CHARACTERISTICS OF APPROACHES AND INTEGRATION IN THE INVESTMENT AND CONSTRUCTION COMPLEX

  • Yu. Prav PhD in Еconomics, Associate Professor, Associate Professor of Public Administration Department, Higher Educational Institution “Interregional Academy of Personnel Management” Private Joint-Stock Company, Educational-Scientific Institute of International Relations and Social Sciences, Kyiv https://orcid.org/0000-0003-0701-9479
Keywords: construction sphere, corporate integration, strategic management, investment activity, investment-building complex, regional market.

Abstract

The purpose of the article is to develop the characteristics of approaches and to determine the prerequisites for integration in the construction field. It is noted that the main reasons for the insufficiently high level of development of enterprises in the investment-building complex is the inefficient system of management of integration processes. It is determined that in the production structure today is dominated by small enterprises. The essence of the integration approach in the development of enterprises of the investment-building complex is determined. It is stated that the methods of strategic management should be used comprehensively, as they affect certain aspects of the organization of investment activities of construction organizations in the complex. It is determined that merging construction organizations into a corporate structure is only advisable if the real effect of the merger is obtained. Specific features of corporate structures are considered: the majority of participants of created corporate structures are operating organizations; the effect of the set of all activities of the corporate structure exceeds the sum of the effects of each direction separately. The following approaches to assessing the effectiveness of corporate integration are distinguished: an approach related to the theory of financial management; a competitive advantage approach; an approach related to transaction cost theory and an approach aimed at building mutually beneficial long-term business relationships. The factors that influence the investment potential of the construction complex and determine the economic efficiency of diversification programs are identified. It is determined that the most important indicator of competitiveness is the share of final construction products sold by the corporation in the total sales of similar products.

The essence of the concept of “corporate culture” is considered. The main functions of the corporate structure ideology are defined: definition of corporate purpose; mobilization of corporate staff; defining clear criteria for belonging to a given corporate structure (the principle of separation of “we-they”, “one-stranger”); the formation of a value system that helps in the future to choose the most appropriate methods to achieve the goal.

Published
2020-05-26