Construction of KPI-based motivation policy for advancing sustainable procurement logistics of agricultural enterprises: competence approach

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Lyubov Lipych
Oksana Zelenko
Sergeii Zelenko
Myroslava Kushnir
Oksana Khilukha

Abstract

In challenging economic conditions, motivational mechanisms capable of maintaining sustainable logistics management of agricultural enterprises are declining. This study aims to specify the forms of connecting the motivational policy, KPI and sustainable logistics of agricultural enterprises. As a result of theoretical research, we have proved that the competencies of logistics managers can be the appropriate connector. We have considered the hypothesis that there are key competencies that logistics managers recognize as the most important and most often implemented for advancing sustainable procurement logistics. To confirm the hypothesis, we collected data from interviews with logistics managers of Ukrainian agricultural enterprises. To process the data, we used the method of integrated ABC-XYZ analysis. As a result, we found that the AX group (the most important and frequently used competencies) includes the high general qualification and the ability to assess the effectiveness of logistics operations and processes objectively. Unlike other studies, the novelty of the presented results is as follows. We advocate the idea of ​​the motivational influence of performance indicators and propose to form KPI system taking into account the importance and frequency of using the established competencies of logistics managers. Our proposals are a prerequisite for developing a flexible motivational policy for sustainable procurement logistics.

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How to Cite
Lipych, L., Zelenko, O., Zelenko, S., Kushnir, M., & Khilukha, O. (2021). Construction of KPI-based motivation policy for advancing sustainable procurement logistics of agricultural enterprises: competence approach. Law, Business and Sustainability Herald, 1(1), 4–13. https://doi.org/10.46489/lbsh.2021-1-1-1
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Articles
Author Biographies

Lyubov Lipych, Lutsk National Technical University

Lyubov Lipych, DSc (Economics), Professor, Department of Entrepreneurship, Trade and Logistics, Lutsk National Technical University, Lvivska 75, Lutsk, Ukraine, e-mail: lglipych@gmail.com, ORCID: https://orcid.org/0000-0002-9059-7271 (corresponding author)

Oksana Zelenko, Lutsk National Technical University

Oksana Zelenko, PhD, assistant, Department of Management, Lutsk National Technical University, Lvivska 75, Lutsk, Ukraine, ORCID: https://orcid.org/0000-0002-9004-0203

Sergeii Zelenko, Lutsk National Technical University

Sergeii Zelenko, PhD, Associate Professor, Department of Accounting and Auditing, Lutsk National Technical University, Lvivska 75, Lutsk, Ukraine, ORCID: https://orcid.org/0000-0001-6074-1749

Myroslava Kushnir, Ukrainian Catholic University

Myroslava Kushnir, PhD, Art. teacher, Department of Applied Economics and Business, Ukrainian Catholic University, Ilariona Sventsitskoho 17, Lviv, Ukraine, ORCID: https://orcid.org/0000-0002-4441-4278

Oksana Khilukha, Lviv University of Business and Law

Oksana Khilukha, PhD, Associate Professor, Department of Enterprise Economics and Information Technology, Lviv University of Business and Law, Kulparkivska 99, Lviv, Ukraine, ORCID https://orcid.org/0000-0002-1228-7171