The role of collective communities in ensuring the stability of the industrial enterprises in the economic crisis

V. I. Pleshchenko ()

Russian Journal of Industrial Economics, 2015, issue 2

Abstract: For a long time the development strategy of domestic steel industry envisaged increased sales in the country and reduced dependence on export . However, the crisis of 2014-2015 changed the economic behavior of industry players, resuming growth in steel exports. In a parallel, the situation on the domestic market was destabilized because consumers were unable to purchase materials and components for export parity prices. A similar situation has developed in a number of other industries, in particular, the pulp and paper products and chemical fertilizers. Problems can be solved through balanced use of both market and administrative regulation. A role in this process can play modern institutes of coordination between companies , such as the collective communities (clubs) created by consumers or sellers. The changes in the economy transformation significantly influenced also the previously generated communities. In particular, the role of horizontal clubs in promoting the interests of its members, especially in the process of interaction with public authorities ,has increased. On the other side, the capacity to influence the behavior of companies of vertical clubs has reduced, especially in industries associated with the consumption of products supplied to the foreign markets. It turns out that benefits from increased revenue are more attractive to sellers than maintaining positive reputation effect. As a result of the efficiency of the vertical clubs around individual enterprises depends largely on the activity of horizontal associations.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2015:id:464

DOI: 10.17073/2072-1633-2015-2-59-65

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