INSTITUTIONALIZATION OF THE DISTRIBUTED DIFFERENTIAL METHOD IN CORPORATE GOVERNANCE

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Authors: Oleksandr Kovtun
Cited by: 0
References: 14

Abstract

Modern corporate governance operates in conditions of radical uncertainty (VUCA), where traditional decision-making systems demonstrate systemic inefficiency due to their static nature and inability for proactive adaptation. The development of innovative analytical tools, particularly the Distributed Differential Method (DDM), which offers a mathematically grounded approach to business process optimization, does not by itself ensure organizational transformation. A fundamental contradiction arises between the analytical potential of DDM and the organizational barriers to its practical implementation. This article is devoted to a comprehensive study of the process of institutionalizing DDM-its transformation from a theoretical construct into a stable element of corporate governance. The work is based on an analysis of modern approaches to the institutionalization of innovative analytical tools and identifies key barriers to their effective implementation: structural fragmentation of management cycles, technological data fragmentation, and resistance of organizational cultures to change. The article substantiates an architectural model for integrating DDM into strategic and operational management circuits, which involves three interconnected dimensions: structural integration (embedding DDM into formal procedures and business processes), technological integration (embedding algorithms into corporate ERP, BI, and DSS systems), and cultural integration (forming a management culture focused on gradient signals). Particular attention is paid to the implementation mechanisms of DDM, taking into account the institutional, technological, and cultural characteristics of enterprises. The synergy of DDM with Lean, Agile, and MVP management paradigms is proven, where the gradient ∇F acts as a quantitative “compass” for identifying priorities in the dynamic efficiency field. Tools for overcoming adaptation barriers to ensure transparency and trust in decision-making are proposed.

Fields of Study & Subjects

Organizational Management and Leadership Big Data and Business Intelligence Management and Organizational Practices

Publication details

Journal / source
Scientific Notes of Taurida National V I Vernadsky University Series Economy and Management
Volume
76
Issue
1
Publication date
2 March 2026
Language
EN