Ways of enhancing the competitiveness of local communities through the management of corporate culture

Abstract

This article examines the corporate culture of local government bodies as a strategic factor in enhancing the competitiveness of local communities amidst military challenges, economic instability, and the digital transformation of public administration. It justifies the need to shift the focus of local government activities from predominantly infrastructure-related outcomes to the delivery of high-quality public services, a people-centered approach, openness, trust, security, and effective interaction with residents. The authors propose an original interpretation of the corporate culture of a local community as a system of shared values, norms, traditions, and behavioral models that determine the nature of internal interaction among local government employees and their focus on citizens’ needs and the sustainable development of the territory. Four key components of corporate culture have been identified: value- and socio-cultural, intellectual, normative-ethical, and financial-economic. A model for the digital management of corporate culture has been developed, which envisages the operation of a digital corporate platform, the DIGITAL HR system, an intelligent analytics system, digital communication tools, a system for monitoring corporate culture indicators, and a mechanism for managerial decision-making. The paper justifies the use of HR analytics, Big Data, and artificial intelligence technologies to assess staff engagement, professional development, staff retention, team collaboration, and to forecast HR risks. The main areas in which corporate culture influences the competitiveness of a local community have been identified as: economic development, residents’ social well-being, the community’s trust and reputation, resilience and adaptability to crises, and the creation of long-term competitive advantages. It has been demonstrated that a well-developed corporate culture contributes to improved quality of management decisions and public services, more efficient use of resources, development of human capital, and attraction of investment, grant funding, and international partnerships. The proposed approach allows corporate culture to be viewed not merely as an internal element of local authorities’ functioning, but as a strategic intangible asset of the local community and an important mechanism for building its institutional capacity and competitiveness. Keywords: corporate culture, local community, competitive advantages, strategic development, local self-government, human capital, HR analytics, sustainable development, decentralization, public administration.