Institutional matrix of social management in region's economy: stability and sustainability vs innovations and digitalization

Abstract

PurposeThe purpose of the article is to develop a new institutional approach to build the social market economy, which would allow balancing traditions and innovations, stability and technological progress in view of the specifics and priorities of the national economy, based on which regional models of social management will be built. The research study is performed to develop new institutional approach by the example of modern Russia by determining the institutional matrix of social management in economies of the regions that achieved the highest progress in formation of the social market economy.Design/methodology/approachThe authors use the proprietary methodology of evaluating the level of sociality of state management in region's economy, which includes the estimate formula and the scale for qualitative treatment of the results. The research subjects are top ten regions of Russia listed in the quality of life index in the year 2019.FindingsThe authors determine the regression dependence of the sociality index of state management in region's economy on the selected factors and compile the equation of multiple linear regression, as well as determine the optimal influence of the factors on state management of region's economy for increasing its sociality to the maximum level possible.Originality/valueThe specifics of building the social market economy in Russia are determined. Based on the established national peculiarities of the social market economy in Russia, the institutional matrix of social management in the Russian regions' economy is developed and it allows for optimal balance of stability and sustainability with innovations and digitalization.