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Economic Analysis: Theory and Practice
 

Synergetic effect of cohesion among business units in a holding group or corporation

Vol. 21, Iss. 5, MAY 2022

Received: 14 March 2022

Received in revised form: 25 March 2022

Accepted: 3 April 2022

Available online: 30 May 2022

Subject Heading: ANALYSIS OF INDUSTRIAL CAPITAL

JEL Classification: L11

Pages: 814–826

https://doi.org/10.24891/ea.21.5.814

Evgenii A. DRONOV Tula State University (TulSU), Tulamashzavod Production Association, Tula, Russian Federation
sekretar@tulamash.ru

ORCID id: not available

Vladimir N. SAMOCHKIN Tula State University (TulSU), Tulamashzavod Production Association, Tula, Russian Federation
samochkin@tulamash.ru

ORCID id: not available

Vladimir I. BARAKHOV Tulamashzavod Production Association, Tula, Russian Federation
potmz2@tulamash.ru

ORCID id: not available

Subject. The article addresses the evaluation of components of synergetic effect in a holding company (corporation) having subsidiaries. These components are formed due to the cohesion and connectivity of enterprises of the holding company (corporation).
Objectives. The aim is to determine the areas of functioning of the said enterprises, where a synergetic effect is formed due to their connectivity.
Methods. We determined the connectivity of enterprises and the synergetic effect arising from it, using our original model of commodity-money flows in the integrated structure and at each enterprise. The main link of the model, which takes into account the connectivity of enterprises, is a system of equations for the cost of intra-group and market products shipped by enterprises of the holding group (corporation).
Results. The paper identifies areas of enterprise functioning in the holding (corporation), in which a synergetic effect is formed due to their connectivity and cohesion. The synergetic effect of connectivity is defined as incremented results of economic activity of enterprises of the holding group or corporation that are generated by the connectivity. We use the Tulamashzavod case and provide specific examples of determining the synergetic effect of connectivity in the selected areas of operation of the holding group enterprises.
Conclusions. The synergetic effect, which depends on the connectivity and cohesion of enterprises in a corporation with subsidiaries, manifests itself as a large-scale factor. It generates an increase in sales volume at the corporation's enterprises due to intra-group turnover, and enables to increase their competitiveness.

Keywords: holding, corporation, cohesion of business units, synergetic effect, area of functioning

References:

  1. Dronov E.A., Barakhov V.I. [Cohesion of business units in a corporation formed on the basis of a defense industry enterprise]. Oboronnaya tekhnika, 2006, no. 8, pp. 39–43. (In Russ.)
  2. Dronov E.A., Barakhov V.I., Kuznetsov V.P. [Modeling the commodity-money flows in integrated structures]. Oboronnaya tekhnika, 2005, no. 8, pp. 58–63. (In Russ.)
  3. Dronov E.A., Barakhov V.I. [Synergetic principles of creating a corporation on the basis of defense enterprise]. Ekonomika i proizvodstvo = Economics and Production, 2005, no. 2, pp. 8–11. (In Russ.)
  4. Dronov E.A., Samochkin V.N., Barakhov V.I., Kuznetsov V.P. Prinyatie upravlencheskikh reshenii na predpriyatii na osnove modelirovaniya tovarno-denezhnykh potokov. V kn.: Nauchno-tekhnicheskaya produktsiya Tul'skoi oblasti i regional'nye kriticheskie tekhnologii [Managerial decision-making at enterprises on the basis of modeling the commodity-money flows. In: Scientific and technical products of the Tula Oblast and the key regional technologies]. Tula, TulSU Publ., 2004, pp. 191–198.
  5. Samochkin V.N., Barakhov V.I., Kuznetsov V.P. Gibkoe razvitie predpriyatiya i korporatsii [Flexible development of enterprise and corporation]. Moscow, Delo i Servis Publ., 2014, 320 p.

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ISSN 2311-8725 (Online)
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