INTEGRATION OF CONSTRUCTION ENTERPRISES AS A FACTOR INCREASING THEIR COMPETITIVENESS
Authors:   Kharkiv National University of Urban Economy named after O.M. Beketova, Kolodyazhna Tetyana , Vinnychenko Olena ,   Kharkiv National University of Urban Economy named after O.M. Beketova
Published: July 2023

The article examines modern business processes in Ukraine, which are increasingly implemented within the framework of joint activities of business groups. Considered important factors of sustainable economic development for construction enterprises. It was determined that at the current stage, one of the promising strategies for the development of the company's construction enterprises, which is implemented through the development and exploitation of new reserves of activity, is integration. The main reasons for the active growth of the market of integration processes, which contribute to the increase in the number of integration processes, are given. The structural and organizational aspect of coordinating the interests of the participants in the integration processes is defined. Considered important parameters within the framework of determining the quality of any type of organizational structure. The article also examines relations between interested parties in the construction industry. The specifics of the terminology were studied in detail and the main part2icipants in the construction process were identified. Competitive advantages and weaknesses of vertical and horizontal integration of construction enterprises in terms of their expediency in different market conditions are considered. According to the results of the research, it was determined that any integration, both vertical and horizontal, can become a tool for increasing the competitiveness of a construction organization. On the contrary, if decision-making is not based on a systematic quantitative analysis of all factors, integration can become a serious competitive weakness. In order for integration to lead to a sustainable and long-term competitive advantage, a detailed analysis of all possible risks is required, as the recovery costs can be high. Four reasons and requirements for vertical integration and their application to the domestic market of construction services are analyzed. It has been shown that insolvency and earnings growth of growth companies can have the greatest impact on vertical integration decisions. The most desirable type of vertical integration in the construction services market is direct integration, in which the construction company actually takes over the functions of the developer-client. Therefore, each integration, both vertical and horizontal, can become a tool for increasing the competitiveness of a construction company. Conversely, integration can become a serious competitive weakness if decision-making is not based on a systematic quantitative analysis of all factors. In order for integration to lead to a sustainable, long-term competitive advantage, a detailed analysis of all possible threats is necessary, as the costs of eliminating them can be high. Quasi-integration or partial integration should be considered as an alternative to full integration.