, associate professor, Kharkiv, Pushinska, 77

In heading

Economic theory;

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Issues number

2018 - № 2 (33)



Type of articles

Scientific article

Code UDK

338.24.01; 65.011.4

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Problem setting. The system of income formation created in Ukraine does not conform to market principles and social values and distorts the structure of competitive advantages. This results in the decrease of the pace of growth and development.
Recent research and publication analysis. The essence and content of competitive advantages are characterized in scientific papers of M. Porter, D. B. Bobiriev, S. M. Bondarenko, N. V. Butenko, M. Yu. Lisovsky, G. T. Pyatnitskaya, A. M. Predain, A. V. Ryabova, O. L. Tereshchenko, T. V. Kharchuk et al. However, peculiarities of the structure of competitive advantages and opportunities of managing this structure in Ukraine require further study.
Paper objective. The article objective is to describe the system of competitive advantages, which has developed within the Ukrainian system of income formation, and to indicate opportunities for managing the structure of competitive advantages.
Paper main body. The informal interactions of the business and power as well as a ramified system of corruptive relations play the significant role in processes of distribution and redistribution of incomes. Sometimes, it is easier to earn owing to establishment of communication with representatives of the power rather than implementation of innovations. Under such conditions, a system of motivation of entrepreneurs, politicians and government officials are distorted.
In our country, those who use only market methods of competition, enhancing the product quality, decreasing the product cost and intensifying marketing efforts, frequently lose to those who apply administrative-managerial and power-competitive quasi-advantages.
The main types of administrative-managerial and power quasi-advantages are revealed. The author has considered a complex of measures being necessary for managing the structure of competitive advantages in order to eliminate non-market advantages and to reorient competition towards market methods. Particularly, the author proposes methods aimed at the reduction of opportunities for unjust enrichment, reformation of a set of law enforcement institutions, staff renewal at government agencies and strengthening anti-corruption control on the part of the government and the public.
Conclusion of the research. The system of competitive quasi-superior, which has expanded within the Ukrainian system of income formation, restrains development and implementation of innovations and does not foster the increment of economic efficiency. Measures oriented towards reformation of the system of income formation in Ukraine should become the basis for improvement of the structure of competitive advantages.
Short Abstract for an article
Abstract. It is shown that the Ukrainian income generation system distorts the structure of competitive advantages, which leads to lower rates of economic growth and development. The main types of administrative-managerial and power-competitive quasi-advantages are considered. A set of measures necessary for managing the structure of competitive advantages with the aim of eliminating nonmarket quasi-surpluses and for reorienting competition to market methods is proposed.


competitive advantages, quasi-advantages, reforms in Ukraine, development of an economic system, system of income formation, combating corruption.


External reviewer

Article in PDF

2 67-76


1. Porter, M. E. (2008). On competition. Updated and expanded edition. Boston: Harvard Business School Press.
2. Porter, M. E. (2017). Konkurentnaya strategiya. Metodika analiza otrasley i konkurentov [Competitive Strategy: Techniques for Analyzing Industries and Competitors]. Moskva: Alpina Pablisher [in Russian].
3. Bobyriev, D. B. (2013). Konkurentni perevahy i yikh zviazok z innovatsiinoiu diialnistiu i konkurentospromozhnistiu pidpryiemstva [Competitive advantages and their association with innovation productivity and competitiveness of enterprise]. Naukovi visti Dalivskoho universytetu – Scientific News of Dahl University, 10. Retrieved from [in Ukrainian].
4. Kharchuk, T. V. (2011). Pidkhody do vyznachennia konkurentnykh perevah pidpryiemstva [Approaches to the definition of the enterprise competitive advantages]. Ekonomika i upravlenie – Economics and Management, 6, 68-71 [in Ukrainian].
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7. Piatnytska, H. T., Prediein, A. M., & Riabova, O. V. (2014). Konkurentni perevahy pidpryiemstv: vyznachennia ta dzherela formuvannia [Competitive advantages: definitions and sources of formation]. Ekonomichna stratehiia i perspektyvy rozvytku sfery torhivli ta posluh – Economic Strategy and Prospects for the Development of Trade and Services, 1, 235-248. Retrieved from 2014_1_25 [in Ukrainian].
8. Shevchenko, L. S., Hrytsenko, O. A., Kaminska, T. M., Makukha, S. M., Marchenko, O. S., Nechyporuk, L. V. … Korolenko, V. V. (2014). Nematerialna ekonomika: upravlinnia formuvanniam i vykorystanniam intelektualnoho kapitalu [Non-material economy: The management of the intellectual capital formation and use]. Kharkiv: Pravo [in Ukrainian].

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