IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2019i4p132-139.html
   My bibliography  Save this article

Improvement of Innovation-Investment Processes' Management of the Modern Pharmacy Network

Author

Listed:
  • Olha Hladkova

    (National University of Pharmacy, Kharkiv, Ukraine)

  • Tetiana Svynarenko

    (Donbass State Engineering Academy, Kramatorsk, Ukraine)

Abstract

The purpose of the article is to develop the model to optimize the process of managerial decision-making for the innovation and investment activities of pharmacy networks, especially in conditions of their financial self-development. It was shown that the current state of the pharmacy business is characterized by the active development of pharmacy retail. Analysis, which based on the information of the syndicated database "Axioma" during 2015-2017 years, showed, that number of pharmacies increased up from 15262 to 16192 units. The most significant regions of Ukraine in terms of the pharmacies number are Kiev, Dnipropetrovsk, Odessa, Kharkiv and Lviv regions. A clearly expressed trend in the development of modern pharmacy networks is their consolidation, which is directly related to the activation of their investment activities. This raises the need to develop and implement a model that optimizes the in innovation-investment process. In this model, it was proposed to include three interrelated and interdependent blocks: a block for the formation of an optimal innovation-investment portfolio, a block for selecting an innovation-investment project, and a block for calculating project's cash flows. The article describes each of the blocks and the sequence of execution each of the stages. In order to optimize the innovation-investment projects' portfolio, the objective function of maximizing the portfolio's net present value was proposed. This function considers financial constraints on the possibility of attracting resources for the project's implementation. For the primary selection of innovation-investment projects, the use of the benefit-cost criterion was justified and the formula for its calculation was presented, taking into account the peculiarities of the pharmacy networks. The use of the model proposed by the authors will help to reduce the likelihood of errors in making management decisions, and, consequently, increase the efficiency of innovation and investment processes and sustainable financial self-development of pharmacy network.

Suggested Citation

  • Olha Hladkova & Tetiana Svynarenko, 2019. "Improvement of Innovation-Investment Processes' Management of the Modern Pharmacy Network," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 132-139, December.
    • Handle: RePEc:iaf:journl:y:2019:i:4:p:132-139
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/709-vdoskonalennya-upravlinnya-innovaciyno-investiciynimi-procesami-suchasnoi-aptechnoi-merezhi.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/709/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    pharmacy network; innovation-investment activity; model of innovation-investment processes management; target function of innovation-investment projects portfolio's optimization; benefit-cost indicator;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2019:i:4:p:132-139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serhiy Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.