MANAGING INNOVATIVE BUSINESS PROCESSES OF RURAL AGRICULTURAL COMPANIES

Abstract

The article seeks to provide a robust framework to ensure effective management of innovative business processes at agricultural companies in rural areas. Based on different conceptual interpretations of the "innovation" and "business processes" terms, this study suggests to consider the innovative business processes as a goal-oriented set of operations (activities) performed sequentially or simultaneously (transforming inputs into outputs) that shapes a desired ultimate result with a focus to its application and R&D commercialization. Presenting innovation-based activities of rural agricultural companies in a business process format will facilitate their better adaptability to rapidly changing external environment, enable to assess the effectiveness of individual innovations as well as to detect the bottlenecks and errors and eliminate or mitigate them at the initial stage of innovation development. From the perspective of a process-based approach, the proposed model of managing innovative business processes of agricultural enterprises in rural areas provides an opportunity to: 1) benefit from effective use of innovative technology to achieve strategic goals of rural agricultural enterprises; 2) harmonize stakeholder interests of all rural agribusinesses and accumulate resources for their implementation) to provide rationale for agribusiness activities in rural areas in terms of ensuring their competitiveness; 4) to boost the profitability of rural agribusinesses and generate unused resources. The identification of such common elements contributes to better understanding of the logic of a systemic framework to manage innovative technology process based on business process compositional modeling. The findings demonstrate that step-by-step algorithm based on the proposed model will enable to carry out a sound assessment of the innovation potential of agricultural companies, build their sustainable competitive advantages along with contributing to creating a favourable environment to implement innovative development strategy in the agriculture industry and promote the application of technological innovations in manufacturing and management.