Model optimisation of interaction of small and large enterprises

Sherstennikov Yuriy V. ()
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Sherstennikov Yuriy V.: Dnipropetrovsk National University named after Oles Gonchar

The Problems of Economy, 2013, issue 2, 298_305

Abstract: The determining feature of a small enterprise (SE) is absence of its inertia, in other words, its ability to quickly adapt to the market situation and pass to output of new products. This feature makes a SE an attractive partner for a large enterprise (LE). The world experience proves that different forms of integration of SE between themselves, and also with LE, which are established under modern conditions of doing business, are efficient. The goal of the article is to develop a set of economic and mathematical models, which allow studying interconsistent production activity of LE and SE within such forms of co-operation as franchise, outsourcing and cluster and perform project planning of joint operation of enterprises. While considering different forms of co-operation as vertically integrated systems, the article develops a set of economic and mathematical models and offers methods of optimal project planning of joint activity of enterprises. The conducted calculations prove effectiveness of application of such forms of integration as franchise, outsourcing and cluster when conducting small and large businesses in market conditions.

Keywords: vertical integration; cluster; franchise; outsourcing; project planning (search for similar items in EconPapers)
Date: 2013
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