Academic journal article Academy of Strategic Management Journal

Conception Bsc for Investment Support of Port and Industrial Complexes

Academic journal article Academy of Strategic Management Journal

Conception Bsc for Investment Support of Port and Industrial Complexes

Article excerpt

INTRODUCTION

In the context of the Russian economic crisis (2014-2015), international sanctions and restrictions on political and economic relations with Turkey (partner in the Azov-Black Sea basin), the state economic policy is focused on the development of its own production and infrastructure, including port one.

In the current conditions the port and industrial complexes (PIC) can become one of the most powerful factors in economic development of Russian regions. PIC allows integrating production, infrastructure, financial and social components, which implements the investment potential of the port area (Orlova, 2014).

The solution of many regional problems is impossible without strategic management of economic systems (Egorshin, 2004). PIC is a subsystem of the region, i.e. it has many links with other subsystems and its elements, and therefore, it also needs strategic management. Strategic management is necessary for PIC investment support in multipolar world.

Along with this, the main problem in socio-economic development of regions is still an imbalance between the individual subsystems of the economy: innovation processes critically lag behind production ones, investment growth - behind the growth of population savings (Kleiner, 2011).

This situation is exacerbated by the lack of a coordinated system of interrelated strategic plans for the development of industries and Russian Federation subjects. This leads to imbalance in the system when developing the concepts of the state, regional and municipal management objects, in particular the PIC.

Besides the problem of external balance of meso - and macrolevel strategies, there is a related task of internal balance of PIC development plans. In this regard, in the present work the formation of a balanced scorecard (BSC) is proposed to define the strategic guidelines for the development of PIC. This allows to assess the current and future (target) state of the PIC investment potential.

LITERATURE REVIEW

World practice shows that an evidence-based approach to the creation of the investment environment allows implementing transit-communication potential of PIC and, æ nsequently, to solve complex socio-economic tasks in the seaside region.

The object of this study is Taganrog PIC, located on the shore of the Azov sea, the subject is the investment potential of PIC. Currently Taganrog PIC is in a stage of decay, the main cause of which was the crisis of 2008 (Orlova, 2014).

Strategic management systems, aimed to build and implement the investment potential, are needed for investment development of the Russian PIC in the context of globalization. An important condition in the process of selection of investment object for investors is practical availability of a mechanism for effective strategic management.

There are many scorecards to assess strategic and operational aspects of the business. The study by Popov D. (2003) proposed a set of criteria, which allows to select the most appropriate tools of strategic management solutions - Quantum Performance Measurement (Quantum measurement of achievements - QPM) and BSC. QPM is designed to optimize the performance of an enterprise by analyzing information about the organizational structure, processes and employees. In addition to these areas BSC evaluates customer (marketing) and financial perspectives, which are a priority for the analysis of the results of investment support. It should be noted that initially BSC as a concept is a model of company's strategy (Kochnev, n.d.) (in the context of this study, port and industrial complexes) and investment management tools, that is business development.

Confirmation of the relevance of the chosen methodology is that the last 15 years of strategic planning is the leader in the list of the world's most popular management tools. At the same time, since 2008, the top ten management tools invariably have been including the Balanced Scorecard ("BAIN & Company", 2013). …

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