Functional Modelling and Enterprise Resilience: Quantifying Strategic Efficiency Gains in Ukrainian Firms
Functional Modelling and Enterprise Resilience: Quantifying Strategic Efficiency Gains in Ukrainian Firms

Summary/Abstract: The main goal of this paper is the implementation of Integrated Definition for Function Modelling (IDEF) as a method for enhancing measurable economic and strategic performance outcomes among Ukrainian enterprises against the background of the vagueness of the economic milieu and the vagueness of the market. The target function was chosen as strategic efficiency. Strategic efficiency was measured using quantifiable economic indicators: productivity gains (output per employee change), cost reductions (decreased operating and lead time costs), and financial improvements (changes in return on assets and profit margins). This study was conducted in Ukraine in 2024 using a mixed method approach, which used a combination of quantitative analysis, a targeted survey of 25 enterprise managers with IDEF experience, and secondary data analysis. Multiple linear regression with OLS assumptions and logistic regression are included in the empirical model to examine the relationship between managerial experience, enterprise-size, enterprise digital readiness and strategic efficiency outcomes. The outcomes of the investigation demonstrate that managerial experience and enterprise size have a substantial influence on IDEF, with larger enterprises demonstrating structural complexity and, in turn, demonstrating a higher degree of success when applying IDEF principles. The prominence of technological readiness was also highlighted in digital readiness, where it was demonstrated to be greatly enhanced by the utility of functional modelling. Based on the analysis, recommendations were made for targeted support for digital infrastructure development, incentives for training managers for IDEF, and industry consulting services to facilitate firms’ use of IDEF. The proposals aim to promote strategic flexibility and resilience of Ukrainian enterprises to achieve sustainable economic growth and competitiveness.

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