Convergence of socio-economic development of regions and its impact on sustainable development of enterprises

The article examines the convergence of socio-economic development of the regions of Ukraine and its impact on the sustainable development of metallurgical enterprises. This study focuses on the consequences of deindustrialization due to the destruction of strategic industrial facilities in Eastern Ukraine after 2014, particularly emphasizing the period following 2022. This destruction has led to significant structural imbalances in industrial output, employment, and export potential. The authors posit that the attainment of regional development is contingent upon the capacity to adapt to novel economic realities, the attraction of investment, the integration into domestic and foreign markets, and the implementation of smart specialization principles. The present research aims to explore the possibilities of clustering metallurgical enterprises as an effective tool for ensuring socio-economic convergence in the context of sustainable development. The present study utilizes data from eight prominent Ukrainian metallurgical enterprises for 2019–2023, encompassing financial performance, human resources, and innovation-investment indicators. Applying hierarchical cluster analysis in IBM SPSS 23 enabled identifying four distinct groups of enterprises that demonstrated differences in financial stability, personnel potential, and innovative activity. The study's findings demonstrate that the utilization of clustering methodologies facilitates the identification of both the similarities and differences between enterprises, thereby providing a foundation for developing regional policy measures. The findings indicate that enterprises with analogous financial or human resource characteristics may function as catalysts for socio-economic development, while others reveal risks of divergence. The study emphasizes the importance of innovation and investment as critical determinants of regional convergence. In this context, forming innovative economy models and innovation clusters is a promising mechanism for balancing regional disparities, enhancing competitiveness, and achieving sustainable development goals. The conclusions provide practical recommendations for policymakers and business managers and outline directions for further research on strategic frameworks of regional convergence in Ukraine.