Assessment of Small Industry Resistance to the Hypercompetition Threats in Regions
DOI:
https://doi.org/10.17059/2018-4-14Keywords:
small industry, small industrial enterprises, driving forces of hypercompetition, hypercompetition threats, hypercompetition, open innovations, small business, small entrepreneurs, innovation activities, survival strategyAbstract
Despite the relative «youth» of hypercompetition theory, a lot of research has been carried out currently. But most of them study hypercompetition threats from the perspective of transnational companies. We estimate that enterprises of all sizes, including small ones, are exposed to this threat, because hypercompetition reduces the life cycle of competitive advantage, and thus constantly changes the positions of market players. The study determines to what extent the hypercompetition drivers are manifested in the Russian economy, in which industries and regions the small industries are subject to its threats the most. We have classified small enterprises of manufacturing industries to «small industry» as prevailing in small industrial structure. The paper revealed that the Russian economy has already shown the driving forces of hypercompetition and sectoral and regional differentiation. This conclusion is based on the analysis of changes in conditions and rules of competition. Therefore, the challenge was to develop a research method to assess small industry resistance to hypercompetition threats in the regions. The method has allowed to assess 47 Russian regions according to three criteria: the degree of hypercompetition threat; potential growth and importance of small industry for the regional development; open innovations availability for small industries as an effective method for increasing hypercompetition resistance. The integrated results of these assessments made it possible to identify 11 regions: the Republic of Mordovia, Chuvash Republic, Sverdlovsk region, Tula region, Krasnoyarsk region, Chelyabinsk region, Vladimir region, Lipetsk region, Penza region, Republic of Mari El, Ryazan region. These are the areas where, on the one hand, threats of hypercompetition for primary branches of the small industry are rather big. However, on the other hand, small industry has a high development potential even in hypercompetition through open innovation.References
D`Aveni, R. (1994). Hypercompetition: Managing the Dynamics of Strategic Maneuvering. New York: The Free Press, 57.
Potapova, O. N. & Dryuchina, E. I. (2014). Giperkonkurentsiya: osobennosti proyavleniya [Hyper-competition: features of manifestation]. Ekonomika i sotsium [Economics and society], 2–5 (11), 1338–1342. (In Russ.)
Dyatlov, S. A. & Selishcheva, T. A. (2014). Novaya rol i funktsii globalnykh innovatsionnykh giperkonkurentnykh kompaniy v sovremennoy ekonomike [New role and functions of hyper competitive global innovation companies in the modern economy]. Vestnik Rossiyskogo universiteta druzhby narodov [RUDN Journal of Economics], 3, 127–135. (In Russ.)
Samsonov, N. Yu. (2013). Fenomen giperkonkurentsii v vysokotekhnologichnykh otraslyakh mirovoy ekonomiki [Phenomenon of hypercompetition in hi-tech sectors of world economy]. EKO [ECO], 12(474), 156–161. (In Russ.)
Lygina, N. I. & Rudakova, O. V. (2014). Rossiyskie predpriyatiya v usloviyakh globalnoy konkurentsii: osnovnye problemy [Russian enterprises under conditions of global competition: the basic problems]. Vestnik OrelGIET [OrelSIET Bulleti], 4(30), 3–7. (In Russ.)
Kochieva, A. K. & Nesinov, D. A. (2014). Giperkonkurentsiya i promyshlennyy shpionazh kak sposoby dostizheniya mezhdunarodnogo ekonomicheskogo prevoskhodstva [Hypercompetition and industrial espionage as a means of achieving international economic superiority]. Nauka i obrazovanie. Khozyaystvo i ekonomika. Predprinimatelstvo. Pravo i upravlenie [Science and education: economy; enterprise; law and management], 12(55), 7–13. (In Russ.)
Latypova, E. N. (2013). Otsenka konkurentosposobnosti turnapravleniya kak element innovatsionnoy strategii predpriyatiya v usloviyakh giperkonkurentsii [Evaluation of the competitiveness of tourist destinations as an element of the innovation strategy of the enterprise in conditions of hyperconsumption]. Marketing uslug [Marketing services], 1, 36–49. (In Russ.)
Tsokiev, S. R. (2013). Evropeyskie i rossiyskie neftyanye kompanii. Innovatsii kak instrument giperkonkurentsii [European and Russian oil companies: Innovations as an instrument of hypercompetition]. Aktualnyye problemy Evropy [Urgent Problems of Europe], 1, 241–254. (In Russ.)
Taranukha, Yu. V. (2014). Konkurentnoye povedenie firmy v usloviyakh giperkonkurentsii [Competitive behavior of the company in the conditions of hypercompetition]. Menedzhment v Rossii i za rubezhom [Management in Russia and abroad], 2, 22 -30. (In Russ.)
Brun, M. Giperkonkurentsiya: kharakternyye osobennosti, dvizhushchie sily i upravlenie [Hypercompetition: characteristics, driving forces and management]. Retrieved from: http://vasilievaa.narod.ru/ptpu (date of access: 03.03.2018). (In Russ.)
Riech, R. B. (1992). The Work of Nations: Preparing ourselves, to 21 Century Capitalism. New York: Vintag-e Book, 352.
Vutrich, H. A. (1997). Forms of Virtual Enterprise. Management Today, 6, 35–37.
Luchko, M. L. (2004). Konkurentnyye strategii TNK: strategicheskie alyansy, sliyaniya i pogloshcheniya [TNK Competitive strategies: strategic alliances, mergers and acquisitions]. Vestnik Moskovskogo universiteta [Moscow University Economics Bulletin], 1, 31–56. (In Russ.)
Knudsen, T. R., Randel, A. & Rugholm, J. (2004). The Vanishing Middle Market. The McKinsey Quarterly, 4. Retrieved from: https://www.mckinseyquarterly.com/The_vanishing_middle _market_1687 (date of access: 31.03.2018).
Golovko, E. & Valentini, G. (2011). Exploring the complementarity between innovation and export for SMEs’ growth. Journal of International Business Studies, 42(3), 362–380. DOI: 10.1057/jibs.2011.2.
Leiponen, A. (2005). Skills and innovation. International Journal of Industrial Organization, 23(5–6), 303–323.
Freel, M. S. (2005). Patterns of innovation and skills in small firms. Technovation, 25, 123–134. DOI: 10.1016/S0166–4972(03)00082–8.
Knight, G. A. & Kim, D. (2009). International business competence and the contemporary firm. Journal of International Business Studies, 40(2), 255–273. DOI: 10.1057/palgrave.jibs.8400397.
Brambilla, I. Lederman, D. & Porto, G. (2012). Exports, Export Destinations, and Skills. American Economic Review, 102(7), 3406–3438. DOI: 10.1257/aer.102.7.3406
Herrmann, A. M. & Peine, A. (2011). When ‘national innovation system’ meet ‘varieties of capitalism’ arguments on labour qualifications: On the skill types and scientific knowledge needed for radical and incremental product innovations. Research Policy, 40(5), 687–701. DOI: 10.1016/j.respol.2011.02.004.
Macleod, D. & Clarke, N. (2009). Engaging for Success: enhancing performance through employee engagement. Department for Business, Innovation and Skills, London. 2009. Retrieved from: http://dera.ioe.ac.uk/1810/1/file52215.pdf (date of access: 01.03.2018).
Comacchio, A., Bonesso, S. & Pizzi, C. (2012). Boundary spanning between industry and university: the role of Technology Transfer Centres. Journal of Technology Transfer, 37(6), 943–966. DOI: 10.1007/s10961–011–9227–6.
Jones, O. & Craven, M. (2001). Beyond the routine: innovation management and the Teaching Company Scheme. Technovation, 21(5), 267–279. DOI: 10.1016/S0166–4972(00)00042–0.
Winkler, V. A. & Bouncken, R. B. (2011). How Does Cultural Diversity in Global Innovation Teams Affect the Innovation Process? Engineering Management Journal, 23(4), 24–35.
Roper, S., Du, J. & Love, J. H. (2008). Modelling the Innovation Value Chain. Research Policy, 37(6–7), 961–977. doi.org/10.1016/j.respol.2008.04.005.
Griffith, R., Redding, S. & Van Reenen, J. (2003). R&D and Absorptive Capacity: Theory and Empirical Evidence. Scandinavian Journal of Economics, 105(1), 99–118. DOI: 10.1111/1467–9442.00007.
Pellegrino, G., Piva, M. & Vivarelli, M. (2009). How do young companies innovate? Discussion Paper IZA DP, 4301. Retrieved from: ftp.iza.org/dp4301.pdf. (date of access: 01.03.2018).
Ughetto, E. (2009). Does internal finance matter for R&D? New evidence from a panel of Italian firms. Cambridge Journal of Economics, 32(6), 907–925. DOI: 10.1093/cje/ben015.
Piergiovanni, R. (1997). From which source do small firms derive their innovative inputs? Some evidence from Italian industry. Review of Industrial Organization, 12(2), 243–258.
Love, J. & Roper, S. (2015). SME innovation, exporting and growth: A review of existing evidence. International Small Business Journal: Researching Entrepreneurship, 33(1), 28–48. DOI: 10.1177/0266242614550190.
Nieto, M. J. & Santamaría, L. (2007). The importance of diverse collaborative networks for the novelty of product innovation. Technovation, 27(6), 367–377. DOI: 10.1016/j.technovation.2006.10.001.
Ueasangkomsate, P. & Jangkot, A. (2017). Enhancing the innovation of small and medium enterprises in food manufacturing through Triple Helix Agents. Kasetsart Journal of Social Sciences. 2017. Retrieved from: https://doi.org/10.1016/j.kjss.2017.12.007 (date of access: 23.02.2018).
Ranga, L. M., Miedemam J. & Jorna, R. (2008). Enhancing the innovative capacity of small firms through triple helix interactions: Challenges and opportunities. Technology Analysis & Strategic Management, 20(6), 697–716. DOI: 10.1080/09537320802426408.
Fritsch, M. & Franke, G. (2004). Innovation, regional knowledge spillovers and R&D cooperation. Research Policy, 33(2), 245–255. DOI: 10.1016/S0048–7333(03)00123–9.
Liefner, I., Hennemann, S. & Xin, L. (2008). Cooperation in the innovation process in developing countries: Empirical evidence from Zhongguancun, Beijing. Environment and Planning A, 38(1), 111–130. DOI: 10.1068/a37343.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2018 Elena Davidovna Vaisman, Maria Vladimirovna Podshivalova
This work is licensed under a Creative Commons Attribution 4.0 International License.
