THE SPECIFICS OF ECONOMIC INTEGRATION IN THE CONTEXT OF ENHANCING PARTNERSHIPS BETWEEN ORGANIZATIONS AS BUSINESS ENTITIES

Abstract

The article discusses a wide range of issues related to exploring the specifics of modern process of economic integration. In particular, across the developed countries globally, an increase in the number of partnerships between organizations has been observed. However, their organizational and functional structures do not change whereas their joint interaction is demonstrating considerable growth which contributes to building favourable environment for partnership development based on integrated and quasi-integrated relationships and the economy of host territories. Integration trends in rapidly expanding globalization settings, increasing uncertainty, market turbulence and structural transformations of the national economy challenge the need to search for coordination of the interests of partner entities, thus providing important implications for this research. A purpose of this study is to explore the specifics of economic integration in the context of enhancing partnerships between organizations as business entities. The paper seeks to provide insights into theoretical and methodological foundations of the economic integration concept in the works of domestic and foreign scholars. The methodological framework covers a set of general and special research methods that were used to address the objectives set, in particular the following methods have been employed: methods of historical, logical and comparative analysis - to reveal the evolution of integration development and to tackle the integration problemology through the prism of the research goal. The study develops a problemology of integration processes, in particular, from the position of cluster theory, network organization theory, systems theory, the theory of competitive advantages of interaction, and the organizational theory. The findings consider a set of prerequisites affecting the integration of business structures under the influence of external and internal factors. It is argued that modern integration processes in terms of fostering relationships between organizations as business entities are not limited by the above. The research results have verified that economic integration might be characterized both by the expansion and deepening of industrial and technological ties, joint use of resources, pooling of capital. Apart from that, economic integration is viewed as an impetus in forging mutually beneficial environment to facilitate better business performance as well as assists in eliminating barriers which consequently suggests new perspectives for further research.