Factors of enterprises’ strategic selection of participation forms in integration formations

  • Received January 24, 2018;
    Accepted April 18, 2018;
    Published May 3, 2018
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  • Article Info
    Volume 16 2018, Issue #2, pp. 90-101
  • Cited by
    5 articles

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The competitiveness of the national economy is ensured by mutually beneficial cooperation of various business activities and industrial specialization of business units. The purpose of this article is to identify the main motives of the economic behavior of business units in Ukraine, which predetermine structural changes in the industrial sector and agro-industrial complex, and to develop an algorithm for substantiating the strategic choice of participating forms in integration formations for the business development. The economic and statistical analysis has identified trends in structural changes in the industrial and agricultural sectors of the Ukrainian economy. By generalization of scientific views on the content of integration processes, there were identified the influence of institutional factors on the development of forms of integration interaction and maintaining the stability of integrational entities, and the factors of technological and logistic expediency on the formation and development of business networks. There was formed the algorithm of substantiation of strategic decisions regarding the choice of enterprises of the forms of participation in the integration formations of different types. The differences in the positions of the initiators of the business network creation and the participants involved in them were identified regarding the composition and relationships in the network that affect its sustainability. The application of this algorithm will ensure that the management of enterprises makes more substantiated decisions on the creation of an organizational framework for the implementation of competitive strategies in promising areas of inter-sectoral cooperation.

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    • Figure 1. Comparative dynamics of quantitative results of large industrial enterprises activity (left) and agriculture, forestry and water management (right) in Ukraine
    • Figure 2. Algorithm of strategic choice of scenarios for the development of an integration entity (business network) for the implementation of competitive strategy and growth
    • Table 1. Quantitative indicators of performance of Ukrainian enterprises of different sizes and sectors in 2016 (State Statistics Service of Ukraine, 2017)
    • Table 2. Main emphases in market interaction within various integration formations
    • Table 3. The matrix of transaction costs in dynamic network of agro-industrial complex