Prerequisites for development and diversification of production in industry

Economic Annals-ХХI: Volume 151, Issue 5-6, Pages: 37-40

Citation information:
Ziyadin, S., & Yessenova. G. (2015). Prerequisites for development and diversification of production in industry. Economic Annals-XXI, 5-6, 37-40. https://ea21journal.world/index.php/ea-v151-09/

Sayabek Ziyadin
D.Sc. (Economics),
Professor,
Kazakh Humanitarian Juridical Innovative University
42 Kabanbay Batyra Str., ap.42, Semey city, 071400, Republic of Kazakhstan
ertis_economika@mail.ru

Yessenova Gulmira
PhD (Economics),
Associate Professor,
Department of Finance,
JSC «Financial Academy»,
The Ministry of Finance of The Republic of Kazahstan
11 Sh. Ualikhanov Str., 010011, Astana, Republic of Kazakhstan
pavlodarsemey@mail.ru

Prerequisites for development and diversification of production in industry

Abstract. This article describes the process of diversification as a matter of aggregate socio-economic and administrative relations that arise between the subjects of a region, including industrial enterprises on the one hand and regional consumers on the other as well as the participation of authorities and entities of the institutional environment. Diversification through the acquisition and construction of assets in a country is supplemented by diversification through the acquisition of assets abroad. The diversification of industrial activities in a region as a matter of administrative relations that structure the interaction between these relationships is a form of the implementation of corporate strategies and promotes the benefits of diversification. The main obstacle to the direction of diversification is limited financial, information and manufacturing capabilities as well as limited experience.

Keywords: Diversification; Innovation; Industry; Export; Production; Region; Enterprise; Strategy

JEL Classification: D24; F02; F41

References

1. Ansoff, H. I., & McDonell, E. J. (1990). Implanting Strategic Management (2^nd ed.). Upper Saddle River, NJ: Pearson Prentice Hall (in Rus.).
2. Aronov, A. M., & Petrov, A. N. (2001). Organization of strategic planning at the diversified enterprises. Saint-Petersburg: SPSUEF (in Rus.).
3. Assael, G. (1999). Marketing: principles and strategy. Moscow: INFRA-M (in Rus.).
4. Azoev, G. L., & Chelenkov, A. P. (2000). Competitive advantage of the firm. Moscow: The News (in Rus.).
5. Berezin, I. S. (1999). Marketing and market research. Moscow: Russian Business Books (in Rus.).
6. Dobrianskaya, N. A., & Popovich, V. V. (2013). Diversification of production as a factor of regional food market. Molodoi Uchenyi (The Young Scientist), 8, 188-190 (in Rus.).
7. Kono, T. (1987). Strategy and structure of Japanese enterprises. Moscow: Thought (in Rus.).
8. Kotler, P., & Keller, K. L. (2015). Marketing management (15^th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
9. Liouville, J. (1993). Enterprise strategy and profitability. Problemy teorii i praktiki upravleniya (Problems of the Theory and Practice of Management), 3, 58-61 (in Rus.).
10. Katchova, Ani L. (2005). The Farm Diversification Discount. The American Journal of Agricultural Economics, 87(4), 984-994.
    doi: https://doi.org/10.1111/j.1467-8276.2005.00782.x
11. Message from the President of the Republic of Kazakhstan Nursultan Nazarbayev to the people of Kazakhstan (2014, January 17). Kazakhstan’s Way-2050: The overarching goal, common interests, common future which has established a long-term development strategy up to 2050 (in Rus.).
12. Shevelev, S. A. (1999). Diversification of production in a transition economy (organization and management). (Doctoral dissertation). Almaty (in Rus.).
13. Thompson, A. A., & Strickland, A. J. (1998). Strategic management. Arts development and implementation of strategy. Moscow: Banks and Stock Exchanges. Unity (in Rus.).
14. Jianmei, Zhao (2014). Rural income diversification patterns and their determinants in China. Agricultural Economics (Czech), 60, 219-231.
15. Muhammad, A. (2012). Source Diversification and Import Price Risk. The American Journal of Agricultural Economics, 94(3), 801-814.
    doi: https://doi.org/10.1093/ajae/aas016

Received 07.04.2015