Classification of economic entities’ cooperation mechanisms in cross-border space

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Classification of economic entities’ cooperation mechanisms in cross-border space

Journal Title: Регіональна Економіка - Year 2016, Vol 79, Issue 1

Abstract

The article outlines the directions to research the mechanisms related to examining of existing economic institutes, explaining and predicting economic or social consequences and constructing of mechanisms to achieve the defined goals. The necessity of expanding the mechanisms in terms of stimulus of individuals, who have key information and their own goals and may not have an incentive to conduct themselves relevantly, is stressed. <br>The classification of mechanisms of economic entities’ interrelation is developed by the following parameters: by design; by entities (designers); by formalization; by interaction object. It is mentioned that dichotomous division of all possible interrelation types into two opposite types – cooperation and competitiveness – is the most common. Cooperation of economic entities in cross-border space is proposed to be classified by the following parameters: by the nature of basic institute; by formalization; by legitimization; by cooperation form. <br>Peculiarities of economic entities’ interrelation through cross-border markets are defined by its nature: occasional interrelation; established interrelation. It is found that according to the theory of interaction the cross-border market participants not only act in the fixed conditions, but also have the possibility to become the entities, which form the structure of the given market and create the rules of its functioning as well as form the new markets. Economic entities’ cooperation is characterized through cross-border markets using the conventional economic approach and interaction approach. It is found that in the course of cooperation at cross-border markets the relatively stable status hierarchies are formed compared to other markets (regional, local), because constant monitoring mechanism is not implemented and, therefore, the entities cannot mutually position themselves in relation to each other. However, there also exist the mechanisms of active adoption of leading entities’ conduct or mimetic (imitative) isomorphism. It is defined that cross-border links can be defined mostly as stable and simultaneously selective interactions, which help the entities in their striving for control over actions of other entities. Economic agreement is the most essential element of market interaction, kind of a core. It stipulates availability of not less than two participants, which establish the exchange terms on the basis of two interdependent mechanisms – structural and interactive. <br>The proposed classification of mechanisms of economic entities’ interrelation in cross-border space is essential in the process of research and detection of existing mechanisms of economic entities’ interrelation in cross-border space and construction of new ones in order to activate interaction of economic entities in cross-border space and eventually obtain positive synergic effect on both sides of the border.

Authors and Affiliations

Iryna R. Tymechko

Keywords

EP ID EP438082
DOI -
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