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Vertically Integrated Structures: Essence and Specific Features of Functioning in the Mining and Smelting Complex of Ukraine

Author

Listed:
  • Nusinov Volodymyr Ya.

    (Kryvyi Rig National University)

  • Kolesnikov Dmytro V.

    (Kryvyi Rig National University)

Abstract

The goal of the article is identification of the essence of vertically integrated structures, consideration of problems and specific features of their functioning under conditions of development of the mining and smelting complex of Ukraine. Systemising and generalising scientific views, the authors form own vision of the essence of vertical integration, the result of which is creation of a vertically integrated structure. On the basis of the study of scientific approaches, the authors further develop identification of the essence of the vertically integrated structure, present characteristics of its properties and also identify advantages and shortcomings of its functioning. The article considers specific features of functioning of vertically integrated structures in the mining and smelting complex of Ukraine (on the example of activity of the Metinvest Group), which allowed detection of positive and negative issues of integration of mining and smelting enterprises into a single structure. It determines that the basis of the decision to unite (join) enterprises is obtaining a positive synergetic effect. The prospect of further studies is the study of synergy during formation and functioning of vertically integrated structures in the mining and smelting complex of Ukraine.

Suggested Citation

  • Nusinov Volodymyr Ya. & Kolesnikov Dmytro V., 2013. "Vertically Integrated Structures: Essence and Specific Features of Functioning in the Mining and Smelting Complex of Ukraine," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 10, pages 187-193.
    • Handle: RePEc:idp:bizinf:y:2013:i:10:p:187_193
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