INNOVATIVE APPROACHES TO TERRITORIAL COMMUNITIES DEVELOPMENT
MANAGEMENT IN THE CONTEXT OF DIGITALIZATION

Olha DIACHENKO

State University of Trade and Economics, Kyiv

https://orcid.org/0000-0002-2012-8496

Yuliia HOLOVNIA

State University of Trade and Economics, Kyiv

https://orcid.org/0000-0002-9430-0869

DOI: http://doi.org/10.34025/2310-8185-2025-3.99.02

Keywords: innovation, territorial community, region, digitalization, digital transformation, digital transformation index, smart community, territorial community management, local governments.

---

Summary

In the context of decentralization, full-scale military invasion of the russian Federation and the need for sustainable development of territorial communities, innovative approaches to managing the development of territorial communities based on digitalization are becoming a strategic priority for increasing the efficiency of local government, improving the quality of public services and, most importantly, strengthening trust between authorities and citizens. Modern global trends, such as widespread digitalization, and the introduction of the concept of the "smart community", the development of e-government and participatory governance, require territorial communities to adapt quickly, think innovatively and use advanced technologies. Although Ukrainian communities have already achieved significant progress in digital transformation, there are still a number of systemic problems that require thorough, scientifically based management solutions. That is why the study of innovative approaches to managing territorial communities is important for the formation of effective state and local policies aimed at building innovative and sustainable territorial communities capable of successfully meeting today's challenges.

The objective of this study is to generalize innovative approaches to managing the development of territorial communities in the context of digitalization and analyze current trends in the digital transformation of Ukrainian communities.

The researchers used methods of analysis and synthesis – to generalize existing concepts of innovative management and their adaptation to the public sector and local government; comparative analysis – to identify patterns and differences in the level and dynamics of digital transformation between different regions and territorial communities of Ukraine; matrix analysis method – to identify typical groups of regions with similar characteristics in terms of the level and dynamics of digitalization; generalization – to formulate conclusions; visualization method – for clarity and systematization of information. The information base of the study is official statistical data of the Ministry of Digital Transformation of Ukraine, scientific publications of domestic and foreign scientists on the topic of the study. The complex application of these methods allowed to ensure the comprehensiveness and objectivity of the analysis and to substantiate practical recommendations.

The article provides a theoretical generalization of innovative approaches to managing the development of territorial communities in the context of digitalization; systematizes the key principles of implementing innovative approaches to community development; analyzes the indices of digital transformation of regions of Ukraine and digital transformation of territorial communities of Ukraine for 2022-2024; identifies leading, active, stable and problematic regions in terms of the level and dynamics of digitalization; identifies systemic problems and challenges that Ukrainian communities face in the process of digital transformation, and develops recommendations for overcoming them to ensure sustainable development of territorial communities and improve the quality of life of the population.

The practical significance of the study lies in creating an empirical basis for understanding the current state, dynamics, and problems of digital transformation of regions and territorial communities of Ukraine, which can be used to develop differentiated strategies and policies to support digital transformation at the regional and local levels.

---

Biographies of authors:

Olha DIACHENKO,

State University of Trade and Economics

Candidate of Economic Sciences, Associate Professor
Associate Professor of the Department of Public Management and Administration

Yuliia HOLOVNIA,

State University of Trade and Economics

Candidate of Economic Sciences, Associate Professor
Associate Professor of the Department of Public Management and Administration

---

References:

Borodina, O., Trushkina, N. (2021). The cluster approach to the digitalization of public governance in the regional strategy: international practice and Ukrainian realities. Economics & Education, vol. 6(4), pp. 12-22. DOI:https://doi.org/10.30525/2500-946X/2021-4-2

Kondratenko, N., Papp, V., Romaniuk, M., Ivanova, O., Petrashko, L. (2022). The role of digitalization in the development of regions and the use of their potential in terms of sustainable development. Amazonia Investiga, vol. 11(51), pp. 103-112. DOI:https://doi.org/10.34069/AI/2022.51.03.10

Soltysik, О., Toreev, S. (2024). Innovative development of territorial communities in the context of transformational changes. Uspikhy i dosiahnennia u nautsi [Successes and Achievements in Science], vol. 4(4). DOI:https://doi.org/10.52058/3041-1254-2024-4(4)-853-862 (in Ukr.).

Shulzhyk, Y. О., Kvasnii, Z. V., Melnyk, О.-А. P., Strogush, Y. B. (2025). Digital transformation of territorial communities: challenges and opportunities. Aktualni pytannia ekonomichnykh nauk [Current issues of economic sciences], vol. 8. DOI:https://doi.org/10.5281/zenodo.14942699 (in Ukr.).

Dubyna, М., Derhaliuk, М. (2023). Digital transformation features of regions of Ukraine: modern realities, problems and solutions. Economic Synergy, vol. 1, pp. 66–81. DOI:https://doi.org/10.53920/ES-2023-1-6 (in Ukr.).

Tomashuk, I., Tomashuk, I. (2023). Strategic basis of innovative development of territorial communities. Ekonomika ta suspilstvo [Economy and Society], vol. 57. DOI:https://doi.org/10.32782/2524-0072/2023-57-81 (in Ukr.).

Azhazha, М., Voronkova, V., Boiko, М., Korotkykh, М. (2023). Planning the activities of the territorial community in the context of digitalisation: international experience. Humanities studies, vol. 17(94), pp. 181–189. DOI:https://doi.org/10.32782/hst-2023-17-94-19 (in Ukr.).

Moskalets, І. М. (2023). The role of innovation in increasing the efficiency of public administration. Economic Synergy, vol. 2, pp. 89–104. DOI:https://doi.org/10.53920/ES-2023-2-7 (in Ukr.).

Jamal A.C., Gordon, R. (2024). Grappling with governance: Emerging approaches to build community economies. Journal of Rural Studies, vol. 107. DOI:https://doi.org/10.1016/j.jrurstud.2024.103242

Bai, J. (2024). A study of innovative models of community governance under digital social policy. Applied Mathematics and Nonlinear Sciences, vol. 9(1). DOI:https://doi.org/10.2478/amns-2024-2519

Kukushka, І. (2022). Innovations as an effective tool for the development of the country in the post-war period. Aktualni problemy ekonomiky [Actual problems of economy], vol. 12(258), pp. 55-64. DОІ:https://doi.org/10.32752/1993-6788-2022-1-258-55-64

Oliinyk, O. (2022). The concepts of «innovation» and «novation» in educational and scientific discourse. Pedahohichna osvita: Teoriia i praktyka. Psykholohiia. Pedahohika [Pedagogical Education: Theory and Practice. Psychology. Pedagogy], vol. 37(1), pp. 88–93. DOI:https://doi.org/10.28925/2311-2409.2022.3713 (in Ukr.).

Kruhlov, V., Tereshchenko, D. (2023). Innovations in the system of public administration. Visnyk Natsionalnoho tekhnichnoho universytetu «KhPI». Seriia: Aktualni problemy rozvytku ukrainskoho suspilstva [Bulletin of the National Technical University "KhPI". Series: Actual problems of Ukrainian society development], vol. 2, pp. 74-79. DOI:https://doi.org/10.20998/2227-6890.2023.2.13 (in Ukr.).

Kudrina, O.Yu., Maslyak, M.I. (2020). Innovation and innovative activity in the public administration system: elements of theory, logic and conceptual apparatus. Publichne upravlinnia i administruvannia v Ukraini [Public management and administration in Ukraine], vol. 19, pp. 139-143. DOI:https://doi.org/10.32843/pma2663-5240-2020.19.25 (in Ukr.).

Diegtiar, O., Kravchenko, T., Oliinyk, N., Durman, M., Borovyk, M. (2021). Introduction of innovative approaches in the activities of local self-government bodies of Ukraine. Scientific Horizons, vol. 24(6), pp. 99-106. DOI:https://doi.org/10.48077/scihor.24(6).2021.99-106

Kyfyak, О., Kyfyak V. (2024). Quality of life of the population as a basic indicator of the socio-economic development of the region. Visnyk Chernivetskoho torhovelno-ekonomichnoho instytutu [Bulletin of Chernivtsi Trade and Economics Institute], vol. 1 (93), рр. 27–38. DOI:http://doi.org/10.34025/2310-8185-2024-1.93.03 (in Ukr.).

Koroliuk, Y., Chychun, V. (2024). Theoretical basis of strategic community management. Visnyk Chernivetskoho torhovelno-ekonomichnoho instytutu [Bulletin of Chernivtsi Trade and Economics Institute], vol. 3 (95), pp. 75–91. DOI:http://doi.org/10.34025/2310-8185-2024-3.95.05 (in Ukr.).

Ministry of Economy of Ukraine (2017). National Baseline Report «Sustainable Development Goals: Ukraine». Available at:https://me.gov.ua/view/22e86f94-a9dd-421e-adcb-e38748a4b7cb (in Ukr.).

OECD (2024), Global Trends in Government Innovation 2024: Fostering Human-Centred Public Services, OECD Public Governance Reviews, OECD Publishing, Paris, DOI:https://doi.org/10.1787/c1bc19c3 -en.

Zalizniuk, V., Holovnia, Yu., Diachenko, О. (2025). Participatory Governance as a Tool for Sustainable Development of Municipalities. Modern Economics, vol. 49, pp. 79-87. DOI:https://doi.org/10.31521/modecon.V49(2025)-11 (in Ukr.).

South, J., Coan, S., Woodward, J., Bagnall, A.-M., & Rippon, S. (2024). Asset Based Community Development: Co-Designing an Asset-Based Evaluation Study for Community Research. SAGE Open, vol. 14(2). DOI:https://doi.org/10.1177/21582440241240836

Ministry of Digital Transformation of Ukraine. Regional Digital Transformation Index: Results of 2024. Available at:https://hromada.gov.ua/research/indeks-cifrovoyi-transformaciyi-regioniv-ukrayini-pidsumki-2024-roku (Accessed 10.07.2025) (in Ukr.).

Regional Digital Transformation Index: Results of 2022. Available at:https://drive.google.com/file/d/1a-tOr16Ahzl_BSk1M7bif4y3CRlfmFRC/view (Accessed 10.07.2025) (in Ukr.).

Regional Digital Transformation Index: Results of 2023. Available at:https://thedigital.gov.ua/storage/uploads/files/page/community/reports/Індекс-цифрової-трансформації-регіонів-України-2023.pdf (Accessed 10.07.2025) (in Ukr.).

Ministry of Digital Transformation of Ukraine. Community Digital Transformation Index: Measurement Methodology. Available at:https://backend.hromada.gov.ua/storage/uploads/uploads/report/Report-UKR.pdf (Accessed 10.07.2025) (in Ukr.).

Suspilne Kherson (2025). Digital Transformation: Kherson Region Ranks Eighth Among Regions in 2024. Available at:https://suspilne.media/kherson/913335-cifrova-transformacia-hersonsina-zajmae-vosme-misce-sered-regioniv-u-2024-roci/ (Accessed 10.07.2025) (in Ukr.).

Cukr (2025). Digital education, internet and e-services. How digitalization is developing in Sumy region. Available at:https://cukr.city/news/2025/tsyfrovizatsiia/ (Accessed 10.07.2025) (in Ukr.).

Cloudflare Radar. Year in Review 2024 for Ukraine. Available at:https://radar.cloudflare.com/year-in-review/2024/ua#internet-traffic-growth (Accessed 10.07.2025).

Ukrinform (2025). From e-services to defense technologies: The Ministry of Digital Affairs named the main achievements of 2024. Available at:https://www.ukrinform.ua/rubric-society/3943833-vid-eposlug-do-oboronnih-tehnologij-mincifri-predstavilo-golovni-dosagnenna-2024-roku.html (Accessed 10.07.2025) (in Ukr.).

Diya. Digital community. Community Digital Transformation Index. Available at:https://hromada.gov.ua/index (Accessed 10.07.2025) (in Ukr.).

Vdovichen. А., Vdovichena, О., Krymska, А. (2024). Digital economy and cybersecurity: analysis of threats and defense strategies in the context of institutionalization. Ekonomika. Finansy. Pravo [Economics. Finances. Law], vol. 4, pp. 135–140. DOI:https://doi.org/10.37634/efp.2024.4.28 (in Ukr.).