A compromise based adaptation strategy for business structure management in crisis

Abstract

Introduction. The current macroeconomic instability contributes to the development of scientific and theoretical foundations for the notion of business structure adaptation to external challenges. An entity of economic activity should be considered both as an element of a multi-faceted regional and industry production system and as a relatively isolated structure with its own organizational behavior and associations with other various entities. Business structure adaptation means behavioral changes determined by the ongoing qualitative systemic changes that significantly affect the key performance parameters. Purpose. The purpose of the study is to develop the conceptual framework for a compromise based adaptation strategy. Materials and Methods. Methodologically, the study refers to scientific and theoretical approaches to management adaptation for regional economic systems and business structures. Modeling of economic and managerial processes and statistics analysis are the key methods of this study. Rosstat’s official data was used as the information database for the study. Results. The paper describes various types of government support in large cities. These measures were aimed at reducing the number of closed down small and medium-sized companies and compensating for the damage they suffered. The study also looked at the factors and conditions that specify the interaction of large and small businesses in the regional economic system, as well as the features of their organizational behavior in regulating financial and economic obligations with the authorities. Conclusion. The research is academically novel in the development of the notion of a compromise based adaptation strategy for business structures in crisis, taking into account the trends in organizational behavior of large, small and medium-sized businesses, authorities, and industry management, which are being driven by joint activities typical for the current events in Russia.