RESEARCH OF CONCEPT OF “CARTEL” PHENOMENON AS AN INDIVIDUAL FORM OF ASSOCIATION OF ENTERPRISES

Abstract

The domination of two institutions is inherent for the modern historical stage of evolution taking place in the economic domain, namely, the entrepreneurial type of economic activity and competition, which has acquired its global form of “hypercompetition”. Under such circumstances, economic entities, in order to provide for the possibility to realize their own economic interest, as well as to maintain continuity of their life cycle, in addition to the pricing and non-pricing means of competitive struggle, use their organizational form as well. Worldwide experience of management witnesses of the emergence of new, modernization of already existing ones, and relevant significant expansion of the list of types and forms of organizational structures of entrepreneurship, the use of which enables enterprises with different competitive advantages to provide for the necessary level of their competitiveness. Unfortunately, theoretical aspect does not adequately address the mentioned empirical data. Conducted theoretical analysis of current achievements in the field of Economic Science made it possible to highlight three concepts that investigated into this problem, in particular: “integrated corporate structures”, “integrated business structures”, “business associations”. It should be noted that, as a result of the methodological incompleteness of the conducted surveys, as well as a series of ontological and logical errors, the developers of each of these concepts failed to solve the problem, and therefore, the corresponding set of knowledge did not gain the form of a developed theory. Each of the above concepts solved one problem, i.e., gave definition to the general notion of an abstract phenomenon, whose scope would have to cover all the diversity of individual concepts of modern concrete forms of entrepreneurship organizational structures. At the same time, survey results came mainly to the search for an essential feature of the abstract phenomenon notion, which performs the logical function of “coordination (mutual arrangement)”. In the first of these concepts, “corporate structures” category was of importance, in the second it was “business structures”, and in the third it was “business associations”. Although the presented categories performed their specified logical function, the developers of these concepts failed to solve the problem and develop the content and the essence of the phenomena under investigation. The relevant categories were transformed only to the level of terms. In order to solve the problem, it would be necessary to identify such fundamental essential features of the phenomenon that can perform such logical functions as “subordination” and “accumulation (inclusion into the whole)”. Therefore, in the corresponding concepts, the lack of identity is observed between the essential features of an abstract phenomenon generic notion and the general features of the individual concepts of specific phenomena. That is, the inclusion of the latter ones to the scope of the former one took place on a comparative basis. Consequently, the results of the survey ended at the level of the definitions formulated for the general concept of the phenomenon and the individual concepts of its specific forms, as well as their grouping, which was performed on the axiomatic basis rather than on the logical methodological ones. Together with this, the relevant clauses also apply to the microeconomic system called cartel, which was introduced as a form, to the extent of the general notion of the abstract phenomenon of each of these concepts. Speaking of the phenomenon called cartel, the surveys were mostly completed within each of the abovementioned concepts at the level of the empirical result. The latter was reflected in its identification through the description of the relevant term content, as well as the description given to the historical experience of the utilization of this microeconomic system species form in economic practice. Theoretical studies, meeting the normative methodological requirements (the study of the phenomenon as “subject”, “process”, “in relations with the environment”), were not carried out by the developers of any of the relevant concepts. The solution to this issue is urgent at present. Based on the research carried out, the following conclusions were drawn: 1. The results of the analysis performed for the content of the definition of the “cartel” phenomenon showed that among scientists, there is no agreed position on determining its essence as a separate form of the microeconomic system. 2. The concept of the “cartel” phenomenon is in subordination to the concept of a microeconomic system referred to as the “association of enterprises”. 3. The notion of the “association of enterprises” refers to the concept of a “microeconomic system” as a special one concerning the generic. 4. Association of enterprises is a form of a microeconomic system of the summative type with of organizational structure features, formed by a group of enterprises on the basis of cooperation relations in order to provide certain conditions for the implementation of entrepreneurship by each of them separately by means of consolidating their competitive advantages. 5. A cartel is a separate form of the uniting of enterprises, which is created by a group of large enterprises belonging to the same industry, which occupy leading positions, in order to coordinate their sales activities by means of its territorial segmentation and harmonization of common conditions for the implementation of the appropriate type of economic activity.

Authors and Affiliations

O. H. Bratuta

Keywords

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  • EP ID EP563366
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How To Cite

O. H. Bratuta (2018). RESEARCH OF CONCEPT OF “CARTEL” PHENOMENON AS AN INDIVIDUAL FORM OF ASSOCIATION OF ENTERPRISES. Держава та регіони. Серія: Економіка та підприємництво, 4(103), -. https://europub.co.uk./articles/-A-563366