FORMATION OF AN INNOVATIVE MODEL FOR THE DEVELOPMENT OF ENTREPRENEURIAL STRUCTURES UNDER CONDITIONS OF ECONOMIC INSTABILITY

Abstract

The article substantiates the necessity of forming an innovative model for the development of entrepreneurial structures under conditions of contemporary economic instability caused by the full-scale war in Ukraine. Active hostilities, relocation of enterprises to safer regions, destruction of production and logistics infrastructure, loss of sales markets, labor shortages, and increased financial risks have significantly reduced the effectiveness of traditional business models. Under such circumstances, the ability of entrepreneurial structures to implement innovative transformations becomes a key factor of survival, resilience, and long-term development. The paper systematizes recent theoretical approaches to understanding innovative activity and innovative development of entrepreneurial structures and reveals the fragmentation of existing models that focus on isolated aspects of innovation management. To overcome these limitations, an integrated innovative development model is proposed, based on the combination of resource-oriented, process-dynamic, institutional, and strategic approaches. The resource-oriented approach emphasizes the role of internal resources as the foundation of innovation potential, particularly intellectual capital, human competencies, technological capabilities, digital infrastructure, financial resources, and intangible assets. The process-dynamic approach interprets innovation and entrepreneurship as continuous, cyclical processes that include idea generation, selection, development, testing, implementation, and commercialization, highlighting adaptability, organizational learning, and flexibility as critical conditions for innovation. The institutional approach focuses on the influence of the external environment, including regulatory frameworks, state innovation policy, access to financial support, protection of intellectual property rights, and participation in innovation ecosystems, clusters, and international cooperation programs. In wartime conditions, institutional factors gain particular importance due to increased uncertainty and heightened external risks. The strategic approach considers innovation as an integral component of long-term enterprise development strategies, ensuring coherence between innovation activities and strategic objectives, effective allocation of resources, portfolio management of innovation projects, and risk management. The interaction of these four blocks forms a holistic innovative development model that enables entrepreneurial structures to enhance adaptability, competitiveness, and sustainability. The proposed model can serve as a conceptual and methodological basis for improving innovation management practices of enterprises and for shaping policy measures aimed at post-war economic recovery and technological growth.