INSTITUTIONALIZATION AND THE OF PUBLIC POLICY IMPACT ON THE FORMATION OF RESILIENT E-COMMERCE MARKET

Abstract

This article investigates the concept of institutionalization as well as the impact of government policies on the formation of a resilient e-commerce market in Ukraine. E-commerce has a number of advantages that make it possible to obtain new development opportunities. The potential of e-commerce technologies to become the driver of national economic growth and contribute to the realization of the strategic potential of small and medium-sized enterprises is highlighted. The main prerequisite for using institutional theory within this research is that enterprises, as an open system, function, and exchange information with the environment, therefore obeying the rules, expectations, and pressure from the external environment. The institutionalization concept has a prominent potential for establishing the resilience of e-commerce institutions, adapting the activity and interaction of system subjects to new opportunities, rights, and restrictions, and formalizing and consolidating new practices. Within this system, government support and policies play a vital role in implementing the actions aimed at securing e-commerce activities. The number of factors influencing the institutionalization of e-commerce is distinguished. The features of the EU institutional landscape as well as the trends of its development, particularly digital and green transition are identified. The priorities of the regulation of the institutional environment within the EU are highlighted. Among the main vectors of Ukrainian government support for the resilient e-commerce market development, it is worth noting that regulatory and legal activities, infrastructure support, data security within cyberspace; grant support; financial and credit support; and educational support are identified. Each of these directions has been investigated more deeply to gain a better understanding of current initiatives and their potential impact. The current government’s effort makes it possible to assert that it is consistently following the course of deepening trade and economic cooperation with the European Union and strengthening Ukraine’s position within the world market.