Entrepreneurial Activity Self-Production Conditions within Territorial Clusters

By Frolov, Daniil P.; Moseiko, Victor O. et al. | Asian Social Science, August 2015 | Go to article overview

Entrepreneurial Activity Self-Production Conditions within Territorial Clusters


Frolov, Daniil P., Moseiko, Victor O., Korobov, Sergei A., Asian Social Science


Abstract

The role of regional entrepreneurship is becoming the key point when forming Russian economy effective competitiveness and especially in terms of current world economic challenges, which determines Russian economy turbulence. The current research focuses on self-production conditions of these territorial systems clusters. A cluster's formation based on its members' self-production is thoroughly investigated in the research. The authors analyze clusters, their functions, and tasks definitions of economic analysis. The features of various territorial-production systems of the Russian Federation are considered in the article. Clusters competitive nature is clarified on the grounds of the analysis by using various resources and combinations of factors. An algorithm for forming business self-production conditions within a cluster is defined in the research. The research provides the analysis results of cluster business self-production formation conditions. The key integrating resource, which plays the role of a moving force for development of other resources that are necessary for forming business self-production conditions within a cluster, is elaborated in the article. On the basis of economic territorial systems with self-production features functioning analysis, the authors suggest a new economic approach to business system development by applying new cluster organization forms.

Keywords: clusters, economic development, entrepreneurship, regional economy, resource management

1. Introduction

Territorial clusters, being effective forms of territorial organization of the economic entities economic interaction, proved to be efficient since the beginning of the 20th century. Through the territorial development it became evident that territorial economic system's cluster functioning form provided successful development to regions by creating business self-production conditions within these clusters.

2. Latest Research and Publication Analysis

It is apparent that cluster economic organization should be regarded as the modern form of economic organization or economic entities' interaction in various primarily economic interaction cooperative forms. Cluster economic organization is characteristic of market economic environment and thus is a market form of cooperative interaction development, as latter implies the business entities' amalgamation around a certain functional niche, product, or service and the presence of interrelations and working relations for increasing these businesses' competitiveness.

We consider that cluster economic organization's main systemic quality is business self-production within a cluster, which distinguishes it from the cooperative interaction form. Taking this into consideration, each business entity's interaction with other territorial cluster entities depends on the entity itself and its view on such interaction economic expedience.

It is worth mentioning that if the economic cooperation was determined primarily by the inter-business directive organization forms in the framework of planned economy, then in the framework of market economy we should look for new task solutions. Cluster economic organization functions on a market, where market behavior is characteristic of all cluster members, which in general excludes any kind of concrete cluster directive management.

The presence of directive influence forms of some authority body in concrete cluster's formation and functioning creates prerequisites for such economic systems' systemic privacy. Sometimes such prerequisites may become a stagnating condition for directly formed and managed cluster systems.

3. Objectives and Methods

Current article covers the self-production conditions of the territorial economic systems, called cluster. In this article we will formulate the answer to the question of condition, which provide a cluster's formation on the basis of its members' self-production. …

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