Coverage of Production Chains in Cooperation Industrial Enterprises

Evgeny Kuzmin () and Olga A. Romanova
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Evgeny Kuzmin: Ural State University of Economics
Olga A. Romanova: Institute of Economics of the Ural Branch of the Russian Academy of Sciences

A chapter in Digital Transformation in Industry, 2021, pp 87-96 from Springer

Abstract: Abstract The complexity of production processes substantiates the need for a joint industrial activity for developing innovative products. According to the common practice, the major source of breakthrough innovative solutions is small and medium-sized enterprises (SME). The intra-corporate transfer of such solutions can significantly reduce the time needed to establish new production facilities and become a key factor in the competitive struggle in the market. The formation of SMEs cooperation networks falls within the framework of industrial cooperation research. Using the case study of Russia, we address the issue of an effective production network of cooperation between SMEs and large companies. The research sample comprised 14 enterprises distributed according to the industries dominating in the Russian economy. The data obtained show that large enterprises partially owned by the state and acting as cooperation centers are assigned a specific “anchor” role. Anchor companies tend to lower the level of production localization. However, this does not have a significant effect on increasing their financial performance and does not depend on the share of state participation. Russia’s experience clearly highlights the weakness of cooperation, albeit with trends towards positive change. In 2015–2019, there was an increase in the share of orders placed by large manufacturers with SMEs. The share of SMEs within the production chains is substantially differentiated and varies between 5.5 and 79.5% for the enterprises under consideration.

Keywords: Cooperation; Production chains; SMEs; Production networks (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/978-3-030-73261-5_9

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