The Establishment of market principles of the economy never takes place without the intervention of the state in the formation of institutions, which defines the basic types of organizational structures of management. In addition to the degree of conformity between the imported institutions and the existing institutional environment, an important factor in the success of the implementation of institutions are becoming designing of organizational structures of management of the state.
However, the state, carrying out the regulation policy, developing main types of organizational structures of management, too deeply involved in ineffective institutional forms associated with property ownership, entrepreneurial activity, aggregate demand, borrowing under state guarantees, and on the contrary, the role of the state is extremely lacking in the formation processes of creation of economic space, in the rule of law of enterprises, companies, natural monopolies, protecting the rights of the owner, the formation mechanism of competition.
Another area of institutional change is the reaction of economic agents on what types of organizational structures of management may lead to changes in external conditions of economic activity, and cause adjustment of the relevant institutions and replace some of it. New types of organizational management structures and ongoing institutional changes are the reactions of the demand agents on the specific product - institutions. The benefits of such changes are the possibility to reduce transaction costs in the case of the creation of the coordinating institutions (the inviolability of private property, stable money, free pricing, absence of restrictions on the movement of capital, etc.) or to get the rent, provided that a distribution of institutions (a restriction of competition, establish entry barriers to the market, the introduction of import duties, the multiplicity of exchange rates, etc.).
Recommended
Staff evaluation: system and methods
Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...
How to start your own business: important aspects.
Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...
Business activities. its essence and basic functions
The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...
The Mechanism of interaction between institutions and firms is realized through all kinds of organizational structures of management and institutional changes, representing a complex process of improving institutional system, obnovleniyami institutional model, the transformation of old institutions and new. In this process, gradually disappearing inefficient institutions are replaced by new. In this process is the institutionalization of the firm. Some economists defines institutionalization as “the process of formation and consolidation of an ordered set of formal and informal regulations of activities of market agents (institutions) and their continuous reproduction of the firm”.
The aim of the institutionalization of firms in transition economic period is to provide sustainability to the activities of the firm by reducing uncertainty and risk that defines the role of institutions in the activities of the company. Features of formation of the company allow to allocate three stages: "deinstitutionalization” - “adaptation” - “adulthood”. The main tasks associated with the influence of firms on the formation of the elements of the institutional environment, should be considered: the formation of a legislative and regulatory framework, making it a complex and consistent character. Thus, adapting to the constraints posed by the environment, the company modifies these restrictions. Consideration of the Genesis of the company during the transition period of formation of economy of market type allows to draw a conclusion that institutionalization is the formation of firm-level institutions and the impact of the firm on the formation of foreign institutions. The process of institutionalization of the company increases the efficiency of the company and its competitiveness which ultimately leads to sustainable economic development.
Article in other languages:
Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
Related News
Capital as a factor of production and transformation of state enterprise into a private firm
Transformation economy is a fundamental change in the main economic institutions and the formation of the new economy. The duration of the transitional period usually depends on the duration of how quickly private capital as a fac...
As scientific methods of research of control systems and sociological methods of research of control systems, identify several stages of formation of the firm as an economic institution. the First phase of the research methods sys...
Informational support of financial management methods of advertising
the Processes of globalization of information space as a reflection of the General processes of globalization occurring in the world today, of course, can not affect information provision of financial management and the form...
Social control and identification methods in advertising texts
As a rule, the use of such psychological categories as “conviction”, “manipulation of human consciousness”, “suggestion" in the advertising product performs very efficiently, the functions of soc...
a Comprehensive analysis of the process of reforming the Russian economy in recent years reveals the need to apply new types of analysis of economic activity, because the earlier methods of complex analysis of economic activities ...
The calculation of profitability based on the value theory in the environmental sector
In connection with the transition to a market economy, which were widely used in Russia, methodology of calculation of profitability and other traditional criteria indicating environmental and economic innovations have been incorp...
Comments (0)
This article has no comment, be the first!