Baltic Journal of Economic Studies (Jun 2018)
CONGLOMERATE MANAGEMENT OF ENTERPRISE AS SOCIO-ECONOMIC SYSTEM
Abstract
In modern conditions of political, economic, and social globalization, it is difficult to overestimate for Ukraine the need for research and introduction of new forms of enterprise management. World tendencies of the interaction of business elements are characterized by decentralized integration, in which, preserving their legal and industrial identity, small and medium business is united in economic communities, trying to withstand large monopolistic associations. The modern business environment in the dual model at one pole is represented by corporations, TNCs, MNCs, and at the other pole – by free entrepreneurs (freelancers), the number of which is steadily growing. The contradictions and shortcomings of both poles are harmonized by the intra-national integration of economic interests. New business models of economic interaction arise that require new models and forms of management, require the creation of new, adaptive formats of business interaction that involves the mandatory inclusion of standards for sustainable development (economic, environmental, and social mechanism). Such a new form of management, in our view, can be an innovative model of conglomerate management, which implies not only conglomerate mergers and acquisitions of corporations but also new mechanisms for interaction of small business structures of different economic and sectoral orientation. The terminology and the theoretical basis for studying the conglomerate as a socio-economic system that includes the basic phrase “socio-economic system” were defined. Such a form of organization of socio-economic systems, which would consolidate high competitive advantages, innovative orientation, and significant expansive potential, is proposed. On the basis of generalization of the corresponding theoretical provisions and revealed peculiarities of the formation of spatially localized systems, we assumed that emerging as local “points” of economic growth zones, individual elements or subsystems of enterprises are transformed into territorial production complexes (hereinafter abbreviated as TPC), and then – by implementing the missing infrastructure and institutional components into a variety of cluster forms, into conglomerates. As a result of the research, the following scientific substantiations and conclusions are formulated: 1. For the first time, the term “conglomerate management” was proposed as the aggregate interaction of enterprises united into a spatially localized socio-economic system and a methodological approach to managing such complex structures. 2. A terminology for investigating the purposeful transformation of society and the economy into an additive socioeconomic system is developed. Such studies are especially relevant for the modern domestic economy, which contains controversial characteristics of the deterministic and nondeterministic economic model, as well as poorly predicted agglomerate and synergistic effects. 3. A model for organizing and managing conglomerates of a new type is formed. The architecture of the conglomerate enterprise management model as an element of a socio-economic system with an innovative basis as a priority for the dynamic development of a conglomerate is proposed. 4. We also find it economically sound to create a model of developing the strategic potential of an enterprise as an open socio-economic system, to use the mathematical apparatus of studying models of the fractal type that describes the evolution of a modelled system of fractal objects. 5. A parametric characteristic of the formation of a deterministic model of conglomerate control of a fractal type as a socio-economic system was developed and brought to the form of an economic-mathematical model.
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