Effective Leadership within the Network Concept of Interaction between Government, Community and Business
Olha Rudenko
D.Sc., Prof.,
Department of Management and Administration,
Chernihiv Polytechnic National University,
Chernihiv, Ukraine.
Peter Jakúbek
PhD, Assoc.Prof.,
DTI University,
Dubnica above Vahom, Slovakia
Viktoriia Zahurska-Antoniuk
D. Sc., Assoc. Prof.,
Department of International Economic
Relations and European Integration,
Polissia National University,
Zhytomyr, Ukraine.
zahurska-antoniuk.viktoriia@polissiauniver.edu.ua
Olena Dmytrenko
PhD Student,
Department of Management and Administration,
Chernihiv Polytechnic National University,
Chernihiv, Ukraine.
Andriy Popik
PhD Student,
Department of Management and Administration,
Chernihiv Polytechnic National University,
Chernihiv, Ukraine.
Abstract
In the article, features of formation of theories and approaches to define leadership are considered. Based on research into main approaches to define leadership, models of leadership were analyzed using relevant considerations. Based on theoretical basis of leadership theories, positive and constraining factors for their implementation in modern conditions of administrative management development were identified. Problematic aspects of the leadership system development in four areas (organization, individual, group, external environment) were identified, which further contributes to formation of measures to minimize negative impacts in these aspects. It is substantiated that objecvtive of the effective leader in power is to form the inclusive policy aimed at development of society, supporting small and medium-sized businesses, attracting investments and creating favorable regulatory environment. Main features of the network concept implementation of interaction between government, business and communities in the conditions of the modern state of Ukraine, considering security and economic levers. Based on the study of existing theories of leadership and directions of network interaction, indicators of the leadership effectiveness in the cooperation triad were formed. It is proved that e-government plays significant role to ensure effective interaction between government, society and business. Main statistical indicators that demonstrate the e-government development in the world are analyzed. It is substantiated that, considering difficult economic and social situation in the country, community and business structures in close cooperation should develop appropriate routes for support, adaptation and employment of citizens who suffered due to military aggression. Relevence and effectiveness of the network concept of cooperation between government, business and communities for the post-war restoration of the country's development are proven.
Keywords: public administration, information communications, network interaction, effective leadership, social institutions, government, community, business
Introduction
Within transformational changes in territorial development, issues of effective existing system of the network concept of government interaction are acute. Decentralization reform in Ukraine led to redistribution of power, which was aimed to improve implementation of functions of local authorities by increasing their decision-making powers. However, today the system requires refinement, since risks and threats faced by authorities have shown the need to improve existing mechanism of interaction between authorities, communities and business in effective socio-economic development of territories.
In the interaction triad between government, business and communities, the issue of leadership is implemented by obtaining the desired result by achieving the set goals. Leadership theories consider various approaches to its definition, starting from individual level and ending with globalization. In globalization, rapid dissemination of information and strengthening of integration, traditional management models are giving way to new concepts that consider changing nature of interaction between government, community and business. One of these concepts is the network model of interaction, which assumes flexibility, adaptability and mutual responsibility of all participants. In addition, if leadership at individual level is more researched concept, then assessing effectiveleadership in interaction of the triad of government, business and community requires additional research.
Literature Review
Publications by domestic and foreign scientists are devoted to issues of cooperation between government, community, business, and some aspects of effective leadership.Research (Meng Junna et al., 2024) has shown that temporary leadership negatively affects procedural rationality in decision-making. Authors of the article not only examine relationship between leadership style and decision-making, but also analyze the role of groupthink in decision-making, as well as the role of team relationships in decision-making.Within the study (Dzordzormenyoh M.K., 2022), the facilitative leadership model is proposed to analyze effectiveness of local government councils. Authors use binary logistic regression to assess impact of four independent variables – consensus building, collaborative relationships, clarity of responsibility and availability of factions/partisanship on five indicators of the government effectiveness (setting long-term goals, administrative, financial, meeting citizens’ expectations and overall effectiveness), while controlling four other variables.
Article (Gorondutse A.H. et al., 2021) outlines future orientations for effective women's leadership and explores its impact on government support. Scholars have proven that developing women's leadership has positive impact on future orientations, and authors recommend focusing on women leaders to enhance their leadership effectiveness.Scientific paper (Syed Rehan et al., 2018) notes that leadership in complex business transformations is crucial for effective changes. Outcomes demonstrate positive effects of the combined use of operational and stimulating leadership behavior, which has significant impact on the entrepreneurship development.
The issue of interaction between government, business and society is discussed in the article (Stychynska A. et al., 2024). Authors are convinced that this interaction is the key to successful implementation of reforms and achievement of EU standards. The article is based on the analysis, assessment and development of recommendations for effective improvement of mechanisms on interaction of subjects of the government-business-civil society system in the context of European integration.Qi B. et al. (2023) investigate specifics of selecting private companies for investment by local governments and factors influencing choice of particular local government for local investmentby private companies. Authors support the concept of "mutually beneficial" cooperation between government and business through institutional innovations of the quasi-ownership system.
Articles (Marhasova V. et al., 2024; ZhavoronokA. et al., 2022) analyze main challenges to national security in public governance of development of digital technologies, and analyze current challenges of regulating development of public-private partnerships.
Scholars (Laasonen Valtteri, 2023) believe that ability to build, manage, and leverage government-business relationships is increasingly important in the network economy and in innovation. Authors propose the framework that helps understanding and analyzing possibilities of these interactions between different organizations engaged in innovations.The aim of the paper (Abe Keiichiro et al., 2019) is to explore project-based learning approaches through industry, government and university collaboration. As part of the research, students develop and present business models with active participation of industry, government and academia representatives who contribute to the idea improvement.
Scientists (Derhaliuk M. et al., 2021; Nikiforov P. et al., 2022) consider prospects for regional development based on effective cooperation between government and business, and explore regulatory aspects of supporting these processes.Authors (Tang Pei Yu et al., 2013) use the economic model of order quantity and investigate features of cooperation between small and micro-enterprises and universities from the perspective of university-industry-government relations, and suggest ways to improve this cooperation.
In the article (Sub Park, 2009) it is proved that ability of Korean civil servants to develop the industry was insufficient. By involving powerful business association in the industry with sufficient organizational resources, the outlined policy was supported and cooperation with the government had positive outcomes. Due to this, the company did not simply implement the government policy in the business world, but was a partner of the government in achieving the goals.Article (Pozniakovska N. et al., 2023) examines experience and trends of interaction between civil society, business and government. Authors analyze global indicators of trust in various institutions of society and its institutional activities.
Considering available publications, it is appropriate to note that the topic of effective leadership in the network concept of interaction between government, community and business requires further research.
The purpose of the article is to study effective leadership in the network concept of interaction between government, communities, and business.
Results
To determine effective leadership in the network concept, it is necessary to investigate differences between management models of traditional hierarchy and network. Thus, traditional management models were built on hierarchical principles, where the government acted as the main regulator of social relations, and the community and business were its subordinate elements. In modern world, there is growing need for flexible management systems that can quickly respond to challenges of time, introduce innovations and ensure efficient use of resources.
The network concept of interaction involves rejection of rigid hierarchies in favor of flexible horizontal connections that allow government, business and community to act as equal partners. The leader in this system becomes not only the manager, but also the moderator and the coordinator who helps establish effective communications, attract resources and create favorable environment for development of all participants. To determine effective leadership, it is advisable to analyze existing leadership theories. In general, there are many classifications of leadership theories, which can be formed into five groups (Fig. 1).
Figure1. Main theories of leadership
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Theories of personal qualities (R. House, B. Bates, R. Blake, D. Mouton, R. Tanenbaum, W. Schmidt) |
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Situational theories (K. Blanchard, F. Fiedler, Vroom-Yetton-Jago) |
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Attributive theories (Parsons T., E.Pence, W.Pendleton, G.Dobbins and J.Sgrove) |
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Theories of substitute leadership (S. Kerra and J. Jermiera) |
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Theories of charismatic leadership (R. House J. Conger, B. Lamp) |
Source: summarized by the authors based on (Bjerke B., 2000; Fred Edward Fiedler et al., 1987; Ken Blanchard, 2018;Talcott Parsons et al., 1985;Victor H. Vroom et al., 1988)
In the above theories, leadership models have been developed that complement each other, considering changes that occur in spatially oriented time. Thus, in situational theories and the probabilistic model of effective leader F.Fiedlera determines that the group effectiveness of the company largely depends on the leaders’ style in particular situation. The Vroom - Yetton -Yago model is based on consideration of different levels of participation of subordinates in making managerial decisions. It differs from other models in its certain limitations, since it takes into account only the participation of subordinates in making decisions.
Effective decision-making is determined by two criteria - quality of the decision, which is expressed in its practical implementation and perception of the decision, which is determined by the need for subordinates to implement decisions. Attribution theories were based on interaction of the leader with his successors, which was expressed in the impact of previous experience on adoption of managerial decisions. This aspect could have both positive effect on the decision (depending on the situation) and negative one, since new conditions were not considered in previous experience.
In the theory of leadership substitutes, the “covariance model” was formed, which was based on assumption of theleadership reassessment, as a result, two categories of factors were identified (substitutes and neutralizers of leadership). Theories of charismatic leadership were based on charisma as ability to inspire ordinary people to perform extraordinary actions. The basis of models is ability of the leader to organize and motivate his team to ensure high-quality results of the work. Despite using the approach to leadership theory, in addition to positive aspects, leadership also has problematic elements that manifest themselves regardless of the leadership level (individual, collective, organization). Main problematic aspects of using leadership theories can be attributed to (Fig. 2).
If we consider problematic aspects of the leadership development, then in direction of the individual, theories aimed at formation of emotional intelligence, motivation for leadership need to be improved and developed. Since motivational element itself is one of the most effective directed to the people management. Motivation in this aspect is considered both from material and non-material sides. Development of the concept of emotional intelligence is aimed at the desire for leadership. Concerning the company, problematic aspects should be aimed at clarifying the leader’s role in formation of corporate culture, principles of its observance, considerning the life cycle of production.
Models of the leadership theory that are based on considering the life cycle of production must take into account relevant risks and threats that differ at each stage of the life cycle of the company’s development.
Figure 2. Problematic aspects of leadership
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LEADERSHIP |
Source: systematized by the authors
Concerning active leadership theory in the group, there is improvement in the theory of distributed leadership, the main purpose of which is to perform management functions both by formal leaders, and by other members of the group. This theory also includes the theory of the activity approach, which is based on the idea that leadership is due to collective activity, not individual, therefore leadership functions arise naturally among those who have appropriate competencies and willingness to act. The social constructivist theory is based on considering leadership as interaction between members of the company based on corporate culture and personal relationships. The theory of distributed cognitive processemphasizes that knowledge and skills are distributed among team members, and it is their combination that allows for effective outcomes.
The idea of the shared leadership theory is effective collective decision-making and equal distribution of leadership functions. In conditions of risks and threats, uncertainty of the environment, theories of adaptive leadership distribution are actively implemented, which provides for counteraction of dynamic changes in the environment, while different people should take on leadership roles depending on the situation, which contributes to flexibility of the organization. Peculiarity of using this leadership is rejection of hierarchical management in favor of joint decision-making, which contributes to flexibility by distributing roles and responsibilities, and orientation towards cooperation.
Problematic aspect of leadership management considering the external environment has its aspects, which are associated, first, with changing environment. Another is related to ethics of business goal-setting, since in modern conditions, failure to comply with these norms leads to increase in the level of corruption and distrust of business and government. In the future, globalization development leads to the need to consider national characteristics of the leadership style management (Adler N., 2003; Boas Shamir et al., 2018;Trompenaars F., 2002).
These changes in the system of defining leadership change over time under the impact of changing factors of the external and internal environment. Globalization, development of digital technologies, introduction of artificial intelligence systems affect the definition of leadership and the role of the individual in this process. From this point of view, it is precisely improvement of the network concept of interaction between government, business and communities that can be effective. Since the state and local authorities in the leadership network not only perform administrative functions, but also become the basis for interaction of various interest groups. The objective of the effective leader in power is to form inclusive policy aimed at development of society, supporting small and medium-sized businesses, attracting investments and creating favorable regulatory environment.
In addition, the modern leader in power must have strategic thinking skills, be open to dialogue, have high level of communication skills and can work in unstable conditions. This involves development of partnership relations not only within the state apparatus, but also with public organizations, entrepreneurs and international institutions. This interaction is especially relevant today for Ukraine, in conditions of military aggression and post-war economic recovery of the state. Efficiency and speed of restoring the country's economic and competitive potential depends on how harmoniously the triad (business, government and community) functions. Creating appropriate investment climate helps attract foreign investors and partners who will contribute to restoration of the country's economic and social development. Reducing the level of corruption and increasing the ease of doing business will allow Ukraine to significantly increase trust in itself from international organizations and countries, due to this, this will contribute toestablishment of bilateral partnerships in the long term. Global development and European integration have led to introduction of norms that expand participation of society in decision-making concerning its well-being. In this context, the community ceases to be passive object of management and becomes active player in the network interaction. It influences government and business, formulating public demands, exercising public control and proposing new models of cooperation.
It is worth noting that e-government plays significant role in ensuring effective interaction between government, society and business.It ensures transparency in activities of state bodies, allowing citizens to access information; simplifies administrative procedures, promotes involvement of citizens in decision-making; allows for faster processing of requests from citizens and businesses, reducing queues and waiting times; promotes implementation of innovative technologies (blockchain, artificial intelligence, data analytics, etc.); provides access to state resources for all citizens, regardless of their location; allows for faster response to challenges, including pandemics, economic crises, war, etc. (Fig. 3).
Figure3. Individual who used the website or app of public authority in last 12 months, 2024
Source: AI Statistics 2024. (2024)
Analyzing the institutional framework across different areas, it is worth noting that organizational aspects of the institutional framework are developed across all areas, which are aimed at citizens’ cooperation with government institutions through online platforms are well developed across all areas (Figure 2.10).Namely, the following trends are observed: organizational structure and/or chart of the government - 95%, names and titles of heads of government agencies (departments, ministries) – 91%, information about Chief Information Officer (CIO) – 81%, links to subnational (local) government agencies – 75%(Fig. 4).
Figure 4. Percentage of countries that consider different aspects ofregulatory politicians, 2024
Source:Department of Economic and Social Affairs (2024)
Figure 5 presents average value of e-participation with percentage change by region for 2022-2024. Data analysis confirms increased average value of the e-participation index by 9 percent (from 0.4450 in 2022 to 0.4893 in 2024). At the same time, Africa's indicators increased by 12.73% (0.2595 in 2022, 0.2973 in 2024), America's - by 10.19% (0.4253 in 2022, 0.4736 in 2024), Asia's - by 7.02% (0.5024 in 2022, 0.5404 in 2024), Europe's - by 8.51% (0.6631 in 2022, 0.7247 in 2024), Oceania's - by 7.3% (0.3474 in 2022, 0.3748 in 2024).
Figure 5. Averages value of the e – participation index by region and percentage of change between 2022, 2024
Source: Department of Economic and Social Affairs (2024)
Citizens’ ability to report corruption among public officials or institutions online ensures openness of cooperation between communities and authorities, increases responsibility and involvement of society in fight against corrupt practices, strengthens trust in state institutions, and ensures more effective management of resources for the benefit of society.
According to results of the 2024 survey, portals of more than two thirds of member states provide possibility of submitting reports on corruption (Fig. 6). The highest rate is in Europe (88%) and Asia (81%). Slightly lower rates are characteristic of the Americas and Oceania (57% each) and Africa (48%). It is also worth noting that 53% of countries have developed mechanisms for providing information in case of violation of labor legislation.
Figure 6. Percentage of countries that offer different mechanisms and tools for e-participation, 2024
Source: Department of Economic and Social Affairs (2024)
Figure 7 presents average number of online services provided worldwide for 2022-2024. Dynamics of this indicator is characterized by positive dynamics, average number of online services provided increased from 16 in 2022 to 18 in 2024. The largest average number of services is in Europe, which is 23, America and Asia (19 each), Oceania (15) and Africa (13).
Figure 7. Average number of online services provided worldwide and in each region,
2022, 2024
Source: Department of Economic and Social Affairs (2024)
Figure 8 presents statistical indicators characterizing development of electronic procurement platforms and possibility of issuing digital invoices in 2022-2024. It is worth noting that electronic procurement provides greater transparency in purchasing goods and services; allows you to reduce administrative costs associated with traditional procurement; process automation reduces time for document processing and reduces the need for paper media; creates equal conditions for all participants, which promotes competition, aimed at obtaining the best prices and conditions from suppliers for the state and business; contributes to increasing overall procurement efficiency.
Dynamics of electronic procurement proves relevance of these processes and their gradual development. In 2024, 135 countries (70%) have special electronic procurement portals, which is 4% more than in 2022. Number of countries issuing digital invoices through their e-procurement portals in 2024 was 101 (52%), increase of 7% compared to 2022. 93% of countries in Europe have e-procurement portals, 86% offer digital invoicing. In Asia and the Americas, 80% of countries have portals, but only about 60% issue digital invoices. The lowest rates are in Africa (20%) and Oceania (57%).
Figure 8.Quantity and interest countries with platforms of e-purchases and digital exhibition accounts, 2022, 2024
Source: Department of Economic and Social Affairs (2024)
Figure 9 shows analytical data on online services in the fields of health, education, employment, environment, justice and social protection. Online services contribute to modernization and increase of efficiency of various spheres of public life, ensuring accessibility, convenience and transparency, which, in turn, has positive impact on interaction of government, society and business. Educational services, health and employment services are the most accessible and relevant (72-74%), services related to justice and social protection (63%), environment (58%).
Figure 9.Percentage of countries that provide industry information and services online and through mobile channels and SMS notifications, 2024
Source: Department of Economic and Social Affairs (2024)
The effective leader in the public sector must be able to mobilize community resources, promote its cohesion and active involvement in social processes. This change in the vertical of authority allows cities to use financial resources more rationally, considering urgent needs of communities and territories, which reduces the level of corruption in cities. Territorial communities more effectively form favorable business environment, considering their own powers for development of small and medium-sized businesses based on increased powers in managing their own resources. This practice has proven itself effectively in conditions of military aggression, which led to the need to relocate businesses from occupied territories and territories of active hostilities to more peaceful regions of the state. It was by expanding powers of the community in cities that they could create necessary conditions for accepting these businesses, to provide their own resources with assistance both in business matters and to the population that was forced to leave dangerous regions.
At the expense of their own resources, communities create conditions for development of small and medium-sized businesses, which is economically beneficial both for the community itself and for budgets of all levels due to tax deductions, employment of the population, which contributes to reduction of social tension, especially among internally displaced persons who found themselves in difficult situations. Small and medium-sized businesses play active role in the post-war restoration of socio-economic development of the state, given its high adaptive capacity compared to large industrial enterprises. That is why most international and state aid was aimed at supporting and developing small and medium-sized businesses (state support programs, grants, international projects). Significant involvement of international aid contributed to changing the policy of conducting modern business towards development of social responsibility of business. It is modern business that goes beyond the traditional approach to entrepreneurial activity and takes active part in social processes. Corporate social responsibility, investing in development of local communities, supporting environmental and educational initiatives are becoming important elements of effective business leadership. Implementation of sustainable development principles and adherence to principles of Industry 4.0. - 5.0. require enterprises to adopt the more balanced policy of using energy capacity , environmental protection of production, and rational use of resources.
The business leader operating in the network approach realizes that his success depends on stable environment in which he works. Therefore, strategic interaction with authorities and the community allows both to minimize risks, and to create new opportunities for sustainable development. However, despite significant advantages of applying the network approach to leadership in the defined triad of cooperation, this system has its own certain disadvantages, which are expressed in the lack of the culture of cooperation, uneven distribution of resources, conflicts of interest between network participants and bureaucratic barriers, which leads to increase in the level of corruption and abuse of office. Overcoming these problems requires high level of trust between parties, development of communication mechanisms and introduction of transparent rules of interaction. At the same time, prospects for the network leadership are quite encouraging. Digitalization, growing role of society, spread of principles of open governance create favorable conditions for formation of effective partnership models of cooperation.
To determine effectiveness of this network concept of cooperation, it is worth assessing certain components of this interaction, since considering all features associated with territorial development, resource potential of territories, and taking into account complex security situation in the country today is objectively difficult.
Effectiveness of leadership in government interaction can be measured using several key indicators that reflect effectiveness of decisions made, level of citizen trust, and quality of management (Fig. 10).
Figure10. Key indicators of leadership effectiveness in the context of the network concept of interaction between government, communities and business
Source: proposed by the authors
Measuring effective interaction of government, business and communities in administrative management development is advisable to carry out according to two criteria - quantitative and qualitative indicators. There are many methods for calculating effective implementation of socio-economic processes at the level of communities, territories, and the state, as well as separate methods for effective doing business, but assessing effectiveness of their interaction is complex, taking into account all the above aspects.
In the context of limited analytical tools and considering security situation in the state, priorities for determining efficiency have changed significantly for this period. Today, when considering territories for business development and social infrastructure, the issue of security and remoteness from the aggressor's border territories first arises. Starting from February 2022, the priority of industry leadership of regions has changed, which has affected redistribution of proportionality of types of economic activity.
This cannot but affect the social aspect, since the issue of employment of the population in other regions arises, considering educational and qualification level of citizens. This has also become a challenge for communities, which requires resources and strategic plans to support the working population. In this interaction, significant role is played by business itself, which can take part in adaptation of the population to new conditions and challenges (retraining for new professions, temporary reduction of requirements for educational and qualification level of employees to improve their qualifications in work). Business participation in grant programs provides for official employment of workers, which significantly reduces the level of social tension.
Effectiveness of leadership in this case should be assessed considering the level of public trust in this network concept of interaction. Quality of their management decision-making is measured by the speed of response to social challenges, effective implementation of developed programs in communities (implemented or not implemented), effective use of budget funds is their focus and reporting. It is the focus of using community funds that is implemented according to the principle of participation in discussing these areas with society. In this aspect, this significantly increases the level of trust and transparency in government. Democratic principles of interaction are implemented along the vertical of power not only from top to bottom, but also from bottom to top. The extent to which the government takes into account and supports public initiatives depends on the level of trust in government in the future, and support for reforms from society.
Important direction of effective network concepts of interaction of the triad is effeciency of economic reforms that contribute to attracting investments, developing small and medium-sized businesses (entrepreneurship support programs), increasing dynamics of creating new jobs. Business development and creating new jobs with decent pay will further ensure development of the community by increasing the population that is ready to stay in the community, attracting young people, developing innovative activities, which can lead to formation of new modern clusters and hubs. Technology parks in Ukraine have also increased their development, which contributes to expansion of jobs and increase in the likelihood of receiving international investments by uniting enterprises into large clusters.
The governance efficiency index today characterizes ability of authorities to implement the specified policy and strategy, to practically implement anti-corruption measures. Dynamics of social development is the key resulting indicator of the ladership effectiveness of authorities and business, which is expressed in the quality of life of the population (human development index, poverty index), state of infrastructure provision. Today, the issue of the quality of life of the population is the basis of many scientific studies both in Ukraine and in the global environment. Difficult security situation and economic crisis in Ukraine have led to significant deterioration of the specified indicators, including demographic ones (population migration, declining birth rates, youth emigration, increased mortality among men due to military actions, etc.).
Authorities, businesses, and communities will continue to face urgent issue of employment for the population who, due to military aggression, received injuries of varying severity, which affected their ability to work in normal conditions. Therefore, today, authorities, communities and business structures must work closely to develop appropriate routes for support, adaptation, and employment for these citizens.
Conclusions
For Ukraine, current state of challenges and threats is the driving force that contributes to implementation of radically new, modern and effective solutions at all levels of government. Ensuring the post-war restoration of the state, stabilizing security situation and supporting social development are key tasks facing society and authorities. Therefore, only in the concept of interaction is it possible to achieve efficiency in implementation of the specified directions and restoring competitiveness of the country.
Referring formation of partnerships between government bodies, business structures and public organizations, creation of special coordination councils or platforms has been developed, which ensure communication and interaction between all parties. In particular, in regions of Ukraine, public-private partnership mechanisms are being actively implemented, which allow implementing large-scale infrastructure and social projects with participation of public and private resources. This interaction is also implemented in the direction of joint strategic planning, since joint formation of goals and priorities allows ensuring the balance of interests and creating prerequisites for harmonious development of territories.
Economic development of territories is impossible without creating favorable environment for entrepreneurial activity, therefore the important step is development of business incubators, technology parks, clusters and other tools to support entrepreneurship. It is through grouping of authorities, businesses and communities that it is possible to create attractive conditions for investors by developing special investment programs, tax incentives and legal guarantees. In addition, international financial institutions, grant programs and development funds play important role, which can become additional source of financing for local projects . Through implementation of digital platforms, e-government and open data, it allows to increase transparency of management, promotes effective use of resources and improves communication between stakeholders.
Partnership in education and development of intellectual and human potential ensures investment in educational, environmental and social projects , thereby contributing to development of territories. In turn, society plays the role of active participant in determining priorities and monitoring implementation of socially significant initiatives. Cooperation with universities, creation of dual training programs and development of professional centers contribute to increased competitiveness of the local workforce. Therefore, introduction of the network concept of interaction between government, business and communities is today one of fundamental directions of the post-war restoration of the state in all areas of its functioning.
References
