=Paper=
{{Paper
|id=Vol-3126/paper18
|storemode=property
|title=Definition of the concept of "competitiveness" and "competitive advantages" of water transport in the conditions of digital transformation of Ukraine
|pdfUrl=https://ceur-ws.org/Vol-3126/paper18.pdf
|volume=Vol-3126
|authors=Svitlana Ilchenko,Vadym Gryshchenko,Iryna Gryshchenko
}}
==Definition of the concept of "competitiveness" and "competitive advantages" of water transport in the conditions of digital transformation of Ukraine==
https://ceur-ws.org/Vol-3126/paper18.pdf
Definition of the Concept of "Competitiveness" and
"Competitive Advantages" of Water Transport in the Conditions
of Digital Transformation of Ukraine
Svitlana Ilchenko 1, Vadym Gryshchenko 2 and Iryna Gryshchenko 3
1
Institute of Market Problems and Economic-Ecological Research of the National Academy of Sciences of
Ukraine, Frantsuzskiy Boulevard, 29, Odesa, 65044, Ukraine.
2
Institute of Market Problems and Economic-Ecological Research of the National Academy of Sciences of
Ukraine, Frantsuzskiy Boulevard, 29, Odesa, 65044, Ukraine.
3
Institute of Market Problems and Economic-Ecological Research of the National Academy of Sciences of
Ukraine, Frantsuzskiy Boulevard, 29, Odesa, 65044, Ukraine.
Abstract
One of the key points that determine the actuality of the study is that increasing the level of
competitiveness of both individual business entities and sectors of the economy (task 8.2, SDG
8) is the basis for the sustainable economic development of Ukraine in the conditions of
digitalization. Issues related to the definition of the competitiveness of water transport deserve
special attention because water transport is a rather specific branch of the economy and provides
the largest volume of international freight in the world. The authors of the article analyze
modern approaches to the content of such categories as "competitiveness of water transport",
"competitive advantages of water transport" and propose the author's definitions of these
concepts taking into account the globalized processes of intellectualization of all types of
economic activity, including transport. The results of the study suggest that in most cases,
competitiveness can be defined as a complex indicator that covers a set of certain characteristics
of the object under analysis, such as market share, productivity, and innovation capacity
compared to an existing or imaginary benchmark. We propose to consider the competitiveness
of water transport by separate types of water transport, each of which can be considered at one
of four levels (international, sectoral, business entity level, and at the level of an individual
transport service). This allows us to carefully examine the patterns of functioning and
development in the face of rapid intellectualization processes of transport systems, identify gaps
or inconsistencies with current global development trends at each level, and form an action
algorithm for each of the four levels. Further research on competitiveness at the level of separate
transport services, at business entities level, at sectoral and international levels, in general, can
help to identify the competitive position of economic entities at the corresponding level and
track changes in economic efficiency over time, will assess the competitiveness of water
transport of Ukraine and develop recommendations for its integration into the European
transport network. Such information is likely to be useful to CEOs, local governments, and
public authorities in developing and implementing future policies to promote competitiveness
increasing in the framework of Sustainable Development Goals for Ukraine, including tasks 8.2
(SDG 8) and task 9.1 (SDG 9).
Keywords 1
Competition, competitive advantages, approach, evolution, theories of competition
ISIT 2021: II International Scientific and Practical Conference
«Intellectual Systems and Information Technologies», September
13–19, 2021, Odesa, Ukraine
EMAIL: ilchenko.svit@gmail.com (A. 1);
v.f.gryshchenko@gmail.com (A. 2); irina.v.info@gmail.com (A.
3)
ORCID: 0000-0001-6924-2225 (A. 1); 0000-0003-0009-605X (A.
2); 0000-0001-8801-3217 (A. 3)
©️ 2021 Copyright for this paper by its authors. Use permitted under Creative
Commons License Attribution 4.0 International (CC BY 4.0).
CEUR Workshop Proceedings (CEUR-WS.org)
1. Introduction transport, and, accordingly, increase the volume
of freight and passenger traffic by inland
waterways, it is necessary, first of all, to have a
The results of the traditional competitiveness’
clear action plan, to define specific strategic goals
theories evolution analysis suggest that those that
at the state level in the short and medium-term»
have most influenced the development of
[26]. Thus, "with this in mind, further research is
economic thought, from our point of view, are: the
needed to assess the impact of these factors on the
theory of absolute advantages (A. Smith [1]);
functioning of the maritime complex of Ukraine,
theory of comparative advantages (D. Ricardo
which positions itself as a maritime state,
[2]); theory of innovative development
especially in the context of a comparative analysis
(J. Schumpeter [3]); theory of competitive
of the competitiveness of Ukrainian water
advantages (M. Porter [4, 5, 6]); theory of
transport companies compared to major
disruptive innovations (C. Christensen [7]),
competitors in the world market." [27].
theory of "blue ocean strategy" (W. Chan Kim
Most researchers theoretically describe
[8]) and the theory of competitive advantages
competitiveness as a multidimensional relative
through collaboration (P. Gloor [9],
concept and often associate it with market
A. MacCormac [10]).
mechanisms. Domestic and foreign scientists
Numerous scientific works of domestic and
often consider this concept at the level of separate
foreign authors are devoted to topical issues of
goods and services, at business entities level, at
sustainable economic development
sectoral and international levels very close to such
(B. Burkynskyi, N. Khumarova, M. Petrushenko,
concepts as ability, system, relative
H. Shevchenko [11]), business development
characteristics, opportunity, competitive
(O. Laiko, S. Kovalenko, O. Bilousov [12]),
advantage, result, and goal.
transport economics (P. Kelle, J. Song, M. Jin,
At the same time, further research is needed to
H. Schneider, C. Claypool [13], S. Ilchenko,
analyze modern approaches to the content of the
N. Khumarova, N. Maslii, M. Demianchuk,
categories "competitiveness of water transport"
V. Skribans [14], S. Ilchenko [15],
and "competitive advantages of water transport".
V. Gryshchenko and I. Gryshchenko [16],
Given the above, the article aims to offer our
digitization of transport services (L. Ligonenko,
definitions of the concepts of “competitiveness of
A. Xripko, A. Domanskyj [17], M. Ustenko,
water transport”, “competitive advantages of
A. Ruskyx [18], O. Gudz, S. Fedyunin,
water transport”, and the approach to their
V. Shherbyna [19], M. Drashkovich,
grouping in terms of the dissemination of the
A. Dorokhov [20], V. Koval, G. Duginets,
processes of intellectualization of transport
O. Plekhanova, A. Antonov, M. Petrova [21]) in
operations and informatization of the transport
the system of environmental and economic
community.
security (О. Dreval [22]). So, for example,
І. Pereverzeva [23] notes that "to increase the
competitiveness of transport enterprises…, in 2. Results
particular water transport, it is necessary to ensure
the realization of the production potential of each Of particular note are the issues related to the
enterprise and create a full-fledged transport definition of the competitiveness of water
infrastructure…". At the same time N. Fediai [24] transport, as water transport is a rather specific
notes that "in the road, maritime and aviation sector of the economy and provides the largest
sectors, the Ukrainian transport system has a volume of international freight in the world.
certain level of integration, while for inland water The analysis of domestic and foreign literature
transport the integration process has not yet sources suggests that there is no definition of such
begun". It should be noted that N. Valiavska [25] concepts as "competitiveness of water transport"
emphasizes that "to increase competitiveness and and "competitive advantages of water transport"
unleash the potential of river transport, it is in the scientific literature.
necessary to attract investment in its In our opinion, the competitiveness of water
modernization and innovative development transport can be considered at such four levels as
regularly". It is necessary to pay attention to the the international level, the sectoral level, the level
fact that «to most effectively disclose and use all of the business entities, and the level of individual
the competitive advantages of inland water products or services. (Figure 1).
Competitiveness of water transport at the services, the ability to redirect delivery, the ability
international level can be defined as the ability of to complete delivery in case unforeseen changes
the national transport industry to provide an in the conditions of transportation of goods and/or
adequate level of satisfaction of national needs for passengers, storage of goods and safety of
transportation of goods and passengers by sea and transportation); cost (level of tariffs and total cost
inland waterways compared to competitors, to of transportation, availability of a discount
maintain and improve its position in the system, profitability) and other parameters that
international globalized transport market, and to meet a certain need. Closely related to this
provide the high economic efficiency in category is the definition of "competitive
compliance with environmental standards, current advantages" (Figure 2).
legislation, and international agreements.
The competitiveness of water transport at the Levels of competitiveness
sectoral level is the ability of water transport to Types of INTERNATIONAL
provide services, price, and non-price competitiveness
SECTORAL
characteristics that are more favorable for the ICWT
SCWT BUSINESS ENTITY
customer than other types of transport. BEC
Types of water transport
SERVICE
TSC
MARITIME
TYPES OF TYPES OF TRANSPORT TRANSPORT
LEVELS OF
WATER TYPES OF SPECIAL
RWT
IWT
PLT
MT
COMPETITIVENESS
Competitive advantages of water transport
AT
RT
TRANSPORT COMPETITIVENESS
INTERNATIONAL + + + + + +
SECTORAL + + + + +
MT
BUSINESS ENTITY + + + + + +
SERVICE + + + + + +
TSC BEC SCWT ICWT INLAND
INTERNATIONAL + + + + + + GENERAL
WATER
SECTORAL + + + + + TRANSPORT
IWT
BUSINESS ENTITY + + + + + +
SERVICE + + + + + +
LEGEND:
MT – maritime transport; IWT – inland water transport; AT – air transport; RWT – railway SPECIAL
transport; RT – road transport; PLT – pipeline transport; TSC – competitiveness of individual
transport service; BEC – competitiveness of business entity; SCWT – sectoral
competitiveness of water transport; ICWT – international competitiveness of water transport.
Figure 1: Levels of the definition of the concept Figure 2: Grouping of competitive advantages of
of "competitiveness of water transport" water transport
The competitiveness of water transport at the Competitive advantages of water transport are
level of the business entity can be understood as the unique combination of using the existing
its ability to provide a better offer than production capabilities of economic entities with
competitors in the market of transport services, in their current reputation in the market, which
the segment of freight and passenger transport by contributes to the provision of competitive
sea and inland waterways, subject to transport services to customers, allowing
environmental standards and current legislation. businesses to ensure their presence in the transport
Competitiveness of water transport at the level services market in the long-run perspective.
of individual products or services is the ability of Among the general competitive advantages of
the transport service to meet a certain need of the water transport, which are inherent in both
customer (consumers) in the transport services maritime and inland water transport, we can
market better than similar services of other mention such as a rather high carrying capacity;
business entities in the segment of transportation relatively low cost of transporting a large number
of goods and passengers by sea and inland of goods and passengers over long distances; low
waterways. tariffs for transportation of a large number of
Competitiveness of water transport can be cargoes and passengers; higher environmental
characterized by a set of technical (dimensional friendliness (compared to other types of
and weight parameters, compliance with the transport); the lower level of accidents (compared
purpose, and environmental standards); to other types of transport); much lower share of
organizational (frequency of shipments, speed of investment needs (compared to other types of
delivery, timeliness of services, average delay of transport); the lower costs of ways maintenance
services, delay or acceleration of delivery of (compared to other types of transport). Among the
goods at the request of the customer, the ability to specific competitive advantages of internal water
provide the customer, if necessary, additional transport, it is necessary to underline, for example,
such a competitive advantage, as the simplicity of We investigated the bond density between
connection with maritime transport. At the same changes in the volume of goods transported by
time, the specific competitive advantages of inland water transport in Germany and the Digital
maritime transport include the possibility of Competitiveness Ranking that affect it. To check
transcontinental transportation of goods and the quality of the built model we calculated the
passengers; waterways capacity is almost key indicators, and conducted some special tests.
unlimited; dimensional restrictions of cargo are
practically absent; high mobility; practically
unlimited scope.
Competitive advantages are the main factors in
ensuring the competitiveness of business entities.
In the fierce competition for consumer loyalty,
these factors change depending on the processes
taking place in sectors of the economy, separate Figure 3: Determining the dependence of
segments of the transport services market, etc. changes in the volume of goods transported by
It should be noted that drivers of inland water transport on Digital
competitiveness of business entities in the field of Competitiveness Ranking in Germany
water transport may have the appropriate
classification features, which are usually based
on: a high level of training and qualification of
personnel; talented management and professional
marketing; proper innovation, technical and
organizational levels of transport services;
sufficient economic and financial support for the
functioning of economic entities in the field of
water transport, compliance with international
agreements in its activities and, in case of legal
conflicts, ensuring the compatibility of digital
interaction of transport operations, and access to
information resources of the transport process Figure 4: Digital Competitiveness Ranking and
participants, etc. changes in the volume of goods transported by
The impact of digitalization on the inland water transport in Germany
competitiveness of inland waterways transport
can be seen in the example of Germany, which has First of all, the coefficient of determination,
a strong economy, a high level of digitalization, R2, which is a measure of bond density, was
and developed water transport. determined. The closer R2 is to 1, the tighter the
After systematizing the data [28; 29] obtained relationship between the features. R2 = 0.5139.
as a result of studying the dynamics of changes in The bond density is noticeable.
the volume of goods transported by inland water An empirical correlation, R in our case, shows
transport in Germany, its Digital Competitiveness which part of Y is related to influencing factors
Ranking and their analysis, we were able to build (coincides with the correlation index). The closer
the dependence model of changes in the volume this figure is to one, the closer the relationship
of goods transported by inland water transport in between the signs. R = 0.7168 - bond density is
Germany (Y, million tons) on the Digital high.
Competitiveness Ranking (X, points), and record Fisher's criterion (F-criterion) of our model is
it mathematically (Figure 3). equal to 7.45 > 6.61. The actual F-criterion must
We have established that for Germany the be greater than the theoretical FT-criterion (with a
dependence of changes in the volume of goods probability of 0.95 and k1=1 та k2=5 FТ =6.61).
transported by inland water transport in Germany Next, we calculate the p-value of the model.
on the Digital Competitiveness Ranking may be The smaller p-value, the more significant the
as follows (Figure 4): expected value of the result. In our case, this
indicator is equal to 0.0413 ≤ 0,05 – the
Y = 315602.6 - 6012.688 X (1) relationship density is statistically significant.
The model specification was checked by
"Linktest" for the absence of a model
specification error. According to the results of the such indicators as the coefficient of
calculations, phatsq = 0.229> 0.05 – the determination, R2 = 0.4520; an empirical
specification of the model is correct. correlation, R = 0.6720.
To test the model for the heterogeneity of The statistical significance of the dependence
observations, which is expressed in the unequal of changes in the volume of goods transported by
variance of the random error of the regression inland water transport in Ukraine on the Digital
model, we performed the Breusch-Pagan/Cook- Competitiveness Ranking can be questioned. This
Weisberg test for heteroskedasticity. According to is evidenced by the results of the calculation of
the results of the calculations pchi2 = 0.3408 > 0.05 such indicators as Fisher's criterion (F-criterion =
– heteroskedasticity is absent. 5,89 < FТ = 5,99), the p-value of the model (p-
Verification of the model for the presence of a value = 0,0513 ≥ 0,05) and Root Mean Square
linear relationship between the explanatory Error (Root MSE) characterizes how densely the
variables (multicollinearity) was performed using data is concentrated around the regression line –
the calculation of variance inflation factor (VIF). the standard deviation of the balances, forecast
According to the results of calculations Mean VIF errors. Root MSE = 314,18 (Root MSE → 0).
= 1.0 < 10; VIFX = 1.0 < 10 (1/VIFX = 1.0 > 0.1)
– multicollinearity is absent.
The procedure for checking the autocorrelation
of an arbitrary order in random errors of the
regression model was performed using the
Cumby-Huizinga test for autocorrelation
(Breusch-Godfrey). According to the results of
the calculations p1 = 0,1063 > 0.05 – Figure 5: Determining the dependence of
autocorrelation is absent. changes in the volume of goods transported by
To test the null hypothesis that the data of the inland water transport on Digital
analyzed time series are stationary around the Competitiveness Ranking in Ukraine
deterministic trend against the single root
alternative, a stationarity test (Kwiatkowski–
Phillips–Schmidt–Shin test) was performed.
According to the results of the calculations: 0.183
= TSY < CVY1% = 0.216; 0.199 = TSX < CVX1% =
0.216 – the data of the time series under analysis
are stationary.
The results of the analysis of the relationship
density between the changes in the volume of
goods transported by inland water transport in
Germany, and the Digital Competitiveness
Ranking show that the regression model is
qualitative. Figure 6: Digital Competitiveness Ranking and
A completely different situation is typical for changes in the volume of goods transported by
Ukraine in this area. According to our inland water transport in Ukraine
calculations, the dependence of changes in the
volume of goods transported by inland water This situation may be due to the weak
transport in Ukraine on the Digital competitive position of Ukraine's inland
Competitiveness Ranking may be as follows waterway transport and the destructive impact of
(Figure 5 and Figure 6): economic threats and dangers, which can be
considered in many areas, such as financial and
Y = -839.6871+75.58187 X, (2) economic, technological, environmental, socio-
economic, and geopolitical. From this point of
where: Y – changes in the volume of goods view, the main factors of destructive impact on the
transported by inland water transport in Ukraine, digitalization of inland water transport in Ukraine
million tons; X – Digital Competitiveness include elements, such as: socio-economic and
Ranking, points. political instability; sharp fluctuations in energy
Due to the low bond density between the prices; the criminalization of the economy;
variables proves the results of the calculation of shadow economy; fiscal crisis; uncontrolled
inflation; unemployment; interstate conflicts; establishment of effective relationships with
forced migration; failure of critical infrastructure; suppliers and consumers, etc. The third level is
failures in the public administration system, etc. determined by the training and qualifications of
Digitalization will increase the the staff, scientific and technical potential, the
competitiveness of inland water transport of degree of informatization, the ability to ensure
Ukraine by creating an intelligent infrastructure cybersecurity, the availability of their own
(adaptive traffic management provides timely licenses and patents. The fourth level is based on
real-time information to all users of inland the effectiveness of the management and
waterway transport and its infrastructure; marketing system, their ability to respond quickly
ensuring continuous and smooth traffic on to changes in the business environment and ensure
waterways; complete equipping of inland their own economic security, etc.
waterways with fast mobile broadband coverage; In our opinion, we should add to the presented
constant monitoring and diagnostics of the four levels the fifth critical level, which takes into
condition of infrastructure and fleet facilities), account the state and prospects of digitalization in
using a smart fleet (innovative ships can interact transport processes and communication between
effectively with intelligent infrastructure and its participants, creating an information
ports. This connectivity will allow you to process environment and infrastructure that supports
large amounts of data. Such interaction will information processes, and information
gradually and safely increase the autonomy of the technologies, which determine how to implement
fleet and the level of automation of inland these processes.
waterway transport services. Digitization
processes increase the productivity of inland 3. Conclusions
water transport, energy efficiency, and safety),
developing multimodal connections (digitization
allows inland water transport to operate without The results of the study suggest that in most
cases, competitiveness can be defined as a
the use of paper documents. Such paperless
complex indicator that covers a set of certain
provides interoperability between different modes
characteristics of the object under analysis, such
of transportation on a one-stop-shop basis,
as market share, productivity, and innovation
making transporting goods and passengers by
inland waterway easy to use in multimodal capacity compared to an existing or imaginary
operations, integrating the fleet and infrastructure benchmark.
We propose to consider the competitiveness of
into interconnected logistics systems).
water transport by separate types of water
That is, for the sake of their development,
transport, each of which can be considered at one
transport companies must move forward by
of four levels (international, sectoral, business
intellectualizing their work, which will give them
additional competitive advantages and increase entity level, and at the level of separate transport
services). At each of these levels, the
the overall level of competitiveness by providing
competitiveness of water transport can be
added value to services; establishing a high level
compared to the competitiveness of other
of communication with customers and target
facilities at the same level. For example, the
audience; improving the image of your company
through fast communication with customers; competitiveness of maritime transport at the
international level can be compared with the
increasing customer loyalty to the company;
competitiveness of both maritime transports of
transparency of internal and external production
other countries and with the competitiveness of
and communication processes; price reduction
other types of transport of foreign countries. At
through process automation and digitization of
the sectoral level, the competitiveness of maritime
business processes, etc. [17].
Agreeing with the results of M. Porter's transport can be compared with the
competitiveness of other types of transport in
research, we can identify four main levels of
Ukraine, etc. It should be noted that the
competitive advantages of the business entity in
competitiveness of transport services is a unique
the field of water transport. The first level of
central element of the competitiveness of water
competitive advantage is based on the availability
of raw materials, labor costs, the scale of services. transport at all other levels. That is, the
competitiveness of an entity in the field of water
The second level is characterized by the
transport is based on the competitiveness of
investment attractiveness of the business entity,
transport services that it can provide to its
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