Bìznes Inform (Feb 2020)
The Networking Features of Entrepreneurship in the Context of Globalization
Abstract
The article explores the networking features of entrepreneurship and defines the principles of ensuring the competitiveness of the national economy through network entrepreneurship in the context of globalization. The modern strategy of Ukraine’s socio-economic development in the context of globalization processes is analyzed. It is concluded that the need to form the networking structures of entrepreneurship is becomes actualized under the influence of globalization. The factors that actualize the need to take into account the networking principles of the organization of entrepreneurial structures are considered: transformation of the level of obtaining competitive advantages from an individual entity to a network; changing the organizational model of entrepreneurial structures; information revolution and the development of technology; competitive advantages from the networking synergistic effects. The main tendencies in the network operations have been defined, including the development of long-term partnerships with suppliers, buyers and contractors to gain competitive advantage in partnerships and reduce risks; decentralization of responsibility, strengthening coordination through the development of horizontal communications. It is concluded that the basis of network formation is synergy, which can improve the efficiency of entrepreneurship development in Ukraine by formalizing the optimal ratio of vertical and horizontal links and interactions. The main synergistic effects are provided in terms of causes and forms of manifestation, including: improved management efficiency, elimination of duplication of functions, savings on the scale of production, diversification, integration of the scientific research base, optimization of commodity flows, reduction of payments to budgets, monopolization of the market, improvement of financial indicators, effect of a large organization.
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