Foreign Experience of Network Interaction and Possibilities of Its Application in Ukraine

• Main Author: Viktorov Bohdan V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2020-10-01
• Series: Bìznes Inform
• Subjects: networking enterprises; organizational integration; international markets; participants; network connections; integration strategy
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2020-10_0-pages-50_56.pdf

The article is aimed at disclosing the peculiarities and adapting the experience of the Chinese company Huawei on the organizational integration of participants of Ukrainian networks in international markets. The article explores the experience and the market, economic, technological effectiveness of the Huawei’s integration strategy when entering international markets. It is substantiated that the main directions of such a strategy are: the use of direct connections of influence on the nature of the environment’s attitude to the company’s functioning policy through the development of cooperation with market leaders, local companies; the use of direct connections of influence on the investment environment, research, development and innovation activities in the host countries through investing in the development of science and research in these territories. The author proposes an adapted organizational scheme of network connections in order to implement the company’s integration strategy when large Ukrainian network structures enter international markets (based on the Huawei’s experience), which takes into account a number of advantages and problems that can be overcome with use of organizational management. It is defined that the aforementioned author’s proposal of organizational network-based international integration has a number of advantages related to: prospects for securing sales markets (or their expansion) by facilitating the development of other local foreign business entities (purchase of materials, goods, local services for the production of their own articles in these territories); investments in local science; facilitating the employment of the local population; facilitating the entry into new markets through the loyalty of competitors (through the use of their products, services in the production of their own articles (services)). It is proved that this scheme distinguishes itself by certain problematic aspects (the probability of loss of trade secrets in view of the impact of cooperation with foreign workers within the framework of new partner relationships of participants, the need for investments in scientific-technical activities in the host countries), but they can be overcome, and the benefits of its implementation are quite significant.