Strategic Transformation of Enterprise Management in the Context of the Transition to a Circular Economy

Abstract

The article examines the specifics of the impact of the circular economy conception on the development of small and medium-sized businesses in Ukraine. The main focus is on analyzing the challenges that arise in the process of implementing circular business models, as well as on determining their potential for increasing resource efficiency and ensuring long-term competitiveness of enterprises. Despite the significant number of works on the circular economy, practical mechanisms for adapting the strategic management system of small and medium-sized businesses to the conditions of martial law and postwar reconstruction in Ukraine remain insufficiently covered. The issue of integrating circular tools with digital transformation and the development of territorial communities requires systematic development. The aim of the study is to develop theoretical provisions and scientific and methodological approaches to the strategic transformation of enterprise management in the context of the transition to a circular economy by substantiating modern mechanisms for integrating circular principles into the strategic management system and developing practical recommendations for increasing resource efficiency and competitiveness of enterprises. In studying the dynamics of small and medium-sized enterprises and employment, the authors used methods of scientific generalization, comparative and statistical analysis. To assess the regulatory framework and form strategic directions, methods of institutional and system analysis were used. The key principles of the circular economy are revealed, in particular, preserving the economic value of products, materials and resources throughout the entire life cycle, and the feasibility of their integration into the management system of small and medium-sized enterprises is substantiated. Particular attention is paid to the need for active involvement of enterprises in international environmental and innovation initiatives, which will contribute to the spread of modern sustainable development practices. Based on the results of the study, practical recommendations are formulated for improving State policy and creating favorable organizational and economic conditions for the implementation of circular business models in the activities of enterprises. The scientific novelty lies in the systematic deepening of scientific and methodological approaches to the formation of an adaptive model of enterprise management based on a combination of the principles of resource conservation, digital technologies, and the conception of industrial symbiosis at the community level.