Corporate networking management based on the cost approach

Abstract

The COVID-19 pandemic caused a significant drop in the tourism sector. Precarious existence of the tourism agencies can be based on the development of the corporate business network managed by the formation of the key network resource – social capital. This research is aimed at the development and testing of the original toolset for the assessment of social capital and creation of the universal model of corporate networking management based on it. The subject of this article is the social capital of a company. The object is the operating tourism agency of Sverdlovsk Region “Mellow Season” LLC. The information framework is comprised of the corporate financial data for the period from 2014 to 2020. The expediency of implementation of cost approach on the level of individual companies is determined. The algorithm of corporate networking management based on the analysis of sustainable business ties portfolio is offered and tested. The author establishes that the company practices one-time and repeated transactions mainly with non-specific assets; specific assets are used only in transactions with the customers. Typical precontractual costs are the costs for searching information, negotiating, and concluding the contract. Typical postcontractual costs are the costs for monitoring and enforcing the counteragents to discharge their obligations. The author analyzes the information on the components of the social capital. Sustainable business tie was identified with 12 suppliers, 28 tourism agencies, and 158 customers. The analysis of behavioral practices of tourism agencies and expert assessments establishes the efficiency standards of transaction costs. It is also determined that the cost savings from the use of social capital for the company under reviews amount to 46.8% of their volume without its use. The recommendation is made to maintain the existing network of sustainable business ties; use the accumulated trust in sustainable business ties with the customers to expand the client base; shift priorities from the transactions made due to the established mechanism of business procedures towards seeking for new opportunities on the market. The author develops the universal model of corporate networking management.