INFORMATION SPACE OF VERTICALLY INTERGRATED ENTERPRISES

Abstract

Background. In modern conditions of economic development not separate entities but integrated business structures play a major role. Integration processes follow the schemes that provide vertical or horizontal consolidation. Merge into a single manufacturing process of all or major parts of production and sales of products helps to achieve vertical integration and adoption of necessary and fast decisions – quality single information space. Analysis of recent research and publications showed that the available scientific exploratory studies not fully solve the problems of information support of vertically integrated structures. The aim of the article is substantiation of scientific and theoretical principles and practical recommendations on information support of vertical integration of enterprises. Materials and methods. The study used a set of methods such as synthesis, comparative analysis, process approach, analysis and synthesis, vertical integration. The information base for the research was the work of both domestic and foreign scientists. Research results. Vertically integrated structures have clear competitive advantages compared with other forms of business through the use of advanced technologies in the production, capabilities of monitoring compliance with technologies at all stages, introduction of the necessary quality standards. As a result of the creation and development of information infrastructure there is a single information space of the enterprise for a number of entities united by information, technology and finance. Single information space of vertical structures is a set of databases and data storage technologies for their maintenance and use. By defining the main shortcomings of information support for companies that may be involved in the integrated structure it’s possible to offset the effect of information asymmetries by constructing a structural functional model of association management. Conclusion. Improving systematic of information provision of the process of vertical integration helps create a single information content and is the basis for intensification of business associations of integrated structure. In this context it is important who and under what conditions will collect, handle, store and provide access to information resources of all enterprises and members of vertically integrated groups in particular.

Authors and Affiliations

Olena KRYVORUCHKO

Keywords

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  • EP ID EP185273
  • DOI -
  • Views 118
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How To Cite

Olena KRYVORUCHKO (2016). INFORMATION SPACE OF VERTICALLY INTERGRATED ENTERPRISES. Вісник Київського національного торговельно-економічного університету, 4(108), 97-103. https://europub.co.uk/articles/-A-185273