INSTITUTIONAL PRINCIPLES OF STATE REGULATION OF THE TRANSFORMATION OF BUSINESS MODELS OF ECONOMIC ENTITIES

Abstract

The article explores theoretical and applied aspects of the transformation of business models of economic entities under the conditions of digitalization of Ukraine’s economy. It is substantiated that digital transformation acts as a key driver of changes in value creation mechanisms, business process organization, and the formation of competitive advantages of enterprises in the modern economic environment. The main directions of business model evolution under the influence of digital technologies are identified, including the development of platform-based business models, digital ecosystems, omnichannel customer interaction systems, and data- and artificial intelligence–driven models. The impact of digital infrastructure, e-government, and state digital services on the processes of enterprise adaptation to new economic conditions is analyzed. Particular attention is paid to the role of public policy in stimulating business digitalization through the development of the “Diia” platform, the “Diia City” legal regime, digital business support tools, and mechanisms for simplifying regulatory procedures. It is established that the effectiveness of digital transformation largely depends on the quality of the institutional environment, the level of digital maturity of enterprises, and the availability of financial and technological resources. The functioning of small and medium-sized enterprises in the digital economy is examined. Key barriers to the digital modernization of business entities are identified, including insufficient digital competencies, limited investment resources, cybersecurity risks, and uneven development of digital infrastructure. The necessity of improving state regulation of entrepreneurship development is substantiated through the formation of a comprehensive system for supporting digital innovation, stimulating technological investment, and developing workforce digital skills. Conceptual directions for transforming business models of Ukrainian enterprises are proposed, based on the integration of digital technologies, sustainable development principles, innovative management, and modern approaches to state regulation of entrepreneurial activity in the digital economy.