert survey is used, it was decided not to use partial indices-indicators to harmonize the data, but to conduct the surveys
on the characteristics of the competitiveness level in a consolidated way by functional and structural components. At the same
time, this approach helped avoid the substantiation of the indicators’ sample values. To enhance the approach credibility during
the expert survey, the Delphi method is chosen, which allows the expert group to be represented more effectively and to process
the questionnaire materials. The methodological sequence used to assess the competitiveness of socially-oriented retailers
involves a step-by-step process (Fig. 2).
When constructing comparative matrices, the overall purpose and importance of each of the evaluation criteria are taken into
account, which determines the degree of superiority and consistency between them. In this way, the matrix combines options and
prerequisites that affect their formation and implementation while ensuring the trading enterprise’s competitiveness (Table 1).
Table 1
Matrix of pairwise comparisons of the criteria of the retailers’ competitiveness
Marketing Social Material and
technical Logistic Financial and
investmen
t
Innovation Intellectual and
personnel
Marketing 1 5 7 9 3 3 3
Social 1/3 1 3 1/5 1/3 1/5 1/5
Material and technical 1/5 1/5 1 5 1/3 1 1/5
Logistic 1/7 5 1/3 1 1/7 1/3 1/7
Financial and investment 3 3 7 5 1 5 5
Innovation 1/5 5 3 3 1/5 1 1/5
Intellectual and personnel 1/5 5 5 3 1/5 5 1
Source: own research results
It is forecast that retailers in the process of ensuring competitiveness should first and foremost form marketing competitive
potential, in particular the level of the criterion importance is substantially higher than logistic (preference degree 9), material
and technical (7), social (5).
Achieving sufficient credibility and objectivity requires the normalization of primary information in the evaluation process. In
particular, the calculation of the absolute value of the criterion importance for ensuring the retailer’s competitiveness
management, which is expressed numerically by the scale of relative importance, will involve the use of the following formula:
n
1i
n
n
1g ig
n
n
1g ig
t
β
β
P
(1)
where Pt is the normalized (absolute) value of the importance degree of t-criterion of the retailer’s competitiveness; βig is a
grouped element of the pairwise comparison matrix of expert judgments by i-ordinal row number of g-column of the pairwise
comparison matrix (і = 1, 2, 3, … , n; g = 1, 2, 3, … , n); n is a set of elements of the matrix being evaluated. Integral calculations
require complete consistency between the analytical data and, therefore, the obtained normalization results must be generalized.
One way to summarize the matrix elements is to calculate the deviation of the maximum number (γmax) from the ordinal one:
n
1i
n
1i
igtmax )β(Pγ,
(2)
It is known that the pairwise comparison matrix is inversely symmetric and inequality γmax ≥ n must be satisfied for the
calculation credibility. It should also be born in mind that a set of criteria for the retailers’ competitiveness is heterogeneous and
can be constantly changing, and this implies the evaluation of the degree of violation of the quantitative and ordinal homogeneity
of the criteria (Dv):
1n
nγ
Dmax
v
,
(3)
Adhering to objectivity principles in the integral evaluation, it is necessary to realize the degree of significance of the agreed
“local vectors” of matrix (Sd) and, thus, to check the practical value of the expert proposals (Formula 4):
r
v
dC
D
S,
(4)
where Cr is the temporal (random) consistency of the matrix’ “local vectors”.
Y. Berezivskyi et al. /Accounting 7 (2021) 829
The final calculation of the Integral Competitiveness Index (ISC) involves comparing the “local vectors” of matrix (Vl), taking
into account the importance level of each criterion (Pt), resulting in the partial values of the competitiveness “generalized
vectors” (Ggc):
)P(VGISC i
k
n
1i
n
1i
i
l
i
gc
(5)
In this case, the growth of the rating position and competitive status of the trading entity will be evidenced by the approach of
the integral indicator to a larger number.
4. Results and discussion
4.1. Calculations of integral values and formation of the competitiveness rating of socially-oriented retailers
The research of the competitiveness level was conducted on the basis of the 11 retailers (on the example of Ukraine), which are
socially-oriented and operate in the rural areas of the country. The Gallup Institute methodology, based on certain criterion signs
within the research scope, was used to justify the sample size of the retailers.
With respect to socially-oriented retailers, the following factors are attributed by the authors to such signs: activities in rural
areas; a long period of retail business (more than five years), targeting low and medium price segments of the market, and
organization of business in the form of small shops nearby.
It should be noted that, the size of retailers, as well as an increase in the volume of retail commodity turnover, including per
employee, one m2 of retail space, turnover acceleration, as well as the improvement of financial parameters of the business
development has become characteristic for the current stage of the socio-economic development of Ukrainian retailers
(Shevchuk, Synchak, Zaverbnyj, & Baranetska, 2019; Vasyltsiv, Lupak, & Osadchuk, 2017; Vasyltsiv, & Lupak, 2016).
However, the economic prerequisites for ensuring the competitiveness of Ukrainian retailers both as a whole and those operating
in remote, rural and depressed territories remain insufficient, as evidenced by the tendencies to deteriorate such key indicators
of their financial status as own capital security, the investment ratio, the maneuverability ratio, the ratio of participation of
working capital in the formation of current assets, the ratio of liability liquidity, the ratio of balance liquidity, the profitability
of total and own capital, the enterprise’s net profitability.
Table 2 summarizes the results of assessing the importance level of the “local vectors” in ensuring the retailers’ competitiveness,
obtained as a result of the survey of experts. Anticipatorily, it is possible to ascertain slightly higher influence on the integral
value of the competitiveness of socially-oriented retailers of such areas of activity as marketing, finance and investments, the
intelligence and human resources of business. Also it should be noted that the obtained value of the consistency of the experts’
judgments (Sd = 0.012) is acceptable and confirms the statistical significance of the calculations.
Table 2
Results of assessing the importance level of the “local vectors” in ensuring the retailers’ competitiveness
Competitiveness
criteria
Indicators
Geometric mean values of
the criteria
(n
n
1g ig
β
)
Absolute values of the
importance level of the
criteria (Pt)
Values of the maximum
eigenvalue of the matrix
(γmax)
Indices of the
consistency of the
experts’ judgments
(Dv)
Relation of the
consistency of the
experts’ judgments
(Sd)
Marketing 2.951 0.318 0.701
Socia
l
0.482 0.051 1.007
Material and technica
l
0.519 0.060 1.061
Logistic 0.388 0.043 1.077
Financial and
investmen
t
2.925 0.309 0.902
Innovation 1.087 0.102 1.081
Intellectual and
personne
l
1.597 0.117 1.252
7.022 0.016 0.012
Source: own research results
It should be added that the components that have the greatest impact on the competitiveness of socially-oriented retailers, provide
it by more than 70.0%, which is essential and needs to be taken into account in the formulation and implementation of the enterprise
policy in the analyzed sphere.The result of the application of the author’s method of integral evaluation of the competitiveness
of socially-oriented retailers was the determination of the influence degree of each of the criteria on their competitive position
(Formula 6), in particular, marketing (0.388), financial and investment (0.309) and intellectual and personnel (0.117) criteria
determine the competitiveness the most:
830
у
= 0.338х1 + 0.051х2 + 0.061х3 +0.044х4 + 0.305х5 + 0.101х6 + 0.117х
7
, (6)
where у is the retailer’s competitiveness level; х is criteria for ensuring competitiveness; х1 – marketing; х2 – social; х3 – material
and technical; х4 – logistic; х5 – financial and investment; х6 – innovation; х7 – intellectual and personnel.
The results of the assessment of the economic and mathematical model of the retailers’ competitiveness are presented in Table
3.
Table 3
Results of the stochastic assessment of the integrated model of the retailers’ competitiveness
Indicators Value Indicators Value
Determination coefficient 0.8669 F-statistics 0.0108
Adjusted determination coefficient 0.7643 Standard deviation of the dependent variable 1.0000
Standard regression erro
r
0.4727 Hannan-Quinn information criterion 1.5605
Logarithm of the maximum likelihood function -2.9565 Schwartz information criterion 1.8894
Sum of the squared residual 1.3539 Akaike information criterion 1.6494
p-value 7.3672 Durbin-Watson statistic 1.5767
Source: own research results
As a result of passing the next stage of the methodological sequence of assessing the competitiveness of socially-oriented
retailers, namely, generalizing the data obtained and drawing conclusions on the competitive environment (Table 4), it is
established that, for example, a number of retailers are characterized by the predominance of social, material and technical and
intellectual and personnel criteria, but, for example, are inferior to marketing and financial and investment components. This
state of affairs cannot have a positive impact on the integral evaluation of their competitiveness.
Table 4
Ranking positions of the analyzed retailers by the integral competitiveness indicator in 2017-2019
Criteria /
Indicators
Retailers
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
2017
А
V
l 0.0018 0.0041 0.0018 0.0119 0.1775 0.0010 0.0152 0.2381 0.0614 0.6871 0.0002
P
k
0.0006 0.0013 0.0006 0.0038 0.0571 0.0004 0.0049 0.0767 0.0198 0.2213 0.0002
B 0.0059 0.0918 0.0079 0.0176 0.3422 0.0026 0.0016 0.4771 0.1530 0.0684 0.0318
0.0002 0.0043 0.0004 0.0008 0.0161 0.0001 0.0001 0.0224 0.0072 0.0032 0.0014
С 0.3151 0.1985 0.0923 0.0025 0.0098 0.4068 0.1598 0.0012 0.0036 0.0102 0.0001
0.0167 0.0106 0.0049 0.0001 0.0005 0.0216 0.0085 0.0001 0.0002 0.0006 0.0001
D 0.0019 0.0014 0.0002 0.0229 0.2665 0.0008 0.0010 0.4616 0.2564 0.1357 0.0512
0.0001 0.0001 0.0001 0.0008 0.0096 0.0001 0.0001 0.0166 0.0092 0.0049 0.0018
E 0.0037 0.0066 0.0013 0.0113 0.2194 0.0026 0.0029 0.3059 0.0340 0.5099 0.1020
0.0011 0.0019 0.0004 0.0034 0.0649 0.0008 0.0008 0.0906 0.0101 0.1510 0.0302
F 0.0025 0.0058 0.0006 0.0890 0.4451 0.0014 0.0044 0.0852 0.4283 0.0857 0.0664
0.0002 0.0006 0.0000 0.0084 0.0422 0.0001 0.0005 0.0080 0.0407 0.0082 0.0064
G 0.0322 0.5009 0.0557 0.0036 0.0007 0.2892 0.2783 0.0028 0.0012 0.0036 0.0322
0.0049 0.0761 0.0085 0.0006 0.0001 0.0439 0.0422 0.0004 0.0002 0.0006 0.0049
Integral
indicators 0.0239 0.0949 0.0149 0.0180 0.1906 0.0671 0.0572 0.2148 0.0875 0.3898 0.0450
Retailers’
ratings 9 4 11 10 3 6 7 2 5 1 8
2018
А 0.0055 0.0124 0.0041 0.1066 0.1430 0.0053 0.0119 0.7150 0.0826 0.1066 0.0096
0.0018 0.0040 0.0013 0.0343 0.0461 0.0017 0.0038 0.2302 0.0266 0.0343 0.0031
B 0.4501 0.1163 0.1560 0.0014 0.0300 0.0388 0.3624 0.0134 0.0078 0.0223 0.0014
0.0211 0.0055 0.0073 0.0001 0.0014 0.0018 0.0170 0.0006 0.0004 0.0011 0.0002
С 0.0920 0.7002 0.0840 0.0050 0.0200 0.1740 0.1044 0.0070 0.0054 0.0054 0.0028
0.0049 0.0371 0.0044 0.0002 0.0011 0.0092 0.0055 0.0004 0.0002 0.0002 0.0001
D 0.0163 0.0031 0.0018 0.0378 0.5677 0.0019 0.0163 0.1967 0.1410 0.1892 0.0282
0.0006 0.0001 0.0001 0.0013 0.0204 0.0001 0.0006 0.0071 0.0050 0.0068 0.0010
E 0.0059 0.0918 0.0079 0.0176 0.3422 0.0026 0.0016 0.4771 0.1530 0.0684 0.0318
0.0018 0.0271 0.0024 0.0053 0.1013 0.0008 0.0005 0.1412 0.0452 0.0203 0.0094
F 0.0052 0.0258 0.0038 0.1338 0.2317 0.0017 0.0030 0.0576 0.6689 0.0430 0.0252
0.0005 0.0024 0.0004 0.0127 0.0220 0.0001 0.0002 0.0055 0.0636 0.0041 0.0024
G 0.0162 0.4387 0.0845 0.0054 0.0011 0.4368 0.1408 0.0042 0.0048 0.0156 0.0487
0.0025 0.0667 0.0128 0.0008 0.0001 0.0664 0.0214 0.0006 0.0007 0.0024 0.0074
Integral
indicators 0.0332 0.1429 0.0288 0.0548 0.1924 0.0802 0.0491 0.3856 0.1418 0.0692 0.0235
Retailers’
ratings 9 3 10 7 2 5 8 1 4 6 11
Y. Berezivskyi et al. /Accounting 7 (2021) 831
Table 4
Ranking positions of the analyzed retailers by the integral competitiveness indicator in 2017-2019 (Continued)
2019
А 0.0182 0.0082 0.0061 0.1225 0.6364 0.0035 0.0913 0.2122 0.0734 0.0245 0.0048
0.0059 0.0026 0.0019 0.0395 0.2050 0.0011 0.0294 0.0683 0.0236 0.0079 0.0016
B 0.2736 0.0527 0.2119 0.0078 0.0948 0.1579 0.3671 0.0046 0.0082 0.0072 0.0136
0.0128 0.0025 0.0100 0.0004 0.0044 0.0074 0.0173 0.0002 0.0004 0.0004 0.0006
С 0.4381 0.0653 0.0097 0.4217 0.0281 0.2231 0.0072 0.0011 0.0019 0.0034 0.0002
0.0233 0.0035 0.0005 0.0223 0.0014 0.0119 0.0004 0.0001 0.0001 0.0001 0.0002
D 0.0041 0.0090 0.0053 0.0121 0.3156 0.0054 0.0157 0.5467 0.1358 0.1411 0.0090
0.0001 0.0004 0.0002 0.0005 0.0114 0.0002 0.0006 0.0197 0.0049 0.0050 0.0004
E 0.0158 0.0823 0.0071 0.0613 0.3067 0.0053 0.0068 0.4276 0.2376 0.0001 0.0493
0.0047 0.0244 0.0020 0.0181 0.0908 0.0016 0.0020 0.1266 0.0703 0.0001 0.0146
F 0.0110 0.0064 0.0022 0.0737 0.4943 0.0059 0.0191 0.0952 0.4756 0.0085 0.0082
0.0011 0.0006 0.0002 0.0070 0.0469 0.0006 0.0018 0.0090 0.0451 0.0008 0.0007
G 0.3149 0.1355 0.1408 0.0090 0.0052 0.0469 0.4224 0.1050 0.0162 0.0030 0.0010
0.0479 0.0206 0.0214 0.0013 0.0008 0.0071 0.0642 0.0160 0.0025 0.0005 0.0002
Integral
indicators 0.0958 0.0546 0.0362 0.0890 0.3608 0.0299 0.1157 0.2399 0.1470 0.0148 0.0181
Retailers’
ratings 5 7 8 6 1 9 4 2 3 11 10
(A) marketing; (B) social; (C) material and technical; (D) logistic; (E) financial and investment; (F) innovation; (G) intellectual and personnel
Source: own research results
Such a general conclusion that can be drawn as a result of the analysis is interesting: if at the beginning of the analyzed period
the difference between the integral values of the retailers’ competitiveness was noticeable, in the end it was almost leveled,
which is the evidence of:
firstly, the competition complications;
secondly, the use of virtually identical tools and strategies for the competition by the retailers;
thirdly, the relevance of the formation of new approaches and strategies in the development, diversification of business, and
the use of their own specific competitive advantages.
4.2. Substantiation of the system of strategic management for strengthening the competitiveness of socially-oriented retailers
Socially-oriented retailers operate in an open competitive environment. Therefore, in ensuring their competitiveness as a
characteristic of the ability to survive in the market and to force their direct competitors out of it, retailers, despite the
involvement of internal forces, should also use the opportunities that they can attract from the external environment. It is about
retailers’ participation in the initiation and implementation of programs to stimulate the socio-economic development of the
territory in which they operate, the formation of various types of cooperative associations within the vertical and horizontal
integration, the diversification of forms and systems of merchandise distribution, forms and formats of trade, the development
of the institutional basis of competitiveness ensuring. The measures in these areas will simultaneously increase the loyalty level
of both the consumer and population living in the territory where the enterprise operates.
Using the method of strategic analysis, the strategic priorities for forming the competitiveness of socially-oriented retailers in
such areas as marketing, financial and investment, material an technical, intellectual and personnel, innovation, logistic and
social are identified (Figure 3).
It should be emphasized that the implementation of an effective policy of strengthening the competitiveness of socially-oriented
retailers requires measures to be taken in all of the identified areas. However, the type and form of strategic behavior of retailers
may vary depending on financial resources, the effectiveness of their financial and economic activity at the current stage of
functioning and development, the purchasing power of the population, other factors, including external factors and conditions.
832
Fig. 3. Strategic principles of the formulation of the policy for ensuring competitive advantages of socially-oriented retailers
Source: own processing
The factors of purchasing power of the population as well as the level of business commercial specialization (Fig. 4) should be
considered critical in the context of ensuring the competitiveness of retailers operating in economically weaker territories.
On the other hand, it should be noted that the policy of ensuring the retailer’s competitiveness is of a long-term nature, since its
implementation requires financial and resource support.
Strategic directions
Strategic priorities
Financial and
investment
increasing
participation in
regional investment
and innovation
clusters;
introduction of
leasing instruments
before the purchase
of trade and
technological
equipment;
introduction of
a franchising
approach to the
trade network
development
Material and
technical
introduction of
modern technical
means of
managing trade
processes;
modernization
of retail space and
trade facilities;
diversification
of trade activities
through the
promotion of
progressive forms
of goods sale
Intellectual and
personnel
diversification
of employment
forms in the
context of the
implementation of
development
promising
directions;
improvement of
the quality of
working life and
increasing the
social
responsibility of
employees;
commercializati
on of intellectual
property objects
and strengthening
the motivation to
create them
Marketing
increasing
participation in the
development of a
marketing
infrastructure of the
market segment;
increase in
meeting consumer
perspective needs
of the population;
formation and
satisfaction of the
consumer demand
for goods (services)
related to the trade
of economic
activity types
Innovation
development of
an electronic
system of customer
service;
introduction of
interactive schemes
of communication
with consumers;
improving the
security of business
processes using
digital technologies
and anti-theft
systems
Logistic
improvement of
logistic schemes of
goods delivery to
trade outlets;
application of
cooperative
approaches while
supplying goods;
improvement of
management
systems of the
relationship with
suppliers;
support of the
functioning of
logistic zones and
trading
cooperation sites
Social
deepening
social
differentiation of
types of trade
objects;
strengthening of
the socio-
economic
influence on the
formation of
purchasing funds
of the population;
strengthening of
the role of the
retailer in
providing social
security to the
local community;
improvement of
employees’ social
guarantees
ensuring and
maintaining a high
level of consumer
loyalty
modernization of the
trade and
technological process
improving the
institutional
framework for
ensuring
competitiveness
increasing participation in
the implementation of
regional socio-economic
development programs
formation of
cooperative
associations
improvement of the
system of merchandise
distribution and
diversification of forms
and formats of trade
Competitiveness mission
Y. Berezivskyi et al. /Accounting
7 (2021) 833
Fig. 4. Matrix of the choice of strategic decisions on the competitiveness management of the objects of socially-oriented retailers
Source: own processing
Initially, the leaders of socially-oriented retailers should focus on enhancing their competitive advantages, first of all, depending
on the location of retail outlets (Figure 5). Thus, it is important for retailers operating only in rural settlements to optimize their
product range and price diversification; for retailers operating in suburban areas – to increase the speed of customer service, and
for retailers developing their business to the level of urban settlements – to work on the specialization and formation of a unique
product offer.
Fig. 5. Matrix of the choice of strategic decisions on ensuring competitiveness depending on the location of socially-oriented
retailers
Source: own processing
Strategic management of strengthening the competitiveness of socially-oriented retailers initially requires the formation of a
competitiveness mission as ensuring a high level of consumer loyalty by meeting their current and formulating prospective
needs, the coordination of the directions of the development of the retailer’s business processes with them. Such a mission (a
strategic policy objective) obviously concerns the strengthening of all the components and the integral level of the retailer’s
competitiveness. But the peculiarity here is that competitiveness is a dynamic characteristic, therefore, it requires constant work
on its formation, provision and support. Moreover, the potential for competitiveness is much higher for the retailers pursuing
the policy of strengthening competitiveness not in one particular direction, or even financial and economic activity in general,
Levels of the commercial activit
y
differentiation
Level of the population demand solvency
Deep penetration
use of differences and opportunities in
the system of managing the range of
goods, organizing its sale of goods,
providing additional trade services
Segmented strengthening
meeting vital needs of the selected
consumer group and avoiding the
dependence on one type of a product
offer
supportImitation
implementation of measures to optimize
the range of goods, narrowing its width
and depth; release of funds for the
organization of the trade of fast moving
Conglomerative development
developing the sale of new range
product groups that do not match the
traditional specialization of the trade
entity
Diagonal extension
introduction of technological innovations
into business processes; diversification of
financial and economic risks and
implementation of progressive investment
projects
entric implementationConc
providing a new product offer; increasing
the range of so-called supplement products
to the existing range
depth increase-In
formation of the range by means of
new goods; developing new markets,
business areas and creating interest
among existing consumers
Compilation support
change of the goods range according to the
principle of commercial and intermediary
activity of the mini-market, which is
designed to function in round-the-clock
re
g
ime
reinforcementModified
implementation of progressive ways of
selling goods to a well-established
consumer group, including non-
business related services
H
i
g
h
M
oderate Lo
w
S
p
ecialization Diversi
f
ication Inte
g
ration
Rural settlements
and territories
Suburban area
Urban settlements
Optimization of range and price
characteristics and
diversification of services
Availability and speed of
service, provision of
additional services
Specialization and
uniqueness of the
p
roduct o
ff
e
r
Placements of trade outlets Strategic approaches to ensuring
competitiveness
834
but considering their business more broadly – as a complex of all the available and potential resources and opportunities that
can be attracted and used.
Given these circumstances, the competitiveness mission of socially-oriented retailers should lie in transforming them into
competitive complexes of the dynamic development. For this purpose it is necessary to act in the direction of the improvement
of intellectual and personnel support, the informatization of all the internal and external business processes, the improvement
of the system of communication with consumers and counterparties.
5. Conclusion
The retailer’s competitiveness is a complex, systematic and dynamic category, which comprehensively characterizes the state
of its functioning and development through the prism of the ability to win in the competitive struggle with the enterprises of a
similar type of economic activity and the specialization for the consumer’s loyalty and purchasing funds.
Thus, analyzing the level of the retailer’s competitiveness gives grounds for conclusions regarding the potential for further
development and strengthening of the retailer’s competitive positions in the consumer market. For such purposes, the results of
the integral analysis of the retailer’s competitiveness level are particularly applicable, since they serve as a more systematic and
sound information and analytical basis – ensuring the formation of better and more effective managerial decisions for further
business development.
Retailers are objectively characterized by their own special features (grounded primarily by the specificity of this type of
economic activity), in particular those that specialize in operating in remote territories and are socially-oriented. Therefore, the
research proposes the author’s approach to the integral evaluation of the competitiveness level, taking into account the special
features of socially-oriented retailers’ functioning. The following structural and functional competitiveness components are
foreseen: marketing, financial and investment, material and technical, intellectual and personnel, innovation, logistic and social.
The competitiveness of the 11 retailers operating in the rural territories of Ukraine is evaluated. The calculations of the
coefficients of the component weight and component characteristics of the retailers’ competitiveness are carried out using an
expert survey.
The use of an integral evaluation technique made it possible to ensure the concept integrity about the competitiveness level (just
as a measure, not a state) and to determine the influence degree of each of the criteria on the retailer’s position in the competitive
environment. The advantages of integral evaluation also include the ability to track changes in the competitiveness level in
dynamics, to compare the competitiveness level among the analyzed retailers, to identify the factors that determine the overall
competitiveness to a greater extent, and to monitor trends in the coefficients of the factors’ weight
Based on the obtained results, the competitiveness mission of the socially-oriented retailers as a guarantee and maintenance of
the high level of consumer loyalty for the transformation of business into competitive complexes of the dynamic development
is substantiated. For this purpose, it is necessary to act in the direction of the improvement of intellectual and personnel support,
the informatization of all the internal and external business processes, the improvement of the system of communication with
consumers and counterparties.
Thus, integral evaluation serves as a strategic basis for analytical support for managing the competitiveness of socially-oriented
retailers, which is especially important in the context of the need to level the socio-economic development of the country’s
territories, to eliminate the critical gaps of depressed territories.
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