CORPORATEZATION OF ECONOMIC DEVELOPMENT MANAGEMENT OF TERRITORIAL COMMUNITIES OF UKRAINE IN THE SYSTEM OF INSTITUTIONAL TRANSFORMATIONS

Abstract

Introduction. The article addresses the problem of institutional transformations in the development of territorial communities in Ukraine, with particular emphasis on the role of management corporatization in enhancing the efficiency of economic development. The relevance of this issue is substantiated in the context of addressing the objectives of the “renewed framework” of local self-government reform. The study highlights the key challenges of economic development faced by territorial communities, the place of management corporatization as a response to these challenges, and the need for an adequate response from the scientific community, institutional actors, and the business environment. It also emphasizes the importance of assessing the potential and opportunities of management corporatization and its significance for solving the problems of territorial communities, which necessitates an in-depth theoretical and empirical analysis of this issue.

Main content. The article analyzes scientific approaches to interpreting the essence of corporatization of management in the development of territorial communities. The concepts of “corporatization of economic development,” “formation of corporate relations,” “formation of corporate governance in the state and municipal sectors within the economic complex of a territorial community” and “corporatization of local self-government and public management of local economic development” are distinguished. The paper generalizes information on the regulatory and legal framework for the corporatization of management in Ukraine, particularly its intensification following the adoption of the Law of Ukraine No. 4196-IX. Empirical assessments of the initiated processes are provided across regions of Ukraine and types of economic activity. The expediency of a systemic approach to addressing this issue is substantiated, which involves improving organizational work related to the reorganization of municipal enterprises, their transformation into joint-stock companies (JSCs) and limited liability companies (LLCs), corporatization of local self-government, and the development of corporate relations and corporate culture within territorial communities. This approach will enable the development of territorial communities as a specific form of corporation, facilitate the adaptation of management practices to EU standards, enhance the efficiency of utilizing the economic potential of communities, and promote their sustainable development and the democratization of governance.

Purpose. To substantiate the essence, content, and significance of corporatization of management in the economic development of territorial communities as an important component of institutional transformation processes; to diagnose the dynamics of corporatization processes at the current stage; and to identify ways to intensify them.

Keywords: economic development of territorial communities; corporatization of management in territorial community development; corporatization in the regions of Ukraine; organizational aspects of corporate governance in territorial communities; financial aspects of corporate governance in territorial communities; municipal sector; municipal joint-stock companies; municipal limited liability companies; corporatization of local self-government; corporate culture of territorial communities; municipal corporations.