THE IMPACT OF INNOVATION ON MANAGEMENT PROCESSES IN FORESTRY AND THEIR COMPETITIVENESS (Р. 48-60)

UDК 630.6:658.5

THE IMPACT OF INNOVATION ON MANAGEMENT PROCESSES IN FORESTRY AND THEIR COMPETITIVENESS

 

https://doi.org/10.36994/2707-4110-2025-16-43-04

 

 

Drobyazko Svetlana, Doctor of Economic Sciences, Professor, European Academy of Sciences Ltd, United Kingdom; Department of Finance and Accounting, Open International University of Human Development «Ukraine», Kyiv, Ukraine (ORCID: https://orcid.org/0000-0003-2022-0126),

Nevmerzhytska Svitlana, Ph.D. in Technical Sciences, Associate Professor, Associate Professor of the  Department of Management, Kyiv National University of Technologies and Design, Ukraine (ORCID: https://orcid.org/0000-0001-5392-9030)

Tsalko Tetiana, Ph.D. in Economics, Associate Professor, Associate Professor of the Department of Management, Kyiv National University of Technologies and Design, Ukraine (ORCID: https://orcid.org/0000-0002-4609-8846)

Samofalova Mariia, Ph.D. in Economics, Associate Professor, Associate Professor of the Department of Management and Administration, University "Ukraine", Kyiv, Ukraine (ORCID: https://orcid.org/0009-0009-8060-7956)[1]

 

Abstract. This article investigates innovative approaches to enhancing forest management, with an emphasis on ensuring the sector's sustainability and competitiveness. The study aims to substantiate the role of innovation in improving the efficiency of management processes, to identify key barriers to its implementation, and to formulate recommendations for creating a national strategy for the innovative development of forestry. This strategy is to be integrated with the principles of economic, social, and environmental sustainability.

The scientific findings include the development of a model for managing innovation strategies, a system for evaluating the parameters of innovation strategies within the interaction of state and business structures, and a rationale for innovative measures – complete with an assessment of their objectives, benefits, barriers, and implementation recommendations.

The practical value of the research lies in providing a toolkit for public institutions and enterprises to implement digital monitoring platforms, financial incentives, and professional development programs. This contributes to the optimisation of resources and risk mitigation in the context of climate change.

Keywords: innovations, management, forestry, competitiveness, sustainable development, human resources.

 

ВПЛИВ ІННОВАЦІЙ НА УПРАВЛІНСЬКІ ПРОЦЕСИ У СФЕРІ ЛІСОВОГО ГОСПОДАРСТВА ТА ЇХ КОНКУРЕНТОСПРОМОЖНІСТЬ

Дробязко Свiтлана Iгорiвна, доктор економічних наук, професор, European Academy of Sciences Ltd, United Kingdom; професор кафедри фiнансiв та облiку, Унiверситет «Україна», м. Київ (ORCID: https://orcid.org/0000-0003-2022-0126),

Невмержицька Світлана Миколаївна, кандидат технічних наук, доцент кафедри менеджменту, Київський національний університет технологій та дизайну (ORCID: https://orcid.org/0000-0001-5392-9030)

Цалко Тетяна Ростиславівна, кандидат економічних наук, доцент кафедри менеджменту, Київський національний університет технологій та дизайну (ORCID: https://orcid.org/0000-0002-4609-8846)

Самофалова Марія Олексіївна, кандидат економічних наук, доцент, доцент кафедри управління та адміністрування, Унiверситет «Україна», м. Київ (ORCID: https://orcid.org/0009-0009-8060-7956)

 

Анотація. Стаття присвячена дослідженню інноваційних підходів до удосконалення управління лісовим господарством, з акцентом на забезпечення сталого розвитку та конкурентоспроможності галузі. Метою дослідження є обґрунтування ролі інновацій у підвищенні ефективності управлінських процесів, виявлення ключових бар'єрів їх впровадження та формулювання рекомендацій щодо створення національної стратегії інноваційного розвитку лісового господарства, інтегрованої з принципами економічної, соціальної та екологічної стійкості. Отримані наукові результати включають розробку моделі управління інноваційними стратегіями, системи оцінки параметрів інноваційних стратегій у взаємодії державних та бізнес-структур, а також обґрунтування інноваційних заходів з оцінкою їх мети, переваг, бар'єрів та рекомендацій для реалізації. Практична цінність дослідження полягає в наданні інструментарію для державних інституцій та підприємств щодо впровадження цифрових платформ моніторингу, фінансових стимулів та програм підвищення кваліфікації, що сприяє оптимізації ресурсів і мінімізації ризиків в умовах кліматичних змін.

Ключові слова: інновації, управління, лісове господарство, конкурентоспроможність, сталий розвиток, людські ресурси.

Statement of the Problem. The current operating conditions of Ukraine's economy are characterised by growing demands for enterprise competitiveness and the need to develop effective management mechanisms. These mechanisms must be based on innovative approaches and be capable of ensuring the balanced development of strategically important sectors, among which forestry holds a distinct position. In the context of globalisation, rising environmental challenges, climate change, and intensified international competition, traditional management approaches are losing their effectiveness, as they fail to account for the complexity of modern socio-economic processes and the scarcity of natural resources.

Therefore, the implementation of innovative management tools in forestry serves as a critical factor in increasing productivity, ensuring sustainable development, and strengthening competitive positions in both domestic and global markets. Research into the relationship between innovation and competitiveness within the forestry management system is relevant from both theoretical and practical perspectives, as it defines the pathways for modernising the sector.

Literature Review. The research by Diatchenko M.I. and Zhmudenko V.O. [1], as well as Sheliuk Yu. and Astakhova L. [11], focuses on innovations as an integrated complex of managerial and technological solutions that function within constrained resources and external institutional conditions. The authors emphasise the systemic nature of innovative processes.

A significant contribution to the development of the theoretical and methodological foundations of innovation development has been made by Nolander K. and Lundmark R. [6], along with Sheliuk Yu. and Astakhova L. [11]. In their works, they highlight the multiplicative effects of implementing innovative management strategies. These effects manifest in the modernisation of organisational structures, improved management quality, and increased efficiency in forestry.

In turn, Nykyforak V., Senovska Ya., and Chovban I. [5], as well as Chelepis T. and Solovii I. [9], regard innovation projects as an effective instrument of state regulation. This instrument is realised through a system of objectives, criteria, and managerial decisions that ensure a balance between the economic, social, and environmental components of forestry development. The researchers single out the problem of the equitable distribution of innovation resources and ensuring territorial balance. However, the question of adapting innovation measures to enhance the competitiveness level of forestry remains open.

The aim of this research is to substantiate the role of innovation in enhancing the efficiency of management processes within the forestry sector and to determine its impact on ensuring the sector's sustainable development and competitiveness.

Presentation of the Main Findings. Organisational and economic innovations in forestry entail not only measures to improve internal management structures but also the creation of new forms of partnership, the implementation of innovative financing mechanisms, the optimisation of resource allocation, and the rational use of forest lands. Collectively, these contribute to enhanced efficiency of management processes and the mitigation of risks associated with external environmental instability. Key organisational and economic innovations in forestry include the introduction of project-oriented management models. These models allow for the integration of interests from various stakeholders – from state institutions and business structures to local communities and international environmental organisations – ensuring a balance between economic, social, and environmental objectives [4, p. 150].

Technological innovations represent one of the mo st powerful factors in improving management effectiveness within forestry. They create opportunities for more precise planning, control, and forecasting of operational processes, while also significantly reducing costs associated with the exploitation of forest resources, thereby enhancing their renewability and ecological resilience. The implementation of modern technological solutions encompasses a wide range of tools, including the use of Geographic Information Systems (GIS) and Earth remote sensing technologies for monitoring the state of forest ecosystems.

One of the most promising directions is the implementation of electronic information systems for forest inventory and monitoring. These systems integrate data from various sources, from state cadastres to local enterprise databases, creating a unified information space for managerial decision-making. The use of mobile applications for monitoring forest tracts enables on-the-ground workers to record information about illegal logging, fires, or other emergencies in real-time, significantly improving the effectiveness of surveillance and response. The application of Information and Communication Technologies (hereinafter – ICT) helps to realise the concept of 'smart forestry,' which involves the use of sensor networks, the Internet of Things, and artificial intelligence systems for the automated management of forest cultivation, maintenance, and protection processes [11].

Innovative management tools – notably the use of digital platforms for data collection and analysis, the application of artificial intelligence systems, and the implementation of predictive analytics and modelling algorithms – enable a faster, more accurate, and scientifically-grounded assessment of situations. This, in turn, reduces the risk of managerial errors and fosters a new culture of strategic planning (Fig. 1) [1].

 

Fig. 1. A Model for Managing Innovation Strategies in Forestry to Ensure Sustainable Development and Competitiveness (developed by the authors)

 

Furthermore, innovation serves as the foundation for sustainable development, as it ensures the integration of three key components: economic, social, and environmental. For instance, the application of technologies for restoring degraded lands through the planting of fast-growing tree species not only enhances the productivity of commercial activity but also contributes to an improved ecological situation and the creation of new jobs in rural communities [2, p. 148]. The use of information systems for managing forest resources helps to prevent over-exploitation, ensuring a balance between consumption and regeneration, which is a prerequisite for ecological resilience (Fig. 2).

Fig. 2. A System for Managing Innovation Strategies in Forestry to Ensure Sustainable Development and the Formation of a Competitive Profile (developed by the authors)

The competitiveness of modern enterprises is increasingly defined not so much by the availability of financial or material resources, but by their capacity for innovative management. This capacity enables the creation of unique competitive advantages that are difficult for competitors to replicate. In the forestry sector, such advantages are formed through a combination of technological, organisational, and informational innovations, which collectively create a synergistic effect and secure stable market positions for enterprises.

Firstly, innovative management allows enterprises to implement unique business models. These models are oriented not only towards selling timber as a raw material but also towards creating added value through the production of eco-certified products, the development of eco-tourism, and the provision of environmental services (for example, carbon sequestration by forests). This opens up new market niches and reduces dependence on fluctuations in raw material prices [7, p. 12].

Secondly, through the implementation of digital management technologies, enterprises gain the ability to create transparent and controllable supply chains. This is critically important under current conditions, as international markets are increasingly oriented towards environmental standards and product certification. Such measures underpin a competitive advantage in the form of consumer and partner trust, enhance the enterprise's reputation, and allow for the expansion of export opportunities.

Thirdly, innovative management creates the conditions for developing internal competitive advantages related to human capital development. The use of innovative educational programmes, electronic platforms for staff professional development, and motivation systems based on digital performance monitoring contributes to increased staff productivity, reduced employee turnover, and the creation of teams capable of generating new ideas and effectively implementing innovative projects [3].

In a global context, the competitive advantages formed through innovative management are strategic in nature. They provide enterprises not only with short-term benefits, such as increased profitability or market expansion, but also with long-term resilience. This resilience stems from the ability to adapt quickly to changes in the external environment, integrate into global production and environmental chains, and implement socially responsible initiatives that enhance the level of public trust (Table 1).

Based on the analysis of best practices and identified barriers, a series of recommendations can be formulated aimed at improving the forestry management system through the use of innovative approaches.

Table 1

Evaluation of Parameters for Innovative Management Strategies in the Interaction of State and Business Structures to Ensure the Sustainable Development of Forestry (developed by the authors)

Parameter	Level of Quality of Innovative Provision	Level of Managerial Provision	Functional Content
Risk of Non-fulfilment of Obligations	Low	High	Within the innovative management strategies applied for modernising forestry, control mechanisms and flexible coordination models are envisaged, which reduce the probability of task non-fulfilment and increase stakeholder accountability
Risk of Resource Loss	Low	High	The use of innovative management approaches allows for the effective accounting and utilisation of material and natural resources, which minimises the risk of losses and promotes the sustainable development of the sector
Risk of Programme Implementati-on Delays	Low	High	Innovative management models, for instance digital monitoring and planning systems, incorporate clear task schedules, ensuring the stability and predictability of project implementation in forestry
Flexibility of Process Restructuring	High	Low	The implementation of innovations enables the adaptation of management structures and production processes, converting them into more resilient and efficient models that align with the goals of sustainable development and competitiveness
Influence of the Regulatory Environment	Low	High	Innovative management strategies operate within clearly defined regulations and digital standards, which simplifies coordination between the state and businesses, whereas traditional approaches often face bureaucratic barriers
Effectiveness of Engaging External Partners	High	Low	The use of innovative management strategies promotes openness and transparency, which increases the confidence of international partners in collaborating within the forestry sector and strengthens its competitiveness
Synergistic Effect of Interaction	High	Moderate	Innovative strategies create a foundation for combining the resources, technologies, and competencies of the state and businesses, ensuring the sustainable development of forestry and forming competitive advantages in the long term

 

Firstly, it is necessary to create an integrated national strategy for the innovative development of forestry. This strategy should include clear goals, priorities, performance indicators, and coordination mechanisms between different institutions. Such a strategy must be founded on the principles of sustainable development and take into account international experience, particularly European standards of forest resource management.

Secondly, it is advisable to develop financial instruments to support innovative projects in the sector. This includes establishing specialised funds, providing soft loans, and implementing tax incentives for enterprises that invest in digitalisation, automation, and environmentally clean technologies [8].

Thirdly, particular attention should be paid to the development of human capital, as without a skilled workforce, the implementation of innovative solutions is impossible. To this end, it is essential to create modern programmes for staff training and professional development, actively utilising e-learning, simulation technologies, and distance education tools.

Fourthly, the development of digital infrastructure is crucial. This includes creating national information platforms for forest monitoring, implementing electronic document management systems, and automating control and reporting processes.

Fifthly, it is important to actively implement innovative environmental practices aimed at restoring degraded lands, enhancing forest resilience to climate change, utilising biotechnologies, and developing areas related to the bioeconomy and green energy (Table 2).

Therefore, enhancing the forestry management system based on innovative approaches requires comprehensive efforts aimed at modernising the institutional framework, developing financial and human resources, driving digital transformation, and fostering environmental responsibility. Collectively, this will enable the creation of a competitive, sustainable, and innovation-oriented sector.

Table 2

Assessment of Innovative Measures for Implementation in Forestry (developed by the authors)

Innovative Measure	Implementation Goal	Expected Benefits	Potential Barriers	Implementation Recommendations
Automation of Forest Monitoring using Drones and IoT Sensors	Enhancing the accuracy of resource condition control	20-30% productivity growth, reduction in inspection costs	High equipment cost, lack of qualified specialists	Creation of state grants for technology procurement and staff training
Use of Biotechnologies for Cultivating Planting Material	Improving the quality of planting material and growth speed	15% increase in product yield, ecological resilience	Limited financing, risks of genetic modifications	Development of partnerships with scientific institutes for testing and provision of soft loans
Implementation of Digital Platforms for Supply Chain Management	Ensuring product transparency and certification	Enhanced competitiveness on export markets, consumer trust	Cybersecurity issues, insufficient digital infrastructure	Integration with national systems and regular security audits
Development of Eco-tourism and CO2 Sequestration Services	Diversification of income through green initiatives	Creation of 100+ jobs, new market niches	Staff conservatism, seasonality	Staff motivation programmes and marketing campaigns
Electronic Systems for Employee Professional Development	Building human capital for innovation	25% reduction in staff turnover, generation of ideas	Resistance to change, lack of internet access in regions	Online courses with certification and integration into corporate culture

 

Conclusion. The conducted analysis indicates that the implementation of organisational and economic innovations in the forestry sector opens significant prospects for improving management effectiveness. This is achieved through the creation of adaptive interaction mechanisms, the engagement of stakeholders, and the rational use of available resources, which minimises the likelihood of non-fulfilment of obligations and ensures operational stability in the face of external threats. The application of project-oriented management approaches enables the harmonious integration of economic, social, and environmental objectives, creating a foundation for balanced development and strengthening the competitive position of forestry enterprises.

Technological innovations have been identified as a leading factor in the transformation of forestry. The application of Geographic Information Systems (GIS), Unmanned Aerial Vehicles (UAVs), satellite technologies, and automated management platforms ensures high precision in monitoring, forecasting, and control, while simultaneously reducing costs and enhancing environmental sustainability. Modern biotechnologies facilitate the cultivation of resilient tree species and optimise reforestation processes. Together, these advancements enable a qualitatively new level of managerial decision-making by integrating scientific, environmental, and economic components into the strategic planning for the sector's sustainable development.

It is established that an innovative approach to management builds the strategic potential of the sector, directed not only towards achieving economic efficiency but also towards ensuring environmental responsibility and social significance. This guarantees long-term stability and enhances the competitiveness of forestry within the context of global challenges.

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