Preconditions of usage of the fractal approach in agribusiness organization

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Preconditions of usage of the fractal approach in agribusiness organization

Journal Title: Економіка АПК - Year 2018, Vol 6, Issue

Abstract

The purpose of this article is to ground of practicality and peculiarities of using fractal model of agribusiness organization in highly dynamic and stochastic environment. Research methodology. In the research process have been used the scientific principles of economic and fractal theory and method of system analysis. Research results. It has been established that in conditions of dynamic chaos and uncertainty, the key to the sustainable development of agribusiness entity is the acquisition of complex network systems. This requirement totally corresponds to agribusiness structures with the fractal business organization. The agrarian business system of the fractal type is characterized by the following properties: 1) complex heterarchical structure with self-sustaining, but closely interconnected elements namely fractals; 2) structural and functional similarity of business systems and their components; 3) consistency of objectives of the system elements (fractals) and their subordination to the overall purpose of the business system; 4) the ability to self-organization and self-optimization; 5) internal competition. Potential fractal type business systems are vertically integrated structures and diversified agricultural commodity producers. The process of fractalization of agro-industrial complex will take place considering the principles of fractal organization of agribusiness by changing the structure, internal and external relations, business processes and the goals of agricultural enterprises or their associations’ functioning. The basis for creating fractal vertically integrated structures should be the consolidation of the participants’ potential in the integration, harmonization of the interests of the competing parties and association of agricultural producers. Fractal agribusiness organization can be considered as a direction of systemic transformation of the agricultural sphere, which will increase the efficiency of economic entities, intensify their innovation development, eliminate disproportions in the distribution of resources, and effects different sizes and directions of agribusiness activity. The elements of scientific novelty. The necessity of forming fractal business systems in the agroindustrial complex has been substantiate and the objects of fractalization in agrobusiness have been identified. The features and advantages of fractal business systems in the agroindustrial complex have been identified and formalized. Practical significance. It has been substantiated an objective necessity, advantages and peculiarities of using the fractal model in the agroindustrial complex’s development, which allowed working out theoretical provisions for the creation of agrarian business systems capable of self-optimization and self-organization in a changing environment. This would help to increase the flexibility, vitality and adaptability of modern agribusiness entities. Tabl.: 1. Figs.: 1. Refs.: 21.

Authors and Affiliations

Olha Nykolyuk

Keywords

EP ID EP607705
DOI -
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