Strategic Management of Sustainable Development of Agro-Industrial Complex with Economic Integration

By Ovchinnikov, A.; Kozenko, Z. et al. | European Research Studies, July 2015 | Go to article overview

Strategic Management of Sustainable Development of Agro-Industrial Complex with Economic Integration


Ovchinnikov, A., Kozenko, Z., Bichkov, M., Kabanov, V., Karpova, A., European Research Studies


1. Introduction

Agro-industrial complex of most countries of the world is vulnerable for consequences of economic integration. Large dependence on unpredictable and uncontrollable geographical and climatic factors causes insufficient flexibility of enterprises of agro-industrial complex (Karpova et al., 2014). They cannot easily adapt to new conditions of economy, which is a reason of instability of development of agro-industrial complex (Ovchinnikov et al., 2014).

This complex is a basis of economic security of the state, so, to support it, the state actively uses all available tools (Kozenko et al., (2014). Due to subsidizing type of development of agro-industrial complex, enterprises, which are its members, lose stimuli for development and stop implementing innovations into production, which leads to loss of their competitiveness (Anna et al., 2015).

The article offers a hypothesis that incapability of national enterprises of agro-industrial complex to endure global competition and threat of complete disappearance of national agro-industrial production reflect failure of the policy of clean free-trade (Kabanov, 2014). Agro-industrial complex enterprises' getting used to state support, which leads to atrophy of their capabilities for independent existence, shows ineffectiveness of the policy of classic protectionism and state paternalism in this sphere (Goncharova & Sizeneva, 2014).

Inapplicability of stated approaches to management of development of agro-industrial complex causes necessity for development of a new approach to strategic management of sustainable development of agro-industrial complex under the conditions of economic integration. This article is devoted to creation of this approach and solving the problem of preservation of national agro-industrial complex under the conditions of globalizing and integrative processes which take place in the global economy.

2. Materials and Method

Analysis of theoretical concepts and approaches shows that issues of management of development of agro-industrial complex are paid close attention by modern scientists and specialists. Issues of management of sustainable development are studied in multiple works of such researchers as (Cobbinah et al., 2015), (Muller et al.,2015), (Voegtlin & Scherer, 2015), (Sobrino, 2015), (Liberti, 2015), (Pattberg & Widerberg, 2015), which shows high level of actuality of this direction of research and high level of its scientific elaboration.

Issues of theoretical and methodological nature, related to study of foundation of strategic management are studied in works of (Dudin & Frolova, 2015), (Slicing & Zhao, 2015). (Sushil, 2015), (Bakar et al., 2015), (Chang et al., 2015) and others. Peculiarities of development of agro-industrial complex under the conditions of economic integration are studies by such authors as (Bernardes, 2015), (Medernach & Burnod, 2013), (Grouiez, 2012), (Bazylyuk & Mynenko, 2010).

Problem of economic integration is reflected in works of such scientists as (Bergstrand et al., 2015), (Verstina et al., 2015), (Florensa et al., 2015), (Ward et al., 2015), (Ali & Imai, 2015), (Wirtz et al., 2015). Despite large number of studies in the sphere of strategic management and sustainable development, there is still fragmentarily and insufficient elaboration in the issues of methodological nature of management of these processes as to agro-industrial complex.

These problems could be solved separately. This causes the necessity for complex study of the problems of strategic management of sustainable development of agro-industrial complex under the conditions of economic integration and search for common solution for these problems.

Methodology of research is based on principles of integrity and difference, positive and normative economic analysis. Instrumentarium and methodological apparatus of the research use for solving the tasks, set in the work, includes a range of general scientific and special methods: modeling, forecasting, scenario analysis, problem analysis, synthesis, deductive and inductive methods of research, and conceptual provisions of systemic approach. …

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