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Regional Economics: Theory and Practice
 

A mechanism of formation of competitive advantages: A regional food industry case study

Vol. 15, Iss. 1, JANUARY 2017

PDF  Article PDF Version

Received: 8 April 2016

Received in revised form: 18 May 2016

Accepted: 11 July 2016

Available online: 17 January 2017

Subject Heading: SUSTAINABLE DEVELOPMENT OF REGIONS

JEL Classification: L66, M31

Pages: 101-116

https://doi.org/10.24891/re.15.1.101

Ovcharuk N.Yu. Khakassian Technical School – Branch of Siberian Federal University, Abakan, Republic of Khakassia, Russian Federation
natalya.ovcharuk@yandex.ru

Prokop'eva E.L. Khakassian Technical School – Branch of Siberian Federal University, Abakan, Republic of Khakassia, Russian Federation
evgenia-prokopjeva@yandex.ru

Importance The article deals with the issues of enhancing the competitive capacity of enterprises, which is one of the primary tasks of the State and individual regions within the framework of the policy of import substitution.
Objectives The study aimed to elaborate a mechanism of formation of competitive advantages of food industry enterprises as a tool for achieving good competitiveness of products. As an object of the study, we reviewed the food industry of the Republic of Khakassia, Russia.
Methods For the study, we used the methods of scientific research as a comparison and analogy, economic-mathematical analysis and modeling, scientific method of abstraction (induction and deduction), and a systems approach.
Results We present our own clarification of the concepts of competitiveness of products, companies, industries, and countries, and we propose a conceptual model that establishes the relationship between competitiveness and competitive advantages that will enable the industry to effectively build up the latter. Having considered the competitiveness potential of the food industry of the Republic of Khakassia, we identified certain problems and proposed certain solutions.
Conclusions and Relevance Our study develops a competitive advantages formation mechanism in relation to enterprises of the food industry by price and organoleptic parameters, taking into account vertical and horizontal orientation. The work has a practical significance not only for the region under study, but it may be relevant to other remote Russian regions with similar socio-economic conditions of development.

Keywords: competitiveness, enterprise, products, industry, price and organoleptic parameters

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