Mechanisms of Integration Interaction as a Determining Factor in the Development of Industrial Enterprises

Abstract

AbstractIssues arising in the process of cooperation and integration of industries are becoming a priority. The development of horizontal and vertical integration, the formation of associations for joint production, processing, sales of products, etc., are becoming the key directions for the development of machine-building integration interaction.The purpose of the study is to analyze the types and elements of integration, as well as to develop an algorithm for implementing the mechanism of integration interaction as one of the key factors in the development of industrial enterprises. The article discusses the benefits arising from the integration of enterprises, describes the types of integration interaction. The research methodology is based on the analysis of information published in the open press and includes empirical, theoretical, cognitive and general logical methods.An algorithm for the implementation of integration interaction, a fragment of which was tested in the process of merging enterprises of the machine-building industry into one legal entity, was developed as a result of the study. The article notes that the results of such interaction can be expressed through a change in such indicators as: profit growth, an increase in sales income, an increase in profitability, an increase in the number of fixed assets, an increase in authorized capital, etc.KeywordsIntegrationIndustrial enterprisesHorizontal integrationIntegration structuresFive-factor modelJEL CodesI 3O 1O 5