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Theoretical economics
Journals / Theoretical economics / Issue 11 / The influence of the institutional mechanism of the Republic of Crimea on the economic behavior models of business entities
VAK Russia 5.2.1 VAK Russia 5.2.3

THE INFLUENCE OF THE INSTITUTIONAL MECHANISM OF THE REPUBLIC OF CRIMEA ON THE ECONOMIC BEHAVIOR MODELS OF BUSINESS ENTITIES The influence of the institutional mechanism of the Republic of Crimea on the economic behavior models of business entities

Published in Theoretical economics · Issue 11 · Pages 114–130 · Rubric: NEW INDUSTRIALIZATION: THEORETICAL AND ECONOMIC ASPECT
DOI: https://doi.org/10.52957/2221-3260-2025-11-114-130
Received: 29.10.2025 Accepted: 14.11.2025 Published: 30.11.2025
Authors
SV
Svetlana Kirilchuk
ORCID
YU
Yuri Nesterenko
ABSTRACT
The relevance of the research is due to the need to analyze the specifics of the institutional mechanism of the Republic of Crimea as a determinant of the economic behavior of local business entities in the context of geo-economic transformation and integration into the all-Russian legal and economic space. The purpose of the study is to reveal the essence and structure of the institutional mechanism of the Republic of Crimea and to determine its influence on the formation of adaptive and strategic models of enterprise behavior. To achieve this goal, a number of tasks have been set: to define the concept of «institutional mechanism of a region»; to identify the key elements of the institutional environment of Crimea; to analyze how formal and informal institutions influence the economic strategies of firms; to identify the main models of behavior of business entities formed under the influence of the regional institutional system; to propose recommendations for optimizing the interaction between business and regional authorities. The research is based on institutional and systematic approaches, methods of analysis and synthesis, comparative and structural analysis. The article reveals the structure of the institutional mechanism of the Republic of Crimea, including the regulatory framework, authorities, supporting institutions, and established informal practices. It is shown that this mechanism forms specific models of economic behavior, such as adaptive-resource, lobby-oriented, and strategic-integration. It is determined that in order to increase investment attractiveness and diversify the economy, a targeted institutional policy aimed at reducing transaction costs and forming predictable rules of the market game. Key barriers (regulatory instability, resource constraints, geopolitical risks) are identified and measures to overcome them are proposed, including improving regional legislation, developing public-private partnerships, and enhancing business integration into interregional value chains.
KEYWORDS
institutional mechanism, economic behavior, business entities, Republic of Crimea, regional economy, institutional environment, adaptive strategies, investment climate, transaction costs
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