Innovation and Sustainability

The active development of crisis phenomena and digital transformation processes in the national economic space creates new prerequisites for the functioning of enterprises, which are characterized both by the formation of additional opportunities and by an increased vulnerability to modern challenges and threats. According to many researchers, the presence of contemporary challenges and threats significantly alters the economic conditions in which domestic enterprises operate, requiring special attention to the mechanisms for managing their competitive advantages. The ability of business entities to operate efficiently in an increasingly competitive environment, rapidly adapt to changing market conditions, and actively utilize intellectual and human capital becomes a key factor in their competitiveness in the digital economy. The aim of the study is to investigate the impact of crisis transformations on the development of adaptive management of industrial enterprises in the context of the digital economy and martial law. The impact of the large-scale invasion on the domestic economy has deepened and exacerbated existing problems and created a number of unprecedented challenges: Destruction of infrastructure (bridges, roads, warehouses, production facilities and other critical infrastructure), which complicates business logistics and disrupts supply chains; millions of Ukrainians were forced to flee their homes and seek refuge in safer regions of the country or abroad, resulting in labor shortages in some industries, as well as growing social and economic problems; a significant reduction in consumer and investment demand, which negatively affected the revenues and profitability of many businesses; supply disruptions, destruction of production facilities and inflationary pressures have led to a significant increase in prices for goods and services, which negatively affects the budgets of businesses and households. All this requires businesses to adapt and reorient quickly. Today, we can identify the types of crises that were not typical for the domestic sector of the economy until recently, but the military aggression of the Russian Federation and the development of digitalization and artificial intelligence technologies have made it necessary to take into account the risk factors and hazards resulting from military conflicts (loss of access to markets and resources, physical destruction of infrastructure, migration of personnel and consumers; increased general uncertainty and risks for business) and further digitalization of economic processes (lack of digital skills). Thus, today we can talk about the undeniable relevance of studying the impact of crisis transformations on the modern business environment. In the context of high dynamism of economic, technological and social factors, enterprises are forced to restructure their strategies and operating models to maintain competitiveness and viability in the market

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