Analysis of the transformation of enterprise activities under the influence of global shifts

Received: May 22, 2021 | Revised: May 28, 2021 | Accepted: June 20, 2021 JEL Classification: F6. DOI: 10.38188/2534-9228.21.2.20 Abstract The article identifies the main motives of transnational activities of companies, namely: the desire for cheaper and better factors of production; entering new markets; reduction of competition due to the acquisition of assets of foreign companies; the ability to achieve the effect of scale of production. The classification of factors that are the basis for the formation and operation of transnational companies (TNCs) on the following grounds: unit of study, level of analysis, level of universality, research architecture, factor analysis, genesis of factors, status factors. The author proposes a theory based on a generalized analysis of theories of transnationalization in the context of comparing the features of the development of TNCs and any other business entity. The author develops a mechanism of interaction between donors and recipients within the market theory of transnationalization of production. The factors influencing the dynamic development of TNCs and their transformation into one of the most important institutions of the modern market economy are described. The influence of TNCs on home countries and host countries is analyzed. The main characteristics of technological systems are investigated. It is noted that the formation of the optimal structure of TNCs is based on the optimal distribution of functions between structural units, establishing a system of relations between them, which allows for rapid exchange of information, management decisions and implement them in optimal time. The characteristic of organizational structure of mechanistic and organic types of TNCs is presented. The Hammer-Champi reengineering methodology is proposed. The investment activity of modern enterprises operating in the conditions of global transformations is investigated. The author has improved the mechanism for managing the investment attractiveness of an industrial enterprise.


Introduction
Modern transformations of enterprises are global in nature and affect all areas of the world economy. The subject of transformation is both the world system as a whole and the elements that form it. The central element of the world economic system at the present stage are transnational corporations, which are undergoing transformational changes in the system of global economic transformations (destruction of world bipolarity; formation of post-industrial economy; intensification of international economic integration and regionalization; strengthening multi-vector economic development, etc.). The study of transformational processes of transnationalization of economic activity creates a basis for determining the most appropriate ways to use transnational levers to include national economies in the world economic system.

Material and methods
The information base during the writing of the article was the scientific works of domestic and ISSN 2534-9228 (2021) VUZF review, 6(2) under the influence of globalization. In the process of research both general scientific and specific methods were used: dialectical, system-functional; abstract-logical; economic and mathematical and others.

Results and discussion
There is no universal (unified) theory of nationalization in science. The formation of various theories of transnationalization is due to a significant number of factors shaping this process. The main motives for the transnational activities of companies are as follows: -the desire for cheaper and better factors of production; -access to new markets; -reduction of the level of competition due to the acquisition of assets of foreign companies; -the ability to achieve the effect of scale of production.
In fig. 1 shows the classification of factors that are the basis for the formation of TNCs.
* Systematized for [WIPO, 2013]  The main obstacle to the consolidation of scientific views is the dynamic change in the method of transnationalization and the comprehensive nature of the activities of TNCs (presence in most sectors of the economy). The formation of a large number of different interpretations of the concept of transnationalization is due to the large number of factors that accompany the relevant processes.
The identified factors include the following: research unit; level of analysis; level of universality; research architecture; factor analysis; genesis of factors; status factors.
The stated theories, factors of development of subjects of transnationalization and features of their modern functioning give the chance to form own theoretical assumptions concerning origin and functioning of TNCs in the conditions of globalization in the context of the market theory of transnationalization. The proposed theory is based on a generalized analysis of theories of transnationalization in the context of comparing the development of TNCs and any other business entity. The transformation of a firm (company, enterprise) into a TNC is the highest link in the corporate evolution of the enterprise, and the formation of branches and their relationship with the parent company occurs with a certain cyclicity, which is reflected in the evolutionary model of transnationalization of economic activity.
Summarizing the elements of the above model, it should be noted some of its features. As the experience of modern TNCs shows, the initial stage of their development corresponds to local activities (in the country of establishment). In the presented evolutionary model of development this stage is outlined by a cycle of origin of the corresponding firm. Conditions, trends and development of the firm in this cycle are to some extent identified with the periods of the life cycle of any other enterprise, but in the final stages have their own characteristics.
The initial stage is the period of origin, which determines the scope and mode of operation of the firm. In the case of the effectiveness of the relevant stage, there is a period of prosperity, during which the demand for products of the enterprise and the effectiveness of the enterprise itself. A certain feature of this period for potential international companies is the entry of their products into foreign markets in the form of exported goods. The peak stage of development for the company is marked by the highest sales and profitability (and is a prerequisite for further decline), for potential international (transnationalized) companies the peak stage is also marked by the largest sales of goods in domestic and foreign markets, and at the same time it is a transitional stage to the cycle of formation of TNCs (foreign investment). Its emergence is due to the main factors of the market, supply and demand, both by the company and by consumers of the company's products. The beginning of the cycle of formation of TNCs, according to the appropriate model, comes simultaneously with its decision to invest in another country in order to organize production in a particular sector of the economy. The essence of the stages of the formation cycle is that the branch of TNCs will develop under the same laws as any other company, however, the elimination of risks and distribution of benefits will be carried out with the participation of the parent company, which largely ensures its stability and market approval. states. The peak of the relevant cycle is the company's decision to increase the number of branches in certain countries. The establishment and stabilization of market share relative to the previously established branch of TNCs is a transitional stage to the cycle of global activities.
The global business cycle is a stage characterized by an increase in the number of subsidiaries, the development of which is supported by the parent company during the same stages of the "life cycle" that are characteristic of any other enterprise. The peculiarity of the "cycle of global activity" as a stage of development of TNCs is that the parent company (actually TNCs) has the unofficial status of a monopolist in the relevant market. The essence of such an informal monopoly is established due to the great financial strength formed by the operation of a number of branches and, as a consequence, the ability to support newly established subsidiaries. This, in turn, shifts the "center" of competition to the activities of exclusively international companies, which limits the functioning of local enterprises, because for them the prospect of activity remains at best functioning in a separate market, or commercial integration into an international company (in practice such a monopoly is limited sphere of state regulation).
Thus, the process of transnationalization of production, according to the proposed market theory of transnationalization, is due to the "intertwining" of two key factors of the market economy -supply and demand, which due to their specifics are formed separately in the production and consumption of different countries. In general, the system of relations, according to the market theory of transnationalization, can be interpreted as a mechanism of interaction between donors and recipients ( Fig. 2).
Analyzing the ideas of scientists about the "market" theory of transnationalization, it should be emphasized that the process of transnationalization of production is formed under the influence of market conditions, which can be considered both in combination and alone: the demand for factors of production by producers (potential investors) relevant factors in the territory of the recipient countries: the supply of capital, technology, etc. by producers (potential investors), which is covered by the demand for relevant factors in the recipient countries.
* Developed by the author Fig. 2. The mechanism of interaction between donors and recipients within the market theory of transnationalization of production * Thus, within a market economy, transnationalization is seen as the highest evolutionary stage of business development, which is carried out not only for economic effect (profit), but also the realization of geoeconomic ambitions of states and the establishment of their integration relations.
At the present stage, the leading drivers of transnationalization are science and innovation, which turns TNCs into the main generators of scientific ideas, new technologies and concepts of their dissemination, contributing to the formation of a convergent economic system worldwide.
The many and varied factors that influence the development of TNCs suggest that they can avoid many difficulties in entering the international market by obtaining higher returns on investment than companies whose activities are limited to the borders of one country.
One of the features and problems of transnationalization at the present stage is that the external environment of international business and it is changing under the influence of many factors: changing the list of customers, new market niches, new competitors, better technologies. In general, the source of change lies in the technical and technological side of production, as well as in the production relations that develop within the company and in the market environment, and occur in the plane of "crisis -change".
It is known that the source of any change is the inconsistency of certain parts of the system, which is true for a multinational company, which is an open system that is involved in many relationships with different businesses and society as a whole. Accordingly, we can identify several areas in which failures lead to the transformation of the processes of transnationalization of economic activity: the political sphere; investment sphere; administrative sphere; technological sphere; national economic environment; public sphere (Mikhailova LI, Yurchenko LI, Danko YI, Mikhailov AM, 2007).
At the same time, despite the positive manifestations of the activities of TNCs in developing countries, there are a number of shortcomings of this activity. Thus, often the economies of these countries under the influence of TNCs develop unilaterally, they specialize mainly in the production of raw materials, which positions them as a raw material appendage of TNCs. In this case, the profits from their activities, TNCs, as a rule, are exported to the country of the parent company, rather than reinvested in the economy of the host country. In addition, sometimes TNCs export to developing countries, environmentally harmful production (Mikhailishin LI, 2016).
In general, in modern conditions, host countries (both developed and developing) tend to approve TNCs on their territory. However, there are a number of problems associated with the activities of TNCs in the host country. The most typical advantages and disadvantages of the host country and country of origin of TNCs are presented in table. 1.
Trends and phenomena affecting the development of the modern world economy cause structural and sectoral changes in the development of transnationalization, given the situation of economic growth, the need to ensure the international competitiveness of TNCs, the transformation of scientific and technological progress into an object of economic relations. At the same time, the process of forming a single world economic space is quite contradictory.
On the one hand, due to the effect of globalization, which in turn unifies business processes, there is a reduction in the diversity of the latter. On the other hand, the manifestations of local tendencies are intensifying, for example, within the framework of international regionalization processes. As a result of the simultaneous action of these processes in the world economic system there is an increase in the role and scale of activities of transnational corporations (TNCs). Today, the growth of competition in world markets causes structural and spatial transformations in the activities of enterprises, which as a result of entering the international market attract foreign labor, capital, management, becoming virtually transnational, which leads to increasing globalization. For some countries, inclusion in the processes of transnationalization of economic activity means using opportunities to improve the welfare and living standards of citizens.
The strengthening of this tendency leads to the structural restructuring of the world economy, the departure of the latter from the nationally oriented standardization of production.
The original structural changes can be explained in terms of the theory of "long waves" by M. Kondratiev and J. Schumpeter: the basis of these cycles of development are basic innovations that penetrate into all spheres of economic and social life and cause the emergence of new spatial structures. At the present stage, the defining basic technologies both at the national and global levels are microelectronics, technologies of data storage, transmission and processing, the use of which leads to a reassessment of the role of space and time in the world economy (Zakharchenko VI, Korsikova NM., Merkudlov MM, 2012).
Basic innovations that combine the achievements of science and technology, being embodied in goods, technologies, management methods and a set of consumer properties that meet existing and projected consumer demands, are the basis for the emergence, development and change of technological systems (Table 1).
Different technological systems (dying, dominant and nascent) coexist for some time in one time interval. This is especially true for countries that are not world economic leaders or developed countries.
The main characteristics of technological systems are given in table. 2 (I-IV). But this information needs to be supplemented. The world community now exists in the fifth way, and according to scientists, it should have already moved to the sixth way, but the crisis has slowed this transition.
The fifth way is characterized by the post-industrial revolution (development of computer technology, electronics, IT-technologies, services). The next sixth mode is characterized by a transnational revolution (robotics, closed nuclear cycle, space activities). However, it must be determined that as technology changes, so does society. There are changes in the economy and social sphere. The development of the sixth way will lead to significant changes, and, first of all, it concerns the human factor, technical progress has both positive and negative sides. And one of the downsides is the decline in significance and human due to robotics.
Due to the current dominance of the world market, multinational companies are the international regulator of world production and distribution: TNCs control up to half of industrial production in the world economy, 2/3 of international trade, TNCs employ up to 50 million people, which is why TNCs act driving force to ensure and increase the international competitiveness of countries.
At the same time, the influence of TNCs on global innovation development is dualistic: on the one hand, TNCs are the result of intensive development of the international innovation sphere; on the other hand, TNCs act as a powerful mechanism for influencing this area, forming new and improving existing innovations, using the structural capabilities of organizational forms of innovation management.
Depending on the conditions, scale, scope of TNCs, their organizational structure may be different. However, in order to implement the tasks of innovative development, TNCs must be flexible, able to quickly solve new atypical tasks in a timely manner, to organize the process of implementing innovative changes.
The formation of the optimal structure of TNCs is based on the optimal distribution of functions between structural units, the establishment of such a system of relations between them, which allows you to quickly exchange information, make management decisions and implement them in optimal time. A significant role in ensuring the effectiveness of any organizational structure is played by the labor support of TNCs, i.e. the ability of the management system to perform innovation management functions, which requires the involvement in the innovation process of all employees capable of producing new ideas.
In fact, it is a combination of mechanistic (linear, functional, linear-functional, divisional structure) and organic (matrix, design, network structure) type of organizational structure within the multilevel structure of TNCs (mechanistic type is characteristic of TNCs as a whole, organic -for structural units companies) (Table 3).
This organizational structure of TNCs, first of all, solves the problem of streamlining the current innovation activities of the company (innovation activities are aimed at improving certain elements of the technological process). Only the general direction of development is set, the goals are vaguely formulated, their variation is possible due to changing circumstances A system of responsibilities and rights that must be respected he system of norms and values, which is formed in the process of discussions and agreements, its focus is not on punctual and meticulous performance of duties, but on solving specific tasks Divide each task into a series of procedures Procedural approach to solving the problem, the lack of final distribution of functions and their fixation Vertical system of official relations, their impersonality Relations develop horizontally and diagonally, between officials of different ranks, which creates ample opportunities for the realization and development of creative potential of employees Clear division of labor functions Temporary assignment of work to integrated project teams * Compiled for (Stadnik VV, Johna MA, 2006) ISSN 2534-9228 (2021) VUZF review, 6(2) A special role in the system-structural support of transnationalization is played by the process of business process reengineering, and the main stages of this process are common to all economic entities and are based on the Hammer-Champy methodology (Table 4). At this stage, the chairman of the company initiates a project that describes the existing situation and the goals to be achieved. A project group is being formed 2 Identification of business processes Initial phase (concept) At this stage the basic business processes of the company are allocated and realized, the map of business processes of the top level is created.

Selection of business processes
Initial phase (concept) The third stage selects those business processes that will be subject to reengineering, based on what results the redesigned processes will be able to bring companies, as well as taking into account the complexity and risks 4 Understanding of selected business processes Initial phase (concept) A general analysis of existing business processes is carried out without detailing and detailed description, understanding of customer needs and setting goals for the new process structure 5 Redesign of selected business processes Development phase This stage is the most creative, characterized by imagination, flexibility. At this stage, the project team designs business processes and develops an implementation route 6 Realization Implementation phase Implementation of a cost-effective version of processes, error correction and replication of successful samples. Hummer suggests the possibility of phased implementation -separate releases to quickly demonstrate the benefits Compiled for (Taranyuk LM, 2011) Based on the above, it can be hypothesized that since the TNC's profits are possible only with the purposeful formation of the production structure in accordance with demand for products and available production capacity, the formation of demand for products before production, taking into account the needs of the world market.structural frameworks created by corporations become necessary conditions for the functioning of TNCs.
Investment activity of industrial enterprises is aimed at both external and internal environment. That is, investments in the internal environment are directed to re-equipment of production, capital construction, improvement of production technology and more. Within the framework of foreign investment, the company invests money in the construction of housing for employees, their insurance, medical care and more.
The state plays an important role in the development of investment activity of the enterprise. The prospects for the development of the investment climate of enterprises depend on the investment condition and potential of the country. Next, we will consider in more detail the current state of the investment environment at the state and enterprise levels.
The analysis of investments in the economy of Ukraine for the period 2010-2019 as a whole shows the improvement of investment activity in the country. However, a more detailed analysis showed that during the period 2010-2012 there is an ISSN 2534-9228 (2021) VUZF review, 6(2) increase in investment activity in Ukraine, but from 2013-2014, under the influence of negative force majeure, there is a significant deterioration in investment activity, which negatively affects the investment activity of industrial enterprises. Since 2015, the investment environment has been reviving, which indicates positive changes in the country's economy [283]. But in 2016 there was a significant decline in investment resources, namely, capital investment in the economy of Ukraine. Such fluctuations in the volume of investment in Ukraine's economy indicate a low level of investment security and the lack of a national investment program, which should determine the priority areas of resource allocation.
It is determined that industrial enterprises operate in difficult conditions and need to intensify investment processes. The efficiency of investment activities is significantly influenced by the directions of distribution of investment resources. It is determined that the three spheres of economic activity with the largest volume of investments are: industry, construction, agriculture, forestry and fisheries, public administration and defense; compulsory social insurance.
Many years of experience show that industry plays a leading role in the country's economy. Therefore, it is strategically important to invest in industrial enterprises, which are the basis for sustainable economic development. In the table. 5 shows data on the structure of capital investment by type of industrial activity. Table data. 5 indicate that capital investment in the processing industry accounts for the largest percentage in the overall structure of capital investment by type of industrial activity. During the period 2010-2019, the distribution of investments is not even. In other words, in the mining and quarrying industry, investments are cyclical. In the manufacturing industry from 2010 to 2013 there is a decrease in capital investment, in 2014-2016 we see a cyclical increase in capital investment, from 2017 to 2018 there is a decline in investment. A similar situation occurs for the other two types of industrial activity (Sivolap LA, 2017).
As mentioned above, investments play a leading role in the sustainable development of both individual enterprises and the state as a whole. In order to attract more investment resources, it is necessary to ensure investment attractiveness accordingly. The factors of formation of investment attractiveness of the enterprise include internal and external factors. According to scientific researches of scientists the typology of the quantitative and qualitative factors defining and influencing investment attractiveness of the enterprise is defined. Factors of investment attractiveness of the enterprise are divided into three groups: the financial condition of the enterprise, the market environment, corporate governance. Each of the presented groups is characterized by its own indicators.
In particular, the financial condition of the enterprise is characterized by such indicators as: the ratio of borrowed and own funds; current liquidity ratio; asset turnover ratio; return on equity on net income; profitability of sales; coefficient of ownership (autonomy); the ratio of borrowed funds (borrowed capital) and more.
The market environment is characterized by such indicators as: the investment climate of the region in which the company is located; investment attractiveness of the industry to which the company belongs; geographic market for products; degree of competition in the commodity market; ecological load on the natural environment; stage of the life cycle of the main type of product; development of transport infrastructure and more.
The nature of corporate governance is important for determining the investment attractiveness of the enterprise.
Corporate governance is characterized by the following indicators: financial transparency and disclosure; the share of state property in the authorized capital of the company; share of shares in free circulation on the secondary securities market; observance of the rights of small shareholders to manage the enterprise; the amount of remuneration to members of the board of directors; degree of protection of shareholders' rights; the degree of probability of bankruptcy and the level of risk of reorganization of the company and more.
Thus, the mechanism of investment attractiveness management of enterprises includes actions on the factors of influence of both external and internal environment (Fig. 3).
* Improved by the author Based on the study, it can be noted that ensuring the investment activities of the enterprise is one of the main management functions. Without the implementation of investment projects it is impossible to improve the company's activities and increase its competitiveness. Today the investment activity of industrial enterprises is characterized by low activity. This is due to the negative impact of the crisis in the country's economy and the world, the variability and instability of the external environment.

Conclusions
According to the study, the main vector of transformational shifts in transnationalization is that the process of transnationalization contributes to the process of universalization on an international scale (convergence, mutual adaptation and merging of national economic systems, strengthening the similarity of national mechanisms of economic and social regulation). Also, the analysis of modern TNCs showed that despite the positive manifestations of transnationalization, there are some shortcomings: often the economy develops single-vector, ie companies specialize in raw materials, profits are exported to the parent company and not reinvested in the host economy. It is determined that domestic industrial enterprises operate in difficult, unstable conditions. Issues of investment support are acute. Ensuring investment activity is one of the main strategic tasks of enterprise management. The study of the peculiarities of management of industrial enterprises in the context of globalization suggests that enterprises are looking for new ways to increase competitiveness by: producing their own innovations; optimizing the size of enterprises and increasing their efficiency; strengthening of production-cooperation and sales-cooperation relations, due to which there is an increase in the flexibility of the enterprise; increasing the investment attractiveness of enterprises.