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3INDUSTRIAL COOPERATION AS A TOOL FOR INTERACTION BETWEEN INDUSTRIAL ENTERPRISES IN RUSSIA
Abstract
Nowadays, the objectives associated with the development of the real sector of the economy are becoming more relevant. Production constitutes the backbone of the Russian economy, defining its level and specialization. It is a set of economic entities engaged in production of goods in material form and classified to the sphere of circulation which delivers the goods to the consumer; however, to build a more effective system for the development of this sector it is required to develop tools to improve the efficiency of its development. One of such tools is the development of industrial cooperation. The purpose for the paper is to study the development of industrial cooperation. The study reveals the essence, peculiarities and factors in the development of industrial cooperation. The author briefly analyzes the development of industrial cooperation in the regions. It is concluded that the economic policy of the country aimed at regions' economic growth may rely on the initiatives in the development of industrial cooperation.
Keywords
industrial cooperation, regional economy, economic development, industrial enterprises
AUTHOR
Ekaterina P. Kuznetsova
research engineer, Federal State Budgetary Institution of Science Vologda Scientific Center, Russian Academy of Sciences, Vologda, Russia.
56a, Gorky street, Vologda, 160014, Russia E-mail: 333.maarel.333@mail.ru
1. Introduction
One of the main issues of the Russian economy is shifting from the development model with predominant commodity exports towards the model with predominant production of knowledge-intensive high-value-added goods. Addressing the issues would help reach a firm leading position in the world and increase the economic growth of regions and the country as a whole (Gulin, 2012; Mazilov & Kremin, 2016).
Market reforms of the 1990 s changed both principles of organization and management of industrial enterprises and the basics of interaction with the customer. The state order was no longer able to fully ensure the viability of enterprises, so the emerged technological gap hindered the production of competitive goods for both domestic and foreign market. Thus, there is a problem with producing high-tech goods in the region (Brazhnik, 2008).
One of the possible tools to solve this problem is the use of industrial cooperation.
In this regard, the purpose for the research is to study the development of industrial cooperation as a factor in regions' socio-economic development.
The purpose determines the need to solve the following objectives: analyze research in this area, identify the nature and specific features of industrial cooperation, classify factors in industrial cooperation development.
2. Materials and Methods
The development of cooperation relations was covered in many works by classic economic writers, namely, K. Marx, D. Ricardo, A. Smith, M. Porter, M. Enright, and P. Drucker.
The aspects of formation of the system of inter-regional cooperation is reflected works by A.G. Granberg, A.I. Tatarkin, V.V. Kotilko, V.I. Leksin, A. N. Shvetsov, T.G. Morozova, A.S. Novoselov, V.I. Suslov, and R.A. Latypova (Granberg, 2004; Tatarkin, 2011).
In modern economic science, there is a range of opinions about the nature and content of industrial cooperation.
M.V. Brazhnik indicates that the word "cooperation" comes from the Latin "cooperation", which means "collaboration", "cooperation", and the term "collaboration" means arrangement of direct sustainable production ties between enterprises based on deepening their specialization.
In this context, collaboration should be understood as relations of enterprises which allow joint production activity on a contractual basis without loss of legal and economic independence (Brazhnik, 2008).
The advantage of this definition, in our opinion, is that the author focuses on sustainability as an integral feature of cooperation relations, which distinguishes industrial cooperation and other forms of cooperation, for example, short-term interaction of industrial entities.
Bolshaya sovetskaya entsiklopediya (the Great Soviet Encyclopedia) gives the following interpretation of the category under study:
- a form of labor organization where a significant number of people are jointly involved in the same or different, but related labor processes;
- a set of organized amateur voluntary mutual support associations of workers, small producers, including farmers, which aim to achieve common goals in various areas of economic activity [6].
It should be noted that the source of cooperation is reduced to interaction of people, rather than legal entities.
L.J. Berry gives the following definition of the category "cooperation in production" - production relations between enterprises jointly producing certain products but retaining independence. Collaboration is the result of social division of labor, specialization of production of further deepening. We cannot fully agree with the definition. Indeed, industrial cooperation is one of the most important consequences of social division of labor; however, it is advisable to refer to cooperation as only long-term relations, rather than, according to L.J. Berry, any relations between enterprises. Finally, would be correctly to include in industrial cooperation not only relations between the enterprises themselves (although, of course, they are the basis of cooperation relationships), but also those between enterprises, on the one hand, and other organizations such as banks, scientific and educational institutions, on the other hand. The long-term character of relations within industrial cooperation Is also emphasized in the following definition: "Collaboration" - establishment of long-term production relations between enterprises each specializing in a separate part of a single product (Berri, 1954).
It should be noted that this definition reduces cooperation to production relations, although in practice there are relations of industrial cooperation in sales, R&D, etc.
According to scientists such as A.N. Bulatov, I.N. Gerchikova, I.L. Litovchenko, I.V. Petrishcheva, production cooperation is the most common type of production relations of enterprises. Its essence consists in that independent manufacturers, as a result of contract-based joint activities produce target goods or parts of the final product (Bulatov, 2011; Gerchikova, 2010; Petrishcheva, 2011).
These authors believe that industrial cooperation has a number of specific features:
1) adaptation of stakeholders to joint activities on a contractual basis;
2) the long-term character of economic relations between the partners, which leads to stabile and reliable partnership;
3) different socio-economic nature of relations between the participants of production relations.
Based on analysis of various approaches to the essence and content of industrial cooperation we propose a refined definition of the category under review:
1. In the narrow sense, industrial cooperation is long-term sustainable mutually beneficial cooperation of business entities in their production activities.
2. In a broad sense, industrial cooperation refers to long-term contractual relations between corporate entities, small and medium business in the sphere of production and distribution of goods, logistics and R&D aimed to improve the overall efficiency of economic activity of enterprises at the expense of using the advantages of specialization.
Research methods
The study of the main approaches to the development of industrial cooperation used methods such as literature review, system approach, synthesis, induction and deduction, analogy, generalization, description, comparison, and logical method. The authors used domestic and foreign developments of the leading scientists in this research area.
Analysis of the industrial cooperation development in the regions and processing of other factual material was performed with the use of methods such as dialectical, chronological, logical, scientific generalization, comparative analysis, tabular, and graphical, which ensures the validity of analysis, theoretical and practical insights of the researched problem.
Research results
It is quite natural that the country's economy is competitive when its regions develop steadily and dynamically. The regions which can effectively use the potential of their own territory will have opportunities for socio-economic growth.
Therefore, Russian regions amid transition to developed market relations face the most acute issues of industrial cooperation.
The nature of industrial cooperation lies in the fact that companies included in the value-added chain are engaged in production of certain types of intermediate goods (components and assemblies) for producing the final product.
In recent years active development of industrial cooperation has been observed.
For example, the monitoring of industrial enterprises conducted by HSE (National Research University Higher School of Economics) has showed that one of the key factors in industrial cooperation efficiency in the regions is long-term and regular communication between stakeholders.
The survey involved 1057 manufacturing enterprises. The sampling of organizations was distributed by federal district.
The sociological survey has showed that manufacturing enterprises most actively cooperate with customers (78%) and suppliers of raw materials (74%) since amid sanctions imposed by foreign countries, which affected the economic activity of enterprises and import substitution, this type of partnership requires exchange of necessary components for producing the final product (Fig. 1).
FIGURE 1 - COOPERATION OF MANUFACTURING ENTERPRISES WITH CONTRACTING PARTIES, % Data validity: Compiled by the author based on data of monitoring of innovation-driven activity of subjects of the innovation process implemented in the framework of the Fundamental Research Program of Higher School of Economics, 2014-2015
According to the survey, the most relevant form of cooperation of manufacturing enterprises with external counterparties is long-term partnerships, the duration of which is more than 5 years, as well as cooperation on a regular basis (Fig. 2).
Органы государственной власти Консалтинговые фирмы ВУЗы, университеты Научные организации Поставщики услуг Предприятия-смежники Поставщики сырья, материалов Потребители
0 10 20 30 40 50 60 70 80 90 100 ■ разовая "менее года ■ 1-3 года ■ 3-5 лет "более 5 лет "бессрочнаярегулярная кооперация
FIGURE 2 - THE PERIOD OF COOPERATION OF ENTERPRISES IN THE FRAMEWORK OF PRODUCTION COOPERATION BY TYPE OF PARTNERS (SHARE OF ENTERPRISES WHICH
NOTED THE APPROPRIATE OPTION IN THE TOTAL NUMBER OF RESPONDENTS OF MANUFACTURING ENTERPROSES ENGAGED IN COOPERATION WITH CONTRACTORS), %
Data validity: Monitoring of innovation-driven activity of the subjects of the innovation process implemented in the framework of the Fundamental Research Program of Higher School of Economics, 2014-2015
The complexity, duration and terms of implementation of cooperation projects characterized by high risks and uncertainty, encourage enterprises to enter long-term cooperative partnerships with almost all potential partners, if necessary. The time factor plays a particularly important role when dealing with public authorities (41% of the surveyed industrial enterprises prefer interaction on a regular basis, 26% - long-term
10,3 5,4 9,8 7,6 25,5 41,3
21,9 8,2 19,2 17,8 19,2 13,7
10,6 2,2 15,6 16,2 31,3 24
11,6 3,7 15,1 12,8 36,2 20,6
10,1 5,2 15 12 30 27,7
7 7,9 17,2 11,9 26,2 29,8
7,6 3,8 14,2 12,9 32,4 29,1
8,9 3,8 13,4 9,1 28,5 36,3
-1-1-1-1-1-1-1-1-1-1
cooperation for the period of more than 5 years), as state participation can reduce the risks of enterprises' production activities.
Occasional contacts most often occur with consulting firms which can provide information necessary for innovation development, as well as various other services; and have competences important for manufacturing enterprises. This form of interaction was chosen by 22% of enterprises. But here, mainly stable and even long-term cooperation is practiced, including the form of joint projects.
The development of industrial cooperation requires efficient infrastructure, convenient information support for customers and contractors. One of the elements of such an infrastructure is the "National Partnership of Subcontracting Development" ("NPRS" non-profit) established in 2004.
We note that subcontracting is a widespread form of industrial cooperation where one enterprise (the contractor) entrusts to another enterprise (the subcontractor) to manufacture products for industrial purposes, as well as perform R&D according to the requirements. Such cooperation ensures highest production efficiency through the rational use of available resources. Subcontracting is widespread in industries such as machine building, metal working, electrical engineering, and electronics. The subcontracting system of production management is based on contractual work.
As a rule, the contractor is represented by a principal assembly enterprise. Subcontractors are specialized enterprises of small and medium business.
NPRS currently brings together 35 regional subcontracting centers including those in Ukraine and the Republic of Belarus. The system contains about 17.000 subcontractors (suppliers of products for industrial purposes) and about 4.000 contractors (customers of products for industrial purposes)1.
According to the online survey conducted in 2015 by the Chamber of Commerce and Industry of the Russian Federation jointly with NPRS in the framework of monitoring of business environment in the regions, which included 181 enterprises from 43 regions, the processes of cooperation in the form of subcontracting involve about 46% of small businesses, 32% of micro-enterprises and 10% of medium enterprises registered in the system. This suggests that the regions possess a sufficient number of enterprises producing goods for industrial purposes (Fig. 3).
Source: The Chamber of Commerce and Industry of the Russian Federation. Available at: https://tpprf.ru/ru/business/gp/
FIGURE 3 - SHARE OF SUBCONTRACTING ENTERPRISES OF VARIOUS TYPES REGISTERED IN NPRS NON-PROFIT IN 2015, %
1 Products for industrial purposes are products intended for using as a means of industrial and agricultural production (raw materials, semi-finished goods, components, complementary parts, equipment, capital construction facilities, industrial services): GOST R 15.21-2000.
The sociological survey also revealed that the leader in the number of subcontracting enterprises is the Central Federal district (nearly one third of all subcontracts involved in industrial cooperation in 2015) (Fig. 4).
FIGURE 4 - GEOGRAPHICAL SPREAD OF SUBCONTRACTING ENTERPRISES REGISTERED
IN THE NPRS NON-PROFIT IN 2015, %
Source: The Chamber of Commerce and Industry of the Russian Federation. Available at: https://tpprf.ru/ru/business/gp/.
3. Conclusion
The study concludes that the concept of industrial cooperation will become one of the key drivers of regional economic growth in the near future.
However, this requires dynamic actions on the part of public authorities and management aimed to develop the necessary legislative framework and system of measures to increase state support efficiency for enterprises participating in industrial cooperation at the regional level.
In our opinion, further research in this area should be devoted to the development of organizational and methodological bases for implementing innovation-driven transformations in the Russian economy in the framework of the concept of industrial cooperation, which will help identify the areas of organizational and technological transformation of the production sector of the economy, increase productivity and re-focus regional systems on sustainable economic growth.
REFERENCES
Berri, L.Ya. (1954). Specialization and cooperation in industry of the USSR. The Great Soviet Encyclopedia. Vol. 7.
Brazhnik, M.V. (2008). Analysis of organizational forms of inter-economic cooperation and agrarian and industrial integration in the USSR national economy in 1960-1970. Problems of Modern Economics, 2008, no. 2, p. 16.
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Moscow, P. 7.
Bulatov, A.N. (2011). Methodology for strategic management of industrial cooperation. (Doctor of Economics dissertation abstract). Tipografiya KGFEI. 43 p.
Gerchikova, I.N. (2010). International inter-firm industrial cooperation. Management. Moscow: Yuniti-Data. Available at: http://sci-lib.biz/menedj/222-mejdunarodnoemejfi rmennoe-43258.html.
Granberg, A.G. (2004). Textbook for universities. Higher School of Economics. 4th edition. Moscow: Izd. dom GU VShE.
Gulin, K.A. (2012). On the issue of socio-economic modernization of Russian regions. Economic and Social Changes: Facts, Trends, Forecast, no. 4, pp. 42-58. URL: http://esc.vscc.ac.ru/article/318.
Mazilov,E.A. & Kremin, A.E. (2016). Problems and trends of small business development in the Russian Federation. Territorial Development Issues, no. 5. Available at: http://vtr.vscc.ac.ru/article/2039.
«Patchwork quilt» of the economy (2017). Expert, no. 22, pp. 29-30. (In Russian).
Petrishcheva, I.V. (2011). Industrial cooperation amid small and large business cooperation: essence and forms. Available at: www.gramota.net/materials/1/2011/1/55.html.
Tatarkin, A.I. (2011). Historic mission of the middle region in the modernization of the Russian economy. Federalizm, no. 1, pp. 19-30.
DEVELOPMENT OF STUDENTS' LINGUISTIC COMPETENCE UNDER CONDITION OF BILINGUALISM BASED ON ETHNIC-CULTURAL APPROACH
Abstract
The article covers the problem of the cultural conflict prevention through proper interpretation of ethnic-cultural stereotypes It also pays attention to bilingual education as an effective means of successful coexistence of various cultures in the polylingual world.
Keywords
stereotype, national character, ethnic-cultural stereotype, bilingualism, bilingual education, ethnic-cultural conflicts, cross-cultural communication
AUTHORS
Oksana V. Legostaeva
PhD, Master of Foreign Regional Studies, Associate Professor of the Department of Foreign Languages in Sphere of Professional Communication, Orel State University named after I.S. Turgenev, Orel, Russia. 40, Naugorskoe highway, Lenin Square, Orel, 302020, Russia. E-mail: fremdsprachenluxx@mail.ru
1. Introduction
In a contemporary world, where, probably, every ethnos would not hesitate to declare its uniqueness and independence from another one and break out a struggle for "its place under the sun" (a recent example is the referendum of Catalonia as part of Spain), it is important to know, understand and respect cultural and linguistic space of each other.
