Importance The integration of business entities is one of the tools to improve their performance. Whereas there are various integration types and forms, it is reasonable to determine which one would be effective in certain economic conditions. Objectives The research evaluates the efficiency of the rigid hierarchical integration in line with the holding pattern and analyzes its reasonableness, illustrating various business entities in the Republic of Belarus. Methods We construct pair regression models with a dummy variable using the least square method and logit-models using the maximum likelihood method. Results We detected statistically significant differences among certain efficiency indicators of integrated and non-integrated entities. The results do not provide certainty in evaluating the comparative efficiency of entities. Conclusions and Relevance In the current economic conditions of the Republic of Belarus, the rigid hierarchical integration and subsequent establishment of holding structures should not be considered as an exceptional method to increase cost effectiveness of integrated entities and improve their financial position. Holding structures may be effective in case of the vertical integration of entities driven by their technological ties, and in addressing the X-inefficiency matter. In each particular case, the integration form and type should be chosen in line with the specifics of distribution markets, geographical location of entities, economic conditions of their operations, goals and reasons for the integration.
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