Network Integration as a Tool for Sustainable Business Development

Abstract

Business enterprises are required to adopt new economic models and business strategies in line with global trends such as the green agenda, the shortening of innovation cycles, digitalization (networking platforms) and socio-economic security. The models of network integrations (clusters, industrial symbioses, innovation ecosystems, etc.) are developing faster than other business models. Networking allows businesses to synergetically, based on the principles of collaboration, trust and self-organization, increase intellectual, innovative, social, and environmental values, which leads to economic growth and sustainable development. Through networking integration, the business performance of all participants in multi-company projects can be improved, regardless of their size and activities. The purpose of this study is to develop a methodological framework for assessing the synergistic effect and the level of collaborative maturity of participants in network industrial integration. This paper provides a comprehensive analysis and evaluation of network business integration efficiency. The authors’ methodology is based on the AHP hierarchy method, expert evaluation and Harrington’s level of desirability. The methodology is validated on Russian industrial integrations: industrial cluster of Nizhny Novgorod region; pipeline valve manufacturing cluster; South Ural industrial cluster producing spare parts and assembly units for roadbuilding, construction and agricultural vehicles. The results show that the level of collaborative maturity of business partners and the synergies from network integration effect the sustainability of business development. Recommendations for businesses are provided to improve their network integration and collaborative maturity. Furthermore, the findings allow the authors to define directions for further research, considering the interests of the business community, regional authorities, and financial institutions, and provide a framework for researchers to investigate the link between industrial network integration and economic growth.