UDC 339.13.012-051:664.6/.7:005.343-025-27
THE CLUSTER APPROACH IN ENSURING THE COMPETITIVENESS OF THE PARTICIPANTS OF GRAIN AND GRAIN PRODUCTS MARKET
Petrushina O.V., Post-graduate student
Kursk State Agricultural Academy named after Professor I.I. Ivanov, Kursk, Russia
E-mail: [email protected]
ABSTRACT
The article analyzes the current content of the concept of «agro-industrial cluster» and the author's understanding of the process of clustering regional space is represented. View on the essence of competition through the prism of the cluster approach is reflected. The assessment results of the potential of the clustering regional space of Kursk region on the sphere of activity «agriculture» are presented. The main factors affecting the ability to combine participants of grain and grain products market in the agro-industrial cluster are reflected. The algorithm of making decision about the appropriateness of combining participants of grain and grain products market to a cluster through economic and mathematical modeling based on the theory of fuzzy sets is described. Calculated estimation of the advisability of combining existing participants of grain and grain products market in the agro-industrial cluster is presented. The results of empirical studies on the basis of official statistical reporting of model enterprises - potential cluster participants are presented.
KEY WORDS
Grain, cluster, factors, evaluation, competitiveness.
By the law of the Russian Federation «On grain» established that the grain is a national treasure, one of the main factors of economic stability [1]. Grain and grain products market is comparable with the core in the development of the agrarian economy and the agri-food market, largely determine the functioning of all its participants.
World markets interact and evolve as a single organism, capable of reacting quickly to changes. The practice of imposing sanctions on individual states has shown that, despite the importance of their economies in the global system, «organism» pretty quick adapt to new conditions in the case of loss of particular market, and it is actualize the issue of domestic cooperation and joint search for the best ways of developing for representatives business and government. World experience gives examples of increasing the competitiveness of territories and economic entities through the implementation of a cluster regional policy [2].
Diversity and individuality of clusters complicate their typification. There are various definitions of this form of relationships between the different actors of business community and authorities. Understanding and interpretation of the distinguishing features, essence and features of agro-industrial clusters is also quite extensive (Table 1).
In practice, Russia has not yet created any agro-industrial cluster. Still is no single universally accepted definition of the term «cluster», the definition of a cluster is not fixed by law. Within the framework of considered problems, we understand cluster as sustainable intersectoral partnership territorial subjects of the market, including the state, in the framework of the implementation of current production, financial, economic activity and consolidation of strategic initiatives to improve the competitiveness of cluster members.
In essence, we believe that clustering is a modern market mechanism coordinating the interests of participants in agricultural markets. Practical realization of the cluster approach requires a detailed study of the prerequisites for creation of the agro-industrial cluster formations. Assessing the potential of clustering through calculating the integral coefficient of clustering potential in sphere of activity «agriculture» in the Kursk region (3.2) led to the conclusion about the practicability of the question consideration of sectoral cluster structures creation [4]. Using the techniques of cognitive modeling revealed key aspects of structuring cluster based on the value chain of the final product [5].
Table 1 - The current content of the term agribusiness cluster [3]
The essence of the concept «cluster» as a phenomenon Trends and realities of clusters development Features of the concept of «cluster» in agroindustrial complex
The dynamics in the development from the «group» of participants to the «system» Formation of clusters in conditions of the growth of science intensity and innovation. Agriculture - a strategic industry
Industry generates a substantial amount of biological wastes
Localization
Independence of participants (legal)
The growth of high processability of agro-industrial complex The huge potential of using ultrafast processes in a regime with peaking
Multisectoral nature
Voluntariness Incomplete upload of processing and animal feed industry
The use of technologies of local application
Informality
Unique competitive advantages of location The significant role of clusters in the development of rural territories
The growth of the ecological compatibility of agricultural production
Global strategies Increased competition with the entry of Russia into the WTO, sanctions policy
Strong competitive positions in the country and world market
When assessing the consolidation to cluster, for the participants of grain and grain products market the main objectives are expanding production capacity, reducing all sorts of costs in the way of increasing revenues and profits. The main factors affecting the possibility of combining participants of grain and grain products market in the agro-industrial cluster are shown in Table 2.
Table 2 - Main factors affecting the possibility of combining participants of grain and grain products
market in the agro-industrial cluster
Factors Characteristics
1. Labour resources Assessment of staff and system working with staff
1.1. Management team Strategic unity and effectiveness of current management
1.2. Production staff Monitoring of staff on working specialties, labor productivity
1.3. HR-system Staff selection system, additional training, advanced training and retraining, encouraging the development of labor potential.
2. Management quality The implementation of the strategic objectives of development
2.1. Resource intensity The efficiency of using limited resources in ensuring production activity
2.2. Profitability Economic efficiency of production, financial, and economic activity
2.3. Stability Positioning in the market, the financial stability of the enterprise
3. Partnerships The assessment of possibility of participation in the cluster
3.1. The volume of production The volume of production this type of product required for other members of the cluster
3.2. The structure of production The share of these products in the total production of the enterprise
3.3. The structure of consumption The share of these products in final products (except grain producers)
4. Property providing Production potential
4.1. Adequacy of the property composition Structure and status of main and circulation funds
4.2. Territorial positioning The geographical position of the company in relation to other potential cluster participants
4.3. Growth potential The possibility of expanding the production base
5. Competitive advantages Revenue increase and expansion of customer base
5.1. Market share growth Expanding the range of products and sales market
5.2. The quality policy Improving the technical, technological processes, logistical support of production
6. Financial result Improvement of financial results
6.1. Cost minimization Optimization and minimization of enterprise costs
6.2. The increase in net profit Improving the effectiveness of financial and economic activity of enterprise
Deciding on the feasibility of combining participants of grain and grain products market in the cluster is possible through economic and mathematical modeling based on the theory of fuzzy sets by determining the overall index of the possibility of combining [6].
Sequentially forming plurality of basic factors influencing the possibility of combining economic entities in the cluster (x^ x2, ..., xn) defined in group membership (enlarged influencing factors) through the function y1 ... yn form the hierarchical classification of the factors of influence. Term sets of basic factors are defined as low (L), below average (BA), average (A), above average (AA), high (H).
When calculating the enlarged influencing factors, Mamdani algorithm of fuzzy inference implemented through defuzzification of results by the method of the center of gravity.
Variant of the settlement estimation results of the feasibility of combining participants of grain and grain products market to a cluster is presented in Table 3.
The value of the overall index of the possibility of unification 5.8309 indicates the ability to create a cluster.
Results of empirical studies based on the results of official statistical reporting model enterprises - potential cluster members (№ 1-5) showed that due to optimization processes of goods exchange, for participant 5 benefits of joining the cluster formation reduces the cost of finished products at 13.97%, for the participant 3 - 6.4%, and for the participant 1 to increase the profitability of production by 2.3%.
Table 3 - the settlement estimation of the feasibility of combining the market participants in the agro-
industrial cluster
The sequence number of participant
Parameter i 2 3 4 5 Final
Xi, X6, X2, X7, X3, X8, X4, X9, X5, Xio, assessment
Xii,..., X76 Xi2,., X77 Xi3,..., X78 Xi4,., X79 Xi5,..., Xeo
yi - management team A AA A BA H 6,6587
y2 - production staff A BA BA A AA 5,3257
y3 - HR-system L L AA A A 3,2578
y4 - resource intensity H A AA A H 7,2657
y5 - profitability BA A A A AA 4,9867
y6 - stability BA BA A AA H 5,2658
y7 - the volume of
production H H AA A A 7,9587
ye - the structure of
production AA H A A L 7,i257
yg - the structure of
consumption L H BA A AA 5,2657
yio - assets L BA A A AA 4,9576
yii - territory A AA AA A H 7,0050
yi2 - growth potential BA A BA AA AA 6,0080
yi3 - growth in market share L A L A BA 3,5987
yi4 - quality A A AA A A 6,000i
yi5 - cost minimization A AA L H H 6,0247
yi6 - growth in net profit AA H BA AA H 6,5897
G - the overall index of the possibility of unification 5,8309
The cluster approach offers alternative view on the essence of competition, a new vision of structuring the economy and progressive form of the institutional organization of the innovation process, as in the traditional competitive environment, the victory of one of the participants is equivalent to the loss of the other. The cluster approach violates the traditional logic of competition, providing the possibility of achieving the benefits to each of the subjects. Competition, which takes place in the framework of the cluster formation, is modified in the direction of strengthening the cooperative interactions of competing players and reducing the intensity of competition. As a result, the company's competitors operating in the same market, get an opportunity to combine their efforts to address common issues and achieve
mutual benefits, while maintaining its competitive positions relative to one another. Opportunities for cooperation within the cluster are numerous and include joint investment in building their own educational institutions, which are intended to educate specialized staff for needs of the players of the cluster; development of R & D base, common to all companies in the industry, lobbying issues of the provision of financial resources and other factors of production, as well as representing the interests of the industry afore state agencies.
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