The Baltic Region

2014 Issue №3(21)

The Balance Model of Regional Development Management in Certain Territorial Conditions: Development and Application

Abstract

In this article the authors detail the methodology of regional development forecasting with the balance method. They provide with an overview and assessment of the existing models and systems, and their use for the purposes of public administration at the regional level. The article underlines the need to develop a balance approach models for specific territorial conditions. In particular, the authors identify the possibilities of studying the connections between the proportions of material and cash flows within the regional system, and reconciling the needs of a regional economy with the production and resource potentials. The long-term sustainability balance model – a simulation of event-based forecasting – has been developed for the Russian exclave. The authors provide a general description of the balance model, its elements and simulation algorithm. The results of calculations using the balance model for forecasting regional development are provided for three alternative scenarios for the Kaliningrad region for the period until 2018.

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Knowledge Management and the Increase of SME Competitiveness: a Case Study

Abstract

The need to enhance the competitiveness and innovation capacity of small and medium enterprises is one of the key objectives of emerging EU economies. In this regard, the authors define the role of knowledge in enhancing business competitiveness in a regional economy. The effect of knowledge management processes on the economic activity of businesses in the Latvian region of Latgale is considered. To assess the role of knowledge and knowledge management processes, the authors apply integrated metrics calculated with the help of correlation analysis based on a 2013 survey of managers and staff of SMEs in Latgale. An assessment of the role of knowledge and knowledge management processes in SMEs of Latgale region using the SPSS programme shows that the knowledge and experience of employees have is at an average level of development — from 2.9 to 3.6 on a 5 point scale. It suggests the possibility of that the processes of knowledge management are not used to their full capacity at the regional small and medium-sized businesses; therefore, there is untapped potential for enhancing the competitiveness of these enterprises. The study emphaisises the need for regional businesses to interpret new knowledge as a key value for developing the competitive and innovative potential.

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Network Transformations in Economy

Abstract

In the context of ever-increasing market competition, networked interactions play a special role in the economy. The network form of entrepreneurship is increasingly viewed as an effective organizational structure to create a market value embedded in innovative business solutions. The authors study the characteristics of a network as an economic category and emphasize certain similarities between Rus sian and international approaches to identifying interactions of economic systems based on the network principle. The paper focuses on the types of networks widely used in the economy. The authors analyze the transformation of business networks along two lines: from an intra- to an inter-firm network and from an inter-firm to an inter-organizational network. The possible forms of network formation are described depending on the strength of connections and the type of integration. The drivers and reasons behind process of transition from a hierarchical model of the organizational structure to a network type are identified. The authors analyze the advantages of creating inter-firm networks and discuss the features of inter-organizational networks as compares to inter-firm ones. The article summarizes the reasons for and advantages of participation in inter-rganizational networks and identifies the main barriers to the formation of inter-organizational network.

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St Petersburg Business Information Centres and Their Role in Increasing the Efficiency of International Business Activities

Abstract

The Ministry of Foreign Affairs of the Russian Federation acknowledges the significant contribution of regions to the development of the state’s foreign policy. An increase in innovative production, a commitment to achieve complete import substitution, and the development of measures to promote non-raw material export are the principal objectives established by the state for its regions. The current trends in world economy and the geopolitical situation formulate new goals and objectives for regions and suggest the creation of innovative and universal mechanisms to increase the efficiency of international economic activities, promotion of a positive image of Saint Petersburg and other regions of the Russian Northwest. The article analyses the activities of Saint Petersburg business information centres abroad, similar experience of other Russian regions, and prerequisites for reforming the institution of regional offices abroad. In the course of the study, new theoretical and methodological questions as to improving the regulatory framework for development and functioning of Russian regional offices abroad, the use of public-private partnership mechanism in foreign economic activities and information technologies of positive image promotion were formulated.

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