Brest State Technical University, Belarus

Nauka naukozn. 2021, 2(112): 42-54

Section: Science and Innovation-driven development of economy and society
Language: Ukrainian
Abstract: Theoretical aspects and evolution of the market category “competition” are discussed in the context of the formation of reference concepts derived from it: “competitive relations”, “competitive advantages”, and “competitiveness”. Renowned scholars like A. Smith, J. Mill, D. Riccardo, E. Chamberlin, J. Robinson and others devoted their works to the study of the phenomenon of competition. In their works, its content underwent a transformation from polypoly to monopoly, from the concept of free market and perfect competition, to monopolistic and oligopolistic models, and to non-price methods of competition.

Later, M. Porter, W. Eucken, A. Strickland and A. Thompson expanded its conceptual horizons in view of the economy globalization, transnationalization of its structure and the onset of a new phase in science & technology revolution, by introducing the terms “competitive space”, “competitive environment”, “competitive relations”, and “competitive advantages”. The effort of many researchers across the post-soviet area is focused on substantiating the competitiveness mechanisms, e. g. the works of Belarusian economic scientist V.Yu. Shutilin who revealed the causality of the concepts “competitive potential”, “competitive advantages”, and “competitiveness”.

On the basis of the author’s research, the structural and functional relationship between the category “competition” and the concepts derived from it is determined. It resulted in a constructed algorithm for the causal correlation between the market competition (x) and the competitiveness of the actors of the market economic system (y), approximated by a superposition of functions y = f (μ (x)). Its distinctive feature is the introduced auxiliary variable u = μ (х) of competitive relations, which are (i) a form of competition, (ii) an exogenous factor determining the development of market actors whose response is the formation of competitive advantages enabling their ability to operate in the competitive market conditions.

From theoretical point of view, the results can broaden the perspectives for scientific understanding of competition as a basic category of a market economy. In practical point, they justify the need to distinguish it from the notion “competitiveness” equated by many researchers with the notion “competition”, which is not methodologically correct and may lead to inadequate conclusions. This algorithm developed by the author is intended to eliminate this possibility.

Keywords: competition, competitive environment, competitive relations, competitive potential, competitive advantages, competitiveness.


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