The growth of innovation activity as a factor of strategic management of the financial potential of the enterprise

Abstract

Purpose: the article examines the relationship between the level of financial potential of an enterprise and the growth of its innovation activity, which allows us to identify a number of factors that affect the long-term effectiveness of available financial resources. Discussion: the conducted research suggests that the development of innovation activity not only contributes to improving the quality of goods and services sold, but is one of the factors of economic profitability growth, which, in turn, contributes to the achievement of the long-term goal of increasing the financial potential of the enterprise. The research is based on the correlation analysis of the performance indicators of Voronezh machine-building enterprises. Results: the authors present a model of financial flows and the results of strategic management of the financial potential of an industrial enterprise. The correlation analysis showed that JSC Tyazhmekhpress and LLC UK Rudgormash have the greatest correlation with the value of the financial potential with the indicator-the margin of financial strength. This aspect indicates a direct relationship between the value of sales and conditionally fixed costs and the impact of these indicators on the final potential of machine-building enterprises. It was concluded that the total amount of financial resources has an impact only when the company implements the policy of increasing profitability; innovation and investment activities of machine-building enterprises directly depend on the long-term development goals and policies of enterprises in the field of financial potential management.