SPECIFIC FEATURES OF INTEGRATED BUSINESS STRUCTURE FUNCTIONING AS THE KEY DRIVERS OF INNOVATIVE ENTREPRENEURSHIP DEVELOPMENT

Abstract

The article provides insights into the specifics of integrated business structure functioning as a foundation for innovative entrepreneurship development. Deepened understanding of the dual nature of integrated structures and key drivers for their development has revealed that integrated business structures can be viewed as an organizational and legal form of merging industrial, organisational and banking capitals which, in turn, presents a balance of competition and cooperation, a dynamic symbiosis of which has to become a new source of doing successful business in the context of innovative economy. The literature review of the current trends of innovative entrepreneurship development based on integrative cooperation allowed to summarize the approaches to building business integrated entities in Ukraine. The fundamental premises for merger and acquisition processes is the competitive environment, to be more precise - it is the changes occurring in the technological and organizational environment. The development of innovative economy translates to its further globalization, diversification, technological progress, market liberalization trends, etc. Each of these factors, alone and in combination with others, urges all companies to undertake their forecast revision and asset revaluation. The in-depth-study on the specifics of integrated business structures as the key drivers of innovative entrepreneurship enabled to identify the most promising trends in shaping and developing integration processes in Ukraine, which is the need to set the structural vectors of integration processes. Apart from that, in the context of integrated structures, it is critical to determine the scale of their business activity (regional, interregional or transnational). In particular, integrated structures can allow companies make their own decisions as to entering interregional and international markets. Besides, under specific circumstances, such structures’ participants, in turn, may authorize capital withdrawal from certain industries, for example, in case of oversaturated market or decline in production, especially in the context of long-lasting drop in demand for their products.