Premises and Characteristics of "Contemporary Business" – the Context of Globalization, Internationalization and Threats

served as the inspiration for writing this study, the main goal of which is to identify the features of the modern business model on the background of identifying the differences between the traditional and the current model in the context of existing threats and to find out the main (one of the main) reasons for such differences. The introduction refers to the methodology used for this study (specific research methods are methods of unity of analysis and synthesis, induction and deduction and comparative analysis, as well as methods of grouping and extrapola-tion). The study is the result of the authors' own empirical research and a comparative theoretical analysis based on the literature on the topic, and is a common characteristic of both models. In general terms, the main features of the modern business model and trends in the European economy are presented on the example of Poland and Ukraine. Thus, the study is aimed at identifying trends in doing business in the modern market and its characteristic features in the context of the predicted increase in the role of factors of intercultural (transcultural) interaction in business.


PREMISES AND CHARACTERISTICS OF "CONTEMPORARY BUSINESS" -THE CONTEXT OF GLOBALIZATION, INTERNATIONALIZATION AND THREATS
Introduction. The pace and unpredictability of market changes is the basic premise for the emergence of new concepts and management methods in modern enterprises, in connection with new institutional, economic and environmental requirements, which in turn requires the development of new features and managerial skills [1]. The extension of the cooperation to new markets, in a new, unknown and previously unprecedented scale, in a new reality, a different understanding of the innovation and investment policy, the search for new opportunities and factors of advantage or stabilization have resulted in "new" business models and a "new" management approach [2, p. 16]. All this overlaps with events such as extraordinary events: strikes, economic crises, epidemics. There are clear trends in the ways of doing business, which is the background for comparisons of the traditional model with the modern model of business management. On this basis, it is possible to present the characteristics of the "modern model" of running a business in a situation where more and more enterprises, directly or indirectly, go beyond the borders of their own country, defined as their home country, with their activities [3, p. 11-15]. More and more companies emphasize on flexibility, creativity and innovation.
Although the science of management does not directly specify the list of universal features of the contemporary business model, as it is simply impossible (there are many such models and they are very diverse and depend on conditions of different nature in a given country), there are some emerging trends in the functioning of enterprises. Analyzing the literature on the subject in the area of this issue and the results of the own research, this study focuses on showing the basic tendency in the functioning of modern business: internationalization of the enterprises activities in connection with the globalization of activities and the related threats, without taking into consideration the pandemic situation, as this requires separate research. The inspiration to write the article was a research carried out personally and directly in 2013-2019 on a sample of over a hundred Polish enterprises and over thirty Ukrainian enterprises, which directly or indirectly expanded (or expanding) their activities beyond the home market. The selection of enterprises was deliberate and consisted of the following criteria: diversified size (from micro to large), location (Poland -90% headquarters in Poland and location in the Łódź Voivodeship; Ukraine -100% headquarters in Ukraine), various sectors (manufacturing, services and commercial), diversified time of running a business (from 1 to several dozen years), direct or indirect international activity (from 1 to several years). The research tools used were: a survey questionnaire and an interview questionnaire. One of the goals of the research was, among other things, to identify the features of the modern business model and the risks associated with the operating conditions of modern companies. The main aim of the research was to examine the ways of internationalization of Polish and Ukrainian enterprises, which was realized in the monograph entitled Internationalization of Polish and Ukrainian enterprises [4]. However, this study is to become an inspiration for further considerations and in-depth research, including, -in the context of understanding the impact on these processes of profiles of managers from different countries [1, p. 64], methodological aspects of cross-cultural differences in business [5, p. 30-31], comparative analysis of business activities by representatives of different countries [6; 7].
For this reason, it deliberately does not contain statements and statistics, but only a general characteristic of the modern business model, with particular emphasis on the challenges for the functioning of modern business and the phenomenon of globalization, creating specific conditions for setting up and running this business. On the basis of the conducted research, it was also made an attempt to compare the contemporary model with the traditional one of the business running.
Globalization as a background for contemporary/modern business. The wide range of processes accompanying the phenomenon of globalization still leads 39 Економічний вісник Донбасу № 4(62), 2020 to the intensification of economic, political and cultural ties, understood as those "across state borders" [8, p. 17]. This increase in links between enterprises, science (and other) organizations and countries is due to the variety and quantity of flows: services, goods, resources and technology diffusion [9]. A. Zorska notes that a multifaceted, interdependent global economic system is being created [10, p. 20]. The power of global competition is growing as a result of the increased and still increasing complexity of the national and international environment as well as and the constant volatility and increasing interdependence between enterprises.
For Polish and Ukrainian (especially Ukrainian) enterprises, the increasing number and strength of competition in their own country is the reason for looking for opportunities that globalization creates. The increase in the complexity of the environment and the dependence of entities as well as the flow and absorption (diffusion) of all resources contribute to the internationalization of activities, posing new challenges for entrepreneurs [11, p. 129]. The process of internationalization of enterprises has significantly accelerated in recent years, especially in countries with less advanced technologies and less equity than in Western Europe (eg Ukraine and Poland).
Acceleration of internationalization and the free flow of resources and capital also contribute to the growth of various types of threats at every stage of the functioning of modern companies. Therefore, economic activity in international markets requires the application of a new approach to management.
It is internationalization, based on innovative products and services, that is associated with the "new" business model, the essence of which is to build a cooperation network based on unique resources, especially human resources, and the horizontal ties of cooperation between enterprises. This model may not be completely opposite to the "traditional" business, associated pri-marily with domestic business, whose aim is to generate profit based on price strategies and the value of financial capital, but it is certainly significantly different from it.
Indicating the differences in the perception of both processes it allows the authors of this study to conclude that the two processes should not be equated or their names used interchangeably. For example, according to B. Liberska, internationalization is a quantitative process related to foreign trade and capital flows, and globalization is a qualitative process related to international economic relations, interdependence and the transition from indirect to direct forms of relations [12, p. 18-19]. G. Kołodko describes globalization as "an economic game which results in specific opportunities and threats to economic and cultural ties with foreign countries [13]. According to K. Przybylska, "internationalization is synonymous with the geographical dispersion of the company's economic operations across the country's borders" [14, p. 15].
It is treated as a phenomenon that signifies the process of expansion into foreign markets [15, p. 11]. According to J. Misala, the theories of internationalization of enterprises are a component that includes theories of international trade and theories of international migration of production factors [16, p. 43]. Internationalization is interpreted as: a process, a change in the sphere of activity [17, p. 19] and any type of activity undertaken by an organization outside the country [18, p. 19]. There is a visible increase in the number and variety of material and non-material ties on a global scale. Not only material resources, but also cultural and civilization patterns are moving [19, p. 295]. The essence of globalization is the creation of conditions for the free movement, and the essence of internationalization -the use of these flows by searching for opportunities, possibilities and avoiding barriers and market limitations in the country. Referring to the above considerations, Table 1 shows the differences for the analyzed issues. The essence of the globalization process is similar in most countries of the world. For the same reasons, the essence of internationalization is often different. Therefore, it is difficult to identify these two concepts with each other. Globalization is a spontaneous process, while internationalization is a process of making rational decisions. Thus, it is "globalization that creates a field for action for companies that want to internationa- Challenges for modern business. The contemporary expression "traditional business" refers rather to the Економічний вісник Донбасу № 4(62), 2020 functioning of an enterprise on its own market, based on traditional, often outdated technologies, producing typical, standard, and repetitive products, rather than to an innovative enterprise, often changing its products and services and their features and functionality [4, p. 16]. The research carried out in Polish and Ukrainian enterprises (especially small and medium-sized enterprises) shows that the concept of a modern enterprise relates mainly to the readiness to create a cooperation network, to enter into various interactions, to flexibility and to base operations on new technologies. The list of features of a traditional and a modern enterprise is presented in Table no 2. Summarizing comparing the business characteristics, the criteria developed during the own research and proposed by such authors as T. Sporek and S. Talar [20], J. Jennings and L. Haughton [21], C. Perez [22], J. McGee, H. Thomas and D. Wilson [23] were used. When analyzing the data contained in Table 2, one can notice the tendencies of the surveyed companies to increase the flexibility of operation and such management that is focused on continuous learning in order to better meet individual consumer needs. Nowadays, man has become a valuable resource of the company, and his motivation, loyalty and knowledge are the basic premise for increasing creativity in order to innovate [20, p. 16]. In 2002, P. Drucker already emphasized that "innovation is becoming a common feature of all market behaviors and activities" [24, p. 144], and the principle of operation of enterprises is, first of all, to be aware of changes and adapt to them. In such circumstances, experience is "perceived as something that hinders change and innovation" [20, p. 17], because it is related to a certain routine of activities, and the basic skill is to get rid of old habits and patterns [20, p. 17], which is conducive to the broadly understood creativity of enterprises. Interviews with company managers showed that the actual skills of their employees are becoming more and more important, while documents confirming qualifications are losing importance, unless such documents are also the right to perform work. The importance of networks of horizontally integrated production and trade links is also growing. At the business level, strategies such as cost leadership and price leadership are slowly disappearing. Such "obsolescence of traditional advantages leads to the construction of a completely new set of them" [20, p. 18], based on resources and capabilities that are difficult to duplicate.
Threats for the functioning of modern enterprises. In the conditions of globalization, new situations and new opportunities appear unexpectedly, causing challenges, the meeting of which may be the only chance to exist or stay on the market. Enterprises must even adapt quickly to the market, because what is effective today may not be as effective tomorrow. Changes in the economy have always occurred, but their current pace seems incomparable. A contemporary enterprise is an entity that is constantly looking into the future, searching for and solving problems that have not emerged yet. It is a company that thinks in terms of tomorrow [25, p. 507]. Modern enterprises feel the effects of the global crisis related to the uncertain nature and the depletion of mineral resources, which may disrupt their functioning [26]. The uncertainty of climatic conditions is a significant threat for agricultural enterprises based on processing. The fear of such disruptions in functioning is visible especially among entrepreneurs in Ukraine, where a large part of enterprises' income and national income comes mainly from cultivation and breeding.
The increased competitiveness is another factor that today's enterprises grapple with. Foreign competitors offer completely new, previously unknown products characterized by low prices and good quality [27]. The increase in the number of competition on the markets of the home country is a direct motive of the surveyed companies to look for opportunities outside their own country. Here there are numerous barriers and threats. Small enterprises of both countries are not able to be cost-effective, that it directly translates into higher prices of their products and services. Polish small enterprises are primarily looking for foreign business part-Економічний вісник Донбасу № 4(62), 2020 ners for such simple forms of cooperation as export and import, which are carried out through an intermediary and usually in the home country (indirect form). They very rarely create foreign direct investment. Ukrainian small enterprises that want to legalize their business activity, from the very beginning, look for opportunities to operate on foreign markets through (most often) such simple forms of internationalization as export and direct import. The most serious competition for them, however, are not large companies, but small enterprises, which form a fairly large gray area. For this reason, Ukrainian small companies, statistically more often than Polish ones, internationalize their economic activity from the moment of their establishment. In the case of Polish small and medium-sized enterprises, it is more often an evolutionary action than a revolutionary one, i.e. first they look for opportunities on the home market, and then, for development reasons or exhausting the possibility of operating regionally or locally, they look for opportunities to operate outside their own country.
These conclusions, however, are not so obvious and very general, as the entrepreneurship of company owners and managers plays a significant role in overcoming threats or in finding opportunities. This was confirmed in all examined cases.
The functioning of enterprises is also greatly influenced by macroeconomic reasons, such as state policy and legal regulations. This factor determines the business opportunities both in the home country and in the host country. The existence of favor (or disfavor) of the broadly understood state policy, translated into legal provisions and government programs, is particularly visible in Ukraine. There is especially here the lack of support for small enterprises and the privileging of the large ones, having strategic importance for the country, or "clout" based on "acquaintances", is particularly noticeable. The situation of supporting enterprises in Poland looks better. There are more programs supporting business activity and their internationalization, but the research carried out, showed a situation in which, among a hundred surveyed enterprises, only a few of them benefited from such programs, and they were usually medium and large companies. Another few companies used the support of universities and scientific institutes in the field of joint innovative projects. Polish enterprises either do not know about the existence of such programs or they are overwhelmed by bureaucracy and unclear regulations. In Ukraine, entrepreneurs usually know the current programs, but they know that their chances of getting support are small, so they often do not even try. Moreover, small enterprises with little equity are not able to create positions for project acquisition or innovation (research and development) in their structures. In both countries, enterprises most often use competitive benchmarking, which provides ideas and solutions quickly and without cost.
Among the external factors that belong to threats to modern business, one should also mention the unstable situation related to inflation, the level of interest rates, law and state interventionism. The possibility of shaping them by individual economic entities is minimal [28, p. 2].
Resume. The conducted research and analyzes showed that the concept of modern business relates mainly to the broadly understood internationalizing economic activity, which requires many changes in the structure and organizational culture of enterprises. As emphasized in the introduction, the studies cover the years 2013-2019, so they do not refer to a pandemic situation that requires separate, in-depth research. In such a situation, the process of internationalization of economic activity does not lose its importance, but its forms and methods are changing. There are still clear trends in the ways of doing business, consisting in the ability to take up challenges and risks, far-reaching flexibility and innovation, constantly made changes and search for innovative solutions, as well as placing the main emphasis on the human capital of the enterprise. Facing challenges and taking risks resulting from the premises of a globalizing world -rather than avoiding them -are essential features of today's companies. The phenomenon of globalization, as a spontaneous process, constitutes a specific background for all processes carried out by enterprises, including the processes of internationalization of economic activity. This, in turn, will require an application of certain new strategies and forms of operation of modern companies. The sectoral character of economic activity (its profile) may also fundamentally change, and new geographic directions may form for the internationalization of companies' activities. When analyzing the threats to the functioning of modern enterprises, it can be noticed that the uncertain climatic conditions will adversely affect all companies that live off agricultural and livestock crops, which in Ukraine, that is based on agricultural production, breeding and processing is of significant importance. This does not mean, of course, that in countries with a less important agricultural sector in the overall functioning of the economy, the changing climate will not matter. Moreover, the huge number of competitors, that offer new products at low prices and good quality, does not give smaller enterprises a chance to "break out", both in Poland and in Ukraine, therefore -especially in Ukraine -micro and small companies from the very beginning look for opportunities in the markets of neighboring countries. The smaller enterprises are the biggest threat, forming the so-called gray zone, which forces newly emerging companies to practically immediately internationalize their economic activity. Another important threat are macroeconomic issues, such as unfavorable (unsupportive) state policy, unclear legal regulations, as well as rising inflation and rising interest rates. In Poland, small enterprises usually do not know about the existence of internationalization support programs, and in Ukraine, entrepreneurs know that they have no chance of taking advantage of them. On the other hand, large companies use them. The diversification of the conditions for running a business in one's own country necessitates the diversifi-