The Role of Algorithm Transparency in Trade Management as a Tool for Reducing Corruption Risks in B2B Procurement

Authors

Keywords:

corruption risks, anti-corruption technologies, B2B procurement, digitalization of trade, artificial intelligence, procurement automation, trade management.

Abstract

The purpose of the article is to assess the impact of transparency of algorithms, artificial intelligence and automation on reducing corruption risks in B2B procurement. The study aims to identify the specifics of the functioning of digital procurement platforms, such as Prozorro and SAP Ariba, in the context of improving the effectiveness of anti-corruption measures in trade management. Particular attention is paid to analyzing the potential of algorithmic transparency as a mechanism for preventing informal arrangements and corrupt practices in the Ukrainian context.

The study includes a systematic analysis of legal acts, functional capabilities of automated procurement systems and international experience in implementing digital technologies in procurement. Case study, content analysis, and comparative analysis methods were used to identify the key benefits of digitalization, including increased transparency, accountability, and control. At the same time, the barriers to effective implementation, which are related to technical difficulties, low level of digital training of staff, and legislative restrictions, are investigated. In addition, it is relevant to study the impact of the introduction of digital algorithms on the dynamics of interaction between market participants, as well as on the formation of ethical standards in procurement. Particular attention should be paid to the adaptation of technologies to the specifics of small and medium-sized businesses, which often face additional obstacles to digitalization.

The results obtained indicate the significant potential of artificial intelligence and automated algorithms in reducing corruption risks in B2B procurement. At the same time, the success of digitalization depends on an integrated approach that involves professional development of process participants, development of technological infrastructure and adaptation of the regulatory framework. Prospects for further research include the development of methodological recommendations for assessing the effectiveness of algorithm transparency and improving digital transformation strategies in trade management. They can also reveal new tools that will help increase transparency and increase the level of trust between partners in the B2B segment.

Author Biographies

Anastasiia Nemnenko, Central Ukrainian National Technical University, Kropyvnytskyi, Ukraine

Assistant of the Department of Economics, Entrepreneurship and Hotel and Restaurant Business

Oleksandr Shchelnyk, Central Ukrainian National Technical University, Kropyvnytskyi, Ukraine

Assistant of the Department of Economics, Management and Commercial Activity

References

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Published

2025-05-26

How to Cite

Nemnenko, A., & Shchelnyk, O. (2025). The Role of Algorithm Transparency in Trade Management as a Tool for Reducing Corruption Risks in B2B Procurement. Central Ukrainian Scientific Bulletin. Economic Sciences, (13(46) ч. II), 17–25. Retrieved from https://centralukraine-econ.kntu.kr.ua/econ/article/view/266

Issue

Section

MATHEMATICAL METHODS, MODELS AND INFORMATION TECHNOLOGIES IN THE ECONOMY