State and Corporate Management of Region’s Development in the Conditions of the Digital Economy

Abstract

Purpose: The article is aimed at identifying new challenges for public and corporate management in the context of the digital development of the modern region, the definition of scenarios, and the optimal model of management of this development. Design/Methodology/ Approach: The authors apply the methodology of correlation and scenario analysis, as well as economic modeling. Certain calculations are made to identify the correlation between the indicators of public and corporate management performance in the region—the balanced financial result of enterprises and the balance of the regional budget—and the indicators of digital development of the region—the share of enterprises using the Internet, the number of personal computers per 100 employees, the share of households with computers and the Internet, as well as the share of innovation-active organizations. Findings: In the course of the research it was shown that the digital development of the economy of the regions, which are not characterized by a distinct inclination to scientific and technical progress, is based on the measures of state financial support of the digital modernization of the economic system of the region and on the measures of corporate financing of own digital modernization. Originality/Value: It is justified that, although financial management measures may ensure the rapid growth of the digital economy, which is the case in the regions of the North Caucasus Federal District of the Russian Federation, the “side effect” is the depletion of state and corporate budgets in the region and the financial crisis (pessimistic scenario). An alternative optimistic scenario is also possible which enables to avoid the crisis and possibly achieve even greater progress in building the digital economy. For its implementation, the model of state and corporate management of digital development of the modern region has been developed in order to optimize it, based on the measures of non-financial management, which ensure greater efficiency of management due to lower consumption of resources while achieving long-term (synergy) effect.