Экономические науки/

 10.Экономика предприятия.

 

KIT LESYA

PhD student, Institute for Regional Studies of NAS of Ukraine,

Lviv, Ukraine

 

COMPETITIVE ADVANTAGES OF NETWORKING BUSINESS STRUCTURES IN THE MODERN ECONOMY

 

In the mid-80 century in the developed world was recorded a new type of business, which are called network structure, and today we can say that these structures in certain sectors of economy of Ukraine took quite an important place. The emergence of the phenomenon of network organization of economic activity due to increased competition in the market of producers and consumers, accelerating the process of updating technology not only in manufacturing but also in the management of economic activities.

Creating business networks promotes regional trade consumer markets, job creation, investment in development areas, more rapid dissemination of innovation and improve the quality of services provided to the public. In addition, the study features a network model of spatial organization of the economy and the functioning of specific network businesses directly related to the problem of improving business efficiency.

Network is the basic concept of the network economy. Network model of the economy can be viewed from two perspectives. The first is based on the principles of network economy, which includes the economic activities carried out by electronic or digital communications network in various economic sectors. This activity involves the use of modern resources of the Internet and the development of e-business, including e-commerce («e-commerce») [6, p.153].

Another approach related to the corporatisation of the economy, which includes operation of integrated forms of business organization on the basis of network organization. Essence network approach in this case is to replace the multi vertically organized hierarchies and specialized business units whose activity is coordinated by market mechanisms, clusters of firms and other economic objects, seeking to expand the horizontal connections by bringing new elements capable of communicative within the network [1, p.78-83].

Therefore business network (business network, business structure) - an association of businesses, which is characterized by common economic and financial interests of the activity is determined by the concentration of capital, localization efforts of each link on a certain segment development, coordination instruments internal financial and economic mechanism in order to achieve certain goals, common interests of the owners of capital.

According to O.Yuldashevoyi, V.Kateneva, S.Polonskoho [7] the main factor that led to the rapid development of a network of business was that hierarchical forms not withstand new market realities, including accelerated development of science and technology and information technology, the need for rapid innovation, more individualized needs of consumers.

Of course, the network form, like any other form of economic activity has its advantages and disadvantages. For example, E.R. Meteleva notes that "... because the network is based on horizontal interactions indefinitely large number of number of participants, the objective existence of network organizational structure is in receipt of benefits by all members of the network" and "benefits from participating in the network are distributed more or less evenly among all its members" [4, p.71]. The network form of organization provides all network members together and each participant separately increased flexibility and the ability to quickly perform tasks optimal or close to optimal way.

The key factors of stability and efficiency of business networks usually are recognized: the coordination of information communications (presence of general network information resource that quickly replenished), the coherence of the network, availability and performance intranet mandatory functional standards defined intra-corporate culture, trust between network members.

In his T.A. Stewart argues that "the company network structure is able to self: people grouped around projects to be carried out" [5, p.368]. This same idea operates E.R. Meteleva, which states that "the key features of network structures is their reproduction, no strongly expressed depending on the composition of participants" [4, p.71].

Despite the many benefits of network forms of business organization, the researchers also point to weaknesses in their development:

- the growth of monopoly and less competition in the market;

- reducing the effectiveness of the absence of a clear consolidation objectives of the network and slow decision-making procedures at its significant expansion;

- increase dependency constraints conduct by further loss of independence now;

- reducing the flexibility of management;

- blurring the boundaries between organizations due to complications of relationships between members of the network;

- increase transaction costs as a result of increased investment in the maintenance and development of inter-firm relationships that may be ineffective.

However, despite these problems related to the business activities of these networks structure, in our opinion, have a significant potential for improving the efficiency of business.

As a sustainable competitive advantage online business and also recognize that the basis for the functioning of these structures inherent management processes, rather than individual features. If the number of  economic entities starting out on the basis of voluntary and sustainable cooperation, such cooperation takes the form of joint ventures, franchising schemes, various contract and sub-contract relations and other integrated organizations where actions are planned and managed together.

Presented in favor of the effectiveness of business networks arguments and analysis positions scientists about these structures inherent competitive advantages can expand their list, including:

1. The system of long-term cooperative interactions formally independent entities, based on the joint use of resources, especially the system of values and organizational and managerial interactions characterizing network business structure;

2. Independent individual companies have the chance to function as part of a powerful economic structure, way of integration strategy if become members of the network business structure;

3. Network organization can be formal, that has a certain structure, and informal - little or unstructured. In all cases, the basis of the existence of a network is the ability to quickly establish the right connections in order to accelerate the inclusion of market processes.

4. Competitive advantages of each partner (even minor) by forming a complementary new competitive network businesses in general (multiplier effect and synergy).

5. Implementation of the principles of cooperation, specialization, rational distribution functions in network integration creates conditions for sustainable development of the participants networked structures of flexible market policies.

6. Internal and external markets network business structure are formed according to the principles of cooperation, coordination, inter-economic relations, specialization of each participant network.

REFERENCES

 

1.   Бульба С.А. Економічна сутність підприємницьких мереж / С.А.Бульба // Актуальні проблеми економіки. – 2010. - №11. – С.78-83.

2.   Дідківська Л.І. Тенденції розвитку роздрібних торгівельних мереж та їх вплив на конкурентне середовище // Актуальні проблеми економіки. – 2006. – №8. – С. 119-125.

3.   Кавун О.О. Підприємницькі мережі у роздрібній торгівлі України: сутність, класифікація і перспективи формування /Економіка та управління підприємствами / Актуальні проблеми економіки №5, 2010, с.96.

4.   Метелева Е.Р. Разработка теоретико-методологических положений сетевого подхода[Текст] / Е.Р.Метелева// Проблемы теории и практики управления. – С.69–72.

5.   Стюарт А.Т. Интеллектуальный капитал. Новый источник богатства организаций; [пер. c англ. В.Ноздриной] / А.Т. Стюарт. – М. : Поколение, 2007. – С.368.

6.   Шульц С.Л. Формування та розвиток економічного простру регіонів України: дис. доктора екон. наук: 08.00.05 / Шульц Світлана Леонідівна. – Львів, 2012. – С.153-154.

7.   Юлдашева О. Межфирменная кооперация: сетевые формы организации бизнеса [Електронний ресурс]/О.Юлдашева, В.Катенев, С.Полонский//Общероссийский полноцветный журнал "Новости Электротехники" - отраслевое информационно-справочное издание. – 2009. – №3(57). – Режим доступу до журн. – http://www.news.elteh.ru/arh/2007/44/29/php.