Vertical integration in the concept of value chains

Authors

Keywords:

value chain, vertical integration, production structures, integration strategies, industrial development
Supporting Agencies
The research was carried out with financial support of the Belarusian Republican Foundation for Fundamental Research (grant «Science M Г19M-143»).

Abstract

The article is devoted to the modern dynamically developing concept of value chain management. The goal of value chain management is to build business processes in distributed production systems (business systems) that produce final products, aimed both at ensuring the financial stability and competitiveness of participating enterprises, and at the economic development of the regions where they are based, including the national economy. The study examines the main approaches to managing value chains (marketing, network, international division of labour). The author proposed several options for general management decisions, studied the types and forms of vertical integration, highlighted the main strategies of vertical integration: «the lower road to competitiveness», «high road to competitiveness», identified and systematised advantages and disadvantages of vertically integrated structures.

Author Biography

  • Petr E. Rezkin, Polotsk State University, 29 Blahina Street, Navapolack 211440, Belarus

    PhD (economics), docent; director of the Institute for advanced studies and retraining

References

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Published

2021-07-30

Issue

No. 1 (2021): Journal of the Belarusian State University. Economics

Section

P. Economic Systems

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How to Cite

[1]
Rezkin, P.E. 2021. Vertical integration in the concept of value chains. Journal of the Belarusian State University. Economics. 1 (Jul. 2021), 109–119.