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Economic Analysis: Theory and Practice
 

Specifics of managing the enterprise of the biofuel cluster

Vol. 15, Iss. 5, MAY 2016

PDF  Article PDF Version

Received: 25 January 2016

Received in revised form: 16 February 2016

Accepted: 3 March 2016

Available online: 18 May 2016

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: L65, M11, M13, M16, N70

Pages: 164-177

Chernykh V.V. Volga State University of Technology, Yoshkar-Ola, Mari El Republic, Russian Federation
ChernyhVV@volgatech.net

Importance The article considers enterprises being a part of a cluster, their functions and differences from other enterprises, not participating in the cluster. Management of such enterprises has certain specifics.
Objectives The aim is to analyze the specifics of the cluster approach, features of biofuel cluster enterprises' operations, and their administrative functions.
Methods The study employs general scientific methods, like analysis and synthesis, induction and deduction, and comparison. I apply techniques helping to evaluate possibilities of cluster creation in certain territories: the techniques of coefficients of development, stochastic modeling, and ranking.
Results The paper states the existence of a number of specific features in the management of biofuel cluster enterprises, their advantages and shortcomings. I highlight major administrative functions realized in the cluster approach, i.e. integration, coordination, and cooperation, and analyze the risks of the enterprises.
Conclusions The revealed specific features, arising during the integration of enterprises into a biofuel cluster, include activity specialization, flexibility, reliability of contracts with suppliers, and market development. The findings may be applied by experts to assess opportunities of cluster creation in certain territories, in particular, when forming a technological chain of enterprises of the biofuel industry.

Keywords: biofuel, cluster, management, cluster approach, enterprise

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