Mechanism of an economic regulation

DARK EMPATHY IN THE STRUCTURE OF TOXIC LEADERSHIP

Inna Balahurovska — 2025-11-28

This article provides a conceptual analysis of dark empathy within the framework of toxic leadership. While empathy has traditionally been interpreted as a prosocial and humanistic capacity, recent research demonstrates its ambivalent nature. The study argues that empathy is not inherently ethical and may function both as a resource for constructive interpersonal understanding and as a tool for covert psychological influence. By synthesizing contemporary interdisciplinary findings, the paper highlights that the coexistence of high emotional sensitivity and dark personality traits forms a specific behavioral configuration associated with manipulative and dominance-oriented leadership styles. The psychological essence of dark empathy is explored as a phenomenon characterized by advanced emotional awareness combined with a deficit of moral regulation. In such cases, empathic accuracy does not lead to supportive interaction but instead enhances the leader’s capacity to anticipate vulnerabilities, shape emotional responses, and maintain asymmetric power relations. The article identifies key mechanisms through which empathy is transformed from an interpersonal resource into an instrument of control, including emotional mirroring without compassion, strategic responsiveness, and selective reinforcement of dependency. It is argued that dark empathy operates as a latent psychological mechanism underlying toxic leadership. Unlike overtly authoritarian or aggressive leadership forms, toxic leadership rooted in dark empathy often manifests through subtle and socially masked behaviors such as ironic communication, emotional manipulation, pseudo-support, and favoritism. These patterns contribute to chronic psychological tension, erosion of trust, and long-term organizational dysfunction despite occasional short-term performance gains. The findings emphasize the importance of integrating ethical considerations into leadership studies of empathy. The paper concludes that the decisive factor distinguishing constructive and destructive uses of empathy is not emotional competence itself but the value-based orientation guiding its application. By positioning dark empathy as a conceptual bridge between emotional intelligence and destructive leadership, the study contributes to a deeper theoretical understanding of the psychological foundations of toxic leadership. It opens new directions for future empirical research in organizational psychology and leadership studies.

ECONOMIC NATURE AND PRICING MECHANISMS OF INFORMATION PRODUCTS OF ENTERPRISES

Viacheslav Voronenko — 2025-11-28

The article examines the economic nature of information products and the specific features of their pricing in the context of the digital economy. The relevance of the topic stems from the growing role of information resources as a key object of market relations and the need to improve pricing mechanisms amid digital transformation. The purpose of the study is to generalize theoretical approaches and substantiate methodological principles for pricing information products at the enterprise level. The research methodology is based on the application of general scientific methods, including theoretical generalization, system analysis, and comparative analysis, which enabled the identification of the essential characteristics of information products and the determination of the factors influencing their price formation. The results of the study demonstrate that information products, as intangible goods, are characterized by high initial development costs, low marginal reproduction costs, scalability, and dependence on perceived consumer value. It is substantiated that traditional cost-based pricing approaches are insufficient for such products and, therefore, require integration with value-based and market-oriented components. An integrated pricing model is proposed that combines production costs, consumer value, and competitive environment parameters, enabling a more flexible, adaptive pricing mechanism. In addition, modern pricing models used in digital markets, such as subscription- and usage-based approaches, are considered important tools for improving pricing efficiency. The practical significance of the research lies in the possibility of applying the proposed methodological approach and pricing model in the activities of enterprises operating in the digital economy. The obtained results can be used to improve pricing strategies, increase competitiveness, and enhance the efficiency of the commercialization of information products.

SUSTAINING COMPETITIVE ADVANTAGE: STRATEGIC DIRECTIONS FOR BUSINESS PROCESSES AFTER REENGINEERING

Pavlo Hrytsenko — 2025-11-28

One of the most pressing issues in scientific research regarding the reorganisation of industrial enterprises remains the question of the further development of business processes following re-engineering. The challenge lies in the enterprise’s ability to sustain the radical changes achieved through these processes and to steer them towards stable growth. The functioning of business processes before and after re-engineering differs significantly, as the system operates in a completely new direction with altered functional and output flows. This article further develops a methodological approach to identifying priority strategic directions for the development of business processes during re-engineering changes, which, unlike others, takes into account an expert assessment of the growth of all types of industrial enterprise potential as a result of organisational and economic transformations.

ECONOMIC AND FINANCIAL INSTRUMENTS IN CORPORATE STRATEGIES FOR SUSTAINABLE REGIONAL DEVELOPMENT: EU EXPERIENCE

Iryna Dehtyarova — 2025-11-28

The paper analyzes the EU experience for economic and financial instruments in corporate strategies for sustainable regional development. The significance of these instruments in shaping regional development and environmental policy strategies is essential. Key growth indicators that have stabilized globally and within European Union countries have been identified, along with their applicability to Ukraine. An approach to financing Ukraine's development strategy has been established. The necessity of preserving the best practices of the European Union, developing a system of economic instruments within Ukraine's environmental policy framework, and implementing EU policies has been emphasized. This approach represents a vital step toward addressing the complex economic and ecological challenges faced by the regions.

MANAGEMENT OF GENERATIONAL CONFLICT AS A MECHANISM FOR REGULATING ECONOMIC PROCESSES IN ORGANIZATIONS

Liudmyla Kalinichenko — 2025-11-28

The article examines the management of intergenerational conflicts as a key mechanism for regulating economic processes within organizations in the context of a multigenerational workforce. Modern workplaces increasingly comprise representatives of Baby Boomers (1946–1964), Generation X (1965–1980), Millennials (1981–1996), and Generation Z (1997–2012), each characterized by distinct values, communication styles, work ethics, technology adoption rates, and career expectations. These differences frequently generate conflicts that manifest in miscommunication, reduced collaboration, increased stress, burnout, duplicated efforts, and resistance to change — particularly in technology integration and AI adoption. Recent empirical studies highlight the substantial economic impact of such conflicts. A 2026 research report by Clari and Salesloft estimates that generational tension costs U.S. employers approximately $56 billion annually in lost productivity, equivalent to an average of 5.3 hours per employee per week in revenue-generating roles. This figure arises from disputes over communication norms, work expectations, and tool utilization, leading to missed revenue opportunities, accelerated employee turnover, and hindered innovation. The paper analyzes the dual nature of intergenerational conflicts: destructive (affective, emotion-driven) versus constructive (cognitive, idea-generating). Drawing on contemporary literature, including Wang (2025) on shared leadership moderating diversity effects, Jenei (2025) on organizational resilience, and sector-specific cases, it proposes an integrative regulatory framework. Key strategies include: implementing shared leadership models to distribute roles across generations; conducting intergenerational training and reverse mentoring programs; developing inclusive HR policies with flexible schedules and 360-degree feedback; leveraging AI tools for early conflict detection; and fostering an emotional management approach in family firms during technological transitions. Effective conflict management transforms generational diversity from a source of friction into a driver of creativity, adaptability, and economic resilience. By reducing turnover costs (often 20–30% of annual salary per employee), enhancing motivation, and optimizing human resources, organizations achieve greater productivity and sustainable growth. The article concludes that proactive, systemic interventions in intergenerational dynamics are essential for economic regulation at the micro level and recommends further empirical research tailored to specific industries and economic contexts.

INNOVATIVE TRENDS IN MERGERS AND ACQUISITIONS PROCESSES UNDER CONDITIONS OF GLOBAL TRANSFORMATION

Oleksandra Karintseva — 2025-11-28

The article examines innovative trends in the development of the mergers and acquisitions (M&A) market in 2025–2026 in the context of global transformation of international business. The relevance of the topic is determined by fundamental structural shifts in the global M&A market under the influence of the artificial intelligence technological revolution, transformation of the role of private capital, geopolitical fragmentation, and the unique conditions of the Ukrainian economy during the full-scale war. The results of the study showed that the global M&A market reached $3.0 trillion in 2025 (+31%), but the number of deals continued to decline, indicating capital concentration in fewer but significantly more expensive transactions. A pronounced K-shaped market dynamic was revealed, where growth is driven primarily by megadeals worth over $10 billion, accounting for 42% of the total value of deals. In 2025, 111 transactions worth over $5 billion were announced, a 76% increase compared to the previous year. North America remains the most active region with a 60% share of global M&A activity ($1.9 trillion), while the European market shows stagnation and the Asia-Pacific region is contracting. It has been established that artificial intelligence acts as a dual catalyst for M&A: as a strategic driver of deals and as a tool for their implementation. One-third of the largest corporate deals in 2025 had an AI theme as part of their strategic rationale. The largest technology deals (Google/Wiz – $30 billion, Palo Alto Networks/CyberArk – $25.1 billion, IBM/Confluent – $11 billion) demonstrate a focus on acquiring critical competencies for scaling AI, particularly in cybersecurity, data platforms, and analytics. The dual nature of AI’s impact was revealed: in the short term, the multi-trillion dollar investment cycle in AI infrastructure (data centers, semiconductors, energy facilities) totaling $5.5–8.0 trillion by 2030 may divert capital from M&A, but in the medium term creates the prerequisites for an innovation supercycle. The transformation of the role of private capital in the modern M&A architecture was studied. Private capital reached a 42% share in global deals with a 59% increase in value in 2025, with funds continuing to hold approximately $2 trillion in dry powder. Key trends identified include: "retailization" of private markets (expanding individual investors’ access to private investment strategies), increase in the median holding period to 6 years (50% more compared to the mid-2000s), emergence of new sources of capital (insurance companies, pension funds), and transformation of exit approaches through continuation funds and secondary transactions. The specifics of the Ukrainian M&A market, which operates under the unique conditions of full-scale war, were analyzed. It was found that the market is adapting through increased activity of domestic investors. The most attractive sectors in 2025 were the agricultural sector (28% of deals), logistics (22%), IT and telecom (20%), and construction (18%). It was revealed that 40% of Ukrainian business leaders plan at least one acquisition deal in the next three years, which corresponds to global sentiment. The potential of M&A as a powerful tool for attracting investment for post-war reconstruction and economic recovery of Ukraine is substantiated. Forecast indicators for the M&A market development for 2026–2028 were determined. Over 80% of investors from private equity and corporate investors expressed optimism about increasing the volume and value of deals. The global M&A volume is projected to increase to $3.5–4.0 trillion by 2028 while maintaining a high share of private capital (35–45%). The key growth drivers are interest rate reductions (85%), technological transformation (78%), and geopolitical reconfiguration (62%). The scientific novelty of the study lies in the systematization of modern M&A trends taking into account qualitatively new factors of 2025–2026, including the impact of artificial intelligence, K-shaped market dynamics, transformation of the role of private capital, and the specifics of the Ukrainian market in wartime conditions. The practical significance of the results lies in the possibility of their use by companies in developing M&A strategies, by investors in making investment decisions, and by government bodies in forming policies to stimulate investment activity.

FOREIGN EXPERIENCE IN THE TRANSFORMATION OF NATIONAL MODELS OF CORPORATE SOCIAL RESPONSIBILITY UNDER THE DEVELOPMENT OF RESPONSIBLE BUSINESS CONDUCT AND CORPORATE SUSTAINABILITY STANDARDS

Yevhen Kovalenko — 2025-11-28

The article examines contemporary approaches to the formation and transformation of national models of corporate social responsibility (CSR) under the influence of responsible business conduct, corporate sustainability, sustainability reporting, and due diligence requirements. The study argues that CSR can no longer be interpreted solely as a voluntary set of philanthropic practices, because modern public policy increasingly combines soft incentives with binding disclosure and accountability mechanisms. On the basis of comparative analysis, the paper identifies the principal determinants of cross-country differences in CSR models, including historical path dependence, state capacity, stakeholder engagement, labour-market institutions, and integration into global value chains. A concise typology of the American, European, and Asian models is proposed, while the European model is examined in greater detail through its internal public-policy variants. The findings demonstrate that, despite persistent national differences, CSR models are gradually converging under the pressure of international standards and European regulatory reforms. The European model is shown to be the most institutionally developed and the most relevant for Ukraine in the context of EU integration and post-war recovery.

QUASI-FIELD PROPERTIES OF ECONOMIC SYSTEMS AND PHENOMENA OF MEMORY DUALISM IN THE ACTIVITIES OF PRODUCTION ENTERPRISES

Leonid Melnyk — 2025-11-28

By analogy with biological and physical systems, the duality of economic systems, transmitted through hereditary memory, is studied. In particular, parallels between economic and biological systems regarding information duality - the ability to implement stationarity (dynamic stability of the state) at the individual level (species, economic agents) and ensure variability in the development of systems at the population level (population, industries). By analogy with physical systems, the dualism of economic systems is analyzed. This is an economic entity that simultaneously has the properties of: a) discrete units - corpuscles, the coordinates of which can be uniquely identified in space and time as a certain point; and b) a field entity, which is significantly extended in space and stretched in time. Acting as a field entity, the economic system affects the distribution of commodity and money flows. In particular, it can attract material, financial and human capital into the field of its economic activity.

RESOURCE EFFICIENCY MANAGEMENT AT THE MICRO LEVEL: RESOURCE CONSERVATION AND CIRCULAR ECONOMY STRATEGIES IN THE BUSINESS PROCESSES OF INDUSTRIAL ENTERPRISES IN UKRAINE

Iryna Sotnyk — 2025-11-28

The article examines the current problems of forming resource-efficient strategies of industrial enterprises in the conditions of high energy and material intensity of the Ukrainian economy, energy crisis and post-war recovery. It is substantiated that resource conservation is a strategic direction for ensuring competitiveness and sustainable development of business entities. Modern scientific approaches to resource conservation and circular economy are analyzed. The essence of the resource-efficient strategy of an enterprise is determined as a system of long-term goals and priorities of resource-saving activities, subordinated to the general development strategy and focused on obtaining a comprehensive economic, environmental and social effect. The key principles of building a resource-efficient strategy are formulated: environmentalism, compliance, entrepreneurship and sociability, flexibility and alternativeness, and innovation. A list of the main program measures for its implementation is proposed, in particular, conducting a resource audit, modernization of fixed assets, introduction of resource-saving technologies, development of own energy generation based on renewable energy sources, waste disposal and optimization of resource consumption rates. The need to integrate resource-saving management functions into existing organizational structures of the enterprise and the creation of an effective system of economic incentives for personnel is substantiated. It is proved that a resource-efficient strategy at the micro level is becoming one of the key components of the market behavior of industrial enterprises along with the development strategy and improving product quality. The results of the study can be used by the management of industrial enterprises in developing sustainable development strategies, as well as by state bodies in forming a resource-saving policy and "green" post-war recovery of Ukraine in accordance with the National Energy and Climate Plan for the period until 2030.

PARADIGM SHIFTS IN ECONOMIC SYSTEMS: FROM QUANTITATIVE INDICATORS TO THE FUNCTIONAL OF QUALITY

Tetiana Stepura — 2025-11-28

The paper substantiates the conceptual transition from traditional quantitative measures to the latest qualitative mechanisms for the development of the modern economic system. Based on the analysis of the evolution of the category of “quality” in philosophical and economic thought, the essence of the synthetic qualitative approach is revealed, which serves as a methodological foundation for the formation of the concept of qualitative economics. It is proved that the basis of modern paradigm shifts lies in the functional of quality, which determines the principles of operation of the theoretical and reference model of the new economic system. Key modernization changes in economic mechanisms are identified – from resource provision and production methods to the transformation of the institution of property and the emergence of new elites (intellectocrats), which indicates the beginning of a “qualitative revolution”. Special attention is paid to the integration of values, social capital, and trust into the structure of economic development. The author presents the logic of the qualitization of the economy and outlines its fundamental features: human-centeredness, intellectualization, and adherence to the principles of sustainable development.