Allocation of a resource portfolio in a group of industrial enterprises

Abstract

Efficient resource allocation is the key to ensuring the economic growth. Business integration generates both coordination and distribution effects of resource allocation. The former reflects the efficiency of the whole group in terms of resources distribution, the latter illustrates benefits and/or costs of its individual participants obtained due to resources dispensed to them. The paper develops and tests a method for assessing distributive allocative characteristics of resources in a group of enterprises. Neoclassical and new institutional economics constitute the methodological basis of the research, including the theories of production possibilities and industrial organisation, and the contract theory. The 2014–2021 data on economic performance of OOO MMC-Steel, a local group of enterprises in control of the Ural Mining Metallurgical Company, one of the largest holdings in Russia, are studied using general (system analysis and synthesis, typology) and economic statistical methods. According to the findings, there are seven types of resource allocation, which impact on the coordination and distribution effects in a group of industrial enterprises. The study develops a method for assessing three types of distributive allocation of resources: factor- and product-based, intra-organisational. The testing of this toolkit in three groups of resources (production, material, and labour) demonstrated that OOO MMC-Steel features a significant heterogeneity, and the level of allocation of resource portfolio is substantial. The proposed approach enables the creation of a resources strategy that takes into account the solutions to the problem of resources’ allocative efficiency in a group of industrial enterprises.

Keywords

• resource allocation
• resources
• holding
• industrial group
• resources strategy
• industrial enterprise