Management of the sustainable development of machine-building enterprises: a sustainable development space approach

Abstract

PurposeThe paper embarks on the development of theory and methodology for managing the sustainable development of machine-building enterprises through the use of quantitative modeling tools. The article proposes an algorithm for estimating the position of an enterprise in its competitive space for sustainable development.Design/methodology/approachThe three dimensions of sustainability (social, economic, environmental) are represented by the equations based on the multiple criteria of sustainability. The three-dimensional space is constructed and the effects of managerial decisions can be quantified in terms of the latter space.FindingsThe proposed model is applied in the case of Ukrainian machinery construction company. The effects of introduction of the environmentally friendly business strategy are assessed in the three-dimensional sustainability space. The changes in the level of sustainability can be estimated based on the projected changes in the criteria of sustainability.Originality/valueThe proposed methodology combines expert knowledge, empirical data and quantitative methods in order to quantify the level of sustainability of enterprises. The model can be extended to include additional dimensions and applied to different empirical cases.