Strategic management or sustainable decisions in business: A case of greening the transport companies
-
DOIhttp://dx.doi.org/10.21511/ppm.19(4).2021.25
-
Article InfoVolume 19 2021, Issue #4, pp. 311-324
- Cited by
- 841 Views
-
605 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Elaboration of steps for the strategic management of environmentally sound business solutions is essential for achieving sustainable development goals in Ukraine. Although strategic directions for decarbonization of the transport sector have already been developed at the national level, effectiveness of sustainable decision-making is closely related to the greening initiative on the local level. The purpose of the paper is to form a framework of greening strategy and sustainable decision-making for transport companies that is based on the necessity to reduce emissions. The research findings are obtained using the systems analysis, SWOT analysis, and cost-benefit method. The paper proves that choosing biogas (methane) as a main transport fuel is a viable and cost-effective initiative and can be used as a financial ground for the company’s strategic formation process that involves both tactical and organizational dimensions. The analysis results also showed threats and opportunities for greening based on switching transport companies to biogas and requiring steps of governmental support in developing biogas station networks. According to the green course, this study also reveals the possibility of establishing strategic management due to an authority delegation map between services and top management of a transport company. The study has made it possible to improve strategic management of a transport company by developing an optimal scheme of interaction between stakeholders and departments in strategic leadership for greening.
Acknowledgment
This study is a part of the Scientific Project “Modeling the Transfer of Eco-Innovations in the Enterprise-Region-State System: Impact on Ukraine’s Economic Growth and Security” (№ 0119U100364), which is financed by the state budget of Ukraine.
On behalf of Zuzana Juhaszova’s contribution, this paper was supported by the Slovak Research and Development Agency under the contract No. APVV-16-0602 Enhancement of the relevance of the accounting data in the SR – from expenses to value.
- Keywords
-
JEL Classification (Paper profile tab)L26, Q01, R42
-
References34
-
Tables5
-
Figures3
-
- Figure 1. Targets for emissions of GHG for transport and all sectors
- Figure 2. Optimal interactions between stakeholders and departments in the process of strategic management for greening
- Figure 3. A sustainable model of strategic development management
-
- Table 1. Key benefits, costs, and risks of stakeholders in implementing a green strategy
- Table 2. Fuel consumption factors for 100 km
- Table 3. Сost-benefit calculations
- Table 4. SWOT analysis of a transport company implementing a greening strategy by switching to biogas
- Table 5. Flexible delegating map of authority between departments of a company on the forming of a greening strategy
-
- Ablaev, A. R. (2007). V SShA polovina benzina – uzhe s dobavkoi bioetanola, a v Rossii rynka biotopliva ne sushchestvuet v printsipe [In the USA, half of gasoline is already supplemented with bioethanol, and in Russia, the biofuel market does not exist at all]. IQHSE. (In Russian).
- Apbin, B. (2015). Petlya vremeni: kak biznes izobretaet transport budushchego [The loop of time: how business invents the transport of the future]. Forbes. (In Russian).
- Bhandari, M. P. (2019). Sustainable Development: Is This Paradigm The Remedy of All Challenges? Does Its Goals Capture the Essence of Real Development and Sustainability? With Reference to Discourses, Creativeness, Boundaries and Institutional Architecture. SocioEconomic Challenges, 3(4), 97-128.
- Chatti, W. (2020). Information and communication technologies, road freight transport, and environmental sustainability. Environmental Economics, 11(1), 124-132.
- Darguzhit, J. (2011). “Belaya kniga” transportnoi politiki ES – vyzov dlya perevozchikov? [Is “White Paper” of the EU transport policy a challenge for carriers?]. Cargonews. (In Russian).
- Deloitte & Touche. (1992). Business strategy for sustainable development. Winnipeg: International Institute for Sustainable Development.
- Dimić, S., Pamučar, D., Ljubojević, S., & Ðorović, B. (2016). Strategic Transport Management Models – The Case Study of an Oil Industry. Sustainability, 8(9), 954.
- Domergue, P., & Markovic-Chénais, S. (2012). Greening Transport: Reduce External Costs. Paris: International Union of Railways.
- Durana, P., Michalkova, L., Privara, A., Marousek, J., & Tumpach, M. (2021). Does the life cycle affect earnings management and bankruptcy? Oeconomia Copernicana, 12(2), 425-461.
- European Commission (EC). (2020). Sustainable and Smart Mobility Strategy.
- Garkushina, S. V. (2008). Otsenka effektivnosti ispolzovaniya alternativnykh vidov motornogo topliva na transporte regiona [Evaluation of the effectiveness of alternative types of motor fuel in transport in the region]. Bulletin of VolSU, 3(1(12)), 138-141. (In Russian).
- Golubtsova, Yu. O. (2020). Metody strategicheskogo planirovaniya deyatelnosti sovremennogo predpriyatiya [Methods of strategic planning of a modern enterprise]. Aktualnye Issledovaniya – Actual Research, 17(20), 68-71. (In Russian).
- Green Economy Financing Facility (GEFF). (2021). Supporting sustainable public transport in Slovakia.
- Horobchenko, D., & Voronenko, V. (2018). Approaches to the formation of a theoretical model for the analysis of environmental and economic development. Journal of Environmental Management and Tourism, 9(5), 1108-1119.
- Interfax. (2015). “Transport budushchego” vot-vot predlozhit miru Belarus: peremeshchenie nad zemlei na sumasshedshikh skorostyakh po relsam i strunam [Belarus is about to offer “transport of the future” to the world: moving above the ground at crazy speeds along rails and wires]. (In Russian).
- Kartanaitė, I., Kovalov, B., Kubatko, O., & Krušinskas, R. (2021). Financial modeling trends for production companies in the context of Industry 4.0. Investment Management and Financial Innovations, 18(1), 270-284.
- Klymchuk, O., Khodakivska, O., Kovalov, B., Brusina A., Benetyte, R., & Momotenko, I. (2020). World trends in bioethanol and biodiesel production in the context of sustainable energy development. International Journal of Global Environmental Issues, 19(1/2/3), 90-108.
- Koilo, V. (2019). Sustainability issues in maritime transport and main challenges of the shipping industry. Environmental Economics, 10(1), 48-65.
- Kraus, S., & Kauranen, I. (2009). Strategic management and entrepreneurship: Friends or foes? International Journal of Business Science & Applied Management, 4(1), 37-50.
- Kurbatova, T., Sotnyk, I., Kubatko, O., Arakpogun, E. O., & Roubik, H. (2020). State support policy for renewable energy development in emerging economies: The case of Ukraine. International Journal of Global Environmental Issues, 19(1/2/3), 26-52.
- Matsenko, O., & Ovcharenko, D. (2013). The quality of energy resources controlling as a part of effective enterprise management. Economic Annals-XXI, 9-10(1), 75-78.
- Ministry of Infrastructure of Ukraine (MIU). (2018). National Transport Strategy of Ukraine 2030.
- Nadanyiova, M. (2018). Green Marketing and its Use in a Transport Company. LOGI – Scientific Journal on Transport and Logistics, 9(1), 58-69.
- National Institute for Strategic Studies (NISS). (2013). Mekhanizmy formuvannia rehionalnykh priorytetiv rozvytku [Mechanisms of formation of regional development priorities]. Kyiv: National Institute of Strategic Studies. (In Ukrainian).
- Peresadko, G. O., Kovalenko, E. V., & Kulyk, L. A. (2014). Mechanisms of investing into innovative projects of enterprises. Actual Problems of Economics, 10, 184-187.
- Public Institution “Institute of Environmental Economics and Sustainable Development of the National Academy of Sciences of Ukraine” (PI IEESD of NAS of Ukraine). (2021). Main Page.
- Sotnyk, I. M. (2012). Trends and problems in management of production and consumption dematerialization. Actual Problems of Economics, 134(8), 62-67.
- Sotnyk, I., Hulak, D., Yakushev, O., Yakusheva O., Prokopenko, O. V., & Yevdokymov, A. (2020a). Development of the US electric car market: Macroeconomic determinants and forecasts. Polityka Energetyczna – Energy Policy Journal, 23(3), 147-164.
- Sotnyk, I., Kurbatova, T., Dashkin, V., & Kovalenko, Y. (2020b). Green energy projects in households and its financial support in Ukraine. International Journal of Sustainable Energy, 39(3), 218-239.
- State Statistics Service of Ukraine (SSS of Ukraine). (n.d.). Energy balance of Ukraine. Archives.
- Teles, M. F., & De Sousa, J. F. (2014). Environmental Management and Business Strategy: Structuring the Decision-Making Support in a Public Transport Company. Transportation Research Procedia, 3, 155-164.
- Van Grinsven, A. H., Otten, M., Van Den Toorn, E., Van Der Veen, R., Király, J., & Van Den Berg, R. (2021). Alternative fuel infrastructures for heavy-duty vehicles. Research for TRAN Committee. Brussels: European Parliament, Policy Department for Structural and Cohesion Policies.
- Voronenko, V., Kovalov, B., Horobchenko, D., & Hrycenko, P. (2017). The effects of the management of natural energy resources in the European Union. Journal of Environmental Management and Tourism, 8(7), 1410-1419.
- Zhuravka, F., Shkarupa, O., Aiyedogbon, J. O., Adeyinka, O.-B., & Shkarupa, I. (2020) Factors of macroeconomic growth in Nigeria: Wages demand, taxes, and entrepreneurship development. Investment Management and Financial Innovations, 17(1), 242-252.