Frontier Information Technology and Systems Research in Cooperative Economics [1st ed.] 9783030578305, 9783030578312

Citation preview

Studies in Systems, Decision and Control 316

Aleksei V. Bogoviz Alexander E. Suglobov Alexandr N. Maloletko Olga V. Kaurova Svetlana V. Lobova   Editors

Frontier Information Technology and Systems Research in Cooperative Economics

Studies in Systems, Decision and Control Volume 316

Series Editor Janusz Kacprzyk, Systems Research Institute, Polish Academy of Sciences, Warsaw, Poland

The series “Studies in Systems, Decision and Control” (SSDC) covers both new developments and advances, as well as the state of the art, in the various areas of broadly perceived systems, decision making and control–quickly, up to date and with a high quality. The intent is to cover the theory, applications, and perspectives on the state of the art and future developments relevant to systems, decision making, control, complex processes and related areas, as embedded in the fields of engineering, computer science, physics, economics, social and life sciences, as well as the paradigms and methodologies behind them. The series contains monographs, textbooks, lecture notes and edited volumes in systems, decision making and control spanning the areas of Cyber-Physical Systems, Autonomous Systems, Sensor Networks, Control Systems, Energy Systems, Automotive Systems, Biological Systems, Vehicular Networking and Connected Vehicles, Aerospace Systems, Automation, Manufacturing, Smart Grids, Nonlinear Systems, Power Systems, Robotics, Social Systems, Economic Systems and other. Of particular value to both the contributors and the readership are the short publication timeframe and the world-wide distribution and exposure which enable both a wide and rapid dissemination of research output. ** Indexing: The books of this series are submitted to ISI, SCOPUS, DBLP, Ulrichs, MathSciNet, Current Mathematical Publications, Mathematical Reviews, Zentralblatt Math: MetaPress and Springerlink.

More information about this series at http://www.springer.com/series/13304

Aleksei V. Bogoviz Alexander E. Suglobov Alexandr N. Maloletko Olga V. Kaurova Svetlana V. Lobova •

•

•

Editors

Frontier Information Technology and Systems Research in Cooperative Economics

123

•

Editors Aleksei V. Bogoviz Higher School of Economics National Research University Moscow, Russia Alexandr N. Maloletko Doctor of Economics Russian University of Cooperation Mytishchi, Russia Svetlana V. Lobova Doctor of Economics Altai State University Barnaul, Russia

Alexander E. Suglobov Doctor of Economics The Council of the Central Union of the Russian Federation on Science and Education Moscow, Russia Olga V. Kaurova Doctor of Economics Russian University of Cooperation Mytishchi, Russia

ISSN 2198-4182 ISSN 2198-4190 (electronic) Studies in Systems, Decision and Control ISBN 978-3-030-57830-5 ISBN 978-3-030-57831-2 (eBook) https://doi.org/10.1007/978-3-030-57831-2 © Springer Nature Switzerland AG 2021 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Preface

The presented work is the very first book-length study devoted to the advances in technological development and systems research in the field of cooperative economics. Employing both qualitative and quantitative research methods, the book provides, first of all, a coherent framework for understanding and applying the concepts and approaches of complexity and systems science for the advanced study of cooperative networks and particular cooperative enterprises and communities. Second, the book serves as a unique source of reliable information on the frontier information technologies available for the production, consumer, credit, and agricultural cooperative enterprises, as well as it discusses predominant strategies, potential drivers of change, and responses to complex problems. Such topics as intelligent systems research, computational economics and finance, and the Internet of things are also extensively covered by the leading researchers through the prism of cooperative economics. The whole collection of chapters is divided into five sections, and the remaining text briefly describes each of them. The first section of the book addresses the challenges and opportunities in the development of cooperatives and cooperative communities in the new economic environment, which is heavily influenced by information and communication technologies. The scholars review the key trends, factors, and patterns of the emerging “digital” environment and emphasize the urgent need for cooperative enterprises to constantly innovate. The section also provides a comprehensive review of the information technologies available for cooperative enterprises and cooperative communities, additionally focusing on creative and innovative environments within organizations, national and regional innovation systems, knowledge and expert systems, as well as collaborative innovation networks. The scholars note that the advanced information technologies, particularly their ever-increasing computing capacity, have never been so powerful in the ability to represent complex systems. In turn, our deeper insights and better understanding of the structure and dynamics of complex systems will be eventually reflected in the scientific and technological developments of the future in various fields. The second book section focuses on (1) new methods and technologies in systems research; v

vi

Preface

(2) the applicability of systems theory in economics, capturing the most important components and their interactions; (3) advances in cooperative networks research; (4) unconventional solutions to complex problems and new perspectives on systems research in cooperative economics; as well as (5) particular applications of systems research in technological innovation and cooperative business. The third part of the book is fully devoted to the arising opportunities of computational economics and finance to better understand complex problems in cooperative economics and find effective ways of dealing with them. A bright collection of chapters addresses the theoretical issues of computational economics and finance, as well as it reviews the real-world applications in the field of cooperative economics. Particularly, the book includes theoretical chapters on multi-order nonlinear modeling, incremental learning, fuzzy networks, generic algorithm, risk valuation, predictive analytics, agent-based modeling, stock pricing, market sentiment harvesting, etc. In terms of practical implications, there are numerous chapters addressing the following aspects: intelligent data analysis and processing; data mining; new financial products; risk control systems; market-making; organization theory problems; job scheduling; decision support systems, and many others. The last two book sections focus on (1) decision-making strategies, human resources, and knowledge management, as well as (2) the firm-level performance of production, credit, consumer, and agricultural cooperative enterprises. They are both based on rich cases, real-world and industrial applications, as well as rely on the original empirical data. Representing a diverse range of backgrounds and advanced research results spanning academia and the public and private sectors, the book is an indispensable source of cutting-edge information on frontier information technology and advances in economic, social, and technological systems for researchers, decision-makers, and stakeholders in cooperative economics. Sincerely, Aleksei V. Bogoviz Alexander E. Suglobov Alexandr N. Maloletko Olga V. Kaurova Svetlana V. Lobova

Contents

Striving for Innovations: Cooperative Organizations in the New Economic Environment The Role of Credit Cooperatives in Financing the Real Sector of the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Olga A. Repushevskaya, Zulfiya T. Nasretdinova, Azat N. Kuzyashev, Natalya V. Beschastnova, and Dinara A. Shamshovich Innovative Marketing Technologies in the Development of a New Product: Methodological Solutions in the Context of Economic Integration and Cooperation . . . . . . . . . . . . . . . . . . . . . . . Tatiana A. Iskyanderova, Irina N. Novokupova, Margarita A. Shumilina, and Svetlana A. Galaktionova

3

13

Cooperative Platform in the Modern Economy . . . . . . . . . . . . . . . . . . . Alexander V. Sobolev, Vladimir M. Pakhomov, Andrei V. Brilon, Oksana A. Konnova, and Irina V. Minchenckova

25

Education at a Cooperative University in the Digital Economy . . . . . . . Artur A. Maksaev, Dinara G. Vasbieva, Olga Yu. Sherbakova, Fatima R. Mirzoeva, and Roman Kralik

33

The Development of Cooperation in the Digital Economy Based on Scientific Research by A. V. Chayanov . . . . . . . . . . . . . . . . . . Tatyana E. Glushchenko, Nina V. Khodarinova, Olga V. Ishchenko, Valery L. Shaposhnikov, and Zhanna A. Aksenova Involvement of the World’s Largest Cooperatives in Sustainable Development Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Olga V. Shinkareva, Olga V. Kaurova, Alexander N. Maloletko, Mikhail V. Vinichenko, and Peter Karácsony

43

53

vii

viii

Contents

Collaborations in the Modern Economy . . . . . . . . . . . . . . . . . . . . . . . . . Elena N. Sochneva, Anna A. Malakhova, Olga V. Starova, Dmitry V. Zyablikov, and Dmitry I. Kravtsov On the Issue of Innovative Development of the Distribution Center in the System of Consumer Cooperation in the Region . . . . . . . . . . . . . Ljudmila Yu. Alexandrova, Olga F. Kireeva, Alevtina Yu. Munshi, Stanislav V. Timofeev, and Anastasia N. Shikanova Current Trends in Cooperative Economics . . . . . . . . . . . . . . . . . . . . . . Rustam T. Bazarov, Tatiana V. Tishkina, Elmira I. Basyrova, Elena S. Shigorcova, and Chulpan H. Samatova The Research on the Application of Formal Mathematical Models in Industry-Oriented Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Viktor O. Georgiev, Khalida S. Biktimirova, Alfira M. Akhmedova, Ludmila A. Gaynulova, and Nurzhamal Zh. Kurmankulova Cooperation as a Way to Increase the Efficiency of Innovative Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elena A. Bessonova, Nina S. Skotnikova, Artem A. Golovin, and Rustam M. Battalov

63

73

81

89

99

Development of the System of Consumer Cooperation in the Conditions of Digitalization of the Economy . . . . . . . . . . . . . . . . 109 Vilyur Y. Akhmetov, Azat N. Kuzyashev, Galina V. Knyaginina, Elsa R. Mukhametzyanova, and Alfiya R. Nasretdinova Promotion of Cooperatives in Digital Measurement . . . . . . . . . . . . . . . . 121 Elena V. Kirsanova, Ferida G. Malieva, Yakov M. Voskoboynikov, Vladimir P. Tereshchenko, and Viktor V. Gorlov Entrepreneurship at the Stage of Development of the Digital Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Dmitry I. Valigursky, Tatyana T. Kuzmina, Elena L. Maslova, Irina O. Ryzhova, and Valentina I. Goncharenko Platform Cooperativism—A New Model in the Knowledge Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Elena V. Kirsanova, Arkadii I. Mokhirev, Andrei M. Sokolov, Elena V. Suvorova, and Shakhlo S. Zikirova The Model of Mutually Beneficial Cooperation of Industrial Enterprises in the Conditions of Innovative Development . . . . . . . . . . . 149 Anna V. Platonova, Aleksandr I. Afonichkin, Ekaterina V. Pustynnikova, Iuliia S. Pinkovetskaia, and Vadim V. Baklushinskiy

Contents

ix

Rural Labor Market and Digitalization: New Challenges and Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Elena N. Lishchuk, Olga A. Chistiakova, Ella S. Boronina, Anna A. Churikova, and Zoya A. Kapelyuk Information Component in the Construction of Cooperation of Innovatively Active Business Entities . . . . . . . . . . . . . . . . . . . . . . . . . 165 Olga V. Emelyanova, Olga G. Timofeeva, and Ilya G. Perepelkin Strategic Directions for Developing Cooperatives to Benefit the Country’s Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Elena V. Minaeva, Natalia A. Yershova, Julia F. Anoshina, and Olga V. Yutkina Financing Innovative Projects: Challenges, Risks, and Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Mariya V. Myagkova, Tatyana E. Shilkina, Vadim A. Makarov, and Roman R. Hairov The Russian Area Digitalization Index to Assess Digitalization Vectors in the Program-Targeted Administration Model . . . . . . . . . . . . . . . . . . 197 Lilia V. Matraeva, Natalia A. Korolkova, Olga V. Kaurova, Alexander N. Maloletko, and Olga E. Bashina Cognitive Fuzzy-Logic Modeling Tools to Develop Innovative Process Management Procedures for Scientific-Industrial Clusters . . . . . . . . . . . 209 Arthur E. Zaenchkovski, Elena A. Kirillova, Marina V. Golovinskaya, Elena A. Sazonova, and Veronika L. Borisova Investment Attractiveness of the Economy of the Republic of Tatarstan: Determining the Possibility of Integration Processes . . . . . 223 Asiliar I. Gubaidullina The Socio-economic Importance of Education in a Knowledge-Based Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 Irina A. Firsova, Inna V. Lukashenko, and Svetlana P. Azarova The Methodology for Multivariate Statistical Analysis of Innovation Potentials: The Case of Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Marina R. Efimova, Ekaterina A. Dolgikh, Tatiana A. Pershina, and Lidiya S. Parshintseva The Methodology of Design Thinking as a Tool for Forming Innovative Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 Olga V. Belyaeva, Natalia V. Vysotskaya, Alfia I. Gazizova, Tatiana B. Kurbatskaya, and Nurzidya J. Myavlina

x

Contents

Social and Economic Systems Research for Cooperative Theory and Practice A Review of Agent-Based Modeling in the Cooperative Sector of Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Vitaliy A. Brodskiy, Daniil M. Pimenov, Pavel L. Chernov, Marina D. Dzhamaldinova, and Nataliya O. Kurdyukova Mathematical Modeling of Consumer Behavior, Taking into Account Entropy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 Mikhail M. Ermilov, Liudmila E. Surkova, and Roman V. Samoletov The Cooperative Sector of the Smolensk Region: Current State and Development Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 Vladimir M. Lavrushin, Vladimir A. Gimarov, Vladimir V. Gimarov, Olga Yu. Kramlikh, and Svetlana A. Chudakova The Place and Role of Family Commodity Farms and Cooperation in the Formation of Territorial Complexes . . . . . . . . . . . . . . . . . . . . . . . 289 Vladimir G. Egorov, Andrey A. Inshakov, and Alexey V. Kuznetsov Mathematical Modeling of Economic Processes in the Activities of Cooperative Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Andrey V. Potashev, Elena V. Potasheva, Alfira M. Ahmedova, and Ludmila A. Gaynulova System Studies of Socio-cultural Activities of Consumer Cooperatives of the European North . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 Elena V. Dianova The Role of Integration Processes in the Development of the Cooperative Sector of the Russian Economy . . . . . . . . . . . . . . . . 315 Elena V. Tokar, Rodion V. Kononenko, Tatyana N. Igolkina, and Igor I. Salnikov Approaches to the Study of Factors Stimulating the Development of Cooperation Between Large and Small Businesses in Russia and the Republic of Belarus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 Alexander N. Maloletko, Olga V. Kaurova, Anna N. Ermilova, Valery A. Oganyan, and Yulia V. Steklova Cooperation as a Form of Interaction in Modern Educational Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335 Anna G. Alyabyeva, Julia V. Ganicheva, Irina A. Korsakova, and Anna I. Shcherbakova

Contents

xi

Topical Problems and Current Trends in the Development of Cooperation and Integration Processes in the Context of Humanitarian Knowledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345 Julia Yu. Rybasova, Flera L. Mazitova, Alla Yu. Filkova, Chulpan Kh. Samatova, and Zulfia Sh. Yakhina Cooperation and Integration Process Transformation Trends . . . . . . . . 355 Svetlana V. Mamontova, Elena A. Bessonova, Mikhail V. Kulikov, Ekaterina A. Panarina, and Ekaterina A. Zhukova The Relevance of Cooperative Principles in Current Economic Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365 Dmitry I. Valigursky, Olga M. Valigurskaya, Leonid P. Dashkov, Irina O. Ryzhova, and Vera K. Romanovich Modern Cooperation and Integration Processes in Solving Social Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371 Olga O. Afanaseva, Olga A. Anikeeva, Anastasia V. Karpunina, Valeria V. Sizikova, and Elena I. Zritneva Features of Phased Implementation of the Economic and Social Development of Regional Systems of Consumer Cooperation . . . . . . . . . 383 Arthur A. Maksaev, Ekaterina P. Bagryantseva, Valentina Yu. Dianova, Natalia V. Yatsevich, and Alexander V. Tkach The Ideas of Cooperation in Ancient Indian Philosophy (on the Example of Kautilya’s Arthashastra) . . . . . . . . . . . . . . . . . . . . . 395 Vadim V. Ostanin, Konstantin V. Konovalov, Sergey P. Krasnikov, Marina V. Shabanova, and Tatyana V. Platova Retrospective of the Formation and Development of Consumer Cooperation in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Edward A. Arustamov, Dmitry I. Valigursky, Artur A. Maksaev, Valentina V. Bronnikova, and Dmitry K. Chirkov Integration and Cooperation in the National Economy . . . . . . . . . . . . . 411 Lyudmila I. Tomashevskaya, Guzel A. Musina, Elena A. Hunafina, Tatiana V. Georgiadi, and Ekaterina V. Zhilina Consumer Cooperation in the Socio-Economic Infrastructure of Rural Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419 Alsu R. Nabiyeva Cooperation as a Sociocultural Factor in the Development of Rural Territories: A Conceptual Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431 Adigam A. Barlybaev, Inna A. Sitnova, Ildar M. Rahmatullin, Venera T. Saitbatalova, and Azamat A. Barlybaev

xii

Contents

Russian Cooperation Movement After the Collapse of the USSR: Problems and Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441 Anton M. Tuzin, Marina V. Danilina, Leonid N. Romanchenko, Oxana V. Konovalova, and Stanislav I. Buslaev Foreign Economic Risks in the Conditions of the Eurasian Economic Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449 Marina S. Arabian, Roman V. Danilov, Dmitriy S. Usov, Irina V. Minchenckova, and Svetlana G. Tretyakova Development of Regional Transport Infrastructure and its Financial Mechanisms in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 Pavel V. Gorlachev, Irina A. Kunakovskaya, Svetlana N. Habahu, Alexandra Yu. Artyushkova, and Natalya N. Gribok Frontier Technology: Theory and Applications in Cooperative Economics The Impact of Artificial Intelligence on Retraining . . . . . . . . . . . . . . . . 469 Andrei V. Novichkov, Tatiana A. Puzynya, Tatiana V. Grishina, Svetlana D. Fursova, and Natalia V. Buley Digital Innovation in Traditional Services of Credit Cooperative . . . . . . 477 Larisa V. Popova, Tatiana V. Daeva, Tatiana A. Dugina, Victor A. Melikhov, and Tatiana A. Chekrygina Prospects for the Development of the Software Industry Market for the Cooperative Sector of the Economy . . . . . . . . . . . . . . . . . . . . . . 487 Pavel V. Zhesterov, Maria A. Volkova, Svetlana Yu. Starodumova, and Lubov B. Sitdikova Cooperative Organizations and Digital Technologies . . . . . . . . . . . . . . . 495 Alexander V. Sobolev, Galina Yu. Myasnikova, Alexander B. Krym, Vera A. Drobisheva, and Lidia V. Andreeva Cost Optimization for Data Storage Using Cloud Technologies . . . . . . . 503 Vladimir I. Meikshan, Natalia B. Teslya, Evgeniya E. Istratova, Irina D. Koldunova, and Albina V. Ikonnikova The Use of Neural Networks in Predicting the Economic Performance of Cooperative Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 Marina V. Gavrilova, Mihail S. Portnov, Alexey V. Rechnov, Vladimir P. Philippov, and Galina N. Egorova Advanced Technologies in the Cooperative Sector of the Economy: Historical Aspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521 Olga A. Bezgina and Svetlana Y. Vasilieva

Contents

xiii

Digital Technologies in Cooperative Enterprises: The Case of Online Cash Registers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529 Tatiana A. Panteleeva, Alexandr I. Boykov, Sergey M. Kuleshov, and Mikhail Y. Bykov Modeling Accounting Information in the Internal Control System of Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537 Elena V. Ivanova, Vera V. Darinskaya, Lidia V. Andreeva, Nikolay Ya. Golovetsky, and Elvira N. Borisova A Competency Model in the Field of Information Technology . . . . . . . . 545 Ekaterina V. Kashtanova, Anastasia S. Lobacheva, Sergey A. Makushkin, and Taridi K. Ridho The Use of IoT and IIoT for Equipment Testing . . . . . . . . . . . . . . . . . . 553 Roman V. Samoletov, Elena V. Abyzova, Larisa A. Kargin, Sophia L. Lebedeva, and Oksana V. Mednikova The Influence of Artificial Intelligence on Human Activities . . . . . . . . . 561 Mikhail V. Vinichenko, Gundeea S. Narrainen, Alexander V. Melnichuk, and Pheni Chalid Decision-Making Strategies, Human Resources, and Knowledge Management Technology to Identify Distortions in Financial Reporting of a Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573 Elvira N. Borisova, Tatiana V. Bodrova, Irina D. Demina, Gulzira U. Bekniyazova, and Elena V. Zubareva Internal Control for Ensuring Sustainable Development of a Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579 Tatyana V. Bodrova, Olga E. Kachkova, Alexander M. Zarubetskiy, Natalia B. Morozova, and Elena V. Zubareva The Main Advantage of a Cooperative Business Model is the Economic Participation of Shareholders . . . . . . . . . . . . . . . . . . . . 589 Lydia P. Nagovitsina and Marina I. Drozdova The Subjects of Corporate Governance in a Cooperative . . . . . . . . . . . . 597 Svetlana Yu. Starodumova, Lubov B. Sitdikova, Maria A. Volkova, and Alla A. Neznamova Shareholders of Consumer Cooperation in Russia—Motivation for Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605 Elena L. Maslova, Olga Z. Matveeva, Marina V. Kovshova, Viktoria A. Kolenova, and Lyudmila A. Yariz

xiv

Contents

Innovative Methods of Mastering Economic Knowledge by Learning a Foreign Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615 Aleksander V. Kozharinov, Olga A. Kalugina, Natalia V. Ryabchenko, Anastasia A. Kolobkova, and Roman Kralik The Need for Organization of the Internal Control of Risks of Consumer Cooperation Enterprises System . . . . . . . . . . . . . . . . . . . . 625 Victoria G. Annenkova, Elena G. Zhulina, Olga B. Mizyakina, Nuria N. Shakirova, and Inna V. Кuznetsova Process Approach in the System of Management of Intellectual Property in Consumer Cooperation Enterprises . . . . . . . . . . . . . . . . . . . 635 Tatyana T. Myagkova, Sergey V. Istomin, Natalya A. Voronina, Inna V. Кuznetsova, and Eldar I. Ablyazov Competitiveness of the Organization of Consumer Cooperation: Effective Management in the Modern Market Sector . . . . . . . . . . . . . . . 643 Konstantin A. Kartashov, Nadezhda A. Ovcharenko, Taisiya N. Sidorenko, Elena V. Smirnova, and Elena E. Udovik Management Problems in Cooperative Platforms and Traditional Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 653 Oksana A. Konnova, Irina V. Minchenckova, Vera A. Drobisheva, Ludmila A. Mityurnikova, and Elena N. Podsevalova A Methodological Approach to Determining the Competitive Positions of the Labor Potential in Regional Consumer Cooperation . . . . . . . . . . 661 Svetlana F. Bolshenko, Victoria B. Gorbunova, and Oksana V. Martynenko On the Issue of Improving the System of Remuneration of Workers in Consumer Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 671 Nataliya V. Alexandrova, Olga L. Alekseeva, Slavyana Y. Gurova, Tamara Ya. Silvestrova, and Elena V. Shkolnik Protecting the Rights of Members of Housing Cooperatives Using Criminal Law as an Important Element of Economic Development . . . . 679 Vera R. Averyanova, Taisiya N. Sidorenko, Andrei A. Zhukov, Nellya I. Orfanidi, and Andriy A. Klyuev Conceptual Framework for the Implementation of Audit Control of the Financial and Economic Activities of Agricultural Consumer Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 687 Oxana V. Boyko System-Targeted Reengineering of Business Processes in Cooperative Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 695 Irina V. Liberman, Sergey I. Koryagin, Pavel M. Klachek, Anna A. Bogdanova, and Valeriya A. Vasileva

Contents

xv

A Technical Service System to Increase Business Efficiency and Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705 Wiktor E. Panasenko, Mikhail A. Sharonov, Mikhail V. Boginya, Tatiana G. Vlasova, and Zhanna S. Zhukova Strategic Controlling Systems for Businesses: Key Features and Application Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715 Vera V. Darinskaya, Oleg A. Antonyuk, Andrey A. Privetkin, Lyudmila A. Kryatova, and Elena V. Ivanova Competencies Management in an Organization . . . . . . . . . . . . . . . . . . . 723 Alla V. Deineka, Pavel V. Gorlachev, Nadezhda A. Ovcharenko, and Taisiya N. Sidorenko A Target-Costing Cost Accounting System as a Strategic Management Tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731 Vera V. Darinskaya, Irina V. Bratko, Elena V. Zubareva, Elvira N. Borisova, and Irina P. Drachena Accounting and Analytical Systems as an Integral Element of Contemporary Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739 Victoria V. Saliy, Olga V. Ishchenko, Victoria G. Bush, Elvira G. Gladysheva, and Elena V. Abyzova Case Studies: Insights for Cooperative Enterprises Critical Factors of Food Production in Cooperatives: Methodological Aspects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749 Anatoly E. Shamin, Tatiana N. Kutaeva, Marina L. Nechaeva, and Vladimir A. Makarychev Interaction Models of Entrepreneurial Organizational Structures in the Fuel and Energy and Agro-Industrial Complexes . . . . . . . . . . . . 759 Olga A. Fedorova and Shamil Z. Valiev Consumer Cooperation in the Market of Environmentally Friendly Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 767 Elena I. Balalova, Olga V. Baskakova, Mariya Sh. Machabeli, Tatyana V. Rudakova, and Aleksandr V. Tkach Comparative Analysis of the Legal Status of Personal Subsidiary Plots and the Legal Status of Peasant Farms . . . . . . . . . . . . . . . . . . . . . 777 Igor A. Vladimirov, Louise K. Rashitova, and Radmir A. Iksanov Stream Modeling of an Online Store Based on Modified Petri Nets in Consumer Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 787 Svetlana N. Savdur, Gulia A. Khamatshaleeva, Galina S. Stepanova, Nadezhda N. Maslennikova, and Juliya V. Stepanova

xvi

Contents

Cooperation in Pharmaceutical Development . . . . . . . . . . . . . . . . . . . . . 797 Elena A. Bryzgalova, Marina V. Kovshova, Olga V. Kolesnikova, Lidiya B. Larina, and Olga I. Zhukova Improving the Efficiency of Agricultural Cooperatives in the Republic of Kazakhstan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805 Sairan N. Ulakov, Gulmira N. Nakipova, Ziyada N. Borbasova, Anastasya M. Helmle, and Ruslan Y. Nesipbaev The Mechanism for Ensuring Economic Security of Consumer Cooperation Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815 Lyudmila P. Fedorova, Tatyana Yu. Serebryakova, Artur A. Semenov, Anastasia V. Nikolaeva, and Tatyana V. Stolyarova The Formation of a Multifunctional Transport Cluster Through the Development of Public-Private (Cooperative) Partnership . . . . . . . . 825 Olga A. Galochkina, Tatiana N. Kosheleva, Elena V. Grozovskaya, and Dmitry V. Zmievsky Scenarios of Commodity Circulation of Agricultural Products by Cooperatives of the Central Federal District to the Moscow Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835 Valery V. Gusev, Taisiya F. Ryabova, Israil Abdulragimov, and Natalia M. Suray Key Financial Indicators in the Production Cooperative Sector of Russia: Analysis and Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 847 Vera G. Kogdenko Approaches to Solving the Existing Problems in Green Logistics . . . . . . 857 Ljudmila Yu. Alexandrova, Olga F. Kireeva, Elena V. Krasilnikova, Alevtina Yu. Munshi, and Stanislav V. Timofeev Formation of Integrated Marketing Communications in the Cooperative Economy Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . 869 Sergey A. Mamontov, Vladimir V. Saliy, Daria V. Glebova, and Irina A. Schmidt Risk Mapping Methodology for Agricultural Cooperative Sector Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 879 Tatiana A. Panteleeva, Artur A. Panasuk, Leonid V. Matunin, Ludmila E. Dubanevich, and Elena G. Kozlova International Cooperation in the Fight Against Environmental Crime: A Modern Mechanism for Combating Illegal Trade in Wildlife . . . . . . . 889 Mariana V. Arkhipova, Elena G. Bormotova, Elena A. Yakushevskaya, Yuri O. Golovin, and Valentina S. Arsentyeva

Contents

xvii

University Interactions as a Form of Cooperation: Risks and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899 Andrey A. Selyutin, Elizaveta V. Limarova, and Elena E. Sokolova Outsourcing in the Cooperative Sector of the Economy . . . . . . . . . . . . . 907 Lili Z. Buranbaeva, Diyaz U. Ishnazarov, Alfiya R. Nurova, Zulfiya S. Sabirova, and Buranbay R. Yuldybaev Cooperative Education Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 915 Irina I. Kondrashkina, Roman R. Khairov, Svetlana M. Soldatkina, and Olga V. Knyazeva Theoretical and Methodological Approaches to Customs and Logistic Management of Transboundary Processes . . . . . . . . . . . . . . . . . . . . . . . 923 Valentina Yu. Dianova, Nasrullah A. Adamov, Ziya E. Suleymanov, Natalia B. Morozova, and Tamara A. Penchukova Innovative Capabilities of Food Industry Enterprises . . . . . . . . . . . . . . 933 Ludmila V. Marabaeva, Elena G. Kuznetsova, and Roman R. Hairov Creating a National Brand as a Factor in Growing Russian Exports . . . 943 Helena B. Starodubtseva, Marina B. Medvedeva, Marina S. Arabian, Valentina Yu. Dianova, and Svetlana V. Zybenko Marketing Research on Consumer Demand in the Confectionery Market of the Krasnodar Region (Russia) . . . . . . . . . . . . . . . . . . . . . . . 953 Adelia R. Muratova, Dmitry D. Kushnir, Ekaterina E. Grishenko, Margarita A. Shumilina, and Svetlana A. Galaktionova The New IFRS Leaseholder Accounting Model . . . . . . . . . . . . . . . . . . . 963 Lyudmila A. Kryatova, Olga S. Ezopova-Sorokina, Roza N. Nurgalieva, Renata I. Amirova, and Lyudmila A. Furgina Economic Influence of Global Climatic Change on Food Security in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 971 Nasrullah A. Adamov, Ludmila P. Chijova, Arsen A. Tilov, Nataliya O. Kurdukova, and Tamara A. Penchukova Technical Regulations to Protect Consumer Markets from Dangerous and Substandard Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983 Evgeniya A. Sysoeva, Elena G. Kuznetsova, Roman R. Hairov, and Petr V. Manin A Comparative Analysis of the Methods Used to Assess Borrower Creditworthiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 991 Nadezhda N. Zhilina, Marina R. Magdeeva, Vladimir G. Ignatev, Ilgiz I. Nurtdinov, and Lubov V. Gusarova

xviii

Contents

Official Economic Abuse in Economic Management as a Criminological and Legal Category . . . . . . . . . . . . . . . . . . . . . . . . 1001 Mikhail G. Ivanov, Valery V. Andreev, Arthur G. Bezverkhov, Olesya M. Ivanova, and Alexander P. Kuznetsov Customs and Logistics in the Cross-border Setting: Participants’ Mutual Interests and Coordination Issues . . . . . . . . . . . . . 1009 Arthur A. Maksaev, Vladimir I. Barilenko, Marina D. Dzhamaldinova, Ekaterina A. Kameneva, and Ziya E. Suleymanov Universal Labeling of Consumer Goods as a Tool to Combat Illegal Trafficking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1021 Marina S. Arabian, Roman V. Danilov, Valentina Yu. Dianova, Elina M. Duguzheva, and Dmitriy S. Usov Developing International Leasing in Russia: The Case of Mobile Property Leasing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1033 Olga A. Repushevskaya, Roman V. Danilov, Yelizaveta S. Frenk, Svetlana V. Zybenko, and Dmitriy S. Usov Gamification as a Method of Successful Adaptation of Migrants in European Countries: Socio-psychological and Economic Aspects . . . . 1041 Oksana I. Mironova, Lydia A. Ruonala, and Oksana V. Ivanova Corporate Volunteering as a Factor in the Development of Safe Civil Behavior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1053 Pavel A. Kislyakov, Elena A. Shmeleva, Nataliya V. Belyakova, and Anzhela V. Romanova Assessing the Biosafety of the New Probiotic Strain of Bifidobacterium Crudilactis 7-1C Isolated from Camel Milk . . . . . . . . . . . . . . . . . . . . . . 1063 Bakhytkul U. Baikhozhaeva, Akkenzhe B. Omarova, Talgat D. Ikombaev, Tansholpan A. Altaeva, and Yerkebulan O. Kilibayev Understanding the Labor Efficiency in Agricultural Production Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1071 Anatoly E. Shamin, Olga A. Frolova, Elena A. Agafonova, Natalia V. Yashkova, and Nadezhda S. Kulkova Developing a Recipe for Gluten-Free Snacks . . . . . . . . . . . . . . . . . . . . . 1079 Galina N. Dubtsova, Irina U. Kusova, George G. Dubtsov, and Irina V. Vitol Specialized Bakery Products for Dietary Nutrition . . . . . . . . . . . . . . . . . 1087 Alfred R. Bogdanov, Georgy G. Dubtsov, Galina N. Dubtsova, Irina U. Kusova, and Ily K. Vadovsky Assessing the Expediency of Using Outsourcing in Various Economic Sectors: A Review of the Existing Approaches . . . . . . . . . . . . . . . . . . . . 1095 Irina V. Trushchenko, Marina V. Samoshkina, and Evgenia V. Vikulina

Contents

xix

Customs and Logistics Activity in Geopolitical and Economic Changes: Problems, Strategies, and Risks . . . . . . . . . . . . . . . . . . . . . . . 1105 Tatyana A. Kozenkova, Tatyana V. Abalakina, Ziya E. Suleymanov, Sergey V. Bank, and Olga B. Sokolnikova Legal Consequences of Violating Integration and Cooperation Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1117 Melia K. Nurkaeva, Elvira I. Karamova, Elmira M. Salihova, Tanzilya R. Gallyamova, and Georgy I. Peshcherov

Striving for Innovations: Cooperative Organizations in the New Economic Environment

The Role of Credit Cooperatives in Financing the Real Sector of the Economy Olga A. Repushevskaya , Zulfiya T. Nasretdinova , Azat N. Kuzyashev , Natalya V. Beschastnova , and Dinara A. Shamshovich Abstract Credit cooperatives occupy a special place in the financial system of the country. They are created and operate on democratic principles of mutual assistance and have recently increased the level of accessibility of various banking programs, including refinancing schemes, mainly due to high unit costs for small borrowers and operations with deposits. By their nature, credit cooperatives seek to improve local and general welfare, as it is the property of shareholders. They solve the problem of financing the real sector of the economy and play an important role in regions remote from large financial centers–increasing effective demand for training, job creation, and poverty alleviation. In order to protect shareholders, consumer credit cooperatives (hereinafter–CCC) enter into a mutual insurance company (hereinafter–MIC). Currently, there are 5 mutual insurance societies, which comprise 152 credit consumer cooperatives out of 1503. An important point is a need for the CCC to meet the additional requirements of the MIC to enter it. Keywords Credit cooperatives Financial centers Free money





Banking services
Sectors of the economy


O. A. Repushevskaya (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] Z. T. Nasretdinova Academy of Sciences of the Republic of Bashkortostan, Ufa, Russia e-mail: [email protected] A. N. Kuzyashev Bashkir Cooperative Institute (Branch) of Russian University of Cooperation, Ufa, Russia e-mail: [email protected] N. V. Beschastnova Eastern Economic and Law Humanitarian Academy, Ufa, Russia e-mail: [email protected] D. A. Shamshovich Ufa State Petroleum Technical University, Ufa, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_1

3

4

O. A. Repushevskaya et al.

The beginning of a new stage in the cooperative credit movement in the Russian Federation began with the activities of credit consumer cooperatives, as well as the creation of the self-regulatory organizations (hereinafter SRO) of credit cooperatives and the Federal Financial Markets Service of Russia (FFMSR). In Russia, financial and banking services are still unevenly distributed (Repishevsky and Sahaidachny 2017). They are significantly delayed compared to their delivery. There are two main reasons for this: • the high cost for credit organizations of forming and maintaining a branch network; • a lack of necessary security. As for credit cooperatives, they occupy a special place in the financial system of the country. They are based on democratic principles of creation and mutual assistance, and, by their nature, credit unions are the property of shareholders, mainly because of the high unit costs of operations with small borrowers and deposits. Therefore, they seek to improve the local and general welfare. The main goal of cooperatives is not profit but the satisfaction of needs (Nechitaylov and Tkach 2016). They also play an essential role in areas remote from large financial centers, solving the problems of financing the real sector of the economy: • • • •

poverty alleviation; job creation; preparation of credit cooperatives; encouraging unemployed and low-income citizens to receive state benefits for starting their own business.

This reduces the social obligations of the state treasury and increases tax revenues from individual entrepreneurship and financial market entities. To date, there has been a tendency to increase the level of accessibility of various banking programs, including refinancing schemes. However, they still cannot satisfy all the needs of consumers. In crises, financial institutions in Russia try to avoid risks and do not cooperate with unemployed, especially in connection with the issuance of long-term loans (for one year or more). If funds are needed urgently, then interaction with the bank will be meaningless. What should people do then in such a situation? Most likely, in this case, people will turn to microfinance organizations (Matraeva et al. 2018), where they will ask for significantly higher prices. Still, there are alternative options that can help to save, however, without the services of a credit consumer cooperative (hereinafter CCC). Unfortunately, not everyone knows about the main differences of the CCC. First, it should be understood that credit cooperation is not a commercial activity; it is not aimed at making a profit but does not exclude it. The goal of the cooperative is to provide the necessary resources for its members. In this case, one can earn by investing one’s own money, but not much, since loans given from such resources should, first of all, be affordable.

The Role of Credit Cooperatives in Financing …

5

The fundamental principles of the CCC are as follows: – – – – – –

voluntary entry; exit at own discretion without the need for the consent of other participants; open and accessible information; personal participation in the management of a credit cooperative; principle of democracy—one person has one vote; equality of rights and obligations of participants in the CCC, independent of the amount of the contribution.

It seems incorrect to make a comparison between banks and the CCC since they operate on entirely different principles. The key features of the CCC are: – the work of the CCC is subject to special legislation. The criteria for granting loans and attracting deposits are fixed in the CCC charter itself; – there is no extension of the insurance system for investments in the CCC, which guarantees the safety of deposits in the bank. However, usually, cooperatives are part of SRO, in which there are compensation funds. Therefore, the interests of investors have some protection; – they have simplified transaction processing. The shareholder provides the necessary documentation even upon joining the CCC. In some cases, a voluntary contribution is required: – A bank loan may be more affordable than the one offered by a cooperative. However, according to their conditions, CCC loans are more affordable than microloans; they are more profitable (Maloletko et al. 2013). Who are competitors to credit cooperatives? In a broad sense, we can talk about the following competition: – bank vs. credit cooperative – non-credit financial institution vs. credit cooperative (microfinance organizations and pawnshops) – credit cooperative vs. credit cooperative A distinctive feature of the Russian financial system is the significant control of banks over non-banking financial institutions in the market. Assets of credit institutions at the end of 2017 amounting to 85.2 trillion rubles, or 92.6%, dominate the assets of the non-banking financial sector. This distinguishes national financial markets from developed countries, where banking and credit institutions and capital markets complement each other and work together effectively. Another feature of the Russian financial market is a high concentration of attention. This trend occurs primarily in the banking sector, where the five largest banks control 55.8% of the total assets of the banking system, and 20 banks account for 79.3% of the assets. In 2018, retail bank loans showed an impressive growth of 22.8%, both in terms of issuing new loans and in terms of the growth of the loan portfolio throughout the system. According to the Central Bank of the Russian Federation, as of December

6

O. A. Repushevskaya et al.

1, 2018, household debt reached another record level of 15.9 trillion rubles (Central Bank of the Russian Federation 2019c). A dangerous feature of the beginning of 2019 is that lending to individuals is growing faster than nominal wages, incomes of the population, and industrial production. This progress, according to the Ministry of Economic Development of the Russian Federation, creates a “fundamentally unstable” situation in the Russian economy. The sustainability of this long-term financial model is impossible without the resumption of stable growth in real incomes of the population (Russian Federation 2018). Otherwise, the population may soon face a deterioration in their financial debt, and the possibility of providing services to creditors is already a matter of the loan portfolio. According to amendments to the Law on Credit Histories, citizens have the right to receive their credit report in electronic form free of charge twice a year (Alimanova and Nasretdinova 2014). In this regard, the NBCH prepared and implemented a service for obtaining credit reports of citizens, which was launched on March 31, 2019. If earlier borrowers could receive their credit report from the NBCH website once a year for free, now it can be done twice a year. It is important to note that as of January 1, 2019, 96 million Russian credit histories were collected in the database of the National Bureau of Credit Histories (NBCH). Credit histories are generated by more than 4200 lenders: banks, microfinance organizations, credit consumer cooperatives, and other types of organizations. They contain information about loan applications, issued and repaid loans, as well as the information about the way loans were serviced during the term of the loan agreement (Rambler Finance 2018). At the same time, at the beginning of 2019, about 16% of borrowers had difficulty fulfilling obligations under loan agreements. The rest made payments on time and in full. This means that 84% of Russian borrowers can count on a good or excellent rating, as they made payments on time and without any difficulties. In absolute terms, this share corresponds to 81,000 Russians in the NBCH credit history database (RBC 2019). There are several factors to consider when developing a credit cooperation strategy: 1. GDP growth. According to forecasts of the Bank of Russia, GDP growth rates for the corresponding period will be 1.5–2% per year, which will have a restraining effect on the ability of economic entities to save and apply for financial services. In 2019, the Russian economy will grow by 1.5% according to forecasts of World Bank experts, and by 1.8% in 2020–2021. The slowdown in economic growth, including due to unfavorable conditions in the financial and commodity markets, worsening investment climate, difficulties in attracting foreign financial resources, and geopolitical factors can negatively affect the state of the participants of the financial market, including consumer credit cooperatives. 2. Inflation. Considering the moderately tight monetary policy of Bank of Russia aimed at stabilizing inflation and curbing inflation expectations, inflation, at the

The Role of Credit Cooperatives in Financing …

7

end of 2019, will amount to 4.3%, which generally deviates less from the Bank of Russia benchmark of 4%. The inflation rate in Russia, in 2019, amounted to 5.2%; in 2020–2021, it will fall by 4% (Central Bank of the Russian Federation 2019b). If we take into account the moderately tight monetary policy of Russian banks aimed at stabilizing inflation and containing expectations on inflation growth, then inflation, in 2019, according to World Bank forecasts, will drop to 5.2%, and, in 2020–2021, to 4%. Low inflation and interest rates will contribute to macroeconomic and financial stability, creating opportunities for expanding the horizon of financial planning for business and the public. Compared to December 2017, the share of creditworthy borrowers increased by 7.5 million people (end of 2017—73.5 million people) (Table 1). According to statistics, in 2018, microfinance organizations issued 290 billion rubles to individuals, an increase of 26% compared to what the organizations issued in 2017. In 2019, the growth in the volume of microloan disbursements will decrease from 26% to 20% due to regulatory restrictions (Central Bank of the Russian Federation 2019a, b, c). Many microfinance organizations can switch to long-term lending, and interest rates will be lower, approximately at the level of credit cooperatives. For example, for MFIs, the PSS POS microloan was set by the Bank of Russia for the second quarter of 2019 in the range of 39%–54% per year. It is expected that microfinance market leaders will shift their focus to online emission in the future. Then, the competition will be more intense. Thus, many players will have to leave the market. The trend of online microloans will be truly massive. If the market does not have a massive collapse of off-line points, then at least they will be optimized. The portfolio of loans issued by pawnshops at the end of the third quarter of 2018 amounted to 33.7 billion rubles. New players enter the consumer lending market. It is believed that in the coming years, at least 50–60 new P2P platforms will appear, which will contribute to the growth of the market to 1 billion rubles. P2P lending is a financial service for issuing loans (consumer, commercial, mortgage, etc.), in which the lender is not a

Table 1 Borrowers’ PTI and DTI according to income segments (according to the NBCH as of 01.01.2019) Indicators of credit load, taking into account all borrower’s debts

Low income

Medium income

High income

Interval of income per month, rub.

up to 20,000 28.2

from 20,000 to 40,000 23.4

to 40,000 19.2

23.5

56.5

55.2

PTI (ratio of monthly payments on all loans to income per month), % DTI (ratio of the debt balance of all loans 54.9 54.6 to annual income), % Source Compiled by the authors based on (Rosstat, n.d.)

Average

8

O. A. Repushevskaya et al.

bank or a credit institution but a large number of individuals or institutional investors. To date, the entire market is estimated at 380–400 million rubles. In December 2017, the Bank of Russia, together with market participants, launched the Marketplace market project as part of the implementation of the Guidelines for the Development of Financial Technologies for the period 2018– 2020. The project aims to organize a system of remote retail distribution of financial products (services) and registration of financial transactions. Users are offered 24/7 remote access to financial services as well as a wide range of financial products and services. The product line will include bank deposits, mutual funds (UIFs), government and corporate bonds, third-party liability insurance, and mortgage loans (Nechitaylov 2018). In the future, the range can be expanded to include other credit, insurance, investment, and financial products. Shareholders can only use some cooperative resources. In order to join a credit cooperative, one must follow the procedure provided by the CCC charter. Currently, the CCC is working to restore order in various sectors of the financial market. The next item is the CCC system. A detailed document has already been proposed for discussion. Another system of guarantees for savings can be added after discussion in the professional community. As stated by the Central Bank, at present, the protection scheme of the CPC member’s savings is provided to the SRO compensation fund, mainly due to participants’ contributions (in the amount of 0.2% per annum of the value of assets) (Central Bank of the Russian Federation 2019a). At the end of the first quarter of 2019 (no further data is available), 495.1 million rubles were allocated in all these funds in the Russian Federation. Their amounts ranged from 5.8 million rubles in CPC “Central Credit Association” to 134.7 million rubles in Union SRO “National Association of Credit Cooperatives.” Compensation may not exceed 5% of the fund per SRO CCC participant, respectively, and compensation could be in an amount from 290 thousand rubles in SRO CCC “Central Credit Association” to 6,735 thousand rubles in the SRO “Union National Association of Credit Cooperatives” (Central Bank of the Russain Federation 2019b). It should be noted that in the case of the introduction of bankruptcy proceedings in the CCC, there is a need for compensation, which means that payment will be made to certain shareholders, not to CCC itself, and sent to the bankruptcy trustee. Thus, the CCC members could not get anything, and this rarely happened. The total number of CCC liquidated due to bankruptcy was 43, and only four SRO CCC made compensation payments to six participants in a total volume of 9 million rubles. The Central Bank of Russia summarizes the global experience in paying compensation to shareholders and proposes the introduction of a system that guarantees the safety of personal savings (hereinafter referred to as the SGSPS) in the Russian Federation in order to attract personal savings of participants. In order to implement this idea, it is required that all the SGSPS participate in all CCC that attract the personal savings of individual participants under personal savings transfer

The Role of Credit Cooperatives in Financing …

9

agreements that meet the following requirements (Central Bank of the Russian Federation 2019a): – CCC participates in SRO CCC; – CCC has been operating for more than one year (from the moment of state registration); – CCC complies with all regulations during the last calendar year; – CCC is not under bankruptcy proceedings. It is proposed that the SRO CCC, to which it is a party, should be responsible for assessing the possibility of including the CCC in the SGSPS. For SRO CCC, there will be a specific procedure for the transfer of data on the inclusion of CCC in membership in the Central Bank of the Russian Federation. The CCC, not included in the SGSPS, will need to cease its activities within one year. At the same time, currently available CCC compensation funds will be transferred to a single Guarantee Fund, which is vested with the right to attract a loan from the Central Bank of the Russian Federation if it does not have enough funds to settle with shareholders (the Deposit Insurance Agency works on a similar principle). Currently, the market for credit cooperation is shrinking. The second wave of “stripping” of the Central Bank of the Russian Federation and a decrease in business profitability is expected. This year, the Central Bank of the Russian Federation continues to cleanse the industry from unscrupulous companies for the benefit of society. However, the CCC themselves will leave the market as a result of their low profitability. This year, the transition to the EPP and OSBU is expected to be completed, which will require additional costs for the cooperative itself; unfortunately, not every cooperative will be able to pay these costs (Babakaev et al. 2018). The highest costs are associated with the retraining of CCC personnel or the involvement of more qualified specialists with knowledge of IFRS. It will also require updating the technical base and purchasing software, which also incurs costs. There are only two outcomes in this situation: to leave or become stronger, to scale up the activities, to attract shareholders. Those CCC that do not want to submit to the market on their own will have to stop their activities by the decision of the Central Bank of the Russian Federation. Also, in the future, it is envisaged to introduce an obligation for all CCC that attract citizens’ funds to join the SGSPS (Suglobov et al. 2010). Compensation funds formed by SRO have not been practically working for a long time. They include more than 1.5 thousand participants, but in the entire history of their existence, history has only six cases of compensation that might not reach the shareholders at all. The Central Bank of the Russian Federation proposed to create a unified surety fund as a solution to this problem. However, after a sharp recession, the market will recover, and, in 2019, new players will be formed; this promises some danger. Therefore, there is another option for protecting shareholders—the entry of CCC into the Mutual Insurance Company (MIC) (Sazykina and Beschastnova 2016). Currently, there are only five MIC, which consists of 152 CCC (total number is

10

O. A. Repushevskaya et al.

1,503). As explained by the Central Bank of the Russian Federation, the CCC is not ready for the additional costs of making contributions to the MIC, and the CCC also neglects the obligations on its contributions. The important point is that the CCC must satisfy the additional requirements of the MIC if it wishes to join it. Credit cooperation can have a strong economic base and a growing financial indicator in the presence of shareholders (Nechitaylov and Tkach 2016). All trends that affect the financial well-being of households will affect the creditworthiness of members of credit cooperatives. The slowdown in wage growth, dynamics of real incomes of the population, and weak demand in the labor market are the main risk factors for the sustainable growth of loan portfolios of credit cooperatives.

References Alimanova, E.S., Nasretdinova, Z.T.: On the origin of Russian cooperation. Adv. Mod. Nat. Sci. 8, 168 (2014). https://elibrary.ru/author_items.asp?authorid=680444&pubrole=100&show_refs= 1&show_option=0 Babakaev, S.V., Kaurova, O.V., Larionova, A.A., Volkov, D.V., Vinogradova, M.V., Leonova, V.P.: The study of criteria of the consumer choice of financial services in Russia. Mod. J. Lang. Teach. Meth. 8(6), 252–261 (2018) Central Bank of the Russian Federation. The review of key indicators of microfinance institutions (2019a). https://www.cbr.ru/Content/Document/File/71165/review_mfo_18Q3.pdf Central Bank of the Russian Federation. Average market values of the full cost of consumer loans (loans) (2019b). https://www.cbr.ru/Collection/Collection/File/14324/14022019_mfo.pdf Central Bank of the Russian Federation. The Main Directions for the Development of the Financial Market of the Russian Federation for the Period 2019–2021 (2019c). http://www.cbr.ru/ content/document/file/71220/main_directions.pdf Maloletko, A., Kaurova, O., Yumanova, O.: Ways to counter retrieval of “shadow income” from businesses with fixed assets in hospitality. Middie-East J. Sci. Res. 15(5), 757–762 (2013). https://doi.org/10.5829/idosi.mejsr.2013.15.5.11404 Matraeva, L., Kaurova, O., Vasiutina, E., Erokhin, S.: A dynamic model in the labor market: reasons for imbalances at the transition stage of the economy. Eur. Res. Stud. J. 21(3), 206–217 (2018) Nechitaylov, A.: Features of the market infrastructure of environmentally safe milk. In: IOP Conference Series: Earth Environmental Science, vol. 274, p. 012038 (2018) Nechitaylov, A.S., Tkach, A.V.: Consumer cooperation in market conditions. Econ. Agric. Process. Enterp. 8, 61–66 (2016) Rambler.Finance. It became known how many Russians have savings (2018). https://finance. rambler.ru/money/41301543-stalo-izvestno-skolko-rossiyan-imeyut-sberezheniya/ RBC. Card-to-card transfers in Russia overtook cash withdrawals for the first time (2019). https:// www.rbc.ru/finances/15/03/2019/5c8b90499a7947627586aa35 Repishevsky, O.A., Sahaidachny, O.V.: Prospects of development of banking business in Russia. Russian Economic Online Magazine, vol. 2 (2017). http://www.e-rej.ru/publications/169/? PAGEN_1=2 Russian Federation. The forecast of the socio-economic development of the Russian Federation for the period until 2036, Moscow, Russia (2018). http://economy.gov.ru/minec/about/structure/ depmacro/201828113 Rosstat. (n.d). Official statistics. https://www.gks.ru/folder/10705

The Role of Credit Cooperatives in Financing …

11

Sazykina, M.Yu., Beschastnova, N.V.: The Role of the household sector in the national economy. In: Topical Issues of Economic Theory: Development and Application in Practice of Russian Reforms 2016, pp. 170–174. Ufa State Aviation Technical University, Ufa, Russia (2016) Suglobov, A.E., Boboshko, B.I., Ladnun, I.A.: Status and problems of adaptation of international standards of audit in Russia. Int. Account. 2(134), 20–31 (2010)

Innovative Marketing Technologies in the Development of a New Product: Methodological Solutions in the Context of Economic Integration and Cooperation Tatiana A. Iskyanderova , Irina N. Novokupova , Margarita A. Shumilina , and Svetlana A. Galaktionova Abstract In the scientific work, the essence of the concept of “marketing in the innovation sphere” is defined. A new methodology for developing a new product using an innovative marketing model in the context of integrating organizations is provided by the authors and discussed. Elements of the NPD business process management mechanism are also reviewed. Keywords Marketing Integration


Innovations
Cooperatives
NPD
Technology


1 Introduction Modern economic development trends increasingly demonstrate that the ability of organizations to innovate is the main factor in their survival in the face of growing market instability. But in the context of the traditional model of business process management, organizations are trying to avoid innovations that destroy the value of older technologies. Therefore, today, business entities are more likely to simplify products and develop them with a small level of novelty. However, in a competitive T. A. Iskyanderova (&)
M. A. Shumilina
S. A. Galaktionova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] M. A. Shumilina e-mail: [email protected] S. A. Galaktionova e-mail: [email protected] I. N. Novokupova Vladimir Branch of the Financial University under the Government of the Russian Federation, Vladimir, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_2

13

14

T. A. Iskyanderova et al.

market, new product development (NPD) is an important strategy for any organization on the market. Abroad, practice shows that if a business does not put a new product on the market within five years, it loses its competitiveness (Lific and Lifits 2013). A feature of innovation-oriented organizations is the presence of gaps (dips) in the innovation cycle of product development. Market failure rates are still very high. They range from 50% to 90% (Sudhir and Rao 2006; Johnson and Ambrose 2009; Iskyanderova and Novokupova 2018). This is caused by an incorrect understanding of consumer preferences and market needs, which in turn results from organizations’ efforts to reduce the costs of preproject marketing research by abandoning such research (Table 1). However, there are practices that have created better NPD (Cooper and Kleinschmidt 1995; Johnson and Ambrose 2009). The lack of prospects for the commercial use of numerous Russian innovations makes it more costly for organizations to refine and adapt them for the market. At the start of each NPD project, the needs of consumers and the demand are determined; in other words, the project entails market research on market assessment. This process is determined by interaction with customers; therefore, the identification and assessment of opportunities for the development of new products are the responsibility of the marketing department. In many organizations, however,

Table 1 The costs of marketing research of organizations in the implementation of technological innovation in the regions of the Central Federal District of Russia Region

Costs of marketing research in the implementation of technological innovations by years, thousand rubles. 2010 2011 2012 2013 2014 2015

Belgorod region 2,602.2 Bryansk region 213.0 Vladimir region 274.4 Voronezh region 2,069.0 Ivanovo region 4,658.2 Kaluga region 753.1 Kostroma region 2,919.0 Kursk region 10,082.5 Lipetsk region 2,563.8 Moscow region 81,182.5 Oryol region 982.0 Ryazan region 5,778.1 Smolensk region 0 Tambov region 6,879.0 Tver region 3,239.0 Tula region 3,390.4 Yaroslavl region 13,839.4 Source (Egorenko 2017)

2,016.0 616.2 437,563.3 2,484.0 34.0 8,898.0 103.0 40,339.3 79,525.8 44,128.1 1,060.0 6,938.5 0 3,227.0 2,383.0 1,764.2 12,725.0

1,200.0 2,030.9 416.0 24,853.6 246.4 3,603.7 0 45,714.2 15,724.7 919,961.9 1,806.7 3,425.0 0 3,029.0 1,054.0 212,221.1 1,909.8

2,899.0 563.0 909.1 3,959.4 0 29,303.6 0 56,940.3 26,773.7 78,322.2 1,664.3 2,733.0 0 3,416.2 2,740.1 537,456.9 1,918.7

5,567.8 7,403.0 24,931.0 0 65,958.6 24,154.1 84,331.9 1,894.4 2,931.0 0 5,123.0 7,879.0 560.4 999.8 5,567.8 7,403.0 24,931.0

1,789.00 4,488.20 70,162.90 25.40 25,342.00 25,560.20 5,000.00 41,684.60 182,56.00 100,185.00 3,539.70 8,448.70 0 29,256.00 75.90 0 522.30

Innovative Marketing Technologies in the Development…

15

marketing is often in a deplorable state; therefore, little attention is paid to the knowledge and opinion of marketers in NPD (Webster et al. 2003; Iskyanderova and Novokupova 2018). The R & D division (R & D meaning Research and Development) dominates the marketing division. However, foreign research suggests that marketing opportunities have a stronger effect on NPD than research (Drechsler et al. 2013). The next question arises: “How can marketing restore its integrity and level of influence on corporate decisions in NPD?” Researchers face the following tasks: (1) to determine the essence of the concept of marketing in the innovation sphere, (2) to develop a new NPD methodology using innovative marketing technologies, and (3) to reveal the individual elements of the NPD business-process management mechanism.

2 Materials and Methods D. Becker, R. G. Cooper (Cooper and Edgett 2010), S. L. K. R. Hoffman, and U. A. Shukhart (Shukhart 2013) made a significant contribution to new product research. In Russian science, this problem is considered by the following researchers: S. A. Aleshin (Aleshin 2011), E. I. Bozhkova (Bozhkova 2013), N. S. Andriashina, V. P. Kuznetsov, E. P. Garina (Kuznetsov et al. 2016), and others. However, some works consider the problem for the sole purpose of achieving a certain level of novelty of the product (i.e., a “product that has not been released by the enterprise” or a “product of production” “as a product produced in an updated technological process”). Constant changes and updates to the technological process are the essential characteristics of a “product of production” (Kuznetsov et al. 2016). In Russian and foreign literature, a lot of questions devoted to the development of new products at an industrial enterprise are raised. But the individual marketing aspects of this process are not well understood. In particular, the following issues have not been sufficiently studied: issues of diffusion (penetration) of marketing in production management and the implementation of innovative marketing technologies in NPD. From our point of view, it is necessary to investigate the formation of the methodology and mechanism for developing an innovative product with constant interaction with marketers. We understand the business mechanism as an ordered set of subsystems, economic elements, and relationships that ensure their effective actions in the analysis, planning, organization, coordination, and control of NPD activities. In scientific work, we use the following general scientific research methods: dialectics, generalization, comparison, classification, methods of economic and statistical, system and scenario analysis, design methods (for instance, (Bogoviz et al. 2019)). Also, special research methods are used in the work (semantic analysis, SWOT analysis, expert surveys).

16

T. A. Iskyanderova et al.

3 Results Qualitative semantic and dialectical analyses of Russian and foreign literature allowed us to establish the following: “Marketing in the innovation sphere” is an interactive interaction and exchange between participants in new formats of organizations (partnerships, communities) for the accumulation and integration of knowledge, the transformation of an idea into other consumer value. All of this leads to the creation of an innovative system. This is an exchange of encrypted or not verbally expressed knowledge containing the relationships and interdependence of participants (competencies). The growing role of integration and accumulation of knowledge in new formats of organizations and their systemic nature are noted. This creates a competitive advantage in a specific market segment. This marketing includes a combination of technology marketing tools (high-tech marketing), and new product marketing. “Marketing of the innovation sphere” should be characterized by a systematic approach, which will create a solid unified technological platform for the successful implementation of innovations (Iskyanderova 2019). Management of “marketing in the innovation sphere” includes the following patterns: • The balance of the organization’s internal capabilities with external disturbances of a complex, dynamically developing environment for the free movement of innovations on the market, and their commercialization; • The dependence of the number of geographical and product markets of the organization, and the level of novelty of the product on market segments; • Multi-criteria decision making and complex management (Iskyanderova 2019). The goal of managing “marketing of the innovation sphere” is “maximizing the release of competitive innovative products demanded by the market with maximum efficiency, effectiveness and enhancing the innovative activities of organizations.” The following entities can participate in new interaction formats: organizations and institutions of the scientific sphere, engineering organizations, universities, industrial partners (large, medium, small enterprises), sales and logistics structures, providers, outsourcers, and flexible business structures. To achieve the target, NPD project participants must choose an acceptable model for organizing the innovation process. Various models of creating an innovative product are often used, such as: “stage gates,” “quality gates.” The meaning of these models is that the production process is divided into several specific points, each of which corresponds to a specific stage of the project. There are performance indicators that allow one to move on to the next step if the goal is achieved (Kuznetsov et al. 2016). We consider it more appropriate to use a marketing model based on scoring ideas for each innovative project. In such a marketing model, attention is concentrated on the process of making marketing decisions. Each stage of the model is multifunctional because there are no stages of research, marketing, product development. Each stage contains a series of parallel actions performed by

Innovative Marketing Technologies in the Development…

17

developers in various functional areas of the organization. Each stage has an “input” (the result of the previous stage), which allows one to check the quality according to the selected criteria to determine priority, decide on the continuation or minimization of the project. The “outputs” of the model are action plans (marketing decisions). Namely, action plans (marketing decisions) include the following: perception of an idea, preliminary research, detailed research, development of a sample, testing, and control, production, forecasting of the subsequent implementation of the project. At each stage, the collection of information for the implementation of the project and the transition to the next output to the point of making the subsequent decision is carried out. Costs increase in each subsequent stage of the model. Returning to earlier stages is not possible (Iskyanderova and Novokupova 2018). There is a design of the “matrix structure of production.” “The matrix structure of production” is a model that helps to select a “reasonable” list of tasks (planning, implementation, management) of complex PD–projects using algorithms. PDPNet-model is designed for the formation of NPD mode in the business processes of integrated enterprises. The DMADV model provides that the NPD process is introduced as a closed sequence of steps (Kuznetsov et al. 2016). To implement the NPD process, we offer an innovative marketing model based on the implementation of a strategy for interaction between business entities. The stages of innovative marketing include such stages as: search for possible directions of development of marketing of new products, planning and forecasting of innovation, organization structuring and partner search, management, coordination of activities of interaction participants, control over the implementation of the integration strategy, coordination of interests in the process of innovative production (Fig. 1). To justify the project, it is important to carefully study the needs of consumers with regard to the product, the development of which is embedded in the project idea. The search for ideas is based on the ideas of developers, consumers, and manufacturers. The selection (scoring) of ideas is associated with the collection of information necessary for making marketing decisions and project implementation. Cooperation (integration) of entities in new formats of the organization is carried out not spontaneously but based on marketing factors. When setting partnership goals, integrable activities, partners, and an integration mechanism, it is important to use marketing tools. Justifying the decision on integration and developing a marketing strategy, including integration strategy, are required. These tools include the following: marketing research of innovative production, segmentation, personification, and positioning. Also, such tools include the following: selection of industry composition and research of partners, strategic planning of partnership activities. In order to justify the innovation project and determine the prospects for the development of the innovation market, it is necessary to study the market, consumers, buyers, goods, primary production, competitors, auxiliary production, intermediaries, suppliers, and other market agents. The marketing strategy will predetermine the integration strategy.

18

T. A. Iskyanderova et al.

Fig. 1 Stages of innovative marketing for the implementation of the NPD project. Source (Iskyanderova 2019)

Marketing research conducted qualitatively will assess the level of competition in the market. Moreover, it will allow us to analyze the direction of the transformation of the identified needs of consumers through the technical characteristics of the product. At the same time, it is important to use a structural approach to integrate customer requirements into the QFD (quality function deployment) development process, also called the “Quality House”. The result of the development of the product concept is the release of its sample (layout). A verification of the results is carried out through testing and approval of project documentation. Mastering the production, breaking into the market, and assessing the final result of the project are the final stages of the innovation process (Iskyanderova 2019). These steps are associated with the use of innovative marketing technologies. The stages of marketing an innovative project are shown in Fig. 2. As a mechanism for marketing interaction among organizations in the NPD innovation process, the authors propose the following set of subsystems: “marketing research and strategic planning,” “innovation development,” “financing and pricing,” and “production and commercialization of innovation.” In addition, as a mechanism for marketing interaction, the authors propose a set of relationships between organizations. These relationships are based on the readiness of each partner in the partnership to include in their production chain the values of those

Innovative Marketing Technologies in the Development…

19

Fig. 2 Marketing of the innovative NPD project. Source (Iskyanderova and Novokupova 2018)

elements of the chain of partners that exceed the effectiveness of its own elements. The components of the mechanism are interactions, i.e. communications (transactions), between all transaction exchange partners. The mechanism is based on industry specialization and an effective division of labor, which will form the product and resource integration of organizations (Iskyanderova 2019). The functioning of the mechanism is based on the following principles: purposefulness, openness and demand for the product by partners, priority of quality, completeness, and effectiveness. Integration by resources and products of partners forms the basis for assessing the status and prospects of strategic partnerships and realizes the idea of integration. Maximizing partner exchanges between each other with product outputs and resource inputs should be used as the basis for marketing interaction. To do this, it is proposed to do the following: • Compare indicators reflecting the volume and quality of resource inputs and product outputs, in dynamics and statics. Such a comparison will show the degree of tightness of interaction between partners (degree of risk); • Compare indicators of the effectiveness of interaction with indicators of the degree of tightness of interaction between partners in dynamics and statics. Such a comparison is understood as a method for assessing the effectiveness of the interaction.

20

T. A. Iskyanderova et al.

Fig. 3 The transformation of volume indicators and the degree of risk of the system

We conducted an analysis of the indicators of the effectiveness of partner interactions in the NPD process using the scripting method for varying degrees of close interaction between partners (Fig. 3). It was found that a decrease in aggregate volume indicators and tightness of interaction indicators (risk) in an organization, system, or hypersystem leads to a reduction in its profits. However, the cost-intensiveness is growing due to a decrease in the scale of innovative production, and with increasing values, growth in profits and a decrease in the cost-intensiveness of innovation are noted. The developed methodology allows for the evaluation of quantitative changes in the conditions of the integrated system in their structural and functional relationship (Fig. 4). In addition, it was proven that in an integrated system, NPD leads to an increase in the innovative activity of organizations (in Fig. 3, this is “Kontel” LLC).

Fig. 4 The transformation of risk indicators in the system

Innovative Marketing Technologies in the Development…

21

4 Discussion In a competitive environment, the trend for uniting the efforts of organizations in various industries in NPD is determined by the following circumstance. Individually, each organization lacks the ability to provide the highest level of development across all elements of the value chain simultaneously. Such a combination of efforts will lead to the formation and preservation in partnership with the key competencies of each partner in different fields of activity. This will give the entire partnership a hard-to-copy competitive advantage in a particular market segment. Thus, the proposed methodological solutions for introducing innovative marketing technologies into the business processes of NPD integrated enterprises will increase the market and innovative potentials of both organizations and their association. Improving market and innovation potentials will be achieved by combining all types of resources and their purposeful and coordinated use. At the same time, mutual investment of partners is possible. In the context of the disintegration of the fields of science and research with production, methodological solutions for the implementation of innovative marketing technologies in NPD allow for the solving of the following problem. The problem is the coordination of research, development work, and production. Also, the introduction of innovative marketing technologies in NPD allows for the successful commercialization of innovations. Given the fact that budget funds are not infinite, by Decree of the President of the Russian Federation in 2019, it was decided to develop a pilot project for the creation of world-class scientific and educational centers (SEC). The basis of these centers is the integration of universities and scientific organizations and cooperation with organizations operating in the real sector of the economy (industrial partners). The goal of creating an SEC is to solve the interrelated tasks of the real sector of the economy, education, and science to change the structure of sources of financial costs to support research and development in the Russian Federation. The proposed elements of the NPD mechanism can be used for the operation of the SEC.

5 Conclusion The study allows us to formulate the following conclusions and suggestions: 1. The essence of the concept of “marketing in the innovation sphere” is defined. It differs from the existing ones in that it represents an interactive interaction and exchange between participants in new formats of organizations for the accumulation and integration of knowledge, the transformation of an idea into other consumer value. All this leads to the creation of an innovative system. This marketing will form a solid, unified technology platform for successful innovation creation and implementation.

22

T. A. Iskyanderova et al.

2. A new NPD methodology using an innovative marketing model that provides for the implementation of a marketing interaction strategy for organizations of various industries has been developed. It takes marketing factors into account to develop an integration strategy. Also, the new NPD methodology uses the following innovative marketing technologies: interaction marketing; marketing of an innovative project; scoring based marketing; and “Quality house.” 3. Elements of the NPD business process management mechanism are disclosed. They are understood as a combination of subsystems, as well as relationships. These relationships are based on the readiness of each participant in the partnership to include in their production chain the values of those elements of the partner chain that exceed the effectiveness of its own elements. The functioning of this mechanism will maximize the release of innovative products demanded by the market with maximum efficiency, the activation of innovative activities of organizations. And this will create a hard-copy competitive advantage for organizations. Acknowledgements The team of authors thanks the Russian Foundation for Basic Research for the financial support of this study.

References Aleshin, S.A.: Formation of a control system by the process of creating and mastering the production of new products at industrial enterprises. (Dissertation of candidate of Economic Sciences). State University – ESIC, Orel, Russia (2011) Bogoviz, A.V., Romantsova, T.V., Galenko, N.N., Rykhtikova, N.A., Suglobov, A.E.: Cluster mechanism of marketing optimization on the basis of systemic interaction between the internet of thing and social networks. Stud. Comput. Intell. 826, 925–931 (2019) Bozhkova, E.I.: Economic mechanisms of introducing an innovative product of enterprises in the high-tech sector of the Russian economy. (Abstract of Dissertation of the Candidate of Economic Sciences). Moscow, Russia: Russian Scientific and Technical Center for Information on Standardization, Metrology and Conformity Assessment (2013) Cooper, R.G., Edgett, S.J.: Developing a product innovation and technology strategy for your business. Res. Technol. Manag. 53(3), 33–40 (2010) Cooper, R.G., Kleinschmidt, E.J.: New product performance: Keys to success, profitability & cycle time reduction. J. Mark. Manag. 11(4), 315–337 (1995) Drechsler, W., Natter, M., Leeflang, P.S.H.: Improving marketing’s contribution to new product development. J. Prod. Innov. Manage 30(2), 298–315 (2013) Egorenko, S.N. (ed.) Regions of Russia. In: Socio-Economic Indicators: 2017. Rosstat, Moscow (2017) Iskyanderova, T.A.: Formation of a project to create an effective marketing management system for innovative products of industrial enterprises. Probl. Mod. Econ. 1(69), 99–103 (2019) Iskyanderova, T.A., Novokupova, I.N.: Modeling the Marketing Management System of an Innovative Organization. Nauchnaya biblioteka, Moscow (2018) Johnson, G.J., Ambrose, P.J.: Welcome to the Bazaar. Mark. Res. 21(4), 18–24 (2009)

Innovative Marketing Technologies in the Development…

23

Kuznetsov, V.P., Garina, E.P., Andriashina, N.S., Kozlova, E.P., Yashin, S.N.: Methodological solutions for the production of a new product. In: Gaol, F.L., Filimonova, N., Hutagalung, F. (eds.) Proceedings of the Annual International Conference on Management and Technology in Knowledge, Service, Tourism & Hospitality 2016 (SERVE 2016), Managing Service, Education and Knowledge Management in the Knowledge Economic Era, Jakarta, Indonesia. VSU, Vladimir (2016) Lifits, I.M.: Competitiveness of Goods and Services. Yurait, Moscow (2013) Presidential Executive Office. Decree On National Goals and Strategic Objectives of the Development of the Russian Federation for the Period until 2024, (7 May 2018 No. 204), Moscow, Russia (2018) Shukhart, U.A.: Statistic method from quality controlpoint of view (2013). https://www.dvfu.ru/ documents/41440/1976024/ Sudhir, K., Rao, V.R.: Do slotting allowances enhance efficiency or hinder competition? J. Mark. Res. 43(2), 137–155 (2006) Webster, F.E., Malter, A.J., Ganesan, S.: Can marketing regain its seat at the table? Mark. Sci. Inst. 03–113, 29–47 (2003)

Cooperative Platform in the Modern Economy Alexander V. Sobolev , Vladimir M. Pakhomov , Andrei V. Brilon , Oksana A. Konnova , and Irina V. Minchenckova

Abstract The study aims to analyze cooperative platforms as a new socio-economic phenomenon of our time. The digital revolution is characterized by technology platforms that organize workers to provide services around the world. This study attempts to understand how the platform cooperative movement uses new legal structures and digital management tools. The analysis of cooperative platforms is complicated by the existence of both social and practical goals. A key problem of cooperative platforms is their legitimacy, requiring an adequate legal status. Platforms use the Internet for transparency and communication. However, there is a serious risk of information overload that prevents people from participating in cooperative platforms. This circumstance has to be taken into account in the management process. Therefore, in democratic governance, digital platforms face tensions between transparency and efficiency. The competitive environment is characterized by a high level of concentration due to the network effect. It also requires cooperative platforms to develop tools that have a stronger signal effect (such as labels and brands). Although, cooperatives and new hybrid legal forms have social goals and provide democratic governance. Nevertheless, the platforms under study still need to use additional tools (legal and contractual), and sometimes even a combination of structures. Keywords Shared economy cooperatives


Digital democratic participation
Platform

A. V. Sobolev (&)
V. M. Pakhomov
A. V. Brilon
O. A. Konnova
I. V. Minchenckova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] V. M. Pakhomov e-mail: [email protected] A. V. Brilon e-mail: [email protected] O. A. Konnova e-mail: [email protected] I. V. Minchenckova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_3

25

26

A. V. Sobolev et al.

1 Introduction One of the latest phenomena of our time, which is beginning to affect socioeconomic life, is called digital platforms or platforming. If the association of people or organizations (for example, booking tickets for a trip or for a spectacular event, ordering a taxi, traveling or housing abroad, buying things or food, etc.) occurs on an online basis, then the convenience of such services is obvious. And platforming – reducing costs, reducing the number of intermediaries and saving time – is successfully developing and allows one to get comprehensive benefits (van Dijk et al. 2018). Digital platforms connecting service providers to consumers create a new model for both business and society. In the West, the so-called “sharing economy,” based on breakthrough technologies, is radically changing the reality of traditional sectors of the economy, in particular, such as transport and hotel services. As an example, we can cite the famous Uber platform, which even led to new terms, such as “uberization of labor.” Platforms gain support, but in this model, employees submit to decisions in which they do not participate but are only executors. This situation occurred before in traditional business. However, the platform as an organizational structure that creates connections between people violates the usual status of certain groups, namely: employers and employees, buyers, sellers, etc. The founders of the platforms do not consider themselves employers for those who are trying to make money or save using the connections created. Then, a situation arises in which labor law may not apply, and the standard rights of workers may not be guaranteed, and so may be violated. If there is increasing involvement in the number of platform participants, this leads to an expansion of the influence of the latter and to a strengthening of their dominance, not only in the national economy but also on a multinational scale (Lobel 2016). Hence, attempts arise to regulate platforms and/or create alternative structures, including cooperative platforms. They distribute the benefits received fairly due to the fact that it is done by members who are both owners and customers (Schneider 2019).

2 Materials and Methods The purpose of this article is to consider the nature of cooperative platforms as democratic business models and give an analysis of them in an acceptable legal form. The research method is a documentary analysis focused on understanding how cooperative platforms (mainly the European Union) use legal forms and digital management tools. The study assumes that cooperative platforms need the following for their success: 1) clear legal status (Ebrahim et al. 2014; Haigh et al. 2015) and 2) favorable conditions for the provision of services (Scholz 2016; van Dijk 2018). The second management tool, which requires greater transparency, is

Cooperative Platform in the Modern Economy

27

provided, for example, in Europe, by the General Data Protection Regulation, which has been applied throughout the European Union since May 2018 (see Https://eugdpr.org/). In the matter of choosing a legal form for alternative platforms, a search is underway, and cooperative status has privileges here.

3 Results Platforms are digital infrastructures that allow the interaction of several groups of stakeholders. There are five categories of platforms: Category 1 is platforms in the field of advertising; Category 2 is cloud platforms; Category 3 is platforms in the field of industrial production; Category 4 is food platforms; Category 5 is Lean Platforms, such as Uber (Srnicek 2017). The positive properties of the platforms are related to their ability to stimulate economic growth due to the increase in the number of service providers in several markets. Also, platforms can stimulate economic growth in connection with the provision of more flexible work to their employees that is suitable for the desires and opportunities. The negative is that the platforms operate in the environment of a business model dominated by global companies whose employees operate in an undemocratic environment. Therefore, the characteristics of digital platforms are mixed (Pasquale 2016). Platforms are universally criticized because this model cannot provide a reliable employment relationship. For example, in different countries, Uber has had lawsuits that discussed the application of labor protection standards to Uber drivers, and the courts made various decisions on these issues (USA, Brazil, UK, 2018). The existing laws do not solve these problems, and there is no basis for analyzing the legal relations of these conflicts. However, researchers have developed different ways to solve this problem. For example, there are proposals to create two different structures, namely differentiated hybrid structures (Ebrahim et al. 2014). One structure is a social hybrid organization that is nonprofit in structure but with a social mission. Another structure, being a corporation, carries out commercial activities. Another example is the creation of an integrated hybrid organization that performs economic and social tasks (Ebrahim et al. 2014). To develop these integrated hybrids, politicians have already introduced new legal statuses such as Community Interest Company (CIC) in the UK, B-Corporation in the USA (benefit corporation), Collective Interest Cooperative in France Société coopérative d’intérêt collectif, or SCIC). Thus, the expansion of the action of legal forms in the direction of strengthening the social behavior of entrepreneurs. Cooperatives, being an economic model with democratic principles of management and administration, have long been framed by different legal statuses that emphasize their social role. For example, in 2001, in France, the legal status of a collective interests’ cooperative (SCIC) was created. This cooperative is based on cooperative principles (democratic control and economic participation of members,

28

A. V. Sobolev et al.

etc.). However, it differs from other cooperatives in that it seeks to support its members, but also to satisfy, to a greater extent, the collective interests of non-members. SCIC has an open type of management that includes various stakeholders (sponsors, partners, customers, employees, etc.). One of the key parameters that influences the choice of status is the economic dimension. Indeed, most of the alternative platforms started as non-profit because that is simpler and in accordance with the founders’ wish to create social organizations. However, at some point, the non-profit form limits the development of the platform because volunteering and donations are extremely unstable resources. That’s why members turn to cooperative statuses. The balance and complementarity of member interests and collective interests are a key issue for alternative platforms that use SCIC status. Thus, these platforms clearly set both social and practical goals. However, participation and input are difficult to obtain with limited and exhaustible resources. In addition, many people are overwhelmed by the excessive amount of information of online tools. Another amazing point about the choice of structure is that SCIC is integrated hybrids—unique structures uniting both social and economic aspects—as well as taking into account both participant and collective interests. Some platforms, namely SCIC, prefer to have both a non-commercial appearance and a cooperative appearance. This strategy can be seen as a way to avoid mission drift while maintaining common cooperative values and principles that no one can assign but which must be managed collectively (O’Mahony 2003; Sobolev 2018; Sobolev et al. 2018).

4 Discussion Can cooperatives become an alternative to conventional business platforms, giving employees more autonomy while guaranteeing them minimum labor rights? Indeed, according to the Declaration of Cooperatives of the International Cooperative Alliance (1995), a cooperative is characterized by the autonomy of members, joint ownership and democratic control of members. In relation to cooperative platforms, the set of identification principles is changing significantly. Specific principles are added to the well-known seven cooperative principles of the ICA (joint ownership, democratic control of members, etc.). They are associated with decent pay and guaranteed employee income, provision of social benefits, transparency of information about work and earnings, rights to decent working conditions, joint work, protection in the legal field (protection from arbitrariness, the prohibition of excessive control of the employee’s work and workplace, the right to deregistration), etc. (Scholz 2016). In other words, the cooperative model is suitable for businesses that provide employees with a platform for combining their ownership and control rights. This way of doing business is called the “platform cooperative,” and it allows one to create a democratic environment, get people to work together and improve local

Cooperative Platform in the Modern Economy

29

development. Cooperative ownership and democratic governance apply to both consumers (households involved in consumerism) and workers (Scholz 2016). The problem is that there are contradictions between the economic requirements of the market and the social mission of organizations with a social orientation, which are hybrid organizations by nature. Such structures have different audiences with conflicting requirements. Therefore, these structures are difficult to legitimize, since their formation on digital platforms is constrained by the legal environment, which is created for traditional business. This means that the legal environment must be able to protect workers, and it should be conducive to the new cooperative model. This study opens up a new discussion for researchers about cooperative and hybrid organizations in a digital context. Thus, perhaps future research will attempt to answer the following questions: How do new hybrid legal forms renew the cooperative movement? How can a cooperative movement use digital tools to advance and improve its principles? Indeed, assuming SCIC status in the management process, alternative platforms can integrate various target audiences (beneficiaries, partners, sponsors, local communities, etc.). SCIC status also provides some moral legitimacy, as it signals a willingness to tackle social and environmental challenges, not just make a profit. However, although this status is legalized in the sector of the social economy (non-profit organizations, mutual aid organizations, cooperatives), audiences of other groups, for example, consumers, may not even know about this status. That’s why one of the networking projects for alternative platforms may be to create a shortcut for alternative platforms that comply with the network charter. Labeling can be an additional signal, easier to understand, and a way to achieve cognitive legitimacy (Suchman 1995). However, even a good label and brand (for fair trade, organic food, etc.) do not guarantee the loss of people and organizations. Therefore, it is very important to have a clear understanding of the differences between other platforms, as well as to establish a connection with the main problems that need to be addressed (George et al. 2016). For marginalized organizations, gaining legitimacy in connection with alternative platforms is one of the key issues. Indeed, they lack political support, as politicians try to regulate multinational platforms rather than support alternative platforms that are unknown to the vast majority of consumers. Thus, the adoption of SCIC status, to a certain extent, allows us to achieve a certain level of pragmatic and moral legitimacy (Suchman 1995). Today, alternative platforms are developing numerous tools for communicating and conducting discussions in the context of transparency and openness (decentralized seminars, organized disputes and discussions, videos, etc.). In their practice, they resort to the cooperative principle of the ICA “Education, Training and Information” (International Cooperative Alliance – Declaration of Cooperative Identity 1995).

30

A. V. Sobolev et al.

5 Conclusion This study has examined the challenges faced by alternative platforms aimed at promoting equitable and democratic economic models. At the same time, cooperative principles and a hybrid organizational form allow any interested person to have a voice in the decision-making process on a cooperative platform. This is especially important for consumers and workers who are key players in the platform economy. The self-organization of these people, as well as the activation of cooperatives, are inherent in the cooperative potential. Cooperatives and new hybrid legal forms inform the audience about social goals and enable them to carry out democratic governance. However, the platforms currently being studied still need to use additional tools (legal and contractual) and sometimes even a combination of structures. On the one hand, platforms use the Internet to ensure transparency and communication. On the other hand, there is a serious risk of information overload, which prevents people from participating in the work of cooperative platforms that have to take this into account in the management process. Therefore, in democratic governance, digital platforms face tensions between transparency and efficiency. Finally, a competitive environment, characterized by a high level of concentration due to the network effect, requires cooperative platforms in order to develop tools, such as labels and brands. They have a stronger signal effect. If one creates a sufficiently clear label, alternative platforms can gain explicit legitimacy.

References Battilana, J., Sengul, M., Pache, A.C., Model, J.: Harnessing productive tensions in hybrid organizations: the case of work integration social enterprises. Acad. Manage. J. 58(6), 1658– 1685 (2014). https://doi.org/10.5465/amj.2013.0903 Ebrahim, A., Battilana, J., Mair, J.: The governance of social enterprises: Mission drift and accountability challenges in hybrid organizations. Res. Organ. Behav. 34, 81–100 (2014). https://doi.org/10.1016/j.riob.2014.09.001 George, G., Howard-Grenville, J., Joshi, A., Tihanyi, L.: Understanding and tackling societal grand challenges through management research. Acad. Manage. J. 59(6), 1880–1895 (2016). https://doi.org/10.5465/amj.2016.4007 Haigh, N., Dowin Kennedy, E., Walker, J.: Hybrid organizations as shape-shifters: altering legal structure for strategic gain. Calif. Manage. Rev. 57(3), 59–82 (2015) International Co-operative Alliance (ICA) official website. Cooperative identity, values & principles (1995). https://www.ica.coop/en/cooperatives/cooperative-identity Lobel, O.: The law of the platform. Minnesota Law Rev. 101(1), 87–166 (2016) O’Mahony, S.: Guarding the commons: how community managed software projects protect their work. Res. Pol. 32(7), 1179–1198 (2003). https://doi.org/10.1016/s0048-7333(03)00048-9 Pasquale, F.: Two narratives of platform capitalism. Yale Law Pol. Rev. 35(1) (2016) Schneider, N.: An internet of ownership: democratic design for the online economy. In: Roelants, B., Eum, H., Esim, S., Novkovic, S. (eds.) Cooperatives and the World of Work. Routledge, Abingdon (2019)

Cooperative Platform in the Modern Economy

31

Scholz, T.: Platform Cooperativism: Challenging the Corporate Sharing Economy. Rosa Luxemburg Stiftung, New York (2016) Srnicek, N.: Platform capitalism. Cambridge, UK, Polity Press, Malden (2017) Sobolev, A.V., Pakhomov, V.M., Brilon, A.V.: Anniversaries of social reformers: Comprehensive and global concepts. Fundam. Appl. Res. Cooper. Sector Econ. 4, 48–58 (2018) Sobolev, A.V.: Cooperatives – products sequences of market economy. Fundam. Appl. Res. Cooper. Sector Econ. 2, 41–49 (2018) Suchman, M.C.: Managing legitimacy: strategic and institutional approaches. Acad. Manage. Rev. 20(3), 571–610 (1995) van Dijk, J., Poell, T., de Waal, M.: The platform society as a contested concept. In: van Dijck, J., Poell, T., de Waal, M. (eds.) The Platform Society. Public Values in a Connective World, pp. 7–30. Oxford University Press, Oxford (2018)

Education at a Cooperative University in the Digital Economy Artur A. Maksaev , Dinara G. Vasbieva , Olga Yu. Sherbakova , Fatima R. Mirzoeva , and Roman Kralik

Abstract The article discusses the need for innovative updating and modernization of education in a cooperative university in a digital economy. The relevance of studying the educational process in the university on the basis of its digitalization is due to the expansion of the information space and the idea of digital literacy with the development of technologies. The paper analyzes the key areas of digitalization in educational activities for producing competitive specialists for work in consumer cooperation organizations. The authors review the development of professional competencies of the 21st century. The study uses the SAMR model by Dr. R. Puentedura to analyze practical conditions for the use of digital technologies in the audience. They were developed for the effectiveness of training and improving digital literacy of students as a result of professional development in the university. The widespread use of information educational systems and elements of e-learning in the process of education creates additional conditions for the conscious choice of a profession and the sustainable motivation of students to receive university education. The results of scientific research presented in the article can be used to increase the effectiveness of educational activities in a cooperative university.

A. A. Maksaev
O. Yu. Sherbakova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] O. Yu. Sherbakova e-mail: [email protected] D. G. Vasbieva (&) Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] F. R. Mirzoeva Diplomatic Academy of the Russian Foreign Ministry, Moscow, Russia e-mail: [email protected] R. Kralik Constantine the Philosopher University, Nitra, Slovakia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_4

33

34

A. A. Maksaev et al.







Keywords Digital economy Digitalization Information and communication technology Digital technologies of educational information environment Consumer cooperation







1 Introduction Digitalization, as the basis for the formation of an innovative economy, rapidly penetrates into all sectors of the national economy. The management of individual enterprises and industries as a whole become highly aware about the ongoing technological processes in the manufacturing sector. Implementation of the national program, “Digital Economy of the Russian Federation,” adopted by the Government of the Russian Federation, requires appropriate training of specialists. Specialists should not only be able to think creatively and make the most of their creative and intellectual potential in professional activities; they should also be able to work effectively in today’s digital space, mastering advanced information and communication technologies in production. In the consumer cooperation system, the demand for specialists capable of using digital space to solve the problems of professional activity involves the active use of such space in the educational process at the university. “Digitalization of the economy” is not just the translation of data and processes from the “analog” era into a digital form. Therefore, the digitalization of the education system cannot be limited simply to creating a digital copy of traditional paper textbooks, digitizing workflows and providing all universities with access to high-speed Internet. In our opinion, it is necessary to change the approach itself to what and how to teach. The digital economy requires the training system for working in consumer cooperation not just to “digitize” individual processes, but to take an integrated approach with new goals, structure and content of the educational process. At the same time, the modernization of education in a cooperative university towards digital education is becoming increasingly important in the context of students achieving a higher level of development of professional competencies of the twenty-first century. It is the personnel for the system of consumer cooperation, with the ability to carry out professional activities in the digital space, who are important as the necessary human capital for the country’s innovative economy. This study is based on one of the challenges faced by the digital economy, namely the lack of digital culture and learning. The impact of the digital economy can be seen in our daily lives in almost all areas (Madrak-Grochowska 2015; Wierzbicka 2018). Technology integration in the learning process is growing rapidly (Markauskaite 2003; Mashhadi and Kargozari 2011; Garavaglia et al. 2012; Ragulina et al. 2018; Bogoviz et al. 2020; Bogoviz et al. 2019a, b). In modern conditions, the education system can only exist if there is an information culture in society as a whole, and in its individual groups. Such a multifaceted concept can be perceived as follows:

Education at a Cooperative University in the Digital Economy

35

• Computer literacy, or the ability to use computer technology for the training, processing and transmission of information, as well as knowledge of the basic approaches, principles and requirements for the development of ICT; • Understanding the capabilities of modern ICT; • Ability to work with a huge stream of diverse information; • Knowledge and improvement of certain skills in using distributed information resources; • The use of ICT and computer tools to solve the problems of professional activity; • Understanding of the technology for the development and use of modern computer technologies as training tools (software and methodological complex, training programs, educational software, etc.); • The ability to use search engines on the Internet and Web 2.0 technologies, cope with the Age of Information, critically evaluate the information received, create and publish information yourself, and transmit information in the form of written reports or presentations to the audience. The emergence of electronic (digital) forms of organization of training or network interaction is due to the improvement of educational activities of universities, the emergence of new forms of work. New forms of work have increased the potential of national education through interaction with other participants in educational activities. Konyaeva considers networking as “a communication system that allows one to develop, test and offer innovative models of educational content and management of the educational system to the professional pedagogical community. Networking is a way of sharing resources, as well as joint activities in the framework of e-learning and distance learning technologies” (Konyaeva and Konyaev 2015). It emphasizes the importance of using information and communication technologies (ICT) in the learning process. Teachers are forced to seek innovative solutions to replace traditional teaching materials, methods and tools to fit into the world of digital technology (Galimova et al. 2019). The ubiquitous digital environment and the amount of interaction with it make today’s students think and process information in a fundamentally different way than their predecessors. Most likely, the students’ approach to learning will be characterized by a quick trial-and-error method, rather than a systematic assessment. Therefore, according to (Prensky 2001), in order to maximize the attention and efforts of these students, information should be presented in a way that is best suited for this approach and, apparently, integrates ICT. In recent years, many researchers in the field of educational technologies, psychology, and philosophy have dealt with the problems of informatization of the educational process at different stages of its development. Also, they have been engaged in psychological and pedagogical substantiation of the possibilities of using information technologies in higher education (Gershunsky 1987; Robert 1994; Vagramenko 2000; Polat 2000; Khutorsky 2005; Kalugina 2016). The development strategy of the information space of knowledge can be implemented through the development of science and innovative educational projects. This strategy can also be

36

A. A. Maksaev et al.

implemented by creating a generally accessible system of interconnected knowledge for citizens and actively introducing ICT into the learning process (Kamneva 2018; Saienko et al. 2019; Presidential Executive Office 2017). In a cooperative university in the digital economy, the relevance of the study of the educational process is due to the expansion of the concept of digital literacy in connection with the development of technology and the complexity of the information space. In modern conditions, a graduate of such a university should have the competencies of the twenty-first century, including digital, informational and scientific literacy. In most cases, they can overlap and complement each other.

2 Materials and Methods Due to the insufficient number of studies on the educational process in a cooperative university in the digital economy, we applied a research method that allows using various methods of collecting information. First of all, we analyzed the literature on the digitalization of the educational process. Further, using the SAMR model by Dr. Ruben Puentedura, the practical conditions for the use of digital technologies in the classroom were developed (for example, lessons in a professional foreign language). The SAMR model (substitution, augmentation, modification, redefinition) is a useful reference material when considering the integration of technologies into the educational process. This model (Fig. 1) shows the stages that developers of educational technologies often follow, combining teaching with technology.

3 Results In recent years, “digital technologies” have been understood as digital processing systems that contribute to active learning, the formation of knowledge, search, research and independent study by students. Also, digital processing systems enable teachers and/or students who are distant from each other to communicate remotely and exchange information with each other. This is an expanded concept of technologies, which includes their development from simple information delivery systems and reveals their role in the audience, as opposed to their wider use in universities and training centers (Table 1). • Interactive whiteboards (IWB) allow one to output images from a computer through a digital projector to a large (usually wall) board. Users can interact with content on the board using their fingers or the stylus; • Software applications designed to work on mobile devices such as smartphones and tablets;

Education at a Cooperative University in the Digital Economy

37

Increase

Technology acts as a direct alternative tool with functional improvement.

The teacher adds comments electronically, and then sends the student's assignment back via email.

Transformation

Instead of creating a handwritten work, the student prints it using a text editor.

Modification

Revision

The expansion of the technical capabilities

Replacement

Technology acts as a direct alternative tool, without functional change.

Technologies allow one to significantly redo the task.

Student uploads completed paper to blog, other students browse and add comments.

Technologies allow one to create new tasks that were previously unthinkable.

Instead of writing, the student compiles answers online, including images, audio and video.

Fig. 1 SAMR model. Source https://www.schoology.com/blog/samr-model-practical-guideedtech-integration

Table 1 Conditions for the use of digital technologies in the audience Term

Definition

Example

Benefits

Disadvantages

Using one’s own gadgets

Students bring their own technology to the classroom as part of their learning activities

Mobile phone used to surf the web as part of research

Availability of a wide range of technologies and low costs for the university

Gadgets are hard to control; some students may have better electronic devices than others; lack of understanding/ training of teachers

Electronic portfolio

Students and teachers create an electronic catalog of works that tracks the educational path. This is usually online, and media files are often used

Student portfolio containing a project submitted online. It contains a Power Point presentation, photographs, audio and video materials, recordings of interviews with company representatives, etc.

An electronic portfolio provides a way to quickly and seamlessly present a wide range of materials in a variety of formats, including process details

Security and data privacy; lack of understanding/ training of teachers

(continued)

38

A. A. Maksaev et al.

Table 1 (continued) Term

Definition

Example

Benefits

Disadvantages

“Inverted class” technology or blended learning

Students search for new content before class from online video or resources, and then apply this knowledge in a more personalized work in the audience

At home, students watch videos about various styles and tactics of negotiations in a business environment. In the audience, they, breaking into groups, participate in negotiations, for example, on the sale and purchase of photovoltaic solar panels. Each of the parties applies the tactics of negotiations that provide the best outcome of negotiations for a deal

More time for audience activities contributes to a deeper understanding and reflection

Students do not understand or cannot access blended learning materials; Blended learning is not digestible; Misunderstandings arise that are not resolved in the audience; lack of understanding/ training of teachers; insufficient relevance of resources

Personal training network

A personal training network is a free collection of links with other people or resources. The goal is to facilitate the exchange of ideas that support learning

Links can be, for example, through online interest groups, for example, on Twitter and/or distance and intramural courses

A personal training network allows you to access a wide range of points of view, knowledge and experience outside the university

Security and data privacy; accuracy of information; network access; lack of understanding/ training of teachers

Virtual educational environment

The virtual educational environment is an electronic learning system based on web technologies but built on the model of traditional full-time education. This environment provides access to courses, course content, grades, homework, links to external resources, etc.

Moodle Blackboard

A simple way to compare and organize courses and information; flexible access

Software may limit the structure of the course; high level of service

Education at a Cooperative University in the Digital Economy

39

• Web 2.0 refers to the second generation of the World Wide Web. For example, Web 2.0 has features and capabilities that were previously unavailable. These include podcasts, blogs, wikis, RSS (Rich Site Summary is used to update regularly changing web content), social networks and tags.

4 Discussion of Results The main advantages of digital technologies in the audience are that they contribute to the practice of dialogical speech and critical thinking (emancipation). In practice, the use of the Internet violates the traditional logic of education. The new logic of education is dialogical in nature, which is inherent in teaching research, creative thinking and efficiency in the context of working with many points of view and absolute uncertainty (Wegerif 2012). In the practice of dialogical speech, students are active, involved and confident participants in the communication from which learning arises. For example, students in a foreign language lesson working on a new topic can start a conversation about what they see on a computer screen without relying on terminology that they don’t have yet. The teacher can then offer relevant vocabulary as part of discussions on the topic. Emancipation practice is a practice in which the ideas of an individual student go beyond the training prescribed by the teacher/curriculum. This is encouraged since students rely on knowledge gained outside formal education to build understanding. In a foreign language educational environment, students can reference their own knowledge and experience in discussing educational material, use a creative approach for project work or use technology to create their own multimedia presentations. Also, students can offer ideas developed at home or in practice (Kalugina and Tarasevich 2018; Zakirova et al. 2019). Digital technologies can improve learning by complementing and integrating the learning process. So, for example, in classes in a foreign language, two groups from different universities (one of which is a foreign university) can jointly, using the Internet, study cultural differences, solving the global problem of environmental pollution or energy supply. Joint work allows us to understand not only a problem itself but also its impact on countries and individuals. In our opinion, the following can be interpreted as the most important areas in the introduction of digital technologies in vocational education to solve the problem of improving the quality of university education: • Creating a unified national educational space that provides students of any university with the opportunity to use electronic educational resources developed at a high methodological level. These electronic educational resources reflect the latest scientific achievements in priority areas; • Creating advanced learning technology;

40

A. A. Maksaev et al.

• Providing students with the opportunity to create an individual educational trajectory based on adaptive electronic learning resources (Pozharkova et al. 2018); • Taking into account the individual characteristics of the perception of information and preferred modes of learning through blended learning technology. This will open up additional horizons for successful professional self-realization for people with disabilities; • Introducing the concept of lifelong education, taking into account the development of the structure of online education (online platforms, software, digitization of content) and changes in the attitude of society towards learning (internal motivation of a person to study). Problems in the digitalization of education can be caused by both objective and subjective reasons. The solution to a number of problems seems possible through the resources of an educational organization. And the scale of other problems presupposes the participation of the state (legal regulation, financial support). The following points can be attributed to the active use of the digital educational environment in the educational process of a cooperative university. In modern conditions, the priority area of the educational institution will be the development of its electronic information and its educational environment. In the short term, this can be achieved by translating some of the traditional teaching materials, which have been developed at a high methodological level as well as tested, into a electronic (digital) format. Examples include the following: creating video lectures on the materials of leading teachers of fundamental and special disciplines, creating a testing system (Frolova et al. 2016), the creation of a stock of videos with the necessary materials for the quality training of specialists to work in the consumer cooperation system, et cetera. In our opinion, the creation of this block of digital content may be beneficial for the university. On the one hand, it is possible to digitize paper media in a short period of time and with reasonable financial costs. A significant part of the materials is already substantively and methodically prepared and used in traditional forms of training. On the other hand, the use of digital educational materials is possible when implementing various educational programs. At the same time, the teacher frees up time for organizing creative work with students individually. In the long run, the development of the university’s digital educational environment involves the development of various online courses. Also, the development of the university’s digital educational environment implies the introduction of team-building technology for projects in search and research activities, relying on the possibility of communication in the digital environment, etc.

Education at a Cooperative University in the Digital Economy

41

5 Conclusion The active use of the electronic information and educational environment by the university creates additional conditions for the conscious choice of a profession and the sustainable motivation of students to obtain university education. The university actively uses the electronic information and educational environment in the process of training specialists to work in the system of consumer cooperation. The proposed mechanism for using digital technologies in the classroom at the university will improve not only the digital literacy of students but also the quality of training of specialists in economic areas. If these conditions are met, the cooperative university will have a chance to become a truly open university, capable of providing educational services to various groups of the population, including persons with disabilities. Also, a cooperative university will be able to train qualified personnel for the consumer cooperation system in the conditions of innovative development of the economy of the region and the country as a whole.

References Bogoviz, A.V., Shvakov, E.E., Tretyakova, O.G., Zakharov, M.Y., Abramov, A.N.: Globalization of education in the conditions of formation of the global knowledge economy: regularities and tendencies. Lect. Not. Netw. Syst. 73, 993–1000 (2020) Bogoviz, A., Alekseev, A., Akopova, E., Przhedetskaya, N., Ragulina, J.: Formation of remote education as a means of restoration of Russian recessive regions’ economy. Int. J. Educ. Manage. 33(3), 438–445 (2019a) Bogoviz, A., Lobova, S., Ragulina, J., Alekseev, A.: Evaluation of competitiveness of university with remote education: methodological recommendations and Russian experience. Int. J. Educ. Manage. 33(3), 470–477 (2019b) Frolova, V.B., Kalugina, O.A., Artamonova, L.S., Boykov, A.I.: Studying the practice of performance assessment and rating system implementation in higher institutions. IEJME Math. Educ. 11(5), 1185–1193 (2016) Galimova, E.G., Konysheva, A.V., Kalugina, O.A., Sizova, Z.M.: Digital educational footprint as a way to evaluate the results of students’ learning and cognitive activity in the process of teaching mathematics. Eurasia J. Math. Sci. Tech. Educ. 15(8), 1–10 (2019) Garavaglia, A., Garzia, V., Petti, L.: Quality of the learning environment in digital classrooms: an Italian case study. Procedia Soc. Behav. Sci. 46, 1735–1739 (2012) Gershunsky, B.S.: Computerization in the Field of Education. Challenges and Prospects. Pedagogika, Moscow (1987) Kalugina, O.A.: Development of students’ professional communicative competence in an economic higher school. Xlinguae 9(4), 37–45 (2016) Kalugina, O.A., Tarasevich, N.A.: Smart technology integration into EFL teaching at the non-linguistic higher school. XLinguae 11(1XL), 8–18 (2018) Kamneva, V.V.: The use of information and communication technologies in higher education. Student Sci. Issues 3(19), 22–28 (2018) Khutorsky, A.V.: Is modernization of education an innovative process? Eidos Online J. (2005). http://www.eidos.ru/journal/2005/0329.htm Konyaeva, E.A., Konyaev, A.S.: Remote educational technologies in a network environment. Bull. Educ. Meth. Assoc. Vocat. Educ. 2(49), 135–140 (2015)

42

A. A. Maksaev et al.

Madrak-Grochowska, M.: The knowledge-based economy as a stage in the development of the economy. Oeconomia Copernicana 6(2), 7–21 (2015) Markauskaite, L.: Critical review of research findings on information technology in education. Inf. Educ. 2(1), 65–78 (2003) Mashhadi, V.Z., Kargozari, M.R.: Influences of digital classrooms on education. Procedia Comput. Sci. 3, 1178–1183 (2011) Polat, E.S.: Internet in foreign language lessons. Foreign Lang. School 2, 14–19 (2000) Pozharkova, I.N., Noskova, E.E., Troyak, E.Yu.: The formation of an individual educational trajectory as a component of a practice-oriented learning environment. Pedagogical Image 3 (40), 179–192 (2018) Prensky, M.: Digital natives, digital immigrants. On the Horizon 9(5) (2001). https://www. marcprensky.com/writing/Prensky%20-%20Digital%20Natives,%20Digital%20Immigrants% 20-%20Part1.pdf Presidential Executive Office. Decree of the President of the Russian Federation “On the Strategy for the Development of the Information Society in the Russian Federation for 2017–2030” (May 9, 2017 No. 203) (2017). http://www.kremlin.ru/acts/bank/41919 Ragulina, Y.V., Semenova, E.I., Zueva, I.A., Kletskova, E.V., Belkina, E.N.: Perspectives of solving the problems of regional development with the help of new internet technologies. Entrepreneurship Sustain. Issues 5(4), 890–898 (2018) Robert, I.V.: Modern Information Technologies in Education: Didactic Problems, Prospects for Use. School-Press, Moscow (1994) Saienko, N., Kalugina, O.A., Baklashova, T.A., Rodriguez, R.G.: A stage-by-stage approach to utilizing news media in foreign language classes at higher educational institutions. XLinguae 12(1), 91–102 (2019) Vagramenko, Ya.A.: Information technology and education modernization. Pedagogical Inf. 2, 3– 9 (2000) Wegerif, R.: Dialogic: Education for the Internet Age. Routledge, London (2012) Wierzbicka, W.: Information infrastructure as a pillar of the knowledge-based economy–an analysis of regional differentiation in Poland. Equilibrium. Q. J. Econ. Econ. Pol. 13(1), 123– 139 (2018) Zakirova, V.G., Zelenina, N.A., Smirnova, L.M., Kalugina, O.A.: Methodology of teaching graphic methods for solving problems with parameters as a means to achieve high mathematics learning outcomes at school. Eurasia J. Math. Sci. Technol. Educ. 15(9), em1741 (2019)

The Development of Cooperation in the Digital Economy Based on Scientific Research by A. V. Chayanov Tatyana E. Glushchenko , Nina V. Khodarinova , Olga V. Ishchenko , Valery L. Shaposhnikov , and Zhanna A. Aksenova

Abstract The purpose of the paper is to consider the influence of scientific research by A. V. Chayanov on the development of consumer cooperation in digital economy. In order to implement a comprehensive digital transformation of consumer cooperation, it is necessary to modernize the digital infrastructure, introduce digital practices in all areas of cooperative activities, following the Chayanov’s fundamental research on cooperation. The paper focuses on the positioning of peasant farming in the modern economic space of agricultural producers. The functioning in the digital economy of all types of production activities, trade, logistics, transport, and education in consumer cooperation using artificial intelligence is studied. The authors consider the development of peasant farming as the basis of cooperation in the digital economy. Criteria for the successful professional activities of consumer cooperation in the digital economy have been developed. The development of digital economy is fundamentally changing not only the markets for manufactured products but also the most sensitive labor market. The authors argue that the methods of agricultural development based on scientific research by A. V. Chayanov open up new opportunities for improving the efficiency of consumer cooperation. T. E. Glushchenko
N. V. Khodarinova
O. V. Ishchenko
V. L. Shaposhnikov (&)
Z. A. Aksenova Krasnodar Cooperative Institute (Branch) of the Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected] T. E. Glushchenko e-mail: [email protected] N. V. Khodarinova e-mail: [email protected] O. V. Ishchenko e-mail: [email protected] Z. A. Aksenova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_5

43

44

Keywords Cooperation

T. E. Glushchenko et al.


Digital economy
Innovation

1 Introduction Currently, the process of transformation is relevant in the development of consumer cooperation, due to the widespread use of information technologies using artificial intelligence in the economic activities of farms, cooperative enterprises, and district consumer societies (Klerkx et al. 2019; Pigford et al. 2018). The introduction of modern software and hardware complexes into the practice of consumer cooperation allows for increasing the efficiency of its work on an entirely new high-tech basis. At the same time, there is a need to solve both organizational, managerial, and sociocultural problems generated by the ongoing transformations. Everything happens at such a dizzying pace that it is more useful to turn to the fundamental foundations of cooperation, scientific research devoted to historically significant periods of economic transformation in agricultural cooperation, rather than end up in a routine of endlessly unsolved problems (Bogoviz et al. 2019; Watanabe et al. 2018). The world is changing. Ideas and opportunities are endless. Sometimes the ideas that seem overly productive do not work. More practical ideas that push consumer cooperation into the background appear on the market. Therefore, for the development of a competitive industry, which is consumer cooperation, it is necessary to use their intellectual and scientific potential accumulated over more than a century. First of all, this is scientific research by A. V. Chayanov. In the digital economy, which is characterized by a continuous process of creating and applying artificial intelligence in economic activities, in order to achieve economically significant results of consumer cooperation, it is necessary to solve several problems, including the provision of training highly qualified personnel for the digital economy (Bogoviz et al. 2018). Also, one should pay attention to the use of business informatics in the work of consumer cooperation employees and the provision of services, including in the interests of peasant farms and small- and medium-sized entrepreneurship, including individual entrepreneurs, as well as the social sphere, including health care and education (Ryazanova 2019; Bogoviz et al. 2019). The purpose of the paper is to consider the influence of scientific research by A. V. Chayanov on the development of consumer cooperation in the digital economy. The government is planning to complete a comprehensive digital transformation of the economy and social sphere in Russia by 2024. In order to achieve the required goal, it is necessary to update the digital infrastructure, introduce digital practices in all areas of the economy, including consumer cooperation. The implementation of the national project “Digital Economy” will have a significant impact on consumer cooperation, as it will affect the production of agricultural products, their processing, trade, transportation and financial services, and education.

The Development of Cooperation in the Digital Economy …

45

2 Materials and Methods Considering the scientific research by A. V. Chayanov in “Organization of peasant farming” (1989) and “Short course of cooperation” (1925), in order to deeply understand the processes of transformation of the economy of consumer cooperation in the digital economy, it must be noted that these works help to create modern methods of managing consumer cooperation based on innovation. When studying the role of the central “unit of agricultural production,” namely, peasant farming, A. V. Chayanov focused on the positioning of the peasant economy in the industrial space of agricultural producers. In the digital economy, an integral part of all types of activities in any field that determines the scope of activity is the data presented in digital form. The implementation of modern software and hardware that use artificial neural networks, Big Data, and other achievements in the field of mathematics, information technology, and computer science that allow processing large amounts of data in real-time, increase efficiency, quality, and productivity in various types of production and processing of agricultural products, improve equipment, technologies for storage, sale, logistics, and consumption of manufactured goods, products, and services. Therefore, in the implementation of the national project “Digital Economy,” innovation is the most critical factor in the development of consumer cooperation. In consumer cooperation, innovation is an integral part of the activities of both peasant farms and cooperatives. This is due to technological changes that introduce new characteristics both in the activities of individual farms and in consumer cooperation in general. An essential fundamental concept in the study of peasant farming with the purpose of its development in the digital economy is the labor balance: “every labor economy has a natural limit to its production. It is determined by the proportionality of the annual labor stresses with the degree of satisfaction of the needs of the managing family,” the model of which was developed by A. V. Chayanov. Along with the labor balance, when considering the activities of the peasant economy, it is necessary to pay attention to the organizational plan, which reveals the internal structure of the peasant economy, changes in its work that occur under the influence of the market, and the current economic situation. The main focus in the organizational plan is paid only to what is indispensable in the activities of the peasant economy or what allows them to receive high wages. The organizational plan involves planning the correlation of labor resources and the main volumes of work, the distribution of products for both consumption and sale, and for the regulation of the balance of income and expenses. Digital technologies have led to dramatic changes in consumer cooperation. The digital economy of consumer cooperation is built on fundamentally different foundations than the traditional economy. Peasant farms and consumer cooperatives are forced to work in an ever-changing environment. Successful work and development in such conditions require constant adaptation of consumer cooperation to a dynamically changing environment; otherwise, following the scientific research by A. V. Chayanov, the balance of labor, the balance of production means, and the

46

T. E. Glushchenko et al.

monetary budget will show inefficiency. In current conditions, the use of artificial intelligence and the innovative development of consumer cooperation are the most critical factors in the competitiveness of consumer cooperation. J. Christiansen, a specialist in the field of innovation management, stated: “There used to be a rule, ‘Do not innovate until you are forced to do it.” The rule presented by the digital economy is “Innovation or ruin!” To solve the issue of improving the efficiency of agriculture, A. V. Chayanov, in “Short course of cooperation,” identified individual and cooperative peasant farms. Individual farming can effectively cultivate the soil and livestock. However, deeper processing of products and other activities can be effectively carried out by cooperative farms, which are associations of several individual farms. This was an innovative approach in organizing competitive agricultural production. Following the above rule, for the effective operation of the peasant economy in the digital economy, it is necessary to use the modern achievements of scientific and technological progress and apply an innovative approach to the development of traditional technologies. Let us consider the task of developing consumer cooperation through the mechanisms of development of the peasant economy, as the basis of cooperation, in the digital economy, the distinctive feature of which is the continuous process of creating and applying artificial intelligence in economic activity. First of all, peasant farming has a family basis. It creates the platform for its development–the larger the family, the stronger the platform for the development of peasant farming. The peasant economy, in the course of its activities, strives to meet its needs to the fullest extent possible and to ensure the further stability of its economy. The objective process of development of modern society, which has transformed our society into a developed information society and the economy into a digital one, has made significant adjustments to the development of peasant farming. Currently, peasant farms are solving the issues of developing their economic activities using not only modern technologies in agriculture but also in other areas of activity. For example, in management and accounting, the 1C program package is widely used, while in animal husbandry and milk production, modern information technology complexes that automatically solve the problems of feeding, milking, and serving animals are used. When considering the activity of the peasant economy, it is easy to notice that as the economy develops and scales up, it needs not only additional labor resources, but also knowledge. In this regard, fundamental factors begin to influence the results of economic activity: family composition, education of family members, entrepreneurial and economic competencies, and the success and qualification of the peasant economy management. All this determines the competitiveness of the central unit of the agricultural producer: the owner. The economic indicators, the workers’ qualifications, and the strategy of the peasant economy depend on the owner of the peasant economy. Therefore, in the digital economy, in order to solve the problem of developing cooperation, the main problem is the training of the owners of peasant farms in the basics of farm management in the new economic realities.

The Development of Cooperation in the Digital Economy …

47

It should be emphasized that one of the first tasks of implementing the national project “Digital Economy” is the task of training personnel for the digital economy. The introduction of modern information technologies in the interests of the population and peasant farms and the transformation of consumer cooperation through the introduction of digital technologies and platform solutions will help to achieve the goals stated in the national project “Digital Economy”—the creation of a stable and secure information and telecommunication infrastructure for high-speed transmission, processing, and storage of large amounts of data accessible to all organizations and households. According to the authors of the paper, in order for the owners of peasant farms not to have problems associated with the use of artificial intelligence, it is necessary to carry out educational work. Few people who are engaged in production processes in peasant farms and consumer cooperatives have time to understand solutions to relevant problems related to modern achievements in the field of mathematics, information technology, and computer science. Their professional interest is to use these achievements in practice; solving these problems is a task of intellectual potential, concentrated in colleges and universities of consumer cooperation. They are responsible for ensuring the competitiveness of the industry in the digital economy. Otherwise, an industry without support in the development and application of artificial intelligence will not be competitive in the digital economy.

3 Results The introduction of digital information technologies in the practice of consumer cooperation is the task of the national “Digital Economy” project. The project encourages effective agricultural and livestock activities for individual farms by using artificial intelligence, making optimal use of land resources, combining different sectors of economic activity, and providing marketing and trade-purchasing activities using the Internet space. Despite the release of quality products, the competitiveness of small individual farms is significantly inferior because of the dominance of large manufacturing companies and network trading structures in the market. In scientific research, A. V. Chayanov considered the solution to a similar problem in the economy of the early 20th century. He proposed a solution to this problem by creating cooperation in relation to the processing of agricultural products, their storage, machinery maintenance, and trade. According to Chayanov, the cooperative exempted individual agricultural producers from dependence on dealers, money-lenders, and large producers and encouraged development of self-management skills. In the digital economy, cooperatives and family-labor farms now have the opportunity to develop their activities using artificial intelligence and, thereby, become competitive through the use of, among other things, virtual information space and electronic commerce. Active work in the Internet space allows offsetting the large-scale advantages of various large structures to some extent, since the knowledge,

48

T. E. Glushchenko et al.

entrepreneurial, and professional skills in the field of the professional activity of specialists, which includes the integrated presentation of strategies and goals, business processes, and IT infrastructure of enterprises of various forms of ownership, become relevant. In a developed information society, the innovative development of consumer cooperation is unthinkable without project activities, i.e., the implementation of various projects. Currently, the role of projects in consumer cooperation companies is increasing, which is the basis for creating and developing a business. The national project “Digital Economy” has set the task of creating an integrated system of financing projects for the development and (or) implementation of digital technologies and platform solutions, including venture financing and other development institutions. In other words, the importance of project activities in the digital economy is challenging to overestimate. The main features of an innovative project are uniqueness, the novelty of activity, and the creation of previously unused technology. In consumer cooperation in the digital economy, the focus on achieving specific goals, obtaining certain results using artificial intelligence, and focusing on meeting market needs are characteristic features of innovative projects. Artificial intelligence will not help consumer cooperation to solve all its problems. The use of artificial intelligence allows us to change the approach to the use of computer technology and makes solving many practical problems faster by adapting to their specifics. Due to this, the advantages of digital technologies and platform solutions, consumer cooperation has the right to expand its presence in domestic markets. The authors of the paper suggest, as an example, to consider a project to create wholesale distribution centers based on the use of modern artificial intelligence products. Without the use of modern technologies, this would simply boil down to typical bases for storing various products, which is not interesting for the present study, since, serious requirements are currently set for food storage. Environmentally friendly materials, the presence of refrigerators, characterized by high quality and freedom from freons, hygiene, tightness, and a whole range of characteristics allow us to talk about a high-class and modern way of storing meat, fish, poultry, dairy products, cheeses, fruits, vegetables, flowers, and even medicines. This is a very serious instrument of competitiveness in the market, as it provides long-term, high-quality storage of products. The creation of such centers in the system of consumer cooperation allows us to optimize their loading of high-quality products produced in the system of consumer cooperation, which allows us to look differently at the positions of cooperation in the food market. Moreover, in the digital economy, this innovative project solves several economically significant problems. It makes products of cooperatives competitive on the market, as it provides the opportunity to sell them at peak periods of demand. It increases the quality and production volume of farms, providing them with guaranteed sales. Also, it solves the problem of import substitution and increases the share of cooperatives’ products on the market. Within the framework of the national project “Digital Economy,” high-tech projects similar to this one will be created in the consumer cooperation system to provide cooperative and peasant farms with the necessary fertilizers and seed stock.

The Development of Cooperation in the Digital Economy …

49

Solving the problem of introducing digital technologies and platform solutions in the interests of the population and small- and medium-sized enterprises within the framework of the national project, “Digital Economy” will allow both peasant farms and consumer cooperatives to be equipped with automation and information technologies that will allow them to use artificial intelligence products in economic activities. For an objective assessment of the activities of peasant farms, consumer cooperatives in the digital economy, similar to what A. V. Chayanov suggested in his research, it is necessary to consider: labor balance, organizational plan, and a system of criteria, since, in the digital economy, there is currently no system of criteria for the successful assessment of professional activities of consumer cooperation workers. The authors of the paper believe that the criteria for successful professional activity of workers in consumer cooperation can reflect the importance of consumer cooperation and suggest considering the following criteria. The first author’s criterion is the degree of increasing professional competence of consumer cooperation as a whole: its competitiveness, as well as competencies, and personal and professional qualities, as components of professional competence. The second author’s criterion is the degree of satisfaction of the industry with work, the results of the implementation of planned indicators, and the labor process. The third author’s criterion is the security of employment for members of consumer cooperatives. Unfortunately, in the digital economy, workers are often vulnerable in the labor market. The fourth author’s criterion is the percentage of consumer cooperation workers who have undergone advanced training following the new economic realities, and are employed in the system of consumer cooperation. The fifth author’s criterion is the social significance of the results of consumer cooperation reflected in non-economic indicators. For example, local authorities can encourage employees of consumer cooperatives for the results achieved in solving the issue of population employment, providing the social sphere with products of cooperative enterprises. The sixth author’s criterion is socio-cultural efficiency (in addition to economics). Efficiency is the ratio of result and cost, and the solution of social issues for cooperation workers provides good examples (e.g., provision of places in kindergartens and vouchers for a spa treatment). The seventh author’s criterion is the degree that the influence of consumer cooperation has on economic activity and the prospect of its further development. Therefore, the profit obtained as a result of the successful activity of consumer cooperation should be appropriately used for the benefit of consumer cooperation and society as a whole. The complexity of a multi-criteria assessment of the activities of peasant farms and consumer cooperation in the digital economy shows that the criteria for the success of consumer cooperation are a target for its development and a success factor; between the criteria, there are relations of determination, although this relationship is probabilistic.

50

T. E. Glushchenko et al.

4 Discussion The development of the digital economy is fundamentally changing the markets for manufactured products and the most sensitive labor market. The genius of A. V. Chayanov is shown in his concept of the labor economy of a separate peasant family. The economy is the foundation that allows us to have “insurance” in the digital economy when workers in many sectors of the economy lack jobs. In connection with the implementation of the national project “Digital Economy,” the issue of competitiveness of consumer cooperation is very acute. Competitiveness is the primary goal of consumer cooperation in the digital economy. Competitiveness management is unthinkable without adequate assessment (objective measurement). Then how can we evaluate the competitiveness of consumer cooperation in the digital economy (genuine, not formal or fictitious, competitiveness)? Following traditional views, the leading indicators of competitiveness are financial and economic parameters (primarily profit) and customer loyalty. However, from the point of view of the authors of this paper, financial and economic indicators (and customer loyalty) do not always objectively reflect the real (not fictitious) competitiveness of consumer cooperatives (especially district consumers society, cooperative enterprises, or organizations). For example, due to biased advertising of a product or service, a particular company can manage to make huge profits before the consumer “understands the situation.” Often, there are such factors as unfair market monopolization, criminogenic factors, etc. According to the authors, the primary condition for the development of consumer cooperation in the digital economy at present is the knowledge, professionalism, and entrepreneurial career skills of specialists and owners. This can be ensured by their continuous study and practical application of innovations in economics, management, and information and communication technologies. Currently, there is no other way to successfully use the fundamental scientific results in the digital economy, which were formulated by A. V. Chayanov, in his work on the development of the agricultural sector of the economy and its management. Developing the ideas of A. V. Chayanov, we can conclude that the active cooperative activity of individual farms significantly increases their production efficiency, allowing optimal planning and production for an extended period. Based on the knowledge of positioning an electronic enterprise in the global market, building a consumer audience, and interacting with consumers, as well as organizing sales on the Internet and information and telecommunication networks, it is possible to use electronic information spaces for cooperative farms. This will allow these entities to correctly distribute their resources and regulate the offer of specific products or goods in the market. Using artificial intelligence, agricultural producers have the opportunity to analyze the market size of already manufactured products of a particular type at the moment and plan their production for an extended period. The use of electronic communication of cooperative farms will allow for the purchase and sale of products, not only between manufacturers but also between producers and buyers.

The Development of Cooperation in the Digital Economy …

51

In this case, the buyer can choose the most profitable offers among the available ones on the market and promptly conclude a deal. This stage is due to the ability to conduct electronic document management, which significantly speeds up the process of conducting transactions and reduces market risks.

5 Conclusion The cooperative activity of individual farms involves the accumulation of, among other things, the financial resources of each of the farms in order to achieve a common result. In a single electronic information space, it is possible to implement the crowdfunding function so that small producers can find the necessary financial and material support among other cooperators and, together with the framework of cooperation, attract investors for the implementation of economically and financially significant projects. This function is closely related to the ideas of A. V. Chayanov to pool the resources of individual farms. As a result of this interaction, manufacturers receive, in addition to banks and credit consumer cooperatives, another financial institution for attracting financial resources, which provides additional opportunities to increase the quantity and quality of products, introduce new modern technologies into the practice of their production and commercial activities. The active introduction of information technology marked the 21st century into human life to increase the overall labor efficiency. Agriculture is such a sector where the active use of technological progress has a positive effect on the quantity and quality of created products. The theory and methodology for solving problems in the agricultural sector of the economy proposed by A. V. Chayanov made an invaluable contribution to the development of economic science. His methods for the development of agriculture that are based on cooperation in the current conditions of the creation and use of artificial intelligence open up new possibilities for increasing the efficiency of the most essential socially significant branch of the economy.

References Bogoviz, A.V., Lobova, S.V., Ragulina, J.V.: The cost and value of human capital in the modern digital economy. Lect. Not. Netw. Syst. 57, 1224–1230 (2019a) Bogoviz, A.V., Bugai, Y.A., Minenko, A.V.: Economic analysis of effectiveness of the existing tools of state support for entrepreneurship in the AIC in the digital economy. Lect. Not. Netw. Syst. 57, 789–794 (2019b) Bogoviz, A.V., Taranov, P.M., Shuvaev, A.V.: Innovational tools for provision of food security through state support for the agro-industrial complex in the conditions of digital economy. Adv. Intell. Syst. Comput. 622, 659–665 (2018) Chayanov, A.V.: A Short Course of Cooperation. Cooperative Publishing, Moscow (1925)

52

T. E. Glushchenko et al.

Chayanov, A.V.: Organization of peasant farming. In: Selected Works. Economics, Moscow (1989) Klerkx, L., Jakku, E., Labarthe, P.: A review of social science on digital agriculture, smart farming and agriculture 4.0: new contributions and a future research agenda. NJAS Wageningen J. Life Sci. 90–91, 100315 (2019) Pigford, A.-A.E., Hickey, G.M., Klerkx, L.: Beyond agricultural innovation systems? Exploring an agricultural innovation ecosystems approach for niche design and development in sustainability transitions. Agric. Syst. 164, 116–121 (2018) Ryazanova, G.N.: Transformation of agricultural enterprises on the boundary of the XX-XXI centuries. IFAC-PapersOnLine 52, 225–230 (2019) Watanabe, C., Naveed, N., Neittaanmäki, P.: Digital solutions transform the forest-based bioeconomy into a digital platform industry - a suggestion for a disruptive business model in the digital economy. Technol. Soc. 54, 168–188 (2018)

Involvement of the World’s Largest Cooperatives in Sustainable Development Processes Olga V. Shinkareva , Olga V. Kaurova , Alexander N. Maloletko , Mikhail V. Vinichenko , and Peter Karácsony Abstract The main objective of the study is the analysis of 300 leading global cooperative enterprises. The dynamics of the turnover of companies, their industry, and country affiliation are reviewed. Also, the authors consider the involvement of the leaders of world cooperation in the problems of sustainable development and the achievement of the 17 goals of sustainable development. To achieve the goal, a number of scientific methods were applied: analysis, synthesis grouping, comparison, tabular and graphical methods, etc. The cooperative sector is most developed in: agriculture and agricultural production, insurance, wholesale, and retail trade. The leading countries in the field of cooperative development include the USA, France, and Germany. The research shows that a quarter of companies from 300 leading global cooperatives share the goals of sustainable development and strive to comply with the United Nations Global Compact or Global Reporting Initiative standards. The results of the study provide the possibility of their application in further scientific developments on this or similar topics. The paper analyzes unique O. V. Shinkareva Moscow City University, Moscow, Russia e-mail: [email protected] O. V. Kaurova (&)
AlexanderN. Maloletko Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] AlexanderN. Maloletko e-mail: [email protected] AlexanderN. Maloletko Research Group OMNIBUS, Moscow, Russia M. V. Vinichenko Russian State Social University, Moscow, Russia e-mail: [email protected] P. Karácsony University of Selye Janos, Komarno, Slovak Republic e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_6

53

54

O. V. Shinkareva et al.

data on the turnover of the world’s leading cooperative enterprises, as well as an analysis of their involvement in sustainable development.




Keywords Cooperative Cooperative economy alliance Sustainable development





International cooperative

1 Introduction Since 2012, the International Cooperative Alliance, a leading nongovernmental international association, has been compiling annual reports, “The World Cooperative Monitor. Exploring the Cooperative Economy” (hereinafter, Report), characterizing the global cooperative economy. These reports contain scientific and technical support from the European Research Institute on Cooperative and Social Enterprises (Euricse). In these reports, the activities of the world’s largest cooperatives, their groups and associations, mutual aid societies, and noncooperative enterprises, whose founders are cooperatives, are analyzed. It should be noted that in the last report, released at the end of 2018, a special section appeared on the contribution of the 300 largest world cooperatives to sustainable development. An analysis of the data on the 300 largest cooperatives in the world, presented in the reports of the International Cooperative Alliance, reveals global trends in the development of the cooperative movement, as well as their role in achieving 17 goals in the field of sustainable development. These goals were adopted by United Nations Members in 2015.

2 Materials and Methods The study materials are presented by the reports of “The World Cooperative Monitor. Exploring the Cooperative Economy,” which cover the activities of the largest cooperatives in the world. The latest report dates back to 2018 (hereinafter – Report 2018). It is based on the financial statements of 2,575 cooperative organizations in 2016. Also, the study used the scientific research of various scientists in the field of the cooperative movement and sustainable development (Kasbi et al. 2018; Karácsony et al. 2018; Androsova et al. 2016; Vinichenko et al. 2019). In this study, various scientific methods were used, in particular: grouping method, comparison method, tabular and graphical method, analysis and synthesis, etc. They made it possible not only to collect facts, but also to verify them, systematize, identify certain dependencies and trends.

Involvement of the World’s Largest Cooperatives …

55

3 Results The turnover of 300 leading cooperative enterprises exceeds $2 trillion, and they received the greatest development in the following sectors of the economy: • Insurance (33%); • Agriculture and agricultural production (33%); • Wholesale and retail trade (20%) (Official website of the International Co-operative Alliance 2018). The USA, France, Germany, Japan, the Netherlands, Italy, and Finland received the largest representation in the ranking of the top 300 cooperatives. This indicates a high level of development of cooperation in them. The development of the cooperative movement takes place in the world, which is characterized by an increase in the number of countries that have their representatives in the ranking of the top 300 (26 countries). Moreover, the role of the Russian Federation in the global cooperative movement is significantly lower than in the global economy as a whole, which is a definite drawback for our country. A quarter of the top 300 companies share sustainable development goals and strive to comply with the United Nations Global Compact1 or Global Reporting Initiative standards2. Sustainable development goals, most shared by cooperatives, are as follows: • Combating climate change; • Responsible consumption and production; • Good health and well-being.

4 Discussion The turnover of the largest cooperatives in the world is a significant amount and is shown in Table 1. Table 1 Turnover of 300 largest cooperatives in the world Report year

2012

2013

2014

2015

2016

2017

2018

Turnover, billion 1,975.6 2,098.6 2,205.7 2,360.05 2,533.1 2,164.23 2,018.02 US dollars Source Compiled by the author based on The World Cooperative Monitor. Exploring the Cooperative Economy. (The World Cooperative, 2012–2018) 1

The United Nations Voluntary Pact on the adoption by companies of strategies for sustainable development and reporting on these aspects. 2 An independent international standards organization that helps countries and organizations coordinate and report on climate change, corruption, and human rights (Hussey et al. 2001).

56

O. V. Shinkareva et al.

120% 100% 80% 60%

12%

10%

12%

11%

10%

10%

21%

21%

20%

17%

19%

19%

24%

28%

27%

32%

32%

30%

43%

41%

41%

40%

39%

41%

2012

2013

2014

2015

2016

2017

14% 20%

33%

40% 20%

33%

0%

Insurance cooperatives and mutuals

Agriculture and food industries

Wholesale and retail trade

Others

2018

Fig. 1 The distribution of the 300 largest cooperatives in the world by industry (by number). Source The World Cooperative Monitor. Exploring the Cooperative Economy. (Official website of the International Co-operative Alliance 2012, 2018)

An analysis of the table shows that the turnover of the 300 largest cooperative companies in the world exceeds $2 trillion. Moreover, its growth has been observed from the beginning of the study period (according to reports from 2012 to 2016, the growth rate was 28%), and it has fallen over the past two years. According to the 2018 report, compared with the data from 2016, the decline was 20%. Despite the fact that only a limited number of companies are analyzed, since they are the largest, it can be noted that they can indicate certain fluctuations in the entire global cooperative sector of the economy. Let’s move on to the structure of industries, which include 300 of the world’s largest cooperatives, as reflected in Fig. 1. As can be seen from the graph, the top 300 cooperatives in the world by the number of companies are mainly concentrated in the following three sectors: insurance, agriculture and agricultural production, as well as wholesale and retail trade. The share of other industries in the study period did not exceed 7% (banking and financial sector reached this indicator in Report 2018). At the same time, it should be noted that the share of the insurance sector is gradually decreasing, and the share of agriculture and agricultural production, on the contrary, is growing. We will consider the leaders of the ranking and their turnover. In Report 2018, the leaders in the ranking were companies from the banking and financial sectors, namely two companies from France (Groupe Credit Agricole and Groupe BPCE) and one from Germany (The National Association of German Cooperative Banks BVR). Compared to the 2012 report, companies significantly increased their

Involvement of the World’s Largest Cooperatives …

57

USA

81

86

49

France 24

Germany Japan Netherlands

10 10

Italy

41 35

17 19 17 21

10 10

Finland Others

83 0

20 Report 2018

40

60

80

87 100

Report 2012

Fig. 2 Distribution of 300 largest cooperatives of the world by countries (by number). Source Compiled by the author based on The World Cooperative Monitor. Exploring the Cooperative Economy (Official website of the International Co-operative Alliance 2012, 2018)

turnover. In particular, the leaders of the rating (Groupe Credit Agricole and Groupe BPCE) doubled their turnover. The first company increased its turnover from 45.73 to 90.16 billion US dollars; the second company increased its turnover from 31.23 to 67.78 billion US dollars. It should be noted that none of these companies were in the top three in Report 2012. And the aggregate turnover of the three leaders in Report 2018 exceeded Report 2012 by 12.4% (213.3 billion US dollars against 189.74 billion US dollars). However, this trend is not very pronounced. For example, the turnover of the five leaders of Report 2018 is ahead of Report 2012 by 6.7%; Report 2018 top ten leaders outperform Report 2012 by 4.1%; Report 2018 top 20 leaders outperform Report 2012 by 7.4% (The World Cooperative, 2012, 2018). An analysis of countries whose cooperatives are in the top 300 is interesting. In Report 2018, cooperatives from 26 countries are represented in the top 300; in Report 2012, cooperatives of 24 countries represented in the top 300. Figure 2 shows the countries with the largest representation of cooperative companies in the top 300 rankings. According to The Monitor 2018, the United States has the highest number of cooperatives in the top 300 (86 companies). The US share in the top 300 is 28%. The three leaders include France (49 companies, 16%) and Germany (a decrease in the number of companies is observed (24.8%)). At the same time, during the period under review, the number of companies from France increased, while the number of German companies decreased significantly. It should be noted that more than 70% of the top 300 cooperatives are located only in 7 countries where the cooperative movement is most developed. Japan, the Netherlands, Italy, and Finland are added to the above three. Also, the top 300 is

58

O. V. Shinkareva et al.

represented by companies from countries such as Canada (8 countries according to Report 2018), Denmark, Great Britain, Sweden, Norway, New Zealand (7 each), Belgium, Austria, and Australia (6 each). It should be noted that in Report 2018, companies appeared from Saudi Arabia, Malaysia (1 each), as well as Argentina, which reflects the gradual development of the global cooperative movement around the world. Unfortunately, Russian companies are not represented in this rating, which suggests that the Russian Federation does not play any significant role in the global cooperative economy. This is a serious drawback because in the global economy, Russian companies occupy high positions. For example, four Russian companies are in the first hundred Forbes 2000 ranking (Gazprom, Sberbank, Rosneft, LukOil) (Forbes Official Website, n.d.). As noted in Report 2018, the size of a cooperative is only one aspect by which cooperative companies can be evaluated in terms of sustainable development. Since the late 1980s, the theme of integrating economic development, rational use and protection of natural resources, as well as social justice and inclusion has been at the center of international debate (O’Riordan and Jordan 1995; Hecht 1999; Janicke and Jorgens 1998). It ended with the adoption by the United Nations in 2015 of the 17 Sustainable Development Goals to be achieved by 2030. These goals include combating inequality, hunger, and poverty, supporting health, education, and gender equality, the environment, and others (Haines et al. 2017; Sullivan et al. 2018; Ilin et al. 2015). To achieve these goals, the efforts of states are important above all, but enterprises can also focus on them when planning their development. Naturally, cooperatives, as a community of people by their nature, must play an important role in achieving these goals. In this regard, the International Cooperative Alliance analyzed the reports of the 300 largest cooperative enterprises in order to determine their compliance with the United Nations Global Compact or Global Reporting Initiative standards. It notes that 75 out of 300 organizations (representing 25%) share at least one of the two above-mentioned initiatives, and 36 companies use the Global Reporting Initiative indicators, including indicators such as Groupe Credit Agricole, Groupe BPCE, Coop Swiss, Rabobank, etc. Moreover, if one looks at the industry affiliation of companies, then 37% are engaged in agriculture and agricultural production, 31% of companies are engaged in insurance, and 15% are engaged in wholesale and retail trade (The World Cooperative, 2018). Thus, it can be noted that, taking into account the fact that the top 300 lists almost the same number of companies from the field of insurance and agriculture, the initiatives in the field of sustainable development are more shared by agricultural enterprises. We will look at the sustainable development goals that are supported by the largest cooperatives in the world (Fig. 3).

Involvement of the World’s Largest Cooperatives …

59

Climate Action

21 21 20

Responsible Consumption and Production Good Health and Well-Being for People Decent Work and Economic Growth

18

Gender Equality

16 15 14

Affordable and Clean Energy Zero Hunger Partnerships for the Goals

12 12 12 12 11 10 10

Life on Land Reducing Inequalities Industry, Innovation, and Infrastructure Sustainable Cities and Communities Quality Education No Poverty Clean Water and Sanitation

9

Life Below Water

8

Peace, Justice and Strong Institutions

7 0

5

10

15

20

25

Fig. 3 Sustainable development goals and cooperative enterprises sharing them, number of enterprices. Source The World Cooperative Monitor. Exploring the Cooperative Economy (Official website of the International Co-operative Alliance 2018)

As can be seen from the graph, the most sustainable development goals supported by the largest cooperatives are such goals as combating climate change, responsible consumption and production, and good health and well-being. Least common goals in this environment include peace, justice, effective institutions, preserving marine ecosystems, clean water, and sanitation. The business topics most commonly found in company reports related to sustainable development are presented in Fig. 4. The most common business topics are work, ethical and legal conduct, equal opportunity, and the environment. The least frequently encountered are potential negative impacts, information on products/services and their labeling, and investments in infrastructure.

60

O. V. Shinkareva et al.

Labour Ethical and lawful behavior Diversity and equal opportunity Environment Education Freedom of association and collective bargaining Practices in the supply chain Economic impact Compliance with laws and regulations Anti-corruption Inclusive decision making Effective, accountable and transparent governance Grievance mechanisms Infrastructure investments Product and service information and labeling Possible negative impact

36 35 34 34 30 29 29 29 25 25 14 14 13 12 12 7 0

20

40

Fig. 4 Business topics related to sustainable development, number of enterprices. Source The World Cooperative Monitor. Exploring the Cooperative Economy. (Official website of the International Co-operative Alliance 2018)

5 Conclusion In the context of globalization, a cooperative as an association of individuals, designed to achieve their economic or social goals, plays an increasingly important role. Cooperation is an integral part of the economy, as it is necessary for the population in need of social support (Sorokina and Zarubina 2011). It is cooperation that can help achieve sustainable development goals, and many large cooperative enterprises understand this. Being socially responsible, they pay more and more attention to combating climate change, responsible consumption and production, health, and well-being of the population. Further development of the cooperative movement in the world will contribute not only to economic growth but also to the solution of a number of social and environmental problems.

Involvement of the World’s Largest Cooperatives …

61

References Androsova, I.V., Melnichuk, A.V., Bondaletov, V.V., Vinichenko, M.V., Duplij, E.V.: On the issue of state support of agriculture: regional aspect. Int. J. Econ. Finan. Issues 6(S1), 114–119 (2016) Forbes Official Website. The World’s Largest Public Companies (n.d.). https://www.forbes.com/ global2000/list/#tab:overall Haines, A., Amann, M., Borgford-Parnell, N., Leonard, S., Kuylenstierna, J., Shindell, D.: Short-lived climate pollutant mitigation and the sustainable development goals. Nat. Climate Change 7(12), 863–869 (2017) Hecht, A.D.: The triad of sustainable development: promoting sustainable development in developing countries. J. Environ. Dev. 8(2), 111–132 (1999) Hussey, D.M., Kirsop, P.L., Meissen, R.E.: Global reporting initiative guidelines: an evaluation of sustainable development metrics for industry. Environ. Qual. Manage. 11(1), 1–20 (2001) Ilin, I.V., Ursul, A.D., Ursul, T.A.: New global sustainable development goals. J. Moscow Univ. 3–4, 60–84 (2015). Series 27: Globalist and Geopolitical Janicke, M., Jorgens, H.: National environmental policy plans and long-term sustainable development strategies: learning from international experiences. Environ. Politics 7, 27–54 (1998) Karácsony, P., Vinichenko, M.V., Aliyev, T.: Improvement of motivation in Hungarian organization. In: Transylvanian International Conference in Public Administration, pp. 266– 279. Babes Bolyai University, Cluj-Napoca, Romania (2018) Official website of the International Co-operative Alliance. Exploring the Cooperative Economy: Report 2012 (2012). https://monitor.coop/en/media/library/research-and-reviews/world-cooperative-monitor-2012 Official website of the International Co-operative Alliance. Exploring the Cooperative Economy: Report 2013 (2013). https://monitor.coop/en/media/library/research-and-reviews/world-cooperative-monitor-2013 Official website of the International Co-operative Alliance. Exploring the Cooperative Economy: Report 2014 (2014). https://monitor.coop/en/media/library/research-and-reviews/world-cooperative-monitor-2014 Official website of the International Co-operative Alliance. Exploring the Cooperative Economy: Report 2015 (2015). https://monitor.coop/en/media/library/research-and-reviews/world-cooperative-monitor-2015 Official website of the International Co-operative Alliance. Exploring the Cooperative Economy: Report 2016 (2016). https://monitor.coop/en/media/library/research-and-reviews/world-cooperative-monitor-2016 Official website of the International Co-operative Alliance. Exploring the Cooperative Economy: Report 2017 (2017). https://monitor.coop/en/media/library/research-and-reviews/world-cooperative-monitor-2017en Official website of the International Co-operative Alliance. Exploring the Cooperative Economy: Report 2018 (2018). https://monitor.coop/en/media/library/research-and-reviews/worldcooperative-monitor-2018en O’Riordan, T., Jordan, A.: Institutions for global environmental change. Global Environ. Change 5(3), 251–253 (1995) Kasbi, R.T., Vinichenko, M., Makushkin, S.: Participation of companies in emerging markets to the sustainable development goals (SDGS). In: Maloletko, A., Rupcic, N., Baracskai, Z. (eds.) Book of Proceedings 34th International Scientific Conference on Economic and Social Development – XVIII International Social Congress (ISC-2018) Economic and Social Development, pp. 741–752. Moscow, Russia (2018) Sorokina, I.E., Zarubina, A.I.: The role of cooperatives in the global economy. Probl. Mod. Econ. 3(39), 64–66 (2011)

62

O. V. Shinkareva et al.

Sullivan, K., Thomas, S., Rosano, M.: Using industrial ecology and strategic management concepts to pursue the sustainable development goals. J. Clean. Prod. 174, 237–246 (2018) Vinichenko, M.V., Klementyev, D.S., Rybakova, M.V., Malyshev, M.A., Bondaletova, N.F., Chizhankova, I.V.: Improving the efficiency of the negotiation process in the social partnership system. Entrepreneurship Sustain. Issues 7(1), 92–104 (2019)

Collaborations in the Modern Economy Elena N. Sochneva , Anna A. Malakhova , Olga V. Starova , Dmitry V. Zyablikov , and Dmitry I. Kravtsov

Abstract In the modern world, there is a new socio-economic phenomenon, which is called collaboration. Collaboration is understood as the association of two or more people for the joint implementation of innovative directed activities in the form of a project. Although this phenomenon appeared relatively recently, in practice, such associations have been present in the economy for a long time. These are innovative public-private partnerships, technology parks, strategic scientific alliances, etc. There are many types and forms of collaboration that involve both legal entities and individuals. The collaboration differs significantly from the usual organization, and, first of all, in that its participants share a common goal, and informal relationships prevail within the collaboration. It is advisable to consider the collaboration from institutional theory as a relational contract for interspecific resources. That is, we are talking about a contract. At the heart of which, there are no legal relations, or they are minimized, and its resources (people) are unique and mutually reinforcing. Keywords Collaboration Efficiency Innovation





Union
Intellectual human capital
Resources


E. N. Sochneva
A. A. Malakhova (&)
O. V. Starova
D. V. Zyablikov
D. I. Kravtsov Siberian Federal University, Krasnoyarsk, Russia e-mail: [email protected] E. N. Sochneva e-mail: [email protected] O. V. Starova e-mail: [email protected] D. V. Zyablikov e-mail: [email protected] D. I. Kravtsov e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_7

63

64

E. N. Sochneva et al.

1 Introduction The modern business puts on strict operating conditions, which lead to various associations of economic entities in order to achieve the highest possible efficiency. One of the forms of such associations is a collaboration, which is a joint activity of two or more people that results in an exchange of knowledge, experience, and skills to obtain a common benefit. Foreign in origin, the concept of collaboration goes back to the Latin “collaborate”—cooperation or working with someone. From a dead language, it migrated to the lively and elegant French: “collaborateur”—an employee, co-author, colleague, or ally (Babkin and Baykov 2018). Unions of people created to achieve goals have always existed, but collaboration is a unique association inherent in modern society. It is the formation of new business processes, training, and the growth of the human capital of participants. Collaborations are created to create and transmit innovations, and this distinguishes them from ordinary associations of people or organizations. For example, if two or more people decide to dig a garden together, this does not mean that they have become a collaboration. Two or more people of highly intellectual work who came together to create an innovative project, however, represent a collaboration. Most often, the term “collaboration” is used in the scientific field when two or more scholars begin to work on one idea and exchange knowledge and experience with each other. However, based on the definition of this term, it is advisable to consider collaboration more broadly. It seems essential to consider why the world switched to the functioning of collaborations as an effective way to unite partners. Indeed, before that, various forms of associations existed and exist today, ranging from entrepreneurial firms to public associations. However, nowadays, we are increasingly talking about collaboration as the most effective form of uniting participants (Baykov and Hakimova 2018). The fact is that the world is moving from the priority of legal norms to the sphere of informal relations. Today, a firm in institutional economics is a bunch of informal contracts (implicit) about interspecific resources (Coase 1993). This means that, in order to operate within the company to obtain benefits, it is not necessary to formalize the relationship. Moreover, the more formal the relationship, the less likely it is to create a collaboration since formal relations are paramount to the fulfillment of formal obligations, rather than mutual benefits (for instance, in Osipov 2020). Let us consider the nature and basic forms of collaboration in the modern economy.

Collaborations in the Modern Economy

65

2 Materials and Methods The methods of analysis and synthesis, comparative analogy, logical research, and institutional analysis were used in the course of the study. The work was based on the works of such Russian authors as A. V. Babkin, E. A. Baykov, N. V. Vasilenko, and others. In order to describe the institutional approach, we used the works of Nobel Prize winners in economics R. Coase and O. Wilmson.

3 Results Today, collaborations exist in all sectors and fields of activity, especially where intellectual work is needed. By organizational form, collaborations can be divided as follows: 1. Collaboration within a formally operating organization. The combination of connections in it is unpredictable and spontaneous. Its participants are people close in spirit and have similar interests. At some stage of communication, they can be united by a common goal, which will create a collaboration. 2. Collaboration between several organizations. Such a collaboration usually functions to implement a project or maintain a business. Examples include various conglomerates, concerns, industrial groups, and other associations connected by an innovative idea. 3. Collaboration between employees of different organizations. An example is a social network that unites professionals in an industry or professional association. 4. Collaboration between organizations from different countries. It is necessary to create a joint product by combining the resources of different countries. 5. Collaboration between government and business (innovative public-private partnerships). If the purpose of such an association is to create a unique product or service, then it also refers to collaborations. The stages of creating a collaboration are as follows: 1. Acquaintance. At this stage, future participants recognize and analyze each other, and identify the competencies, knowledge, and skills of their partners. Although the “acquaintance of future participants of the collaboration with each other” is set as the first stage, it also happens that a common goal is formed first; only then is an acquaintance made. In contrast to the usual organization in the collaboration, mission, goals, and stages of development are more pronounced. This is because collaboration has an idea for which it exists. After all, collaboration without an idea is impossible. 2. The formation of common goals. At this stage, people formulate goals and objectives that are clear and equally understood by all members of the association.

66

E. N. Sochneva et al.

3. The distribution of roles. The roles of participants in the collaboration are distributed as follows: – a leader is the one who inspires the rest of the team and comes up with ideas for further action; – intellectual capital includes those who develop processes for significant ideas; – technical executors are engaged in operational activities for the implementation of global ideas. 4. The implementation of the project (work)—this stage is associated with direct work on the idea. 5. The analysis, adjustment, and monitoring—here, it is implied that any result achieved requires some testing, after which adjustments will be made, and then monitoring of the state of the system or process will be carried out in the future (Fig. 1). Collaborations are divided into permanently functioning and random (temporarily created), that is, those where the participants spontaneously selected to implement one project or idea. In collaboration, the problem of managing intellectual work arises. The subjects of the collaboration are representatives of highly intellectual capital, which is effective with good governance and can lead to devastating consequences with poor governance (Vinichenko et al. 2017, pp. 215–227; Bogoviz et al. 2020). Human capital can work in both directions: on the growth of the effect of the organization and its decline. When it comes to high intellectual human capital, its action is enhanced many times, and its vector depends on the effectiveness of the motivation system. Currently, the business seeks to develop according to the “turquoise” principle, when all participants are a free association of interested parties. There is no doubt that such an association has a head who is closer to a leader than to a formal manager. His most important task involves organizing work for the effective use of the human capital of participants. This capital must be used in full, that is, at the level of potential. Let us consider the models of using intellectual capital in a standard organization and collaboration. In the model of a conventional organization, the use of intellectual capital can have a twofold effect: either a super-positive effect or a super-negative one. This is

Fig. 1 The stages of creating a collaboration

Collaborations in the Modern Economy

67

Table 1 Distinctive features of collaboration and regular organization Feature

Organization

Collaboration

Interaction system Possible effects Resource rating Motivation

Management—Submission Negative—Positive General/Specific resource Stimulation— Discouragement Classical/Neoclassical

Partnership Positive Interspecific resource Getting a share of the overall effect

Contractual relationship Organization of interaction Goal setting

The prevalence of formal ties Goals are set and defined “from above” Result The realization of current goals Source: Developed by the authors

Implicit/Relational The prevalence of informal ties The participants determined the goal, and it united them The creation of a “brand”

because highly qualified personnel are difficult to manage. Such employees can lead the organization to great success, but their goals must coincide with the goals of the organization and not go against the odds. Also, for the effective functioning of such an employee, it is necessary to use the methods of both non-material and material motivation so that the latter continually has a desire to give their human capital. In a collaboration where the partnership is at the heart of the interaction of participants, highly intellectual capital has only a positive effect (Table 1). In terms of labor motivation in a regular organization, standard motivation prevails, characterized by both stimulating and destimulating elements. In collaboration, discouraging does not matter; all participants work for the overall effect and receive rewards in proportion to their contributions. From the point of view of resource assessment, the organization is dominated by general or specific resources. In an institutional economy, shared resources are resources that have the same value both inside and outside the organization. Specific resources are the resources whose value inside the company is higher than outside (Williamson 1985, pp. 68–72). For example, a specialist who has worked in this organization for many years is of a higher value than a novice. Interspecific resources predominate in the collaboration, which is understood as mutually unique, complementary resources, where the maximum value is achieved only within the company (collaboration) and through it. Classic or neoclassical contracts characterize contractual relationships in a typical organization; relational or implicit contracts prevail in the collaboration. This is a mutually beneficial contract that does not contain a legal basis but is executed by the parties, as it is mutually beneficial for them. In collaborations, informal connections and relationships prevail, while in ordinary organizations, they are formalized. Often, the collaboration itself cultivates

68

E. N. Sochneva et al.

specific rules of behavior between participants. The rules may not be legally fixed anywhere, but all participants follow them. The preceding indicates that a significant feature and, at the same time, the problem of collaboration is the need to establish effective communications between its participants. Indeed, effective communication is the basis of its creation. Communication efficiency is the ability to understand the words and non-verbal gestures of the interlocutors identically. Often, two sides may believe that they mean the same thing when it is not always the case. This can create an apparent understanding. However, it is only possible to build an independent collaboration that can be successful and is based on the unity of the participants if all participants understand the goals, mission, and tasks in a uniform manner. This guarantees that the participants will work together as a single organism, which is extremely beneficial for the functioning of the collaboration. The goals of the collaboration are the link to its creation and construction. Usually, the goals of an organization are set by its founders and may not be shared by its employees. It should be understood that the goals of any organization are to maintain its current activities, and the purpose of collaboration is to create something unique and inimitable (Vasilenko 2016, pp. 14–18).

4 Discussion Collaboration can be interpreted more broadly in the economy than is usually accepted. In the modern economy, such associations as technology parks, technology platforms, strategic alliances, and innovative public-private partnerships can be classified as collaborations. After all, it is known that all these associations at the outlet provide a unique “brand” of product. Thus, a technological platform is a communication tool aimed at intensifying efforts to create promising commercial technologies and new products (services) and to attract additional resources for research and development based on the participation of all interested parties (business, science, education, state, civil society) (Fig. 2). Further, we consider a collaboration based on innovative public-private partnerships (IPPP). The result of the innovative partnership between the state and business also creates a unique, innovative product. A feature of this model of interaction between participants in the innovation process is that income from innovative ideas and technology transfer is received by all participants in the process of creating innovation. Authorities and scientific institutions get it in the form of financial revenues from the implementation of ideas and financing of the innovation process. Business structures, as a result, get a solution to the problem with the help of innovative technology (development, services). Technology transfer refers to the movement of technology using any information channels from one of its individual or collective carriers to another. It includes

Collaborations in the Modern Economy

69

Fig. 2 The diagram of the technology platform

transfer or alienation of the exclusive right to the results of intellectual activity (as a rule, objects of industrial property). Another model of collaboration arises based on strategic scientific alliances. Considering the goals of creating strategic scientific alliances, we focus on such elements of the innovation process as the organization of integrated research, the creation of network information technologies, and technology transfer. We believe that it is these components of innovation activity that are currently the most problematic areas and require the search for new organizational forms of activity (Fig. 3 and 4).

Fig. 3 The scheme of public-private partnership innovation

70

E. N. Sochneva et al.

Fig. 4 The scheme of the strategic scientific alliance

Collaborations as associations of economic entities (organizations) were considered above. However, in the business environment, there are other forms of collaboration. They include various associations of employers, trade unions, networking clubs, interest clubs, etc. All these organizations are primarily used for the exchange of knowledge and experience in certain types of activities. Undoubtedly, one of the main forms of collaboration is project activity. After all, it is known that, in the project, people gather just for the realization of an idea. The difference between such a collaboration is a clear allocation of goals and stages of implementation with specific deadlines and other attributes inherent in project activities.

5 Conclusion The main findings of the study include the following: 1. Collaboration is an association of two or more entities for obtaining mutual benefit; 2. In terms of economic content, this is a relational contract for interspecific resources; 3. There are differences between collaboration and classical organization, which makes collaboration more flexible and effective in modern conditions.

References Babkin, A.V., Baykov, E.A.: The collaboration of industrial and creative clusters in the economy: essence, forms, features. Sci. Tech. Statements St. Petersburg State Polytech. Univ. Econ. 11 (4), 141–164 (2018) Baykov, E.A., Hakimova, L.R.: Brand collaboration as an effective tool for innovative processes of the modern economy. Saint-Petersburg Econ. J. 3, 39–46 (2018)

Collaborations in the Modern Economy

71

Bogoviz, A.V., Shkodinsky, S.V., Skomoroshchenko, A.A., Mishchenko, I.V., Malyutina, T.D.: Scenarios of development of the modern global economy with various growth poles. In: Lecture Notes in Networks and Systems, vol. 73, pp. 185–192 (2020) Coase, R.: Firm, market, and law. Catallaxy, Moscow, Russia (1993) Osipov, V.S.: The wheel of coompetition as a new instrument of strategic management. World Appl. Sci. J. 27(8), 1083–1086 (2020) Vasilenko, N.V.: Collaboration: Institutional features and capabilities of management. In: Vasilonok, V.L. (ed.) Economic Management Strategies and Instruments: Industry and Regional Aspect, vol. 1, pp. 14–18. ITMO University, Saint Petersburg (2016) Vinichenko, M.V., Karacsony, P., Kirillov, A.V.: Discrimination of talents in the organization: a sociological analysis. In: Maloletko, A.N., Tipuric, D., Cingula, M. (eds.) Economic and Social Development, pp. 215–227. Russian State Social University, Moscow (2017) Williamson, O.: The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. Free Press, New York (1985)

On the Issue of Innovative Development of the Distribution Center in the System of Consumer Cooperation in the Region Ljudmila Yu. Alexandrova , Olga F. Kireeva , Alevtina Yu. Munshi , Stanislav V. Timofeev , and Anastasia N. Shikanova Abstract In this paper, the authors identified the factors of reducing the share of the region’s retail turnover, disclosed the ways of innovative development of the distribution center in the region’s consumer cooperation system. The study aims to identify consumer cooperation problems and solve them based on an innovative approach. The dynamics of the share of trade turnover of regional trade enterprises and the number of the rural population, as well as the areas of activity of regional consumer cooperation, are analyzed. The application of methods of theoretical and empirical research, system analysis, economic and mathematical modeling, and statistical analysis made it possible to justify the need to integrate technological, marketing, and information processes of goods distribution. The creation of a regional distribution center, acting as a complex of infrastructure facilities in the local territory, has been proposed as one of the innovative directions in the development of consumer cooperation. The scheme and technology of the distribution center are proposed. It indicates the integrated relations of the distribution center with enterprises of the agricultural sector based on the categorical approach. The scientific novelty lies in the development of a model for the functioning of the distribution center in the system of consumer cooperation in the region, which helps

L. Yu. Alexandrova (&)
O. F. Kireeva
S. V. Timofeev Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] O. F. Kireeva e-mail: [email protected] S. V. Timofeev e-mail: [email protected] A. Yu. Munshi Russian Customs Academy, Moscow, Russia e-mail: [email protected] A. N. Shikanova I. N. Ulyanov Chuvash State University, Cheboksary, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_8

73

74

L. Yu. Alexandrova et al.

to increase competitiveness, customer loyalty, and efficient use of the economic potential of the system of consumer cooperation. Keywords Distribution center of the region Integration ties





Consumer cooperation
Innovative development
Product distribution

1 Introduction Under current conditions, one of the most effective mechanisms for adapting agriculture to the new economic conditions is the development of consumer cooperation, which is a unique infrastructure working productively and solving many social and economic problems. Indeed, it is consumer cooperation that has vast experience, the material base for procurement, trade, and marketing, and qualified personnel. The condition for achieving and the main instrument for enhancing the competitive advantages of domestic consumer cooperation is the system of goods sales, which ensures interaction between all areas of its activity. The main provisions of the marketing concepts correspond to the main goals and objectives of consumer cooperation aimed at fully satisfying the needs of all its participants. Marketing for consumer cooperation is, firstly, procurement, production, sales, and trade activities aimed at creating and satisfying demand, choosing the best ways of product movement, and ensuring profit; secondly, a set of integrated marketing channels for product distribution. Currently, an important strategic tool for creating competitiveness is the creation of a distribution center as the most important management system and warehouse base in the commodity distribution system. Historically, the socio-economic development of the domestic consumer cooperation has caused a lag in some functional areas of logistics. This is due to several reasons, in particular: weak integration links at the micro- and macro-level; outdated trade and technological equipment; the imperfection of marketing and information and logistics processes; lack of stable channels for the sale of goods, stable business communications between the subjects of consumer cooperation (Munshi et al. 2014; Osipov et al. 2016). The study of the logistics systems of trade enterprises of consumer cooperation is of particular relevance since their situation is characterized by the dynamism and complexity of the formation.

2 Materials and Methods When managing sales, great attention should be paid to the quality of communications and the timely elimination of cross-functional conflicts and contradictions between various entities in the distribution chain. The solution to these problems is facilitated by the use of marketing and logistics approaches to managing flows of

On the Issue of Innovative Development of the Distribution Center …

75

goods, which implies increased integration of all parts of the supply chain. The coordination and integration mechanisms of the trading sector can be investigated using methods of theoretical and empirical research, system analysis, economic and mathematical modeling, and statistical analysis. We conducted a study of commodity distribution chains and the dynamics of turnover of consumer enterprises.

3 Results As shown by the domestic experience, the cooperative form is most consistent with the mentality of rural residents. For example, more than 60 thousand rural farmsteads in the Chuvash Republic are partners in the procurement industry of the Chuvashpotrebsoyuz. According to Chuvash state data, the dynamics of the population are determined by complex factors. The main ones are the natural movements of the population, the state of migration processes, and the socioeconomic condition of the region. At the beginning of this year, 1223.4 thousand people lived in Chuvashia, which is 7722 less than the number of a year ago (Fig. 1). The rural population decreased by 9,406 people (2%) for the year, while the number of urban residents increased by 1,684 people (0.2%). From 2015 to 2019, the share of urban residents in the population increased slightly from 60.7% to 63%, and the share of rural residents went from 39.3% to 37% (Fig. 2). The data shows that the share of the rural population has changed slightly over the past five years. However, there is a decrease in the share of retail turnover in the consumer cooperation system, which indicates the need to increase its social significance. Despite the increasing complexity of economic conditions, consumer cooperation must confirm its importance, social responsibility, including those in

Fig. 1 The dynamics of the population of the Chuvash Republic Source Compiled by the authors based on (Chuvashstat 2018)

76

L. Yu. Alexandrova et al.

Fig. 2 The ratio of the urban and rural populations of the Chuvash Republic Source Compiled by the authors based on (Chuvashstat 2018)

the field of trade services. The leading area of activity of the consumer-cooperation system is trade, which occupies about 67% of the total volume of economic activity. The enterprises of the regional consumer union produce more than 1 billion rubles a year (via soft drinks, bakery and confectionery items, canned fruits and vegetables, sausages, and fish products). The regional consumer union includes 500 units of vehicles, 1,098 stores, 715 enterprises for the purchase and procurement of agricultural products, 209 public catering establishments, 136 production shops, 81 warehouse network facilities, 68 stationary enterprises for the provision of consumer services, 39 medical pharmacies, and 14 veterinary pharmacies. The share of retail trade and public catering of the region’s consumer-cooperation enterprises in the turnover of large and medium-sized organizations of the Chuvash Republic is about 18%. The results of our research and the analysis of the structure of retail-trade turnover in the context of ownership forms have shown that, in recent years, there has been a tendency to decrease the share of retail-trade turnover in consumer cooperation (Table 1). One of the reasons is the imperfection of the distribution chain. In some cases, as our observations have shown, the delivery of goods to district stores is carried out in small batches (less than one transport container) from various sources. This leads to an increase in transportation costs. As a result, retail prices are, on average, 20–25% higher than they are in stores in the city, which causes a decrease in retail turnover and an outflow of customers to competitors. Table 1 The structure of retail turnover by ownership patterns (as a percentage of the total) Indicators

Years 2013

2014

2015

2016

2017

Total retail turnover in all sales channels 100.0 100.0 Including by ownership: State and municipal 1.6 1.3 Private 83.3 83.8 Other forms of ownership 15.1 14.9 From it: 5.4 5.0 Consumer cooperation Source Compiled by the authors based on (Chuvashstat 2018)

100.0

100.0

100.0

1.3 87.4 11.3 5.2

1.5 91.5 7.0 5.0

1.3 91.5 7.2 4.5

On the Issue of Innovative Development of the Distribution Center …

77

4 Discussion The development of consumer cooperation is influenced by an innovative factor, expressed in the use of the existing competitive advantages of consumer cooperatives (diversification, the common economic interests of business entities, etc.), the implementation of the principles of innovative management and marketing logistics, and the latest technologies. As one of the innovative directions in the development of consumer cooperation, it is necessary to create a regional distribution center that ensures the integrity of the formation of the trade assortment in the product distribution system. It acts as a complex of infrastructure facilities in the local territory, where integration and coordination of operational logistics activities are implemented. The wholesale purchase of goods from producers and distributors is carried out by their forces and means. Goods are supplied to the retail distribution network using distribution center vehicles. One of the principles of creating a distribution center is that establishing and developing a logistics partnership should involve the voluntary participation of its members based on the Association. In addition to the distribution center, the partnership may include regional consumer societies, domestic and local producers, agricultural cooperatives, municipal and state enterprises, and foreign partners. Although its composition may change, the trade network of consumer societies should remain, since it is the final link in the chain of goods distribution that is responsible for providing the population with safe and high-quality goods. Commodity and information flows are integrating tools for building a marketing and logistics system. Their automation will allow managerial bodies to develop and make innovative management decisions. Within this system, it is necessary to identify divisions that are responsible for conducting marketing research, searching for suppliers, establishing business relations with suppliers, and providing uninterrupted supply to the retail chain and other consumers. In order to solve these problems, it is necessary to establish stable internal production and sale of products from consumer cooperation enterprises. Since these enterprises cooperate with producers of agricultural products and raw materials in order to ensure the food security of the population, they can be considered links in a single distribution chain. Given that rural settlements represent the main share in Russia, a logistic approach to the system of relations between rural economic entities is necessary. Designing a distribution center involves the following set of measures: developing a concept and business plan for a distribution center; determination of the location of its branches (taking into account the specifics of the infrastructure, as well as the cost of transportation and warehouse processing of goods); calculating costs and the expected financial result from the implementation of the project; and attracting investments (the most popular sector of the economy among investors in 2018 was logistics). The proposed distribution scheme includes suppliers of goods, transport, a distribution center, a retail network of consumer cooperation in the region, and other consumers (Fig. 3).

78

L. Yu. Alexandrova et al. PO “Co-Center”

Manufacturing enterprises (federal)

Local and own manufacturing enterprises

District consumer societies

Distribution center

Branches

Individual and small enterprises

where: retail outlets commodity flow order job sheet Fig. 3 The proposed distribution scheme through the distribution center Source Compiled by the authors

In order to increase the efficiency of activities, these facilities should operate in a single information field based on the introduction of innovative information and communication technologies and the principles of category management. This will allow for strategic cooperation between the distribution center and suppliers throughout the distribution chain. The basis of the innovation project is an integrated logistics system, including procurement, transportation, storage, and information processes. The main tasks of the distribution center should be: the organization of wholesale purchases; their processing; their conversion into a commercial production assortment; and the rationalization of the goods supply. The specifics of the distribution center are the formation of a complex of services provided to customers: transportation, consulting, marketing, financial (commodity lending), merchandising, and services for the introduction of innovative forms and methods of customer service. These services can be used by their retail trade network and other enterprises of different ownership forms. One of the innovative tools for the development of a distribution center is the creation of its branches with the aim of operational regulation of the supply of specific product categories according to the territorial principle. At the same time, it seems possible that other entities (the State Customs Committee, local trading networks, entrepreneurs, and other commercial structures) can use the existing distribution center infrastructure on mutually beneficial conditions. The designed distribution center should be focused on strengthening the integration ties of consumer cooperation with enterprises of the agricultural sector of the region (private subsidiary farms and farms) and processing enterprises (Fig. 4).

On the Issue of Innovative Development of the Distribution Center … Private farms

Tool Suppliers

Agricultural cooperatives and farms

Distribution center

79 Processing enterprises

DC branch

where: the flow of material and technical means and equipment, biological preparations, mineral fertilizers, plant protection products, and veterinary preparations; the flow of raw agricultural materials; commodity flows; Fig. 4 Integrated communications of the distribution center with agricultural enterprises Source Compiled by the authors

5 Conclusion The creation of a distribution center is aimed at improving the efficiency of the region’s consumer cooperation trading system and at developing and implementing optimal distribution schemes. Its focus on the rational use of resources and the introduction of innovative technologies in the field of procurement and warehouse logistics helps to accelerate turnover, reduce logistics costs, and improve the quality of trade services. The distribution center creates favorable conditions for optimizing the processes of product distribution based on the creation and maintenance of an optimal level of inventories, reduction of storage space and utility rooms; compliance with contractual obligations; reduction of distribution costs; and saving financial, material, and labor resources. Thus, the distribution center plays an important role in creating a positive image, increasing consumer loyalty and recognition of consumer cooperation stores. The result of the proposed development paths is the unification of all stages of production, transportation, and sale into a single integrated technological and information process, therefore, the successful functioning and competitiveness of the enterprise, the effective use of the economic potential of the consumer cooperation system.

References Chuvashstat: A statistical compilation of the Territorial Body of the Federal State Statistics Service for the Chuvash Republic, Cheboksary, Russia (2018) Munshi, A.Yu., Munshi, Sh.M., Alexandrova, L.Yu.: The problems of small and medium enterprises of the region in foreign markets and the ways of their solution. Bull. Russ. Univ. Cooper. 4(18), 35–39 (2014)

80

L. Yu. Alexandrova et al.

Osipov, V.S., Skryl, T.V., Evseev, V.O.: An analysis of economic issues of territories of priority development. Res. J. Appl. Sci. 11(9), 833–842 (2016)

Current Trends in Cooperative Economics Rustam T. Bazarov , Tatiana V. Tishkina , Elmira I. Basyrova , Elena S. Shigorcova , and Chulpan H. Samatova

Abstract This article presents the main development trends in cooperative economics. The main directions of development of the cooperative movement in the Russian Federation are analyzed. An assessment of the developed social passport of the national project, namely, the volume of financing of federal projects and the results by the timing of their implementation, is given. The social passport of the national project includes five federal programs. Also, the main problems of increasing export volumes of competitive industry were identified. The authors analyze the dynamics of changes in indicators of time and financial costs, the number of participants in foreign economic activity when exporting goods from the cooperative sector of the country’s economy. Also, the volume of state financial support for agriculture is presented in the paper. The structure of agricultural cooperation in the Russian Federation is analyzed. The main directions of development of the cooperative sector of the economy of the Russian Federation are proposed. Keywords Cooperation


Cooperative movement
State
Cooperators
Finance

R. T. Bazarov (&)
T. V. Tishkina
E. I. Basyrova
E. S. Shigorcova Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected] T. V. Tishkina e-mail: [email protected] E. I. Basyrova e-mail: [email protected] E. S. Shigorcova e-mail: [email protected] C. H. Samatova Kazan (Volga Region) Federal University, Kazan, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_9

81

82

R. T. Bazarov et al.

1 Introduction To date, the main objectives of the cooperative sector of the economy are as follows: an increase in the export of non-primary, non-energy resources and goods, an increase in the share of exports of the country’s industrial sector, an increase in the share of agricultural exports in gross domestic product. Additionally, the objectives of the cooperative sector of the economy are the effective distribution of labor and industrial cooperation in the country and in the Eurasian Economic Union. The aim of this is to increase export volumes and integrate accumulated investments. The relevance of the research of a scientific article lies in the fact that the cooperative movement is again gaining momentum in international economic activity. The number of countries willing to participate in international exports is increasing every year. The cooperation sector of the country is the main link in the development of export products throughout the country (Ermakov 2001; Vakhitov 2017; Sobolev 2019). Also, we would like to note the fact that in pursuance of the Decree of the President of the Russian Federation of May 7, 2018 (Presidential Executive Office 2018), the Ministry of Industry and Trade of the Russian Federation developed a social passport of the national project. It includes five federal projects: “Industrial Export”, “Export of Agricultural Products”, “Logistics of International Trade”, “Export of Services”, and “Systemic Measures for the Development of International Cooperation and Export”. The timing of the implementation of this national project from October 2018 to 2024 (inclusive).

2 Materials and Methods The material of the scientific article is presented from the social passport of the national project of the Russian Federation, as well as statistical data on cooperation in agriculture, industry, and export products of the country. Data on agricultural cooperatives were presented from the website of the Ministry of Economy and Strategic Development for Export-Import Operations of the Russian Federation. The research methodology of this article is based on the application of comparison methods for quantitative indicators of agricultural production cooperatives. Also, the research methodology is based on the application of the analytical method for indicators of cooperative movement in the country. And the research methodology is based on the application of the method of comparing data by analyzing the structure and dynamics of change, graphical interpretation of information. To assess the financial flow of federal projects, quantitative and qualitative research methods were used. Also, quantitative and qualitative research methods were used to evaluate the results of consumer cooperation in the Russian Federation.

Current Trends in Cooperative Economics

83

3 Results The budget of the National Project of the Russian Federation is presented in Fig. 1. The budget of the national project amounted to 956.8 billion rubles. The federal project “Industrial Export” requires investments of 423.8 billion rubles. The budget of the federal project “Export of Agricultural Products” amounted to 406.8 billion rubles. The federal project “Logistics of international trade” requires an investment of funds in the amount of 21.6 billion rubles. In addition, 5.8 billion rubles are needed for the federal project “Export of Services”. The federal project “Systemic measures for the development of international cooperation and export” requires investments of funds in the amount of 98.8 billion rubles. Consequently, the first two federal projects, “Industrial Export” and “Export of Agricultural Products”, occupy the bulk of the entire national project, with an amount of 430.6 billion rubles. The government of the Russian Federation took measures to develop and increase export products. This was done after the imposition of sanctions of many countries, including the United States, on the economy of our country. These actions gave impetus to a complete review and reform of export policy in the field of cooperation of all types of industries. New facilities have been completely modernized or created. They replaced almost all the products imported into our country. The export volume of a competitive industry is shown in Fig. 2. Analyzing Fig. 2, we can draw the following conclusion. In the base year 2018, the export volume of competitive industries in the Russian Federation amounted to $114 billion. For 2019, the export forecast was $136 billion, $22 billion higher than the 2018 figure. For 2021, the export forecast was already $153 billion, which is $39 billion higher than the 2018 figure. For 2024, the export forecast has already reached $205 billion. This is $91 billion higher than in 2018. Thus, after the completion of the national project, the export of competitive industries in the Russian Federation should increase by 80%. Fig. 1 The budget of the National project, billion rubles

84

R. T. Bazarov et al.

Fig. 2 Export volume of competitive industry, billion US dollars

Table 1 Dynamics of changes in indicators of time and financial costs, the number of participants in foreign economic activity during the export of goods Indicators

2019 year

Forecast for 2024

Dynamics of change

Time costs, hour Financial costs, USD Participants of the “Exporter of the Year” Award, number of participants Financial support, number of organizations Experienced labs using ILAC mark, number of laboratories Share of research on Russian products, amount (%)

48 465 1 000

24 250 2 000

−24 −215 1 000

300 15

1 500 25

1 200 10

15 (3)

40 (8)

25 (5)

The dynamics of changes in indicators of time and financial costs and the number of participants in foreign economic activity during the export of goods are presented in Table 1. The analysis of Table 1 shows us that in relation to 2019, the financial cost of exporting products per participant in foreign economic activity will decrease by $215 in the forecast for 2024. Moreover, time costs will be reduced by 24 h. This is a positive factor in reducing the financial and time costs of participants in foreign economic activity, which will increase opportunities and reduce unforeseen costs. The dynamics of the volume of exported products from the cooperative sector of the economy in billions of US dollars are presented in Table 2. The data in Table 2 indicates that, in the forecast for 2024, all volumes of exported products of the cooperative sector of the economy will increase after the implementation of the national project. Engineering products will first increase by $4 billion, then by $6 billion and $17 billion US dollars. The total value of the

Current Trends in Cooperative Economics

85

Table 2 Dynamics of changes in the volume of exported products of the cooperative sector of the economy, billion US dollars Indicators

Base value, 2018 year

2019 year

Forecast for 2021

Forecast for 2024

Engineering products Chemical industry Metallurgical industry Forest industry Production of the pharmaceutical and cosmetic industry Agricultural products

33 17.4 42.1 9.5 1.4

37 22.4 51 12.4 1.8

43 25.9 54 14.5 2.3

60 37 58 17 4

21.6

24

28

45

Fig. 3 The share of exports of manufacturing products, agricultural products and services in the country’s GDP

indicator of engineering products will be $60 billion. The chemical industry will increase first by $5 billion, then by $3.5 billion and $11.1 billion. The total value of the chemical industry indicator will be $37 billion. The metallurgical industry will increase first by $8.9 billion, then by $3 billion and $4 billion. The total value of the indicator of the metallurgical industry will be $58 billion. The forest industry will increase first by $2.9 billion, then by $2.1 billion and $2.5 billion. The total value of the forest industry indicator will be $17 billion. The products of the pharmaceutical and cosmetic industries will increase first by $0.4 billion, then by $0.5 billion and by $1.7 billion. The total value of the pharmaceutical and cosmetic industry products will be $4 billion. Agricultural products will increase first by $2.4 billion, then by $4 billion and by $17 billion. The total value of the agricultural production indicator will be $45 billion. From Fig. 3, we can draw the following conclusion. Since 2018, the share of exports of manufacturing products, agricultural products, and services in the

86

R. T. Bazarov et al.

Fig. 4 The volume of exports of services provided, billion US dollars

country’s GDP begins to increase by 2.1% (compared with 2019), by 2.8% (compared with 2021) and by 3.9% (compared to 2024). From Fig. 4, we see that from 2018, the volume of exports of services provided will increase by 12.8% (compared to 2019), by 12% (compared to 2021) and by 18% (compared to 2024). Thus, in 2024, the total increase in the volume of exports of services provided will reach 100%.

4 Discussion State financial support also shows positive dynamics. Namely, the number of organizations that will receive financial assistance from the state increased by 1,200 organizations (from 300 organizations to 1,500 organizations). Also, there will be an increase in experimental laboratories under ILAC, from 15 to 25 organizations. In general, we can see a positive result, which consists in increasing the research on Russian products by 5%. The development of the economy’s cooperative sector will not only enhance the financial indicators of all industries but also increase the number of participants in foreign trade, with consistent cooperation to achieve the desired results. An increase in exports of manufactured products, agricultural goods, and services as part of GDP will add to the well-being of workers in agricultural cooperatives. This will be achieved by increasing wages, which should increase by 50%, according to the forecast for 2024.

5 Conclusion Cooperation in the economy will be developed mainly through the following initiatives and recommendations:

Current Trends in Cooperative Economics

87

• Cancellation of excessive exchange control requirements; • Support for competitiveness programs; • Expansion of the 0% VAT rate for export of construction and other materials for overseas construction or goods under a leasing agreement. Also, the expansion of the application of the 0% VAT rate for the export of information technology and related services; • Development of a collaborative program of Vnesheconombank and “REC” JSC, with the participation of other development institutions for financing projects for the creation (modernization) of export-oriented industries; • Development of a roadmap to eliminate exemptions and restrictions on the EAEU domestic market; • Formation of a unified system of export support in key foreign countries and in 85 constituent entities of the Russian Federation; • Putting the single-window information system on the basis of the digital platform of “Russian Export Center” JSC into commercial operation; • Development of country action plans to promote Russian exports into 13 foreign countries; • Expansion of the number of service sectors in which the EAEU single market operates; • Implementation of measures to increase the efficiency of direct multimodal and combined transport regulation, including the introduction of a single transport document; • Formation of a national system of analytical support for export (Analytical Market Center); • 2.0 regional export standard is implemented in at least 75 constituent entities of the Russian Federation; • Implementation of the first project to create a Russian industrial zone (RIZ); • Implementation of an electronic document management system for the transport of goods along international transport corridors. Acknowledgements The authors are grateful to the Ministry of Economy of the Russian Federation and the Ministry of Strategic Development of the Russian Federation for providing statistical data.

References Bazarov, R.T., Nigmatullina, L.G., Khasanova, L.R., Shamsutdinova, V.V.: Problems in creating an agricultural consumer cooperative in Russia. Econ.: Yesterday Today Tomorrow 5A, 58–64 (2018) Ermakov, V.F. (ed.): Together for the future. 170 years of consumer cooperation in Russia. Tsentrosoyuz Publishing House: Litvain and Ko, Moscow, Russia (2001) Gordeev, A.: Economic mechanisms of regulation of agricultural production. Economist 6, 90–93 (1998) Ivanova, V.P.: AIC problems are discussed. Finance 2, 64 (2006)

88

R. T. Bazarov et al.

Kruchinina, V.M.: Consumer cooperation in the system of Russian cooperation at the present stage (taking into account foreign experience). Dashkov and Ko, Moscow, Russia (2015) Petrikov, A.: Economic policy in the agricultural sector. Economist 7, 31–39 (1998) Presidential Executive Office: Decree of the President of the Russian Federation “On National Goals and Strategic Objectives of the Development of the Russian Federation for the period until 2024” (7 May 2018 No. 204), Moscow, Russia (2018) Seleznev, A.: AIC: 2012 results and prospects for 2013. Economist 11, 30–33 (2012) Sobolev, A.V.: Cooperation: economic research in the Russian abroad. Dashkov and Ko, Moscow, Russia (2019) Vakhitov, K.I.: Russian cooperators: History of cooperation in individuals. Dashkov and Ko, Moscow, Russia (2016) Vakhitov, K.I.: Cooperation. Theory, history, practice: selected sayings, facts, materials, comments. Dashkov and Ko, Moscow, Russia (2017) Vakhitov, K.I.: The history of consumer cooperation in Russia. Dashkov and Ko, Moscow, Russia (2019) Zeldner, A.: State regulation of the agro-industrial sector of the economy. Voprosy Ekon. 6, 83–90 (1997)

The Research on the Application of Formal Mathematical Models in Industry-Oriented Development Viktor O. Georgiev , Khalida S. Biktimirova , Alfira M. Akhmedova , Ludmila A. Gaynulova , and Nurzhamal Zh. Kurmankulova Abstract Digitalization and the widespread introduction of advanced information technologies have affected all areas and sectors of the Russian economy. The cooperative sector of the Russian economy widely used corporate information systems. Their code-based software implementation is based on technological principles that use the concepts of programming technology and mathematical modeling (Georgiev and Prokopyev 2018; Georgiev and Prokopiev 2015). The areas of application of such systems, and the models and methods used in them, have affected such areas as accounting, service support, maintenance, transport logistics, trucking, tourism, and trade. This paper describes the results of applying advanced technologies and system research, taken from the experience of creating corporate information systems using the example of a mock-model approach. This approach involves the use of the theory of computational processes and the theory of program schemes for developing a software system and modeling the processes occurring in it. For the practical implementation of the system, a methodology for selecting the tools necessary for software and hardware implementation is compiled. As an example of a practical code-based software implementation, some of the types of mock models of analogs of such corporate systems are presented.

V. O. Georgiev
K. S. Biktimirova
A. M. Akhmedova (&)
L. A. Gaynulova Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: alfi[email protected] V. O. Georgiev e-mail: [email protected] K. S. Biktimirova e-mail: [email protected] L. A. Gaynulova e-mail: [email protected] N. Zh. Kurmankulova Kazakh University of Technology and Business, Nur-Sultan, Kazakhstan e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_10

89

90

V. O. Georgiev et al.







Keyword Information technology System research Formal mathematical models Industry-specific software development Cooperative economy







1 Introduction Digitalization and the widespread introduction of advanced information technologies have affected all areas and sectors of the Russian economy. In the cooperative sector of Russia, corporate information systems and code-based software implementation, which are built on the technological principles of programming technology and mathematical modeling, are widely used (Georgiev 2014). In the fields of finance and accounting, such systems provide the opportunity to keep the income and expenditure of funds, keep records of inventories, calculate salaries, and generate reports for the payment of taxes and insurance charges. They also provide online accounting services, outsourcing, online accounts, and mobile applications for clients. Examples of such systems include ServiceCloud, Finguru, 1C-WiseAdvice, 1C-Business Start, etc. In the trading sector, corporate systems provide online cash desk services, solutions for automating a retail store, catering, modern solutions for automating warehouses, and trade accounting; they also help one manage purchases, suppliers, stock balances, prices, sales, customers, marketing campaigns, and employees. Examples of such systems include Subtotal, EKAM, Worka box, Poster, Qasl, etc. For travel companies, such systems provide services for maintaining customer bases in CRM, quickly process customer requests, select and book tours, print out vouchers, draw up contracts, and control the stages of sending and resting (Akhmedova and Khabibullina 2019). Company executives see a complete picture of the activities of a travel company on the travel agency desktop. This ensures quick access to orders and clients, a quick search for tourists and tour orders, automatic control of the validity of passports, saving files of questionnaires, photos, contracts, direct interaction with customers, travel service providers, etc. Such systems include U-ON. Travel, Columbis, CAMO-tour agent, ERP travel, 1C: tour agent, etc. In the field of service and repair, the systems provide cloud solutions for automating the activities of warranty and service centers. They make it possible to take a product for repair and track the repair process until issued to the customer. They also pay salaries to employees and keep customer records, accounting, the movement of funds, and components in the warehouse, between warehouses, and between stores. Likewise, they keep accounting of incoming equipment, tracking history for each order, etc. Examples of such systems are LiveSklad, Gincore, HelloClient, SC24, 1C service center, etc. The systems in the field of transport and transport logistics include such systems as Cyberlog, Megalogist, AvtoPerevozki, Logist, and Gruzoplan. The development, implementation, and adaptation of the software of such industry-specific systems are based on the principles of programming technology

The Research on the Application of Formal Mathematical Models …

91

and mathematical modeling (Georgiev 2017; Khabibullina et al. 2019a; b). For the application of this approach and the choice of the most optimal model in the above areas, such mathematical models as a graph (automaton) model, a model based on functional Petri nets, a model based on semantic networks, a model based on relational data, a model based on the theory of formal languages, a probabilistic model, a model based on game theory, a tensor model, and some other models are considered as a general vector of research areas. The paper discusses some of these models, as well as several problems arising during the development of industry-specific software.

2 Materials and Methods One of the problems of modern science in the field of information technology is the development of corporate information systems, which are complex structured relational-network systems. When designing and implementing software, such as complex software systems, and their subsystems, there arise numerous tasks that require an assessment of the quantitative and qualitative regularities of the functioning processes of such systems. In a general sense, these are modeling problems. At the stages of development of the technical and working design of systems, models of individual subsystems are detailed. Modeling serves to solve specific design problems, i.e., to select the optimal variant according to a certain criterion under given constraints from the set of admissible ones. When modeling large corporate information and computing systems, the following features should be taken into account: • the complexity of the structure and the complexity of the relationships between the elements, the ambiguity of the behavior algorithms under various conditions; • a large number of parameters and variables, incompleteness and non-determinism of the source information; • the variety and probabilistic nature of environmental influences. Software engineering as an application to software development implies a systematic, disciplined, measurable approach to the development of software systems. The development and generalization of approaches and methods and tools for its provision are the most relevant in the technological process of developing and creating such systems. One such approach is a mock-model approach based on technological principles (Georgiev and Prokopiev 2018; Georgiev and Prokopiev 2015), as well as methods and technologies considered in the works of (Maudet and Evrard 1998; Ponomarenko and Rubanov 2010; Ponomarenko and Rubanov 2012; Saukh 2012; and Fluri et al. 2007).

92

V. O. Georgiev et al.

2.1

Mock-Model Approach

The essence of the mock-model approach is the use of the methodology of the mechanism of the theory of program schemes, with the allocation of standard schemes of functional interaction of software elements with the full or partial formalization of their functioning and software implementation of mock models of software elements. From the first steps of the project, it is necessary to build a mock model that is limited in capabilities but works correctly to improve interaction with the expert.

2.2

Tasks of Choosing Formalized Models and Methods

The immediate task of developing corporate information systems of a sectoral focus (CIS SF) is multidimensional; it incorporates almost all the main problems in the field of programming. The difficulties encountered in solving this problem are as follows: • the lack of a unified approach to the description of CIS SF (a single abstract model of CIS SF) and the fuzziness of existing descriptions; • the lack of generally accepted terminology; • a small amount of generalizing work on the methods and means of building CIS SF. Among the main and mandatory stages of building corporate systems, a significant role is given to the selection and development of a formalized model of the system that allows us to streamline the description of CIS information systems, facilitate their design and analysis, and serve as a conceptual basis for the analysis of their behavior and implementation. The CIS SF model is a description of the schemes of processes and actions (functions) performed by the system. It must satisfy the following conditions: • • • •

be expressive and straightforward; have the ability to abstract from the content of interactive interaction with it; be available for a formal mathematical interpretation; provide the ability to convert to a software system.

3 Results For the implementation of the mock-model, we selected a graph based on game theory and a network (specifically, tensor) model. The graph model is the classic and most straightforward example of a model suitable for building a training layout.

The Research on the Application of Formal Mathematical Models …

93

The model based on the tensor representation is well developed in the form of a theory, but it is not often found in practical use. Therefore, the construction of a training mockup based on it can serve as a training basis, showing options for its application in practice.

3.1

Mockup Based on a Graph Model

The graph (automatic) model is one of the accessible and understandable models for the implementation of software systems. A graph is the main object of the study of the mathematical theory of graphs, the totality of a nonempty set of vertices, and sets of pairs of vertices (connections between vertices). The structure of the mockup is made up of two parts: the implementation of the model with the specified properties using the so-called script generator and the application of the constructed script in the dialogue system. The model will look as follows: • each vertex of the graph corresponds to a question of dialogue; • each transition in the graph corresponds to one of the possible answers to the question, which essentially gives us the ability to move to any available state; • and each question, similarly to the top of the graph, is assigned with a particular state. The creation of a script based on a graph (automatic) model starts with creating an empty .xml document. In order to record the state data (vertices) of the graph, the Question field is used, in which the text of the question is written. The graph is implemented by a table with the fields “Answer options” and “Transition to state”. After filling out the form, it is necessary to click the “Add Question” button. By such sequential actions, indicating the number of the transition to a particular state for each answer to the question, we can create a file with the script based on the model (Fig. 1). After completing these steps, we can open the completed script file in the window of the main program. After such manipulations, the user is invited to walk

Fig. 1 The mockup of graph model: scripting interface

94

V. O. Georgiev et al.

through the dialogue script and answer questions. Based on the user’s response, the system goes into the state we need and writes the result to the “Dialog Progress”. During the dialogue, there is an error analyzer that displays information in the “error message” field to the user that he entered the wrong answer; the system again asks the user to answer the question by choosing one of the proposed answer options.

3.2

Mockup Based on a Model Using a Tensor Network Representation

A model using tensor network representation was described by A. E. Armensky (Armensky 1989). This description is taken as the basis for creating a mockup of the model. The task of building an information system is posed as a network task. There is a network consisting of a set of one-dimensional simplexes. The network is affected by some quantities. It is necessary to determine the magnitude of the responses generated by the network. The network can be controlled by setting various coordinate systems on a network, moving from one coordinate system to another, and projecting an invariant object into different coordinate systems. The general theory of information systems is based on the possibility of continuous transformations that allow us to move from one system to another. In a passive interpretation, these transformations can be considered as transformations from one generalized coordinate to another and, in an active one, as transformations from one system to another. As a result, the study and design of a complex information system will be reduced to the study of simple systems. A formal definition of a network can be given as follows: On a countable set M, a binary relation R is given as a subset of M  M: R 2 M  M;

x 2 M; y 2 M; ðx; yÞ 2 R:

where (x, y) is an ordered pair. Let us define the transformation: X ðRÞ ¼ ðr Þ r R It establishes a one-to-one correspondence between the elements r = (xr, yr) of the system and a nonempty subset of one-dimensional simplexes with ends at the points xr and yr. A network is a system (a set of one-dimensional simplexes) whose vertices and edges are associated with some quantities, i.e., functions are defined: f1 : M ! x;

f2 : S ! y:

Mappings that preserve mathematical structures on sets allow one to compare different spaces, and find them isomorphic, or compatible in a weaker sense. The set of all mappings represents a new set, different from the original sets. It is called a

The Research on the Application of Formal Mathematical Models …

95

functional space. The use of functional space allows us to build sets (systems) with the desired properties or structures. Let us show how the generalized topological model of IS is built, which, then, projecting into particular coordinate systems, will give concrete models of IS and methods of transition from one system to another. The structure of the system is determined by the methods of connecting branches (one-dimensional simplexes). In general cases, planes, n-dimensional volumes are used as branches. Each branch is considered as an independent dimension of n-dimensional space. The model of an information system is generally represented as a network, the vertices correspond to domains (a set of data of the same type), and the branches represent transformations between data. A network is a structure with both closed and open paths. This structure, formed from branches and nodes, is considered as a one-dimensional complex. In the case of a dialogue system, the nodes of the network are questions, and arcs are system transformations, that is, transitions from one coordinate system to another. The network is defined by the data bank tensor, which stores all the entities and their relationships. The question can be compared with the calculation of a function, depending on the answer, the transition to the next network node is performed, and if there is no transition function for this answer, it is determined based on the network topology. For each question, we need to define a lot of pairs . If there are no pairs, the transition will be determined from the network topology (Fig. 2). In the course of the study, a complex analysis, consisting of a script editor and a dialogue system, was conducted (Fig. 3). The expert introduces a system question, adjusts the type of response from the user, selects the nodes to which the transition occurs when choosing one option or another, and selects the system-response message. All entered data is checked for correctness. The dialog system consists of a single form with changing questions; pop-up messages can also be added if necessary (Fig. 4).

Fig. 2 The mockup of the dialogue network

96

V. O. Georgiev et al.

Fig. 3 The mockup of the tensor network model: script editor interface

Fig. 4 The scheme of program work

4 Discussion The conceptual foundations of building mockup models of CIS information systems based on which their software could be generated were considered. Systems with a mock-model approach to development are considered, which makes it possible to obtain a basic mockup of a system that is suitable for further iterative expansion, for testing and educational purposes.

5 Conclusion A review of various formal models of CIS SF is given, their advantages and disadvantages are compared, and two models for the implementation of mockups are presented: a graph model and a model based on the concept of tensor calculus

The Research on the Application of Formal Mathematical Models …

97

(Armensky 1989). The resulting mockups will be further used in the educational process for the courses “Development, implementation, and adaptation of industry-specific software”, “Support for project activities”, “Corporate information systems”, and “Software Engineering” taught to students of the Russian University of Cooperation—the Kazan branch of RUK.

References Akhmedova, A.M., Khabibullina, G.Z.: The formation of information competencies of students studying in the direction of “Tourism.” In: Proceedings from III International Conference of the Faculty “Actual Problems of the Humanities and Natural Sciences”, Kazan, Russia, pp. 75–78 (2019) Armensky, A.E.: Tensor methods for building information systems. Nauka, Moscow (1989) Fluri, B., Wuersch, M., Pinzger, M., Gall, H.: Change distilling: tree differencing for fine-grained source code change extraction. IEEE Trans. Softw. Eng. 33(11), 725–743 (2007) Georgiev, V.O.: Software engineering: technological principles of software development at the level of a formalized description, using an abstracted dialogue system as an example. In: Proceedings from TEL’2014: International Conference “Language Semantics: Models and Technologies”, Kazan, Russia, pp. 40–41 (2014) Georgiev, V.O.: Concepts of educational-breadboard implementation of the generator for complex systems. In: Proceedings from ITMM-2017: A.F. Terpugov International Conference “Information Technologies and Mathematical Modeling”, pp. 168–172 (2017) Georgiev, V.O., Prokopiev, N.A.: A model approach to interactive system software development. Int. J. Appl. Eng. Res. 10(24), 45208–45213 (2015) Georgiev, V.O., Prokopyev, N.A.: The research on the application of formal mathematical models in software generation. In: Proceedings from ITMM-2018: XVII A.F. Terpugov International Conference “Information Technologies and Mathematical Modeling”, Kazan, Russia, pp. 378– 379 (2018) Khabibullina, G.Z., Akhmedova, A.M., Makletsov, S.V., Khairullina, L.E., Khafizova, A.R.: On the effectiveness of the training programs in the learning process. J. Res. Appl. Linguist. 10, 286–293 (2019a) Khabibullina, G.Z., Makletsov, S.V., Akhmedova, A.M., Khabibullin, M.Z., Khafizova, A.R.: Electronic learning tools as a means of increasing the effectiveness of inclusive education. Rev. Genero Direito 8(7), 222–230 (2019b) Maudet, N., Evrard, F.A.: Generic framework for dialogue game implementation. In: Proceedings of 2nd Workshop on Formal Semantics & Pragmatics of Dialogue, pp. 185–198. The University of Twente, The Netherlands (1998) Ponomarenko, A., Rubanov, V.: Automated verification of shared libraries for backward binary compatibility. In: Proceedings from VALID 2010: Proceedings of the 2010 Second International Conference on Advances in System Testing and Validation Lifecycle, Nice, France, pp. 57–62 (2010) Ponomarenko, A., Rubanov, V.: A combined technique for automatic detection of backward binary compatibility problems. In: Clarke, E., Virbitskaite, I., Voronkov, A. (eds.) Perspectives of Systems Informatics. PSI 2011. LNCS, vol. 7162, pp. 313–321. Springer, Heidelberg (2012) Saukh, A.M.: The analysis of some semantic aspects of the source code of programs based on formal specifications of syntax and semantics. Appl. Discrete Math. Append. 5, 110–111 (2012)

Cooperation as a Way to Increase the Efficiency of Innovative Development Elena A. Bessonova , Nina S. Skotnikova , Artem A. Golovin , and Rustam M. Battalov

Abstract In order to achieve long-term development goals, which are to ensure a high level of quality of life for the population and dynamic, progressive development of all sectors of the economy, it is necessary to switch to an innovative type of development. In this connection, the most important task facing public authorities of each region of Russia is the creation and effective functioning of innovative infrastructure. Despite a large number of scientific works devoted to various aspects of innovative development, insufficient attention is paid to the role of cooperation in innovation. The study aims to justify the use of cooperation in the process of implementing innovative activities to increase its effectiveness. The work used the methods of logical research, system and comparative analysis, and modeling. The paper summarizes the views of various authors on the concept of cooperation; the classification of cooperative organizations is given; the relevance of the transition to the model of innovative development based on cooperative ties between the subjects of socio-economic relations is substantiated; a generalization of the prerequisites for cooperation in the innovation sphere and the possible effects of its functioning are presented. The model of innovative cooperation is presented in the form of interaction of four groups of participants: government bodies, the scientific sector, enterprises of the real sector of the economy, the population. The measures necessary for the construction and dynamic development of the model of innovative cooperation are proposed.

E. A. Bessonova (&)
N. S. Skotnikova Southwest State University, Kursk, Russia e-mail: [email protected] N. S. Skotnikova e-mail: [email protected] A. A. Golovin
R. M. Battalov Sterlitamak Branch of the Bashkir State University, Sterlitamak, Russia e-mail: [email protected] R. M. Battalov e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_11

99

100

E. A. Bessonova et al.







Keywords Innovation Cooperation Digital economy ture Innovation cluster Innovative cooperation








Innovative infrastruc-

1 Introduction Under the conditions of modification and transformation of modern information and communication technologies, all business processes are moving to a new level, the formation of a new type of economic relationship—the digital economy. The use of digital technologies while implementing the processes of production and sale of products, providing different types of services, and performing works will contribute to the growth of the well-being of the population, maximizing the profits of commercial entities and increasing the transparency of public administration. Building a model of the digital economy is a tool for the development of the socioeconomic system as a whole and its elements, which can significantly increase the efficiency of production processes, sales, storage, and delivery in various industries; improve product quality and labor productivity; and have a positive impact on the social scope (Sagynbekova 2018). In order to ensure a high level of competitiveness of companies in current rapidly changing economic conditions, it is necessary not only to improve production technology and optimize labor costs and material resources but also to introduce an innovative component in production activities (Bessonova and Mereshchenko 2017). This process can be facilitated by a system of mutually beneficial relations between various participants in the economic process, regular training of personnel, and the acquisition and application of new knowledge. Since innovation processes are associated with a high risk level, cost level, knowledge, staff skills, and a significant amount of information, the tendency for cooperation between companies in the implementation of innovative activities is particularly relevant. This form of cooperation will expand access to resources, reduce costs, thus obtaining competitive advantages, and achieve dynamic development in an innovative direction. Based on the preceding, the task of forming an effective infrastructure at the level of each region based on cooperation between subjects of socio-economic relations is becoming particularly relevant. Such infrastructure should create conditions for innovative development and be a platform for the digital economy; provide the ability to manufacture and sell high-quality, competitive products; provide new types of services in the domestic and international markets; and satisfy the needs of the state, population, and business in a rapidly developing socio-economic system.

Cooperation as a Way to Increase the Efficiency …

101

2 Materials and Methods Several issues of scientific support for building an effective infrastructure of innovative activities are considered in an increasing number of scientific works of Russian and foreign scholars, reflecting in detail the theoretical and practical aspects of this issue. The problems of the innovative direction of the development of socio-economic systems are studied in the works of many researchers (Akayev 2010; Beregovaya 2015; Buzgalin and Kalganov 2003; Fathutdinov 2014; Treschevsky 2012). There are many works devoted to the history of the cooperative movement, including various theoretical and practical aspects of the function of the economy’s cooperative sector (Barthelemy, L. Verdog, J. Focke, et al., as well as Fine 2002; Itkulov 2009; Makarenko 2002; Nagovitsin 2016; Vakhitov 2011). Several scholars, in their works, focused on the role of the cooperative sector in ensuring innovative development (Filin and Tchaikovskaya 2016; Pavlushkina 2007). Despite the detailed study of solutions to problems in the innovative development field, insufficient attention is paid to the process of cooperation in the economy’s innovative sphere. The purpose of this work is to determine both the role and place of the cooperation process in innovative development, considering cooperation as a tool to increase the effectiveness of innovative activities. This work uses logical research, system, comparative analysis, and modeling methods.

3 Results When using the definition of the corporate sector, the word “sector” is understood as a part of the country’s economy, which combines similar socio-economic characteristics. The origins of the theory of cooperative economics are associated with French scholar J. Focke, who focuses on the relationship between the private and cooperative sectors. In his opinion, the cooperative sector was the beginning and end of the chain in the economic process (agricultural industry and consumption), while industry was the central link. According to A. F. Leydlou, in order to solve all economic problems and build the highest-functioning version of the country’s economy, there is a need for the simultaneous and interconnected existence of three sectors: public, private, and cooperative. The cooperative sector combines the best features of the two previous ones.

102

E. A. Bessonova et al.

S. A. Beck, in his studies, emphasizes the fact that social responsibility is an integral feature of the cooperative sector. He identifies four levels of this sector: local, national, regional, and global (Vakhitov 2017). In order to increase the efficiency of the cooperative sector, it is advisable to expand a stable and dynamic sector of the economy that differs from the others and includes cooperatives that respond to the social and economic needs of society. The idea of cooperation is to strengthen unifying tendencies. Therefore, the integration of the socio-economic goals and objectives of cooperative societies and unions is aimed at increasing the efficiency of their activities. In this study, the cooperative sector of the economy is made up of a set of organizations with a cooperative form of ownership functioning in the interest of their members to achieve specific goals based on the principles and values of cooperation. It should be noted that the nature of the activities of organizations in the cooperative sector of the economy is not exclusively commercial (for example, consumer cooperatives, agricultural cooperatives). In recent years, conflicting trends in the development of the cooperative sector have been observed in the Russian economy. There is a reduction in the number of cooperative organizations and the number of their members (shareholders), a loss of a significant share of the cooperative property, and signs of the transformation of cooperative enterprises into private ones. We agree with the researchers who believe that the development of the cooperative sector of the economy and its formation into an independent competitive economic block require comprehensive state support (Vakhitov 2017). For the development of cooperation, state support is not enough; the interest of the participants in the cooperative movement is necessary. The currently forming cooperative sector of the market economy of Russia, in addition to traditional types of cooperation (consumer, financial, credit, agricultural, industrial, housing, etc.) includes scientific and technical (scientific and technological, scientific and industrial), electronic, and professional types of cooperation. Through scientific and technical cooperation, we understand the cooperation in the field of research and development for obtaining new knowledge and developing new technology for use in production, service, and work. E-cooperation is cooperation in the field of the exchange of information resources (Kurlaev 2019). Scientific and professional cooperation is a collaboration between the scientific, educational, and industrial sectors in the form of training and professional development, the purpose of which is to achieve a synergistic effect in the implementation of research and innovation activities (Filin and Tchaikovskaya 2016). Cooperation can be seen as a balancing force that reduces the level of monopolization in agriculture, trade, and other industries. Cooperation is appropriate where there is ownership of many separate economic entities whose activities are not efficient enough in a market economy and who seek to increase efficiency and maintain independence.

Cooperation as a Way to Increase the Efficiency …

103

Cooperation in the field of innovation in the form of integration of various interested business entities will contribute to the solution of research problems of an applied nature and the establishment of the process of commercialization of innovation. Cooperation in the innovation sphere will allow us to overcome the limited resources and capabilities of subjects of innovative activity to increase the efficiency of using the production factors at their disposal. In order to establish the process of development, production, and sale of innovative products, the following is necessary: – transform the production process for the release of new products; – obtain appropriate technologies, techniques, equipment, and tools; – provide the enterprise with staff. Given the complexity of the above process of implementing innovative activities, it is advisable to develop innovative cooperation aimed at the production and implementation of an innovative product. The ability to quickly establish cooperative ties is an essential condition for development in an innovative direction. The process of the commercialization of innovative developments requires the integration of the research and production sectors of the economy. Modern economic conditions require the use of new technologies, improving the quality of products, cooperation with suppliers of raw materials, equipment, and optimization of production costs (Obodets and Bessonova 2018). The impetus for stimulating innovation can be the active involvement of consumers in the process of developing an innovative product, the cooperation of enterprises in the real sector of the economy with educational and research organizations, and other entities of the innovation infrastructure. In other words, the cooperation of all participants in the innovation process is necessary. In our opinion, one of the most effective tools of state innovation policy is to promote the development of cooperation between scientific departments of higher educational institutions, research organizations, and enterprises of the real sector of the economy, with the involvement of consumers, in the form of consolidating the process of implementing joint projects at the state level, developments, and their implementation in real life. Figure 1 presents a generalization of the prerequisites for cooperation in the innovation sphere and the possible effects of its functioning. Usually, large enterprises adhere to independence in the field of development, testing of new technologies, and the production of innovative products. However, if we are talking about large-scale basic research that requires significant resources, it may require the cooperation of enterprises of several industries with the involvement of the scientific sector as well as state support. For the formation of an innovative infrastructure that successfully implements the tasks in the field of innovative development, it is necessary to build a new form of cooperative institutions uniting the public sector as well as the scientific, educational, public, and business communities.

104

E. A. Bessonova et al.

Fig. 1 Innovative cooperation: prerequisites and effects

Clusters can be one of the forms of such cooperation. As a result of cluster formation, various types of resources are concentrated, including scientific knowledge and modern technologies, while there is no complete merger between its subjects, but certain impulses of interaction are created. In the framework of the cluster policy pursued by the states, attempts are being made to combine industrial, regional, investment, innovative, educational, and other policies to achieve a synergistic effect from the interaction of various business entities united by solving common problems in a particular territory. Thus, cooperation in the innovation sphere allows for increasing the level of business competitiveness due to more efficient interactions between various stakeholders, expanding access to technologies, labor resources, cost optimization, joint development, and technology adaptation. Figure 2 shows a model of innovative cooperation. Innovative cooperation means active participation in joint innovation projects, which allows for combining available resources, knowledge, and abilities to achieve joint goals and obtain positive effects in the implementation of innovative activities.

Cooperation as a Way to Increase the Efficiency …

105

Fig. 2 The model of innovative cooperation

4 Discussion The model of innovative cooperation is the interaction of four groups of participants: state authorities, the scientific sector, enterprises of the real sector of the economy, and the population. The critical role in this model is assigned to the relationship between research organizations and enterprises in the real sector of the economy. As a result of the interaction of these groups, an innovative product is developed. The interactions between manufacturers of an innovative product and suppliers of resources and equipment are also significant. Interactions with customers allow us to determine the requirements for innovative products and identify features of consumer behavior, which allows for modification of the developed innovations. Cooperation with state authorities allows access to various forms of financial support and administrative resources and helps to improve the regulatory framework (Khomich 2014). For the dynamic development of the process of innovative cooperation, it is necessary to apply the following measures: 1) Closer integration of organizations of the cooperative sector of the economy is needed. 2) An increase in the level of interest of participants, managers, society. 3) The development and approval of a common strategy for the development of cooperation in Russia.

106

E. A. Bessonova et al.

4) The implementation of breakthrough projects in the cooperative sector, including innovative ones, necessary for the entire economy. 5) The expansion of government support measures. 6) The improvement of the regulatory framework. 7) The improvement of the training of specialists in cooperative affairs.

5 Conclusion Thus, the model of innovative cooperation is an effective mechanism for increasing the effectiveness of innovative activities in Russia. It will create conditions for innovative development and the formation of a digital economy, provide an opportunity for the production and sale of high-quality, competitive products, provide new types of services in the domestic and international markets, and meet the needs of the state, population, and business.

References Akayev, A.A.: Schumpeter-Kondratiev’s theory of innovation-cyclical economic growth is the basis of strategic management of sustainable development, Moscow, Russia (2010) Beregovaya, I.B.: Quality and competitiveness management of socio-economic systems. Publishing Center of the South Ural State University, Chelyabinsk, Russia (2015) Bessonova, E.A., Mereshchenko, O.Yu.: The methodology of the potential resource assessment under import substitution. Econ. J.-XXI, 1-2(163), 91–94 (2017) Buzgalin, A.V., Kalganov, A.I.: The theory of socio-economic transformations. TEIS, Moscow, Russia (2003) Fathutdinov, R.A.: Innovation Management. Peter, St. Petersburg (2014) Filin, S.A., Tchaikovskaya, L.A.: The role of the cooperative sector in ensuring the innovative development and economic security of Russia. Natl. Interests: Prior. Secur. 3(336), 119–136 (2016). https://cyberleninka.ru/article/n/rol-kooperativnogo-sektora-v-obespechenii-innovatsionnogo-razvitiya-i-ekonomicheskoy-bezopasnosti-rossii Fine, L.E.: Russian cooperation: a historical and theoretical essay. 1861–1930. Publishing House of Ivanovo State University, Ivanovo, Russia (2002) Itkulov, S.G.: The cooperative sector of the economy. Siberian University of Consumer Cooperation, Novosibirsk, Russia (2009) Khomich, S.G.: Intercompany cooperation in innovation: theoretical foundations of analysis. Bull. St. Petersburg Univ. Manag. 3, 135–176 (2014). https://cyberleninka.ru/article/n/ mezhfirmennaya-kooperatsiya-v-innovatsionnoy-deyatelnosti-teoreticheskie-osnovy-analiza Kurlaev, A.M.: Electronic cooperation as an innovative direction of the cooperative movement. In: Proceedings from Topical Issues of Economy and Management. Svoye Izdatelstvo, St. Petersburg, Russia (2019) Makarenko, A.P.: Theory and history of the cooperative movement. Book-selling center “Marketing”, Moscow, Russia (2002) Nagovitsin, L.P.: Consumer cooperation in Russia. BUKEP, Belgorod, Russia (2016) Obodets, Ya.V., Bessonova, E.A.: Methodology for the formation of plans and programs for the socio-economic development of the territory. Manager 4(86), 21–27 (2018)

Cooperation as a Way to Increase the Efficiency …

107

Pavlushkina, O.I.: Innovative ways of developing agricultural consumer cooperatives. Nikon Read. 12, 295–297 (2007). https://cyberleninka.ru/article/n/innovatsionnye-puti-razvitiyaselskohozyaystvennyh-potrebitelskih-kooperativov Sagynbekova, A.S.: Digital economy: concept, prospects, development trends in Russia. Int. Sci. Tech. J. “Theory Pract. Innov.” 4 (2018). http://www.tpinauka.ru/2018/04/Sagynbekova.pdf Treschevsky, Yu.I.: The management of innovative development of socio-economic systems: methodological aspects. Bull. Voronezh State Univ. 2, 149–154 (2012) Vakhitov, K.I.: Cooperation: Theory, History, Practice. Dashkov and K, Moscow, Russia (2011) Vakhitov, K.I.: The cooperative sector of the economy. Fundam. Appl. Res. Cooper. Sect. Econ. 5, 35–42 (2017)

Development of the System of Consumer Cooperation in the Conditions of Digitalization of the Economy Vilyur Y. Akhmetov , Azat N. Kuzyashev , Galina V. Knyaginina , Elsa R. Mukhametzyanova , and Alfiya R. Nasretdinova Abstract This article substantiates that the digitalization of the economy can become a kind of driver for the socio-economic development of rural areas of Russia. This is possible due to the introduction of digital technologies in the agricultural sector and the system of consumer cooperation. The foreign and domestic experience of digitalization in the agricultural sector and the system of consumer cooperation is analyzed. Recommendations and proposals for the implementation of digital technologies for the activation and sustainable development of the consumer cooperation system in the regions of the Russian Federation have been developed. Including recommendations and suggestions developed in the Republic of Bashkortostan. The authors actualize the need to develop a long-term “Digitalization Program for the System of Agricultural Consumer Cooperation in the Republic of Bashkortostan for the Period Until 2030”. The development of this program is necessary to improve the efficiency of the rural economy and the quality of life of the rural population.







Keywords Digitalization Digital economy Cryptocurrency Token Mining ICO Consumer cooperation











Blockchain


V. Y. Akhmetov Institute for Social and Economic Research, Ufa Federal Research Center of the Russian Academy of Sciences, Ufa, Russia e-mail: [email protected] A. N. Kuzyashev (&)
G. V. Knyaginina
E. R. Mukhametzyanova Bashkir Cooperative Institute (Branch), Russian University of Cooperation, Ufa, Russia e-mail: [email protected] G. V. Knyaginina e-mail: [email protected] E. R. Mukhametzyanova e-mail: [email protected] A. R. Nasretdinova Kazan (Volga Region) Federal University, Kazan, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_12

109

110

V. Y. Akhmetov et al.

1 Introduction The digitalization of the economy is a new trend in world social development, which has replaced informatization and computerization (Faritova et al. 2016; Stroiteleva et al. 2019; Kuzyashev 2011). In recent years, Russia has made significant progress in many areas of digitalization. The fundamental document of the digital transformation of the Russian economy is the “Strategy for the Development of the Information Society in the Russian Federation for 2017–2030”, approved by Decree of the President of the Russian Federation No. 2032 of May 9, 2017. The same basic document is the program, “Digital Economy of the Russian Federation”, adopted by order of the Government of the Russian Federation of July 28, 2017 No. 1632-p (Government of the Russian Federation 2017). First of all, digitalization has affected the IT technology sector, the banking sector, trade, and the service sector. However, branches of the real sector of the economy are now actively digitalizing. Agriculture, which is becoming “smarter”, is no exception. Digitalization of the agricultural sector eliminates disadvantages associated with a long production and technological cycle, natural and climatic risks, and large crop losses during cultivation, harvesting, and storage (Gordeev et al. 2019). It seems to us that in the system of measures to introduce digital technologies in the rural economy, it is necessary to pay more attention to the digitalization of the consumer cooperation system. The system of consumer cooperation can become one of the drivers of socio-economic development in rural areas of Russia (Alimanova and Nasretdinova 2014; Akhmetov et al. 2019; Nasretdinova et al. 2019).

2 Materials and Methods Empirical and theoretical research methods are used, including economic analysis, synthesis, economic analogy, systemic and monographic approaches.

3 Results Digitalization has long been an inevitable and objective necessity for organizing highly profitable agricultural production. But in the global economy, the agricultural sector is far from a leader in implementing digitalization. The digitization level for retail and financial organizations and social networks here reaches 70–80%. In the agricultural sector of Russia, it is only about 10%, growing by about 2–3% annually (according to estimates of the Ministry of Agriculture of the Russian

Development of the System of Consumer Cooperation …

111

Federation). According to the Ministry of Agriculture of the Russian Federation, as of December 2018, Russia ranks only 15th in the world in terms of the digitalization of agriculture. At the same time, Russia occupies a leading position in the world in terms of fertile land. Precision farming solutions are applied in only 3% of agricultural enterprises in Russia, while in the USA, this figure reaches 60%; in the EU countries, this figure reaches 80% (Presidential Executive Office 2018). If the use of information technologies was once limited to the use of computers and software for financial management, now innovations in the field of agricultural digitalization are being used more and more. The ability to control the full cycle of crop production or animal husbandry through “smart” devices has already become a reality. “Smart” devices transmit and process the current parameters of each object and its environment (equipment and sensors that measure the parameters of soil, plants, microclimate, animal characteristics, etc.). Thanks to the unification of objects into a single network, the exchange and management of data based on the Internet of things, the increased productivity of computers, and the development of software and cloud platforms, the following has become possible. It has become possible to automate the maximum number of agricultural processes by creating a virtual (digital) model of the entire production cycle and interconnected parts of the value chain. With mathematical precision, it is possible to plan a work schedule, take emergency measures to prevent losses in the event of a fixed threat, calculate possible crop yields, determine animal productivity, and assess production costs and profits. Intensive implementation of digitalization and the Internet of things in agriculture promises to turn the industry, less affected by IT, into a high-tech business. This process will be carried out due to the explosive growth of productivity and the reduction of unproductive expenses (CRN/RE IT Business Official Website 2017). In August 2019, the Competence Center for Digital Transformation of Agriculture was created on the basis of the “AC Ministry of Agriculture of Russia.” The center was created to provide a technological breakthrough in the agricultural sector through the introduction of digital technologies and platform solutions. It is designed to coordinate work on the implementation of the tasks of the Ministry of Agriculture of the Russian Federation in the framework of federal projects of the national Digital Economy of the Russian Federation program’s departmental project for 2019–2024, Digital Agriculture. Also, this center is called upon to coordinate work on the implementation of measures to support and develop state information systems in the agricultural sector. As a result of digitalization, the following is planned: a twofold increase in labor productivity in agricultural enterprises per each worker and a 1.5-times reduction in unit costs of enterprises for business administration. Also, a reduction of the share of material costs in the cost of a unit of agricultural products (fuel, lubricants, fertilizers, electricity, planting material, feed, and so on) by 20% or more is planned. According to experts, IoT solutions and digitalization in agriculture will bring a total economic effect of 4.8 trillion rubles a year, or 5.6% of Russia’s GDP growth (GeoMeter Russia official website 2018). However, at present, many digital solutions in the agro-industrial complex of Russia are mainly aimed at solving some specific problems. Therefore, in the future,

112

V. Y. Akhmetov et al.

the task is to unify the software and its integration with the data of accounting and management accounting by creating unified digital platforms. According to the results of a sample research conducted by the KubSAU in 2017, certain elements of precision farming are used in 28 of the 40 surveyed agricultural regions of Russia. Namely, the following elements of precision farming are applied: digitization of fields (958 farms), local soil selection (841), parallel driving systems (687), and vehicle monitoring (447 farms). But even in the most active regions, the scope of digital technology is small. In the Lipetsk region, digital technologies are used in 812 households, in the Oryol region, 108, and in the Samara region, 75. In most regions, there are less than 50 such farms. Reasons for a restrained attitude to new technologies include their high cost (33% of respondents indicated this), lack of necessary information (33%), and doubts about the reliability and availability of electronic systems (15%). Other reasons for distrust include the lack of Russian digital equipment manufacturers on the market and qualified personnel. Also, the low qualification of specialists introducing new technologies (in 88% of cases) and graduates of agricultural universities (42%) is the reason for the distrust of new technologies. According to the Research Center of the Ministry of Agriculture in Russia, there is one IT specialist per thousand employees in agriculture. In order to reach the same levels of developed agrarian countries in the world, the Russian agro-industrial complex needs at least 90,000 specialists. According to information from KubSAU, only twelve out of fifty-five agricultural universities have disciplines in digital agriculture. Nevertheless, there are already examples of successful implementation of digital technologies in Russia. It is true that in most cases, this applies only to large enterprises. The “Agrosignal” program developed by “Infobiz” helps to control all the bottlenecks in production (starting from fuel control and ending with taking into account finished products in warehouses). But for this, full coverage of the production and supply chain is necessary. Therefore, the introduction of this program in the GUSP MTS “Central” of the Republic of Bashkortostan made it possible to analyze the situation for each field, unit of equipment, driver, machine operator, and warehouse of finished products, online. In some cases, this allows for an increase in the productivity of units in the field by 2–3 times, and the overall profitability by an average of 20% (Nemchinov and Pinegin 2019).

4 Discussion Due to the high cost, many of the modern-world achievements of “smart” agriculture are now available only to large companies, such as agricultural holdings. The majority of personal subsidiary farms (99% of farms in terms of the total number, almost 30% of farms in terms of production in monetary terms, and 50– 90% of farms for certain types of agricultural products in physical terms) practically do not use them. The predominance of small farms in Russia’s agricultural

Development of the System of Consumer Cooperation …

113

production structure is the reason for the country’s low labor productivity, as well as the inaccessibility of modern labor mechanization and automation, fertilizers, and chemicals (Nasretdinova and Nasretdinova 2016; Abdrashitova et al. 2016). In turn, low labor productivity in agriculture determines low wages and high unit costs for the production of a unit of output. A peasant farm’s annual revenue of four thousand US dollars does not allow for purchasing anything other than primitive agricultural equipment, and forms of collective equipment use have not been developed in Russia. The situation with the automation of even basic functions, such as accounting and tax accounting, is similar. With an average level of ICT costs being a few percent of the turnover, the annual budget for ICTs can be about $ 100 (* six thousand rubles), which is enough only for the purchase of communication services. When combined into cooperatives, the financial capabilities of farms already allow one to compete with large companies in increasing labor productivity and reducing production costs, including through the introduction of the latest digital technologies. Within the framework of cooperation, real prospects for using innovative achievements in the development of sensors and self-driving (unmanned) equipment, platforms, and applications may appear. The development of sensors and self-driving (unmanned) equipment, platforms, and applications takes the methods of growing plants and animals to a new level. General data from various participants in the production chain, collected in one place, allows you to receive information of new quality, find patterns, and create added value for all involved participants. Also, the general data of the participants in the production chain allows the use of modern scientific processing methods and, on their basis, for making the right decisions that minimize risks and improve the manufacturing business and the customer experience. Private farms, farmers, agronomists, and consultants are available via mobile or online applications that, when downloading data about their field (coordinates, area, type of crops, past yield), provide accurate recommendations and sequence of actions. At the same time, the analysis of many historical and current factors, both on its site and in the external environment, is taken into account; data from technology, sensors, drones, satellite, and other external applications are combined. Now programs help determine the best time for planting seeds, fertilizing, moisturizing or harvesting, and calculate the time of loading and delivery of goods to the buyer. The programs also help to monitor the temperature in the storage and transportation zone to avoid spoilage and deliver fresh produce, predict yield and yield, and receive tips on improving plant processing compared to past performance. However, according to Rosstat, as of January 1, 2018, only 2% of farmers are members of cooperatives. In total, there are 205 thousand peasant (farmer) farms and 5,608 agricultural consumer cooperatives in Russia. Agricultural production by small business forms an average of 50% of the total gross agricultural production. Despite this, in recent years, there has been a constant decrease in their numbers, partially due to the enlargement of farms. Currently, in the regions of Russia, digitalization in the system of consumer cooperation, including in the field of investment, takes the first steps only. Digital

114

V. Y. Akhmetov et al.

cooperation infrastructure of Russia includes CoopPay payment system. It also includes the official messenger of consumer cooperation (Russian communication platform) CoopConnect, which helps the cooperative community in developing their business and expanding communications. Capabilities of the Coop ecosystem include the following: telemedicine, youth and student services, office automation, legal support, integration with 1C, creation of a digital register of shareholders, and a platform for organizing digital cooperatives. Through joint efforts, combining into digital cooperatives will create a powerful synergistic effect in the production and sale of products (cross-promotion, joint software development, obtaining joint additional income, for example, from marketing and advertising, and promotion in social networks) (Gumerov and Kuzyashev 2015; Gumerov and Kuzyashev 2017). In order to effectively introduce the positive elements of digitalization in the regions of Russia, including in the Republic of Bashkortostan, a preliminary study of the best foreign and domestic experience in this field is necessary. Options for attracting investment in agriculture through an IPO are only suitable for large agricultural enterprises. Given the previous circumstance, the use of crowdfunding, ICOs, and other new digitalized tools to attract investment and lend to their agribusinesses can be very promising for relatively small farms and their associations in the form of cooperatives. In this regard, the experience of cooperatives, which were almost the first in the Russian Federation to try ICOs, is very interesting. The experience of the consumer supply cooperative “LavkaLavka” (Moscow), the international consumer cooperative—the digital artel “Agrarium” (Republic of Tatarstan), and the Tver economy of Eduard Surkov are interesting. On November 1, 2017, LavkaLavka ICO launched in Silicon Valley in the USA. According to the results of the first day alone, about 500 thousand dollars were raised on its own platform Biocoin.bio. On February 6, the company received more than $ 11.8 million. The primary issue was 1 billion coins, 800 million of which were in a free sale. Tokens purchased by investors, called BioCoin, could be exchanged for farm products. In July 2017, in Tatarstan, the “Agrarium” ecosystem launched the MeatToken cryptocurrency, which is provided by the meat of gobies. Agrarium is an automated platform for recording all participants and project assets, the exchange of food tokens, and electronic animal identification. Blockchain, as the main technology, is used. It allows creating transparency of all processes, their legal purity, combining public-private investment, consumer cooperation, financial flows, agricultural, and food sectors. The main goal of the project is to make food products affordable and environmentally friendly and to transform the market for food production and delivery to consumers. The project already unites farmers of Tatarstan and the Perm Territory and livestock farmers of the Republic of Bashkortostan, and the Leningrad and Moscow regions are ready to join it. Currently, within the framework of the “Agrarium” ecosystem, work on the following projects is ongoing. MilkToken is the project “Co-owner of the dairy herd” to provide dairy products of the highest quality; SeedToken is the project “Construction of grain processing complexes in Russia and Kazakhstan”, and EbergoToken is the project “Electromagnetic power

Development of the System of Consumer Cooperation …

115

amplifier of electricity” (Official site Technopark in the field of high technology “IT Park” 2017). In the cryptocurrency farm project of Eduard Surkov, located in the village of Mashkino, Tver Region, one token is equal to one animal. A person pays money and receives a virtual token, which indicates a goose, chicken, other bird, or animal. In fact, this is a purchase and sale with an advance payment. The business partner (Libre. Life company) is responsible for the issue of tokens and site maintenance. Thanks to this company, it was possible to introduce cryptocurrencies to the project. Surkov’s farm operates on the principle of a closed club; that is, not anyone can buy a token. According to partner farmer Yaroslav Loginov from Libre. Life, people who invest in the crypto industry want to receive a tenfold increase in investments per year. Projects that do not promise such growth are not of interest to crypto investors. In addition, the products offered by the Mashkino farm are a narrow niche, their cost is higher than that of industrial goods, and they are interesting to consumers who prefer natural food. When attracting ICOs in the agricultural sector, both positive and negative aspects should be taken into account. It should be understood that cryptocurrencies, blockchain, tokens, mining, and ICOs are not yet sufficiently regulated by law and are incomprehensible to most investors and the public. In addition, under the guise of even traditional credit consumer cooperatives, some financial pyramids are closed, and new ones are opened annually. Last year, 10 such cases were detected in the Republic of Bashkortostan alone. So far, farmers still prefer traditional methods of attracting capital to agribusiness, such as bond loans, private investment, IPO, etc. In addition, without an export component, a narrowly targeted niche agribusiness is often simply of little interest to potential holders of cryptoassets or ICO funds working with digital investments. For example, the Khokholskaya Agricultural Company from the Voronezh region hoped to raise 4 billion rubles through an ICO to create a vertically integrated dairy complex for 2,400 dairy cows and 290 fattening bulls, with the possibility of doubling production. The company created a new cryptocurrency, MilkCoin, with plans to use the funds received for the construction and reconstruction of farm facilities, the purchase of equipment and machinery, and the introduction of agricultural land into circulation. However, at the end of 2017, the company managed to attract only 2% of the desired amount through ICO. Cryptocurrency and blockchain help participants in a business process collaborate without intermediaries. Tokenization of goods enables the farmer to receive funds from the investor and, at the same time, calmly go about his or her business. Indeed, today, in addition to his/her main work, such as raising livestock, the farmer must also engage in marketing, sales, and accounting. As a result, his/her efficiency is greatly reduced. Tokenization makes the agricultural industry interesting for investors, as it shows the transparency of processes. Indeed, for an investor, the main goal is to understand where he/she invests and what he/she will receive as a result (Maximova 2018). It seems to us that in addition to the above systems, based on the experience of the USA, China, India, Canada, and Israel, one of the most effective agricultural

116

V. Y. Akhmetov et al.

startups could be the development of a smart application for smartphones, “Digital Cooperative”. This application is regarded as a project within the framework of the ideology of the development of the integrated agricultural sector. This agricultural start-up involves the integration into a single network of all links in the production and the sale and consumption of goods and services. The reduction in the number of intermediaries between direct manufacturers and end consumers due to the digitalization of the agricultural sector, including in the framework of the development of consumer cooperation, allows us to do several things. We can drastically reduce transaction costs for the sale of goods and simplify the supply chain of products. This allows resellers to maintain the same margin, namely 5%, while reducing the overall trade margin “from the circle” from 85% to 25–35%. Additionally, due to an increase in consumption (with a decrease in retail prices), the absolute values of margins could grow by 1.5–2 times. Digitalization could provide a reduction in the cost and final prices of food products without compromising their quality. This could be ensured if not only the processes within the agricultural production cycle but also the suppliers of raw materials, sales, logistics, and transport links were “connected” to cooperative digital networks. The creation of a separate digital platform for the consumer cooperation system should suggest the possibility of attracting investments not only in the traditional way but also through blockchain technology and ICOs. The development of electronic document management, modern electronic communication channels, methods for recording and storing information; the development of new business models; and the development of new markets, including foreign ones, are important. This is possible due to the optimization and acceleration of settlements for delivered products and services, including through the use of cryptocurrencies, innovative digital information and communication technologies, and Internet, mobile, and sensor networks.

5 Conclusion The main problems of digitalization of the consumer cooperation system, as well as the entire agricultural sector, include such problems as: • Insufficient economic, computer, and legal literacy of specialists from administrations, enterprises, and rural residents; • Inadequate coverage of mobile communications and high-speed Internet in rural areas. Possible positive effects of the digitalization of the consumer cooperation system include the following: • The emergence of electronic platforms for trade-in products and services; • Improving the quality of life of villagers, first of all, by improving the satisfaction of specific, already known, and new needs of people;

Development of the System of Consumer Cooperation …

117

• The emergence of new business models and new forms of business that can improve labor productivity, quality of products and services, profitability, and competitiveness of enterprises of the consumer cooperation system; • Increasing the transparency of economic operations and ensuring the possibility of monitoring them; • Ensuring the accessibility of goods and services for various segments of the population by reducing their cost by reducing the number of intermediaries and reducing the cost of finding information; also, ensuring the availability of goods and services through the identification and measurement of transaction costs, expenses for the promotion of goods and services, reducing the time for developing products and services and bringing them to market; • Expansion of markets for products and services and access to foreign markets through the active use of marketing and branding tools. Digitalization allows manufacturers to reach potential customers and arrange the sale of their goods or services on their sites. Consumers are given the opportunity to independently choose from the goods and services offered on the servers of electronic stores. Digitalization allows flexible adaptation to market needs, improves the quality of products and services, and encourages new products and services to be created more quickly. In order for digitalization and the Internet of Things to have a positive effect on the socio-economic development of rural areas, the few projects that have been implemented in the country, including those related to the digitalization of agriculture, are not enough. Only the implementation of the following activities will garner the expected effect of digitalization: mass adoption and distribution of cloud applications, Internet of Things technologies, big data management services, communications in rural areas, and integrated IT solutions based on common platforms. Both specialists and ordinary citizens should be able to use the results of digitalization. The villagers, who make up the bulk of the shareholdings of the consumer cooperation system, must have the skills to work with digital information. Informatization and computerization mainly involve the use of computer and information technology to solve specific economic problems. And digitalization involves the formation of already integral technological “habitat” environments (ecosystems, platforms). Within these environments, the user can create for him/ herself the friendly environment he/she needs (instrumental, methodical, documentary, partner, etc.) in order to solve entire classes of problems. The digitalization of the agricultural sector, including the system of consumer cooperation, will contribute to improving the quality of life of the rural population. This will happen due to the following factors: growth in the efficiency of agricultural production, the use of the latest technologies, equipment, modern methods of production, processing, storage, sale, and delivery of goods and services. It contributes to the formation of information space in the countryside, taking into

118

V. Y. Akhmetov et al.

account the specific needs of citizens and society in obtaining quality products and services. This will happen due to the consistent improvement of all business processes of the economy and related social areas, including education, medicine, and culture. Acknowledgements This study was carried out as part of state assignment No. 007-00256-18-01 of the Institute for Social and Economic Research (separate structural unit of the Federal State Budget Scientific Institution of the Ufa Federal Research Centre of the Russian Academy of Sciences) for 2019–2020.

References Abdrashitova, A.T., Khabibova, G.V., Nasretdinova, A.R., Nasretdinova, Z.T.: The role of chemistry in improving the efficiency of agricultural land use. In: Collection of Scientific Articles “International Youth Symposium on Management, Economics and Finance”, pp. 246– 247. Institute of Management, Economics and Finance, Kazan Federal University, Kazan (2016). https://www.elibrary.ru/item.asp?id=27549885 Akhmetov, V.Ya., Kuzyashev, A.N., Nasretdinova, Z.T., Akhmedina, G.B.: Economic realization of property through cooperation. Bull. Eur. Sci. 4(11) (2019). https://esj.today/PDF/ 61ECVN419.pdf Alimanova, E.S., Nasretdinova, Z.T.: About the origin of Russian cooperation. Adv. Curr. Nat. Sci. 8, 168 (2014). https://www.elibrary.ru/item.asp?id=21586291 CRN/RE IT Business official website: Digitalization in agriculture: technological and economic barriers in Russia (2017). https://www.crn.ru/news/detail.php?ID=121765 Faritova, D.A., Shiriazdanova, D.V., Nasretdinov, I.R., Nasretdinova, Z.T.: Development and implementation of software for the oil and gas industry. In: Collection of Scientific Articles “International Youth Symposium on Management, Economics and Finance”, pp. 265–266 (2016). Institute of Management, Economics and Finance, Kazan Federal University, Kazan. https://www.elibrary.ru/item.asp?id=27549896 Gordeev, A.V., Patrushev, D.N., Lebedev, I.V. (eds.): Departmental project “Digital Agriculture”. Rosinformagrotekh, Moscow (2019) Government of the Russian Federation: Order of the Government of the Russian Federation “On approval of the program “Digital Economy of the Russian Federation””, 28 July 2017, No. 1632-p. Moscow, Russia (2017) Gumerov, E.A., Kuzyashev, A.N.: Some aspects of deflation as a systemic process of the modern world economy. Vestnik VEGU 2(76), 14–20 (2015). https://elibrary.ru/item.asp?id=23324568 Gumerov, E.A., Kuzyashev, A.N.: Cryptocurrency as an element of a distributed economy. In: Materials of the III International Scientific and Practical Conference Dedicated to the 70th Anniversary of the Department of General Economic Theory of BashSU: An Interdisciplinary Approach to the Study of Economics, pp. 25–28. Bashkir State University, Ufa (2017). https:// elibrary.ru/item.asp?id=30787806 Kuzyashev, A.N.: Economy. Eastern Academy of Economics, Law and Humanities, Ufa (2011). https://elib.bashedu.ru/dl/read/Kuzjashev_Ekonomika_up_VEGU_2011.pdf Maximova, E.: Chickens for tokens. How farmers sell goods for cryptocurrencies and issue digital money. Agroinvestor, 7 March 2018. https://www.agroinvestor.ru/investments/article/29468kury-za-tokeny/ Nasretdinova, A.R., Nasretdinova, Z.T.: Innovation in chemistry: Achievements and prospects. In: Collection of Scientific Articles “International Youth Symposium on Management, Economics and Finance”, pp. 37–38. Institute of Management, Economics and Finance, Kazan Federal University, Kazan (2016). https://www.elibrary.ru/item.asp?id=27549764

Development of the System of Consumer Cooperation …

119

Nasretdinova, Z.T., Akhmedina, G.B., Kuzyashev, A.N., Rakhmatullin, Yu.Ya.: The genesis of cooperative relations in the agricultural sector of the Russian economy. Bull. USPTU. Sci. Educ. Econ. Ser. Econ. 1(27), 53–59 (2019). https://www.elibrary.ru/item.asp?id=37381895 Nemchinov, N., Pinegin, V.: Digitization of agribusiness—step by step. Newspaper “Pole Avgusta” 4(186) (2019). https://www.avgust.com/newspaper/pdf/2019/4.pdf Official website GeoMeter Russia: Digitalization of agriculture in Russia: Stages, results, plans (2018). https://gpsgeometer.ru/blog/tsifrovizatsiya-selskogo-hozyajstva-v-rossii-etapy-itogiplany Official website Technopark in the field of high technology “IT Park”: Residents of Ijda Invest business incubator launched “AGRARIUM” digital artel (2017). https://www.itpark-kazan.ru/ ru/node/2939 Presidential Executive Office: Decree of the President of the Russian Federation “On National Goals and Strategic Objectives of the Development of the Russian Federation for the period until 2024”, 7 May 2018, No. 204, Moscow, Russia (2018) Stroiteleva, T.G., Kalinicheva, E.Y., Vukovich, G.G., Osipov, V.S.: Peculiarities and problems of formation of industry 4.0 in modern Russia. Stud. Syst. Decis. Control 169, 145–153 (2019)

Promotion of Cooperatives in Digital Measurement Elena V. Kirsanova , Ferida G. Malieva , Yakov M. Voskoboynikov , Vladimir P. Tereshchenko , and Viktor V. Gorlov

Abstract The current trend towards the rapid development of globalization has revealed unprecedented economic and social problems that affect the cooperative movement. Everywhere, cooperative organizations are becoming active participants in innovation and sustainable development. Cooperative organizations, their members and interested parties have a growing expectation that digital technologies will help in solving socio-economic problems. And at the same time, the efficiency of using digital solutions will increase. The study is aimed at identifying changes in the digitalization process and revealing potential barriers for cooperative organizations in the development and implementation of digital innovation projects. The conceptual analysis is based on a review of the scientific literature and a synthesis of the latest research results in the field of digital platforms. Findings lead to an understanding of how cooperative organizations are involved in digital transformation. Keywords Cooperatives Management


Cooperative platforms
Digital technology


E. V. Kirsanova (&)
F. G. Malieva
Y. M. Voskoboynikov
V. P. Tereshchenko
V. V. Gorlov Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] F. G. Malieva e-mail: [email protected] Y. M. Voskoboynikov e-mail: [email protected] V. P. Tereshchenko e-mail: [email protected] V. V. Gorlov e-mail: [email protected] E. V. Kirsanova Russian New University, Moscow, Russia © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_13

121

122

E. V. Kirsanova et al.

1 Introduction Today, digital platforms offer digital services and/or physically facilitate the services provided (Vandaele et al. 2019). Digital platforms have a positive impact on literally all aspects of life (society, territories, etc.). Not only do they stimulate a different level of involvement and use for workers and consumers, but they also introduce new forms of interaction into the classical model of cooperation, positively influencing management and participation (Schneider 2018a, b). Being democratic and economic in nature, cooperative organizations have difficulties with digital platforms (Como et al. 2016). A cooperative is defined as an autonomous association of individuals who have voluntarily united to meet common economic, social, and cultural needs and interests on the basis of joint ownership and democratic control of the enterprise (Official website of the International Co-operative Alliance (ICA n.d.)). Therefore, when applied to digital platforms, the cooperative model means that employees should be placed at the center of the business, and co-owners will be business managers and people who distribute the results of their activities on a proportional basis. The emerging movement of platform cooperativism, as a new business model for cooperatives, is a proposal that emphasizes joint ownership and democratic management of the worksite, thereby meeting all of these requirements (Scholz 2016). Platform cooperatives can improve local development in the form of democratic and collaborative activities and work. Recent studies have shown how cooperative associations stimulate innovation and develop an economic support infrastructure that allows members to solve collective problems (Harter and Krone 2001; Berkowitz 2018; Audebrand and Barros 2018). However, in this area of research, the specific features of digital projects remain poorly understood. On the other hand, the research studied how organizations participate in digital innovation, enter digital change, and assimilate digital platforms (Shahrasbi and Pare 2014; Purvis et al. 2001). The research also discovered how digital technologies affect innovation, in particular, by providing processes of open innovation involving systems of decentralized entities (Yoo et al. 2012). Cooperative organizations, adhering to their principles and values, need modernization and innovation. Studies have shown that cooperative associations help their members by creating training networks, promoting the legitimacy of cooperative forms of organizations, and protecting the interests of cooperatives (Harter and Krone 2001; Cousin 2018; Cousin 2017; Aliberti 2014). Acting as learning networks, cooperative associations form an innovation center.

Promotion of Cooperatives in Digital Measurement

123

2 Materials and Methods The study is based on a review and analysis of the latest literature and the results of studies of digitalization processes in relation to cooperative organizations. Digital transformation entails significant and disruptive organizational changes that require a review of key assumptions, interpretations, knowledge, language, actions, and practices at the individual and collective levels (Gioia et al. 2012). One way cooperatives can solve socioeconomic problems is through collective meta-organization. Cooperative organizations are meta-organizations of which other organizations are members. Their main activities include activities in the fields of education, information exchange, research, standard-setting, public relations, lobbying, and civic engagement (Ahrne and Brunsson 2005; Spillman 2018). Researchers have developed a conceptual framework for understanding the role of meta-organizational management in innovation processes. They demonstrated that sustainable innovation requires six organizational capabilities: foresight, sustainability, reflectivity, inclusion, responsiveness, and accountability (Berkowitz 2018). However, cooperative associations can not only act as drivers of change and innovation among their members but also undergo transformational dynamics, driven by the needs of their members and the development of the environment (Audebrand and Barros 2018). Thus, the digital transition for the cooperative movement includes a meta-organizational process of innovation and change, which can affect both participants of the organization (top-down dynamics) and cooperative associations (bottom-up dynamics). However, the ability of cooperative associations to make the digital transition for cooperative movement can be hindered by the inertia mechanisms that are characteristic of meta-organizations (König et al. 2012). The causes of meta-organizational inertia are rooted in a culture of consensus and identity, which reinforces the lack of innovative leaders, limits close communication with members, and affects decision-making time. However, meta-organizational inertia is overcome through simple decision-making processes, prioritization of members, efficient use of time, and moderate frequency of meetings (König et al. 2012). These meta-organizational studies are useful and complement scientific findings on organizational change. Studies of information systems have shown that previous organizational changes can be viewed from two sides of organizational readiness (Shahrasbi and Pare 2014). On the one hand, there is structural readiness related to the internal capabilities of the organization, which intends to carry out the provided transformation. Structural readiness includes the following five dimensions affecting processes and operations: finance, technology, human resources, culture, and business. On the other hand, there is psychological readiness, which refers to the collective ability of members to carry out such organizational transformations. It entails collective commitment, motivation, and effectiveness. Digital technology can also drive organizational change and innovation. One of the requirements of organizational change based on digital technology is the

124

E. V. Kirsanova et al.

organizational development of technology. Focusing on digital knowledge platforms, scientists emphasize the role of metastructuring actions in technology assimilation processes. The institutional elite (this is top management) as well as technology leaders are taking action on metastructuring. These actions include direct actions aimed at increasing the value of technology for users and indirect actions to manipulate the prevailing institutional structures and influence individual actions (Purvis et al. 2001). Two specific metastructuring activities have been identified; they contribute to creating an institutional climate for the development and promotion of knowledge platforms. These are actions such as introducing useful knowledge into the foundation of the platform and implementing a compatible workflow methodology (Purvis et al. 2001). After assimilation, innovation in digital technologies can appear. They are characterized by a common ability to make unhindered changes due to a large, diverse, and inconsistent audience. Three key features stand out in flexible digital technologies that support innovation (Yoo et al. 2012). First, development approaches are based on digital technology platforms, not individual digital products. These approaches create a structural unit that provides the most important function of the technological system and allows other participants to develop additional technologies or services. Secondly, distributed innovation is emerging; decentralization of innovation loci towards the periphery of organizations occurs. Third, combinatorial innovations that enable modular development through standardized interfaces prevail (Yoo et al. 2012).

3 Results The study shows both the positive and negative aspects of digital platforms that should be considered (Pasquale 2016). The following are both a traditional concept and counter-arguments: • Platforms promote labor markets more equitably, providing cheaper access for service providers to these markets; • Platforms reinforce existing inequalities and create insecurity, weakening stable employment and the labor market not in favor of workers; • Platforms reduce the impact of discrimination by increasing the number of service providers in the markets of transport, housing, etc.; • Platforms increase discrimination by identifying customers with profiles in images that show their race or a name signaling race; • Ranking and rating systems can also increase bias, and platform regulators can reflect the prejudices and interests of existing suppliers (for example, taxis and hotels) due to their political connections; • Large platforms run with so many resources that their own lobbying efforts can easily solve issues with scattered officials;

Promotion of Cooperatives in Digital Measurement

125

• Large digital platforms gained huge market share due to the quality of their services; • Large digital platforms have conquered a huge part of the market due to a good opportunity, the advantage of pioneers, network effects, and lobbying. Also, they conquered a large part of the market due to the lack of strategic laws and the relatively low cost of investment capital due to the few platforms; • Platforms foster economic growth by attracting unemployed and part-time workers to the labor market; • Platforms undermine growth by lowering wages, as workers struggle for work and offer to complete it for lower wages than their competitors; • Platforms increase flexibility by separating jobs from tasks, allowing employees to work together at the same pace; • Low-paid and piece-rate work makes employees constantly ready so they do not miss the opportunity to work; • Platforms can proactively direct user profile data to those employees with whom they are most compatible; • Users may feel a loss of agency when random or unpredictable options are effectively hidden. Correct cooperative platforms come in many types. The most common type is car exchange platforms (e.g., Belgian Partago, Spanish Som Mobilitat, etc.). Another type of cooperative platform provides peer-to-peer support and services (e.g., Wehelpen in Austria and La Spesa Social in Italy). Another platform (Piacere Milano) picks up hosts and guests and promotes forms of experimental tourism. The approach of another platform is to bring together some people who offer food with people who want to eat the food (S-cambia). As a rule, these are very small platforms that work locally and cover a small number of users. They cannot be compared with such well-known giants as Uber or Airbnb. There is another area in which platforms are formed. These are joint crowdfunding platforms that have appeared to support nascent cooperatives with digital interaction strategies. They are promoted directly by cooperatives (e.g., the French Je finance un projet coopératif) or by cooperative consortia and representative associations (e.g., Microgenius in the UK) (Como et al. 2016). As examples of platform-based cooperatives, we can refer to Stocksy United and Eyemole Arts and Technology Co-operative, which are based in Canada (Stocksy United 2019; Eyemole Arts and Technology Co-operative 2014). Despite the differences, both cooperatives have the following common features: (1) They aim to provide work to their members; (2) They connect participants to contractors through a digital platform; (3) Heterogeneous participants are represented, and there is the possibility of accepting investors as members; (4) The general meeting of members may be held electronically; (5) Rights of members are determined by the charter approved by the members. In this case, the minimum rights of members that can be established in the charter of a cooperative by the decision of the members themselves are of particular importance.

126

E. V. Kirsanova et al.

Thus, the collection of data is on a continuous and permanent basis. The methodology does not allow us (due to a small number of examples) to give an objective picture of digital cooperative platforms (especially in Europe). Even so, we can still find evidence of some interesting elements for future analysis in empirical examples. First of all, cooperatives could develop their own platforms for collaboration to provide various types of cooperation and exchange between peers. The study shows that, nowadays, cooperatives prefer to create platforms that can be used by anyone, not just members of a cooperative.

4 Discussion A study of cooperative platforms revealed that there is no real communication between users and platform owners, as is sometimes assumed. Apparently, it depends on the types of platforms and the sectors in which they operate. For example, in order to facilitate and harmonize work in a growing and rather complex sector of freelancers, representatives of cooperatives should put forward concrete proposals to develop platforms in this area. Other suggestions relate to opportunities for promoting platforms based on non-monetary exchanges and alternative currencies. Secondly, cooperatives can use new cooperative management tools in order to improve their internal processes and enhance the participation of their members. They can also use the new cooperative management tools to extend their rights and opportunities. In fact, in medium and large cooperatives, it is not so easy to give people the right to participate in decision-making processes, although cooperative ownership provides a formal right to such participation. The Loomio or Backfeed examples demonstrate how digital technologies can offer new ways to solve this problem and facilitate the participation of large and dispersed communities for members and different stakeholders. Obviously, having the right e-government tools will become especially important in the case of platforms and digital cooperatives with a lot of dispersed members. These tools can be used to facilitate the exchange of knowledge, ensure the mutual cooperative exchange of resources and services, implement common projects in the creation of national and international networks. Ultimately, this will assess the potential of cooperatives as a movement. Collaboration between cooperative organizations can greatly benefit from the use of technology and from the platform approach that digital technology currently provides (Sobolev 2018, Sobolev 2019). In all of the opportunities mentioned above, a key element is digital innovation, which generates a shift from today’s collaborative practices to new cooperative models. However, there are a number of barriers that make these innovations difficult to implement. One of them is the complex nature of cooperatives, which impedes the development and implementation of this type of innovation. This is due to obvious difficulties in converting existing enterprises. Innovation needs to be promoted in

Promotion of Cooperatives in Digital Measurement

127

the emergence of completely new cooperatives, with a special, innovative logic. This requires that the cooperative model be better informed and become more attractive to young people who, otherwise, implement their joint economic enterprises in a different legal form. Another obstacle to the emergence of new cooperatives is the lack of appropriate financial instruments to attract capital and long-term investments. This hinders the introduction of innovation and is a disadvantage compared to capitalist competitors. Another limitation is the tendency of newly created cooperatives to remain local, small in size, and not sufficiently interconnected. The technology will allow them, like any other operator, to work on a large scale and overcome the barriers of space and time. But cooperatives are geographically dependent (in many ways, this is a strong and distinctive feature) and sometimes remain small and marginal in the market. In the context of the globalization of markets, a cooperative economy can become weak. For local cooperative platforms, it may not be possible to resist the competition of large multinational platforms. Therefore, cooperatives will need to increase their size or create trans-local networks of interconnected cooperatives capable of jeopardizing the ability of international competitors to penetrate their territories. Another problem is the difficulty for cooperatives to copy ideas and models. Noncooperative platforms accurately copy everything they do. But there is a risk of copying the same mistakes and weakening the cooperative model if cooperatives are not able to preserve their distinctive features. These include the following features: communication with local territories, the ability to combine risks and benefits, the ability to promote co-growth, and long-term local development. For example, cooperatives may develop new platforms for freelance workers. However, on the other hand, they should avoid forcing people to become freelance employees, and vice versa, fight the polarization and precarization of labor, which is a trend in the modern economy. Maintaining democratic governance on potentially large cooperative platforms is also challenging, as one cannot assume that technology alone can be a solution to the problem. Thus, traditional cooperative organizations that use universally recognized cooperative principles (International Co-operative Alliance [ICA], n.d.) face big problems and challenges in the form of new forms of cooperation. New forms of cooperation work on other cooperative principles of the Internet.

5 Conclusion Our review, based on research data collection, research, and case literature, shows the following: To support the cooperative movement in managing the digital transition, cooperative associations can function in the following two areas, promoting digital innovation and promoting organizational change in information systems. This scientific research should be understood as an attempt to contribute to the existing topic, which will be explored by further and deeper studies.

128

E. V. Kirsanova et al.

Currently, the problems of member participation in cooperatives and the importance of social innovation are well understood. But to understand the value of social innovation for members of cooperatives, further research is needed. Two examples of platform-based cooperatives based in Canada convincingly confirm this. In these examples, the cooperative’s focus on providing work to its members, the relationship between members and contractors through a digital platform, and the existence of different social layers among members are well represented. Also, in these examples, the possibilities of accepting investors as members, of holding general meetings in electronic form, and of establishing the rights of members under the charter approved by members are well presented. The result of this research work is an attempt to create the foundations for building a model of cooperatives using platforms that can add value to their members by stimulating social innovation.

References Ahrne, G., Brunsson, N.: Organizations and meta-organizations. Scand. J. Manag. 21(4), 429–449 (2005). https://doi.org/10.1016/j.scaman.2005.09.005 Aliberti, A., Sudbrock, C., Dogvan, D., Jojkic, I., Russell-Moyle, L., Nodari, M.: Money grows on trees. European Youth Forum, Brussels, Belgium (2014). https://www.youthforum.org/sites/ default/files/publication-pdfs/YFJ_MoneyGrowsOnTreesweb.pdf Audebrand, L.K., Barros, M.: All equal in death? Fighting inequality in the contemporary funeral industry. Organ. Stud. 39(9), 1323–1343 (2018). https://doi.org/10.1177/0170840617736934 Berkowitz, H.: Meta-organizing firms’ capabilities for sustainable innovation: a conceptual framework. J. Clean. Prod. 175, 420–430 (2018). https://doi.org/10.1016/j.jclepro.2017.12.028 Como, E., Mathis, A., Tognetti, M., Rapisardi, A.: Cooperative platforms in a European landscape: an exploratory study (2016). https://coopseurope.coop/sites/default/files/Updated_Paper_ Cooperatives%20Collab%20Economy.pdf Cousin, L.: European index of resources for cooperative mentors and ambassadors: CoopStarter 2.0. Intellectual Output 1 (2018). http://starter.coop/content/uploads/2018/12/CS2_IO1_Finalreport_VF-141218.pdf Cousin, L., Martelloni, L.: A cooperative vision for the collaborative economy: Shaping a people-centered and democratic collaborative economy (2017). https://coopseurope.coop/sites/ default/files/Cooperative%20Vision%20for%20Collaborative%20economy_CoopsEurope.pdf Eyemole Arts and Technology Co-operative. Bylaws. Internal document (2014, Unpublished) Gioia, D.A., Nag, R., Corley, K.G.: Visionary ambiguity and strategic change: the virtue of vagueness in launching major organizational change. J. Manag. Inquiry 21(4), 364–375 (2012). https://doi.org/10.1177/1056492612447229 Harter, L., Krone, K.: The boundary-spanning role of a cooperative support organization: Managing the paradox of stability and change in non-traditional organizations. J. Appl. Commun. Res. 29(3), 248–277 (2001). https://doi.org/10.1080/00909880128111 König, A., Schulte, M., Enders, A.: Inertia in response to non-paradigmatic change: the case of meta-organizations. Res. Policy 41(8), 1325–1343 (2012). https://doi.org/10.1016/j.respol. 2012.03.006 Official website of the International Co-operative Alliance (ICA). Cooperative identity, values & principles. (n.d.). https://www.ica.coop/en/cooperatives/cooperative-identity Pasquale, F.: Two narratives of platform capitalism. Yale Law Policy Rev. 35(1), 309–319 (2016)

Promotion of Cooperatives in Digital Measurement

129

Purvis, R.L., Sambamurthy, V., Zmud, R.W.: The assimilation of knowledge platforms in organizations: an empirical investigation. Organ. Sci. 12(2), 117–135 (2001). https://doi.org/ 10.1287/orsc.12.2.117.10115 Schneider, N.: Everything for Everyone: The Radical Tradition that is Shaping the Next Economy. Nation Books, New York (2018a) Schneider, N.: An Internet of ownership: democratic design for the online economy. Sociol. Rev. 66(2), 320–340 (2018b) Scholz, T.: Platform Cooperativism: Challenging the Corporate Sharing Economy. Rosa Luxemburg Stiftung, New York (2016) Shahrasbi, N., Pare, G.: Rethinking the concept of organizational readiness: what can IS researchers learn from the change management field? In: Twentieth Americas Conference on Information Systems, Savannah, GA (2014). https://doi.org/10.13140/rg.2.1.3470.8564 Sobolev, A.V.: Cooperative movement in Russia: century after. Fund. Appl. Res. Cooper. Sect. Econ. 2, 17–25 (2019) Sobolev, A., Kurakin, A., Pakhomov, V., Trotsuk, I.: Cooperation in rural Russia: past, present and future. Mir Rossii, 27(1), 650–689 (2018). http://doi.org/10.17323/1811-038X-2018-27-165-89 Spillman, L.: Meta-organization matters. J. Manag. Inquiry 27(1), 16–20 (2018). https://doi.org/ 10.1177/1056492616688856 Stocksy United. Bylaws. Internal document (2019, Unpublished) Vandaele, K., Piasna, A., Drahokoupil, J.: Algorithm breakers’ are not a different ‘species’: Attitudes towards trade unions of Deliveroo riders in Belgium (2019). https://www. researchgate.net/publication/332232697_‘Algorithm_breakers’_are_not_a_different_‘species’_ attitudes_towards_trade_unions_of_Deliveroo_riders_in_Belgium Yoo, Y., Boland, R.J., Lyytinen, K., Majchrzak, A.: Organizing for innovation in the digitized world. Organ. Sci. 23(5), 1398–1408 (2012). https://doi.org/10.1287/orsc.1120.0771

Entrepreneurship at the Stage of Development of the Digital Economy Dmitry I. Valigursky , Tatyana T. Kuzmina , Elena L. Maslova , Irina O. Ryzhova , and Valentina I. Goncharenko

Abstract Nowadays, during the period of globalization and the formation of the digital economy in a dynamically developing world, the tasks of entrepreneurship are becoming increasingly complicated and more urgent. To solve them, we turn to the Russian history of entrepreneurship as a mechanism for flexible adaptation to a changing economic environment. The transformation of the organizational structure of entrepreneurial activity in connection with a change in the structure of property rights, forms of management and control, reinforces the need to organize a new type of entrepreneurship set up to introduce innovations and increase its competitiveness in the markets of the country and the world. The paper studies issues of entrepreneurial activity in the field of small and medium-sized businesses in order to identify contradictions in this activity and describe solutions to smooth them. Also, proposals have been formulated to implement decisions aimed at raising the Russian economy and improving the quality of the socio-economic life of the Russian population. The study was conducted based on a large amount of materials from the Federal State Statistics Service of the Russian Federation [Rosstat], authors’ research, and modern research by other authors. Using the system approach, general scientific comparative, and logical analysis, we study the leading economic indicators of the activity of small and medium enterprises. The result of the work is an economic assessment of the dynamics of the activity of small and medium enterprises; the reasons for its slow development are described. D. I. Valigursky
T. T. Kuzmina (&)
E. L. Maslova
I. O. Ryzhova
V. I. Goncharenko Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] D. I. Valigursky e-mail: [email protected] E. L. Maslova e-mail: [email protected] I. O. Ryzhova e-mail: [email protected] V. I. Goncharenko e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_14

131

132

D. I. Valigursky et al.





Keywords Small and medium enterprises SME development cators Forecast Cooperation Market Services











Economic indi-

1 Introduction The development of small and medium-sized enterprises in the Russian Federation is one of the most important areas of the country’s economic reform. This is because small and medium-sized businesses are expanding the competitive environment. With its help, the market for goods and services is becoming more diverse and attractive; new jobs are being created, and a new entrepreneurial layer of the country’s citizens who want to show and realize their entrepreneurial abilities is formed. Assessing the process of small and medium-sized enterprises (SMEs) in Russia, we can state that it does not become active over the years. Many problems that need to be addressed have been accumulated, such as the lack of sufficient institutional and infrastructural conditions, obstacles, and restrictions for the creation and development of high-tech businesses, etc. Also, in the activities of SMEs, the resources and capabilities of the digital economy of Russia are not actively used. In this regard, the National Project “Small and Medium-Sized Enterprises and the Support of Individual Entrepreneurship Initiatives” has been developed and published in Russia. The project contains a forecast for the development of a new economic structure, with the participation of the state, aimed at normative regulation, education, and training of personnel with research competencies and technological developments necessary to improve the country’s welfare. A new global economic ecosystem is being formed. In the process of solving the problems of food security, a new type of entrepreneurship is being created for the modern agri-food market. Thus, it is necessary to reconsider the accumulated experience of small and medium-sized enterprises and use it to achieve national goals and interests.

2 Materials and Methods Currently, small and medium-sized enterprises in Russia create about one-fifth of Russia’s GDP; in many regions of Russia, this is a third or more of the gross regional product (Government of the Russian Federation 2016). They include cooperative organizations. However, the Russian cooperative movement, unlike entrepreneurship, does not aim to make a profit. In this regard, the discussion on the incompatibility of the principle of entrepreneurship and the cooperative movement is still ongoing. According to the Unified Register, the number of SMEs in Russia as of September 10, 2019, was 5,813,278 (Federal Tax Service of the Russian Federation n.d.). Of these, the share of legal entities amounted to 42.4%, which is 2,464,187

Entrepreneurship at the Stage of Development …

133

Table 1 The structure of SMEs in terms of legal entities as of September 10, 2019, units The subject of the Russian Federation

Total*

Legal entities Enterprises Total Micro

Russian Federation 5,813,278 2,464,187 2,248,768 Central Federal District 1,775,011 843,829 766,594 Moscow region 342,660 129,905 117,674 Moscow 721,431 449,467 411,088 Northwest Federal District 676,903 340,579 312,585 South Federal District 697,175 192,276 175,447 North Caucasian Federal 195,892 45,702 41,448 District Volga Federal District 1,041,782 436,886 396,836 Ural Federal District 501,003 215,175 197,617 Siberian Federal District 618,198 269,087 247,307 Far Eastern Federal 307,314 120,653 110,934 District * - legal entities and individual entrepreneurs Source (Federal Tax Service of the Russian Federation n.d.)

Small

Medium

198,753 70,788 11,056 34,989 26,008 15,544 3,868

16,666 6,447 1,175 3,390 1,986 1,285 386

37,010 16,218 20,204 9,113

3,040 1,340 1,576 606

Table 2 The analysis of the structure of SMEs in terms of individual entrepreneurs according to the data as of September 10, 2019, units The subject of the Russian Federation

Legal entities Enterprises Total

Micro

Russian Federation 3.349,091 3,321,977 Central Federal District 931,182 924,967 Moscow region 212,755 211,888 Moscow 271,964 271,103 Northwest Federal District 336,324 333,947 South Federal District 504,899 501,351 North Caucasian Federal District 150,190 149,386 Volga Federal District 604,896 598,619 Ural Federal District 285,828 283,224 Siberian Federal District 349,111 345,857 Far Eastern Federal District 186,661 184,626 Source (Federal Tax Service of the Russian Federation n.d.)

Small

Medium

26,803 6,136 859 851 2,348 3,518 794 6,213 2,571 3,217 2,006

311 79 8 10 29 30 10 64 33 37 29

units (Table 1). At the same time, the share of individual entrepreneurs is 57.6% or 3,349,091 units (Table 2). The principal place in the number of SMEs is held by the Central Federal District (FD). This is explained by the fact that it includes Moscow, the capital of

134

D. I. Valigursky et al.

the Russian Federation, and the Moscow region. The Volga Federal District ranks second in the number of SMEs. The lowest indicators for the number of SMEs are in the North Caucasus Federal District—195,892 units—and in the Far Eastern Federal District—307,314 units. It affects the duration and complexity of land registration, obtaining licenses, leases, high taxes, and the insufficient attention of the administrative apparatus to the issues of active development of small and medium Russian enterprises.

3 Results A study of the turnover of small enterprises in Russia illustrates its unevenness. From 2013 to 2015, the rate almost doubled. In 2016, turnovers fell sharply, and the reduction coefficient amounted to 0.9. In 2017, the turnover of small enterprises again increased; the rate increase was 1.2 times (Table 3). The revealed uneven development of small enterprises and organizations is primarily due to the presence of crisis phenomena under the influence of sanctions and currency fluctuations. According to Rosstat statistics, in 2017, essential components of the economic activity of small enterprises and organizations are wholesale and retail trade and the repair of motor vehicles and motorcycles. Their share in the turnover of small enterprises in Russia is 56.9%. This is followed by construction (12.1%) and manufacturing (10.2%). The study by E. I. Balalova et al. is of particular interest. In their monograph, they consider consumer cooperation as a special organizational and legal form of entrepreneurship. Their study showed that the dynamics of trade in the turnover of consumer cooperation activities in the Central Union of Russia since 2013 were also uneven. In 2017, its share amounted to 68.8% of the total activity of the Central Union (Balalova et al. 2019). This unevenness led to staff turnover and a decrease in the number of workers in consumer cooperation, from 199,000 in 2013 to 154,000 in 2016 (Valigursky 2018). The study of the turnover of small enterprises in the context of critical activities showed that from 2016 to 2017, there was an increase in several groups of goods and services, including wholesale and retail trade, repair of motor vehicles and motorcycles, household products, and personal items, in all federal districts of Russia (Table 4).

Table 3 The dynamics of the turnover of small enterprises of the Russian Federation The turnover of small enterprises, billion rubles 2013

2014

2015

2016

24,782 26,392 44,124 38,877 Source (Rosstat 2017b, 2018b)

2017

The coefficient of change in the turnover of small enterprises 2015/2013 2016/2015 2017/2016

48,459

1.8

0.9

1.2

Entrepreneurship at the Stage of Development …

135

Table 4 The turnover of small enterprises of the Russian Federation by primary activities The subject of the Russian Federation

The turnover of small enterprises, billion rubles Manufacturing Construction Wholesale and retail industries trade; repair of motor vehicles, motorcycles, household products, and personal items 2016 2017 2016 2017 2016 2017

Russian Federation 3,680 Central Federal 1,398.3 District Moscow region 233.1 Moscow 602.3 Northwest Federal 455.1 District South Federal District 279.7 North Caucasian 77.7 Federal District Volga Federal 695.9 District Ural Federal District 311.8 Siberian Federal 355.1 District Far Eastern Federal 106.4 District Source (Rosstat 2017a, 2018a)

4,194.6 1,490

4,046.5 1,648.6

5,573.3 2,881.4

22,053.4 8,796.7

28,172.9 12,719.9

251.4 599.6 553.3

157.3 1,053.6 467.9

163.5 2,264.9 581.2

758.5 5,566.6 2,922.4

1,119.5 8,769.5 3,355.1

342.1 91

207.5 108.7

270.2 135.1

1,684.7 563.5

2,119.2 577.8

838.3

791.4

770.4

3,146

3,622.4

348 414.3

277.8 390.2

340.8 434.1

1,745.8 2,082.8

2,111.7 2,377.9

117.5

154.4

160.2

1,111.6

1,288.9

The analysis of the information in Table 5 in relation to the indicator “Construction” also illustrates growth, except for a slight decrease in the Volga Federal District by 2.7%. A similar picture of the growth in turnover can be seen for “Manufacturing,” except for a slight decrease in the capital of the Russian Federation. In the new economy, the critical success factors in economic activity are electronic technologies and services that allow digital, voluminous, diversified data to be digitalized, processed, analyzed, and evaluated. During their implementation, in comparison with traditional forms of management, the efficiency and quality of the production and consumption of goods, works, and services for the population are significantly increased. Moreover, those countries that use modern electronic technologies and the services of recent years benefit in the process of managing their competitive advantage. It should be borne in mind that in 2017, the share of organizations using the Internet increased by 0.2% compared to the previous year and amounted to 88.9% (Rosstat 2019). The Internet was used for commercial purposes by 70.7% of enterprises and organizations. It was noted that organizations, when doing business in 2017, used the Internet more actively to work with suppliers—67.7% more than with consumers. It was noted that in 2017, 83.2% of organizations used broadband Internet access. The volume of the IT market in 2015

136

D. I. Valigursky et al.

amounted to 740 billion rubles, which is 8.8% lower than the level of the previous year at comparable prices, and compared with 2016, it still fell by 1.7% (Valigursky and Kuzmina 2017a).

4 Discussion Thus, the study showed the uneven development of SMEs and the inactive use of information technology. Many factors influence the lack of active growth of the SME economy. In the financial and economic markets of Russia, there was a recession in 2017 and the beginning of 2018. This process was influenced, first of all, by political conflicts among countries that gave rise to additional economic sanctions and, accordingly, a decline in the Russian economy. The decline in oil prices influenced the depreciation of the ruble against the dollar, which further increased inflation, reducing the purchasing power of the population. It should also be noted that there is a lack of qualified personnel in the base pool of workers and a clear gap between the employees of the cooperative and the people of Russia as a whole—in their country studies, language training, and ability to implement new technologies and cooperative projects (Valigursky and Kuzmina 2018). The problematic issues for SMEs nowadays include difficulties in the process of registration, opening a bank account, low legal security, problems forming relationships with suppliers, lack of loans, and so on. Also, there has been a decrease in IT market volumes; this will lead to a decrease in the number of IT specialists in the future. This shortage will make it impossible to solve the tasks. It is necessary, therefore, to encourage the development of highly competent IT specialists (Valigursky and Kuzmina 2017b). Hence, the Russian government is deploying a strategy for creating conditions for the long-term development of SMEs. In 2018, the Presidium of the Presidential Council for Strategic Development and National Projects (December 24, 2018, No. 16) approved the passport of the national “Small- and Medium-Sized Enterprises and Support for Individual Entrepreneurship Initiatives” project (Government of the Russian Federation 2018). Table 5 presents the project’s target indicators, which include a 32.5% increase in the share of small- and medium-sized enterprises in Russia’s GDP by the end of 2024. An increase in the share of SME exports to 10% in the total volume of non-commodity exports is also planned. The number of people employed by SMEs is projected to increase to 25 million people. It is clear that the implementation of such serious goals requires appropriate financial investments in five developed and approved federal projects. Total investments amount to 481,492.3 million rubles (Table 6). The most significant and financially secure of these projects is the federal “Enhancing the Access for SMEs to Financial Support, Including Preferential Financing” project. The implementation of this project will account for 54.4% of all financial resources of the national project. Next comes the federal project, which is the “The acceleration of small and medium enterprises,” and 34.9% of all financial

Entrepreneurship at the Stage of Development …

137

Table 5 Key indicators of the national project “Small and medium-sized enterprises and the support of individual entrepreneurial initiatives” and their implementation Target

Years 2019

2020

2021

2022

2023

2024

The number of employees in the SME 19.6 20.5 sector, including individual entrepreneurs, million people The share of small and medium-sized 22.9 23.5 enterprises in GDP, % The share of exports of SMEs, 8.8 9 including individual entrepreneurs, in the total volume of non-resource exports, % Source (Government of the Russian Federation 2018)

21.6

22.9

24

25

25

27.5

30

32.5

9.25

9.5

9.75

10

Table 6 Financial support for the implementation of the national project, million rubles The Federal project

The amount of financial security by years of implementation 2019

2020

“Improving the business environment”

904

“Enhancing the access for SMEs to financial support, including preferential financing”

28,443

“The acceleration of small and medium enterprises”

30,644,9

“Creating a system for farmer support and developing rural cooperation”

8,001.42

2,039.78

“The promotion of entrepreneurship”

1,416

1,376

2021

411.4

2022

2023

Total 2024

494.4

251.4

251.4

251.4

28,155

35,599.6

56,409.6

60,356.7

13,881.4

18,335.9

43,842.7

36,227.9

5,049.34

Total for the national project

897

The share of funds

2,564

0.5

52,847.4

261,811.3

54.4

24,949.4

167,882.2

34.9

6,461.32

9,250.17

9,958.98

40,761.0

8.5

1,588

1,595.3

1,601.5

8,473.8

1.8

481,492,3

100

Source (Government of the Russian Federation 2018)

resources will be spent on its implementation. The implementation of the federal project “Creating a system for farmer support and developing rural cooperation” will cost 8.5% of all financial resources. All five projects must be interconnected by economic and legal developments, which in the future should lead to a synergistic effect and the achievement of the intended goals.

138

D. I. Valigursky et al.

5 Conclusion The paper deals with debatable issues related to the principles of entrepreneurship and cooperation. During the discussion, the authors concluded that cooperation could be attributed to a special organizational and legal form of entrepreneurship. The results of the study illustrate the dynamics of the development of small and medium enterprises in Russia. The leading economic and social indicators characterizing the state of this sector of the Russian economy, its positive and negative sides, were analyzed. The work identifies trends and problems in the development of small and medium enterprises. The ways of solving these problems, and the prospects for the development of entrepreneurship, its new information organization in the digital economy, are described. The discussion of the results of this study and the proposed government decisions made it possible to formulate a proposal for the implementation of these decisions. The proposal consists of the need for organizing systematic monitoring of production markets, labor and educational services, and product sales. Monitoring will allow us to identify rapidly changing trends and imbalances, and, if necessary, conduct a more in-depth analysis to implement a competent policy in the field of small and medium-sized enterprises. Also, it will provide an opportunity to control the processes of production, education, and employment. The use of all possible monitoring technologies will help to track the implementation of forecast areas and indicators of small business development in all regions of the Russian Federation.

References Balalova, E.I., Maksaev, A.A., Ovcharenko, N.A., Sologubov, A.E., Tkach, A.V.: Entrepreneurship in the Food Supply. Dashkov and Ko, Moscow (2019) Bogoviz, A.V., Ioda, E.V., Ioda, Y.V., Kuranova, V.B., Bobrova, V.V.: Cluster development of innovational entrepreneurship: new possibilities and priorities in the conditions of the innovational economy creation. Eur. Res. Stud. J. 20(3), 530–538 (2017) Federal Tax Service of the Russian Federation. Unified register of small and medium-sized enterprises. (n.d.). https://rmsp.nalog.ru/statistics.html Government of the Russian Federation. The Order “On Approving The Strategy for the Development of Small and Medium-Sized Enterprises in the Russian Federation for the Period up to 2030 (together with the “Plan of measures (“roadmap”) for implementing the Strategy for the Development of Small and Medium-Sized Enterprises in the Russian Federation for the period up to 2030”) (June 2, 2016 No. 1083-r, as amended on August 12, 2016) (2016). http:// www.consultant.ru/document/cons_doc_LAW_199462/ Government of the Russian Federation. The passport of the national project “Small and medium-sized enterprises and support of individual entrepreneurial initiative” (December 24, 2018 No. 16). Presidium of the Council under the President of the Russian Federation, Moscow, Russia (2018). https://base.garant.ru/72185938/ Rosstat. Regions of Russia. Socio-economic indicators, 2017, Moscow, Russia (2017a) Rosstat. Russian Statistical Yearbook, 2017, Moscow, Russia (2017b) Rosstat. Regions of Russia. Socio-economic indicators, 2018, Moscow, Russia (2018a) Rosstat. Russian Statistical Yearbook, 2018, Moscow, Russia (2018b)

Entrepreneurship at the Stage of Development …

139

Rosstat. Statistical Review 1(102) (2019) Valigursky, D.I. (ed.): Trading Business: Commerce, Marketing, Management. Theory and Practice. Dashkov and Ko, Moscow (2018) Valigursky, D.I., Kuzmina, T.T.: The rise of the Russian economy as a factor in the development of the educational services market. In: Cooperation and Social Economics: Science and Practice, pp. 24–31. Publisher “Kantsler”, Moscow (2017a) Valigursky, D.I., Kuzmina, T.T.: Professional competencies and their impact on the labor market. Fund. Appl. Res. Cooper. Sect. Econ. 5, 60–67 (2017b) Valigursky, D.I., Kuzmina, T.T.: The cooperative future of Russia. Fund. Appl. Res. Cooper. Sect. Econ. 2, 21–27 (2018)

Platform Cooperativism—A New Model in the Knowledge Economy Elena V. Kirsanova , Arkadii I. Mokhirev , Andrei M. Sokolov , Elena V. Suvorova , and Shakhlo S. Zikirova

Abstract The purpose of this study is to analyze organizational models of platform cooperatives that act as an alternative to conventional digital platforms. The study is of a qualitative nature and relies on the use of the method of analysis of documents and articles that transmit the experience and knowledge of digital technologies in existing cooperatives and in cooperative platforms. Traditional platforms and platform cooperatives are compared. Aspects of democratic governance and self-government in platform cooperatives and traditional cooperatives based on the practice of digital participation are analyzed. For a cooperative, a digital platform is not a core activity that is shaped according to the needs of members. Therefore, the cooperative platform allows everyone to participate both in the work of the platform and directly in the cooperative on a democratic basis. A digital platform becomes cooperative because it belongs to members and is a technological tool that provides the sharing of costs and resources, the creation and redistribution of material values. The article proves that the members of a cooperative can be not only employees, but also entrepreneurs with relevant characteristics for this category. A similar platform cooperativism potential is evident for cooperative organizations. Keywords Cooperatives


Platform cooperativism
Prosumer

E. V. Kirsanova (&)
A. I. Mokhirev
A. M. Sokolov
E. V. Suvorova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. I. Mokhirev e-mail: [email protected] A. M. Sokolov e-mail: [email protected] E. V. Suvorova e-mail: [email protected] E. V. Kirsanova Russian New University, Moscow, Russia S. S. Zikirova Moscow State Institute of Physical Culture, Sports and Tourism, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_15

141

142

E. V. Kirsanova et al.

1 Introduction In recent years, the sharing economy or collaborative economy has been expanding and growing rapidly. These concepts include broad groups of diverse people using digital platforms in different sectors of the economy. Being dispersed, these groups of people connect to platforms that are more likely to operate locally, but they also cross national boundaries and work internationally. This allows people to exchange ideas and resources or collaborate in one way or another (housing, car, knowledge transfer, etc.). A digital platform is an online application that offers to connect consumers with suppliers of goods or services. The application is a digital intermediary for organizing and managing the activities of providers in accordance with the needs of consumers. For many applications, responsibility is shifted from people to the technology that they use. Therefore, digital platforms do not assume responsibility (as suppliers, etc.), but transfer their goods, services and activities to outsourcing (outer-source-using). That’s what Uber, Deliveroo and Airbnb do, paying suppliers like freelancers, i.e. independent subcontractors (Smorto and Bonini 2017; Vandaele 2018). As a result, providers are dissatisfied with unstable incomes, low wages and blurred boundaries between personal life and work. Also, providers are dissatisfied with the lack of appropriate compensation for the risks associated with the provision of capital and equipment; the low level of labor protection and safety; transparency of methods of monitoring work and its distribution (Vandaele 2018). All of this indicates that legally uncertain relationships are built between the digital platform, as an intermediary, and providers. These relationships lead to direct exploitation. Situations are created in which workers do not have social security, and owners of digital platforms, like employers, are exempted from liability. Consumers are also not completely in the legal field; their rights are not fully respected since the platforms consider them as external clients. Moreover, in the 21st century, consumers have become prosumers (prosumer, from professional or producer + consumer: “professional consumer” or “producer-consumer”). This term is a hybrid combination of words and refers to people who matter more than regular consumers. These prosumers are actively involved in the production and sale of goods and services that they consume themselves, as they may have a professional interest in such goods and services (Toffler 1980; Rifkin 2000; Kotler 1986). Until now, there has been no clear certainty about the role of prosumers, their rights or obligations. Platforms arise due to the fact that many existing resources are underutilized by their owners and could be better used (for example, by sharing them with those who need them). In addition, being based on digital platforms, the collaborative economy not only facilitates, accelerates and cheapens the exchange but also contributes to the emergence of other organizational forms in the field of labor cooperation. The platforms were oriented almost exclusively on economic results and paid little attention to the social and environmental aspects of their activities. As a result of this, as an alternative, scientists and Internet activists have developed yet another

Platform Cooperativism—A New Model in the Knowledge Economy

143

movement called platform cooperativism. This alternative platform model based on democracy and ownership has been tested. Today, more than 250 platform cooperatives are organized around the world (Schneider 2018). Thus, many people realized the capabilities of platforms to access resources in a more convenient way. Platforms are created by non-profit organizations, informal groups, companies, etc. Cooperative organizations have begun to show particular interest in new forms of social interaction and the use of digital technologies. The collaborative economy could be an innovation driver for them. At the same time, cooperatives themselves are a significant model that can assist in the development of digital platforms. The purpose of this study is to analyze the organizational models of platform cooperatives.

2 Materials and Methods In order to explain the phenomenon of platform cooperativism, it is necessary to consider why the cooperative platform acts as an alternative to conventional digital platforms. Platform cooperativism is a new model in the knowledge economy. This study focuses on existing platforms, including those organized in the form of cooperative platforms. The study is trying to answer what cooperative platforms can offer to help solve the modern problems of consumers and employees. The study of the activities of platform cooperatives is also conducted in terms of their impact on the evolution of traditional cooperative models operating on well-known cooperative principles. Platform cooperativism has a very short history, but its bibliographic list is expanding rapidly. Its study is mainly through the practice of created platforms, social networks and scientific conferences. The study is of a qualitative nature and relies on the use of the method of analysis of documents and articles that transmit the experience and knowledge of digital technologies in existing cooperatives and in cooperative platforms. Traditional platforms and platform cooperatives are compared. Aspects of democratic governance and self-government in platform cooperatives and traditional cooperatives based on the practice of digital participation are analyzed.

3 Results The term “platform cooperativism” was introduced by the American sociologist Trebor Scholz in 2014. Analyzing platforms, he explained how they actually earn their income by working in unregulated markets. To regain control of the platforms and tackle these problems, Scholz proposed the idea of “platform cooperativism,” which is as follows (Scholz 2016). If the platforms are controlled by their users and organized in the form of a cooperative, then most of the management and social

144

E. V. Kirsanova et al.

responsibility issues will be resolved. Moreover, joint ownership of the platform would also allow a more equitable distribution of the value generated by the people who actually created it, rather than transferring it to a limited group of venture investors. Finally, if the platform were cooperative, it would also provide an opportunity to strengthen solidarity and social ties between workers and help combat the trends of new forms of labor exclusion. Thanks to the works of T. Scholz, as well as the articles by Nathan Schneider, the idea of platform cooperativism has spread not only in the United States but also in Europe in recent years. This success stimulated debate among researchers and participants in the collaborative economy (Scholz 2017; Scholz and Schneider 2017; Schneider 2018; Smorto and Bonini 2017). As digital technologies improve, they are increasingly used by both employees and consumers, who rely on the concept of platform consumerism. Similar experiments give interesting results. For example, in the USA (the birthplace of large global platforms), in New York, a food cooperative supermarket Food Coop (http://foodcoop.film/) was created. The work of this cooperative supermarket is carried out directly by members in a specific order. Each member spends a couple of hours a week on the operational management of the supermarket, and in return, receives a discount on products and the opportunity to participate in the selection and purchase of goods. Procurement is carried out through dedicated IT systems and technologies. By developing the activities of a food coop in this way, members help manage it. Moreover, they are not its employees, as they have their own independent work outside the cooperative. In France and Italy, similar cooperatives began to appear (for example, such a cooperative is in Parma, Bologna [camilla.coop]). In a number of EU countries, there are examples of how cooperatives guarantee social protection using platforms to support members. For example, these are the Spanish Calidoscoop (www.calidoscoop.coop), the Swiss Neonomia (www.neonomia.ch) and the English Gildedsplinters (www.gildedsplinters.coop) cooperatives. But the experience of the Italian cooperative Doc Servizi (www. iprofessionistidellospettacolo.docservizi.it) (Martinelli 2017, 2018) and the French cooperative model CAE (Bost 2011; Bureau and Corsani 2015) is most developed and revealing. Doc Servizi, created 30 years ago, now has 6,000 members with 52 million euros in production volume and 33 branches in the country. The cooperative is part of a large network of nine societies (www.docservizi.it) and aims to protect labor and evaluate the work of professionals in the field of art, theater and music. It provides social rights and protection for its members, who may be unoccupied from time to time. This organizational model is developing in many areas (consulting, contract management, accounting, tourism, the electronic sale of goods to members, etc.). Doc Servizi has its own highly efficient and high-tech digital platform, which has been adapted to various network projects (Chiappa 2014, 2018). In France, the Cooperative d’Activites et d’Emploi (CAE) entrepreneurial platform was developed in 1995. Since then, it has supported entrepreneurs in various areas, including legal, administrative, accounting, exchange of experience,

Platform Cooperativism—A New Model in the Knowledge Economy

145

participation in management, business education, etc. (Ballon et al. 2018). A CAE participant acquires the legal status of a hired entrepreneur and receives guaranteed social protection. Such an entrepreneur becomes an employee of a cooperative but does not lose his or her business and autonomy. In France, the largest cooperative CAE is the worker Coopaname cooperative, created in 2004 in Paris. Today, it has nearly a thousand members with a production volume of 10 million euros (www.coopaname.coop). Coopaname is the best part of CAE as the goal of the cooperative is to support not only the activities of its members but also all freelancers. That is, the cooperative is focused on being an alternative model for individual entrepreneurship. For this, the cooperative’s own platform is used not just for optimized procedures, but primarily to create connections between its members and external clients (Veyer 2017, 2011). Finally, the Arvaia cooperative in Bologna (Italy) provides an example of the collective use of agricultural products through participation in their cultivation (www.arvaia.it). This multifunctional cooperative belongs to the local community, which is helped by agricultural business professionals to produce products. The cooperative allows its members to grow, choose and buy organic food. The Arvaia cooperative conducts collective management on a voluntary basis, including joint purchases, with the help of volunteers.

4 Discussion Examples provided from Coopaname and Doc Servizi show evidence that cooperatives are able to guarantee social protection and help their employees use digital platforms. Offering the best working conditions, protecting their employees and suppliers, cooperatives demonstrate a flexible organizational model. This is due to the special procedure for remuneration of labor and autonomy in matters of management, the involvement of workers and their relationship to each other. As for the use of digital technologies, they do not underlie the cooperative business but are an auxiliary tool for the economic activity of the members (Martinelli and Chiappa 2019). But, in small consumer and multifunctional cooperatives, platforms are created to meet local interests. This is especially true for cooperatives where business is carried out by people in the local community (employees, prosumers, etc.) who pursue collective and common goals. Therefore, prosumers can own business of such cooperatives that use digital technologies and platforms. But will these owners become platform employees? So far, this is not observed, and logic suggests that this is unlikely to happen.

146

E. V. Kirsanova et al.

5 Conclusion Traditional digital platforms (Uber, Airbnb, Deliveroo) are enriched through the application, mediating between consumers and providers. This is due to advanced technologies, but, at the same time, it is company owners who derive all the economic benefits, and not consumers and providers. For a cooperative, a digital platform is not a core activity that is shaped according to the needs of members. A digital platform becomes cooperative because it belongs to members and is a technological tool that provides the sharing of costs and resources, the creation and redistribution of material values (Martinelli and Chiappa 2019). Owners and suppliers (or consumers) act simultaneously in a cooperative platform, which allows everyone to participate both in the platform and directly in a cooperative on a democratic basis. In other words, members of a cooperative can be not only employees but also entrepreneurs with characteristics relevant for this category. A similar platform cooperative potential is evident for cooperative organizations.

References Ballon, J., Bodet, C., Bureau, M.-C., Corsani, A., De Grenier, N., Desgris, A.-L.: La investigaciyn como herramienta de cambio democratico: la experiencia de dos cooperativas de activitades y de empleo. Revista del Centro de Estudios de Sociologia del Trabajo 10, 7–37 (2018) Bost, E.: Aux entreprenants associes. La cooperative d’activites et d’emploi. Editions REPAS, Valence (2011) Bureau, M.-C., Corsani, A.: Les cooperatives d’activites et d’emploi: Pratiques d’innovation institutionnelle. Revue Française de Socio-Économie 1(15), 213–231 (2015) Chiappa, C.: Proposta per direzione 18 ottobre 2018 – Verbale riunione del 20/09/2018 (2018) Chiappa, C.: Sintesi CCNL allegata al contratto (2014) Kotler, P.: The prosumer movement: a new challenge for marketers. Adv. Consum. Res. 13, 510– 513 (1986) Martinelli, F.: Autonomie professionnelle, entrepreneuriat et cooperation. Le cas des Cooperatives d’Activites et d’Emploi en France. Ph.D. Thesis, Universita di Bergamo & Paris VIII Vincennes-St.-Denis, 6 May 2017. https://aisberg.unibg.it/handle/10446/77189#. WpPjcyOh1p8 Martinelli, F., Chiappa, C.: Doc Servizi, una rete di professionisti su piattaforma cooperativa. Professionalita 34(4), 63–68 (2019) Martinelli, F.: Innovative cooperation’s model in Europe. A solution to the growing uncertainty in the world of work. In: Proceedings from ILPC 2018: International Labour Process Conference. University of Buenos Aires, Buenos Aires (2018) Official website of the International Co-operative Alliance (ICA). Cooperative identity, values & principles (n.d.). https://www.ica.coop/en/cooperatives/cooperative-identity Rifkin, J.: The Age of Access. The New Culture of Hypercapitalism Where All of Life is a Paid for Experience. Putnam Publishing Group, New York (2000) Schneider, N.: Everything for Everyone: The Radical Tradition That is Shaping the Next Economy. Nation Books, New York (2018) Scholz, T.: Platform Cooperativism: Challenging the Corporate Sharing Economy. Rosa Luxemburg Stiftung, New York (2016)

Platform Cooperativism—A New Model in the Knowledge Economy

147

Scholz, T.: Uberworked and Underpaid. How workers are Disrupting the Digital Economy. Polity Press, Cambridge (2017) Scholz, T., Schneider, N. (eds.): Ours to Hack and to Own. The Rise of Platform Cooperativism. A New Vision for the Future of Work and a Fairer Internet. OR Books, New York (2017) Smorto, G., Bonini, T. (eds.): Shareable! L’economia della condivisione, Citta di Castello: Edizioni di Comunita (2017) Toffler, A.: The Third Wave. William Morrow and Company, New York (1980) Vandaele, K.: Will Trade Unions Survive in the platform economy? Emerging patterns of Platform Workers’ Collective Voice and Representation in Europe. ETUI, Bruxelles (2018) Vandaele, K., Piasna, A., Drahokoupil, J.: Algorithm breakers’ are not a different ‘species’: Attitudes towards trade unions of Deliveroo riders in Belgium (2019). https://www. researchgate.net/publication/332232697_‘Algorithm_breakers’_are_not_a_different_‘species’_ attitudes_towards_trade_unions_of_Deliveroo_riders_in_Belgium Veyer, S.: Coopaname: les entrepreneurs associes, ou comment repenser le travail. Seminar Economie et sens, Ecole de Paris du management (2011) Veyer, S.: Le meso-entrepreneuriat: nouvelle frontiere des CAE? Thesis for CNAM-CESTES Diplome de dirigeant de cooperative d’activites et d’emploi (2017) Wood, A.J., Graham, M., Lehdonvirta, V., Hjorth, I.: Good gig, bad gig: autonomy and algorithmic control in the global gig economy. Work Employ Soc. 33(1), 56–75 (2018)

The Model of Mutually Beneficial Cooperation of Industrial Enterprises in the Conditions of Innovative Development Anna V. Platonova , Aleksandr I. Afonichkin , Ekaterina V. Pustynnikova , Iuliia S. Pinkovetskaia , and Vadim V. Baklushinskiy

Abstract The authors present their vision of a model for the formation of mutually beneficial cooperation among industrial enterprises based on cooperative ties in the context of innovative development. Methodological approaches to the classification of groups of industrial enterprises in the conditions of innovative development are reviewed. As a result, four groups of enterprises were identified by their technological level: high-tech, medium-tech high, medium-tech low, and low-tech. Industry specifics (by type of economic activity) are disclosed for each identified group of industrial enterprises. Based on the assessment of the degree of significance, the main factors affecting the development of technological innovations of industrial enterprises are ranked. The degree of development of cooperative ties is recognized as the main of such factors. The paper analyzes the dependence of other factors influencing the development of technological innovations and cooperative ties with the corresponding type of partners of industrial enterprises. The partners of industrial enterprises include the following: suppliers and consumers, scientific and educational organizations, competitors in the industry and enterprises within the group, consulting firms and public authorities. A model for the formation of mutually beneficial cooperation of industrial enterprises in the conditions of innovative development is developed and presented in the paper. In accordance with the A. V. Platonova (&)
E. V. Pustynnikova
I. S. Pinkovetskaia
V. V. Baklushinskiy Ulyanovsk State University, Ulyanovsk, Russia e-mail: [email protected] E. V. Pustynnikova e-mail: [email protected] I. S. Pinkovetskaia e-mail: [email protected] V. V. Baklushinskiy e-mail: [email protected] A. I. Afonichkin Samara National Research University, Samara, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_16

149

150

A. V. Platonova et al.

developed model, specific activities in the framework of associative and cluster management are proposed. Keywords Innovative development enterprises


Mutually beneficial cooperation
Industrial

1 Introduction The relevance of the research topic is due to the fact that, at present, innovative development is recognized as one of the main vectors of the development of the domestic economy. The provisions of the Russian Development Program, for the period from 2018 to 2024, indicate this. In the Program, an increase in the number of organizations implementing technological innovations is declared as the national development goal of the Russian Federation. Also, the creation of a high-performance export-oriented sector in such a basic sector of the Russian economy as manufacturing is declared as the national development goal of the Federation (Presidential Executive Office 2018). As for the methodological approaches to the study of the innovative development of industrial enterprises, in world practice, we should highlight the European Manufacturing Survey. This is a well-known international project in the field of technology and innovation. T. E. Kuznetsova and V. A. Rud, in their scientific works, present the experience of adapting the methodological component of this project to the conditions of Russian reality. These authors emphasize such important components of innovative development as the motives of innovative activity and factors hindering innovation. D. S. Ivanov, M. G. Kuzyk, and Yu. V. Simachev, in their studies, analyze the factors of demand of manufacturing enterprises for technological innovations, and they analyze the relevance of various tools to stimulate innovation. The publications of K. K. Kozlov, L. S. Zasimova, and B. V. Kuznetsov regarding the assessment of the contribution of various measures to the development of corporate innovations should be noted, along with their relationship with competitiveness and productivity. J. Gine and D. Meissner provide general recommendations on a set of measures to stimulate innovative activity in business. A large number of publications are devoted to the problems of innovative development of industrial enterprises. However, despite this, the literature does not provide a consideration of these problems through the prism of mutually beneficial cooperation. In this regard, the aim of this study was to develop a model for the formation of mutually beneficial cooperation of industrial enterprises on the basis of cooperative ties in the context of innovative development.

The Model of Mutually Beneficial Cooperation …

151

2 Materials and Methods Regarding the generally accepted industry grouping of enterprises, it should be noted that at present, in Russia, the All-Russian classifier of types of economic activity is in effect (OKVED-2). With regard to the allocation of groups of industrial enterprises in terms of manufacturability, in this case, one should adhere to the generally accepted (both in foreign and Russian practice) approach. It was developed by the Organization for Economic Co-operation and Development (OECD). In accordance with this approach, the following classification of industrial enterprises based on research and development costs was adopted (Fig. 1). Due to its wide applicability, this classification is used both in the development of government documents and in the collection of innovation statistics (Kotsubinskiy 2015). It should be noted that the intensity of innovative processes reaches its maximum value, comparable with world analogs, in the high-tech sector of the country’s economy (Fridlyanova 2018). At the same time, at the legislative level, the industrial composition of high-tech and medium-tech high-level groups in our country is presented in the Methodology section, which was approved by Order of Rosstat No. 832 of 12/15/2017 (Federal State Statistics Service 2017).

Group of industrial enterprises

High tech

Medium-tech

High level

Low tech

Low level

Fig. 1 Sectoral specifics of innovation according to the OECD classification Source (OECD. Directorate for Science, Technology and Industry. Economic Analysis and Statistics Division 2011)

152

A. V. Platonova et al.

3 Results The choice of specific measures to stimulate innovation is determined by a number of economic, technological, political, legal, social, organizational, and managerial factors. An illustration of the degree of significance of factor impact on the implementation of innovative activities of industrial enterprises is presented in Table 1. As can be seen from Table 1, according to the results of statistical surveys, factors related to the financial side of innovative development (the availability of own funds and the cost of innovations) have the maximum impact on technological innovation. However, taking into account the expert assessment, according to the leaders of industrial enterprises, the most significant factor is cooperation relations. This conclusion is not unfounded, and we explain it as follows. In conditions of sufficient development of cooperative ties with the corresponding type of partners, effective management of the impact of a particular factor becomes possible. Ultimately, the development of cooperative ties through associative, cluster management in the conditions of mutually beneficial cooperation should stimulate the innovative development of industrial enterprises. For a more detailed description of the action of our proposed model, it is necessary to introduce some notation in Table 2. The areas highlighted in Table 2 illustrate the dependence of the factor’s influence on the development of cooperative ties with the corresponding type of partners. As a result, based on Table 2, we will get a model for the formation of mutually beneficial cooperation of industrial enterprises in the conditions of innovative development (Fig. 2). Moreover, the relationship of interests in the formation of mutually beneficial cooperation of participants in innovative interaction can be represented in the table matrix (Table 3).

Table 1 The degree of significance of technological innovation development factors as of 2016 Factor

Factor value

Expert assessment of the weight of each factor (according to managers of industrial enterprises)

The final score for factor ratings (calculated)

Place in decreasing order of factor significance (ranking of factors)

Gr. 1

Gr. 2

Gr. 3

Gr. 5

Strength of cooperative ties

1.4

22%

Gr. 4 = gr.2 * gr.3 0.308

1 (continued)

The Model of Mutually Beneficial Cooperation …

153

Table 1 (continued) Factor

Balance of own funds State financial support Cost of innovation Innovative potential of the enterprise Level of innovation infrastructure Level of economic risk Elaboration of legislative documents regulating and stimulating innovation Staff qualification Demand for new products Certainty of economic benefits for using intellectual property Information about new technologies Market information Source Gorodnikova et

Factor value

Expert assessment of the weight of each factor (according to managers of industrial enterprises)

The final score for factor ratings (calculated)

Place in decreasing order of factor significance (ranking of factors)

2.2

13%

0.286

2

2

14%

0.28

3

2.2 1.7

12% 10%

0.264 0.17

4 5

1.5

7%

0.105

6

2

5%

0.1

7

1.6

5%

0.08

8

1.6 1.7

4% 2%

0.064 0.034

9 10

1.7

2%

0.034

11

1.4

2%

0.028

12

1.4 2% al. (2018)

0.028

13

154

A. V. Platonova et al.

x8 are government bodies

x7 are consumers of goods, works, of services

x6 is a consulting, information company

x5 are industry competitors

x4 are enterprises in the group

x3 are educational organizations

Y is a set of factors that influence technological innovation

x2 are scientific organizations

X are the types of partners that influence the state of a particular factor

x1 are suppliers of equipment, materials, components, software

Table 2 Description of the parameters of the model for the formation of mutually beneficial cooperation of industrial enterprises in the conditions of innovative development

y1 is financial support from the state у2 is an economic risk у3 is the demand for new goods, work, services у4 is the cost of innovation у5 is a qualified staff у6 is information about new technologies у7 is information about sales markets у8 is the ability to assess the economic benefits of the use of intellectual property у9 is the legislative and regulatory documents that regulate and stimulate innovation у10 is the innovative potential of the organization у11 is own funds у12 is an innovative infrastructure

Source compiled by the authors

X (1,...,8) - are the types of partners that influence the state of a particular factor 0

1

2

3

4

5

6

7

Y (1, ..., 12) is a set of factors affecting the implementation of technological innovations

0

By attracting government orders and 8; 2 appropriations, providing tax benefits 7; 3

1 4; 2 2 Due to the mutually beneficial exchange of resources within the 5; 4 group

3 1; 4

2; 4

4 5 6 7

8 8; 1

By creating sustainable ties in the context of “supply chains,” pursuing a mutually beneficial pricing policy

By stimulating demand through a mutually Cooperation in terms of beneficial pricing policy “containing” the growth 3; 5 of the cost of 6; 6 innovations Through collaborative curriculum development 6; 7 6; 8

8

Through lobbying corporate, sectoral and regional interests 8; 9

9 1; 10

2; 10

3; 10

1; 11

2; 11

3; 11

4; 10

5; 10

6; 10

7; 10

4; 11

5; 11

6; 11

7; 11

8; 11

4; 12

5; 12

6; 12

7; 12

8; 12

8; 10

10 11 1; 12

2; 12

3; 12

12

Fig. 2 A model for the formation of mutually beneficial cooperation of industrial enterprises in the conditions of innovative development Source compiled by the authors

The Model of Mutually Beneficial Cooperation …

155

Partner types

Table 3 The matrix reflecting the relationship of interests in the formation of mutually beneficial cooperation of participants in innovative interaction

x1

х2

х3

х4

х5IE

х6

х7

х8

IE

x1

х1/х1

х1/х2

х1/х3

х1/х4

х1/х5

х1/х6

х1/х7

х1/х8

х1/IE

х2

х2/х1

х2/х2

х3/х3

х2/х4

х2/х5

х2/х6

х2/х7

х2/х8

х2/IE

х3

х3/х1

х3/х2

х3/х3

х3/х4

х3/х5

х3/х6

х3/х7

х3/х8

х3/IE

х4 х5 IE х6 х7 х8 IE

х4/х1

х4/х2

х4/х3

х4/х4

х4/х5

х4/х6

х4/х7

х4/х8

х4/IE

х5/х1

х5/х2

х5/х3

х5/х4

х5/х5

х5/х6

х5/х7

х5/х8

х5/IE

х6/х1 х6/х2 х6/х3 х6/х4 х6/х5 х6/х6 х6/х7 х6/х8 х7/х1 х7/х2 х7/х3 х7/х4 х7/х5 х7/х6 х7/х7 х7/х8 х8/х1 х8/х2 х8/х3 х8/х4 х8/х5 х8/х6 х8/х7 х8/х8 IE/х1 IE/х2 IE/х3 IE/х4 IE/х5 IE/х6 IE/х7 IE/х8 Note: PP is an industrial enterprise. х1/IE; IE/х1; х1/х4; х4/х1; х1/х5; х5/х1 is the improvement of production and technological chains of interactions;

х6/IE х7/IE х8/IE IE/IE

х4/х4; х4/IE; IE/х4; х1/х6; х2/х6; х3/х6; х4/х6; х5/х6; х7/х6; х8/х6; IE/х6 is a reduction in transaction costs ; х1/х1; х6/х6 is a combination of efforts to fulfill large profitable orders;

Interests of participants in innovative interaction

х2/х2; х3/х3; х2/х3; х3/х2 is a combination of efforts to obtain grant support in the framework of priority basic research; IE/IE is the expansion, diversification of products through participation in joint projects; х5/IE; IE/х5; х4/х5; х5/х4; х5/х5 is the satisfaction of the growing demand for innovative products; х2/х8; х3/х8 is grant support in the framework of priority basic research; х8/х2; х8/х3 is the satisfaction of the demand for basic research; х1/х2; х1/х3; х4/х2; х4/х3; х5/х2; х5/х3; IE/х2; IE/х3 is the execution of an order for promising research and development for production; х2/х1; х3/х1; х2/х4; х3/х4; х2/х5; х3/х5; х2/IE; х3/IE is diversification, expansion of services in the field of applied research; х6/х1; х6/х2; х6/х3; х6/х4; х6/х5; х6/х7; х6/х8; х6/IE is the establishment of stable ties; service growth; х1/х8; х4/х8; х5/х8; IE/х8 is the receipt of subsidies (as part of the federal target program, etc.) for the implementation of large innovative investment projects; х8/х8 is a combination of efforts in order to carry out large innovative projects (for example, inter-regional clusters); х8/х1; х8/х4; х8/х5; х8/IE is meeting the growing demand for innovations and priority technologies; х7/х7 is the reallocation of assets under mutually beneficial agreements (for example, the exchange of aircraft fleet units in airlines); х1/х7; х7/х1; х2/х7; х7/х2; х3/х7; х7/х3; х4/х7; х7/х4; х5/х7; х7/х5; х6/х7; х7/х6; IE/х7; х7/IE is the establishment of a mutually beneficial pricing policy, the reduction of contract value in the framework of longterm relationships; х8/х7; х7/х8 is the implementation of measures under antitrust law and maintaining order in pricing policy.

156

A. V. Platonova et al.

4 Discussion We will consider the proposed model for the formation of mutually beneficial cooperation of industrial enterprises in the conditions of innovative development in the format of associative, cluster management in more detail. Often, industrial enterprises refuse to introduce innovations into their production lines because of the high cost of innovation (y4). In this regard, it is necessary to establish stable relations with suppliers of high-tech materials, equipment, components and software (x1) in the context of supply chains. It is also necessary to pursue an appropriate mutually beneficial pricing policy. The same principle should work when interacting with scientific organizations (x2) when purchasing various research and development. But in this case, it is imperative to take into account cooperative ties with competitors in the industry (x5) so that competition for innovation does not lead to an increase in their prices. For a long period, from the moment of the collapse of the Soviet Union to the present, the leaders of many high-tech enterprises (in particular, in the aircraft industry) note the following circumstance. They note the lack of highly qualified personnel (y5) as one of the main reasons hampering the production and release of high-tech products. The negative attitude to the existing production and personnel potential hinders the desire of enterprises to introduce innovations. The development of training programs by high-tech enterprises together with educational organizations (x3) should help to improve the current situation. Currently, there is an active interaction in the format of “dual” education, as well as the functioning of basic departments. The impact of economic risk in the implementation of technological innovation (y2) can be restrained by a mutually beneficial exchange of resources with enterprises in the group (x4) in the framework of specific (in particular, innovative) projects. Also, the influence of economic risk can be restrained by financial support (s1) with the participation of state authorities (x8), expressed in attracting government orders and appropriations, as well as in providing tax benefits. The negative impact of the underdevelopment of regulatory acts in the field of innovation (y9) can be reduced by lobbying for corporate, industry, and regional interests. Lobbying can be carried out in cooperation with public authorities (x8) at events of various statuses (from speeches in relevant committees of the state body and participation in various hearings to industrial forums and informal meetings). Enterprises can obtain reliable information about new technologies (y6), about sales markets (y7), and the ability to assess the economic benefits of using intellectual property (y8). They can get this in cooperation with consulting and information firms that have proven themselves in the relevant services market (x6). Psychological barriers to the implementation of innovative products (y3) can be eliminated by stimulating demand through a mutually beneficial pricing policy for consumers (x7). The result, on the one hand, is a decrease in economic risk (y2) and the cost of innovations (y4) and, on the other hand, an increase in the demand for innovative

The Model of Mutually Beneficial Cooperation …

157

products (y3) and the level of staff training (y5). At the same time, all this should lead to the release of enterprises’ own funds (11). Released funds (y11) together with financial support from the state (y1) should contribute to the innovative potential growth of enterprises (y10). Improving the regulatory framework for the implementation and stimulation of innovative activity (y9) will favorably affect the state of innovation infrastructure as a whole.

5 Conclusion The vector of innovative development declared in state programs leads industrial enterprises to the realization of the following. The use of only internal resources and reserves for the implementation of innovation becomes insufficient. There is also an urgent need for the joint creation of innovations through the process of interaction between various types of partners (in particular, in the framework of cooperative ties). In this case, the motivational impetus for mutually beneficial cooperation comprises the interests of the innovative orientation pursued by the participants. In turn, these interests are directly related to factors affecting the implementation of innovations. In this regard, the authors’ simplified model for the formation of mutually beneficial cooperation in industrial enterprises in the context of innovative development is one of the alternative solutions to the problems of innovative interaction.

References Federal State Statistics Service. Rosstat Order “On the Approval of the Calculation Methods of Indicators “Share of High-Tech and High-Tech Industries in the Gross Domestic Product” and “Share of High-Tech Industries in the Gross Regional Product of the Subject of the Russian Federation” (December 15, 2017 No. 832), Moscow, Russia (2017) Fridlyanova, S.Yu.: Dynamics of indicators of innovative development of manufacturing industries (2018). https://issek.hse.ru/mirror/pubs/share/219633898 Gorodnikova, N.V., Gokhberg, L.M., Ditkovskiy, K.A., Kuznetsova, I.A., Lukinova, E.I., Martynova, S.V., Ratay, T.V., Rosovetskaya, L.A., Fridlyanova, S.Yu.: Indicators of Innovation in the Russian Federation. HSE, Moscow (2018) Kotsubinskiy, V.A.: Methodological aspects of definition technology level development of industries. Innovation 4(198), 27–32 (2015) OECD. Directorate for Science, Technology and Industry. Economic Analysis and Statistics Division. ISIC Rev. 3 Technology Intensity Definition. Classification of manufacturing industries into categories based on R&D intensities (2011). https://www.oecd.org/sti/ind/ 48350231.pdf Presidential Executive Office. Presidential Decree “About national goals and strategic objectives of Russian Federation development for 2024” (May 7, 2018 No. 204), Moscow, Russia (2018)

Rural Labor Market and Digitalization: New Challenges and Opportunities Elena N. Lishchuk , Olga A. Chistiakova , Ella S. Boronina , Anna A. Churikova , and Zoya A. Kapelyuk

Abstract The article raises pressing issues related to digitalization and its impact on the development of the rural labor market. Institutional, infrastructural and technological aspects of digitalization in rural areas are considered. According to the authors, the use of digital technology can significantly increase the effectiveness of management decisions. Restrictions on the use of digital technologies are indicated. The possible negative effects of digitalization associated with the elimination of certain professions in the rural labor market in Russia have been studied. The authors predict that the modification of professions, which will require employees to acquire additional competencies that are in demand in the digital economy, seems most likely.







Keywords Labor market Agriculture Cooperatives Digital technology Competencies Professions








Digital transformation


1 Introduction The role of agriculture in the economy of any country cannot be overestimated. Agriculture contributes to strengthening economic security, improving the health of the population, and determining the ability for rural residents to maintain a decent E. N. Lishchuk
O. A. Chistiakova
E. S. Boronina
A. A. Churikova
Z. A. Kapelyuk (&) Siberian University of Consumer Cooperation, Novosibirsk, Russia e-mail: [email protected] E. N. Lishchuk e-mail: [email protected] O. A. Chistiakova e-mail: [email protected] E. S. Boronina e-mail: [email protected] A. A. Churikova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_17

159

160

E. N. Lishchuk et al.

standard of living. Also, it serves as the backbone for the country’s domestic and foreign policy on the basis of import-substituting and export-oriented economic development strategies. The modern agro-industrial complex of Russia is characterized by insufficient efficiency for a number of objective and subjective reasons. As a result, the wages of workers in agriculture are significantly lower than those of workers in other sectors of the economy. This wage discrepancy leads to a lower level and quality of life for the people living in rural areas. Due to the fact that many countries of the world have entered the era of the digital economy, rural residents face new challenges. The digital revolution is expected to lead to a significant increase in labor productivity in many sectors, including agriculture (Townsend et al. 2017). At the same time, forecasts are increasingly appearing in the media that digitalization will lead to the elimination of jobs and the disappearance of many professions. As a result, digitalization will lead to a significant reduction in employment and, therefore, an increase in unemployment. Some professions are projected to disappear as a result of digitalization. In the rural labor market, professions that are characterized by less difficult working conditions and reasonably acceptable wages are at risk. The negative effects of digitalization will lead to fewer options for rural employment. At the same time, persons belonging to a professional group of specialists will be forced to move to an urban area in search of work. These processes will spur forced migration and lead to a decrease in human capital in rural areas. In this regard, it seems relevant to study the likelihood of the above risks and possible ways of developing the rural labor market in the context of digitalization.

2 Materials and Methods The information base of the study was the work of domestic and foreign authors on employment in the digital revolution and analytical reports from the World Bank and the Food and Agriculture Organization of the United Nations (FAO). Also, the research database was made up of the following data: program documents of the Russian Federation and statistics of the largest Russian Internet recruitment company—HeadHunter.

3 Results The development of the digital economy has led to the emergence of relevant policy documents in Russia. According to the Strategy for the Development of the Information Society of the Russian Federation No. 203, dated May 9, 2017, the digital economy is defined as an economic activity in which digital data is a key factor in production.

Rural Labor Market and Digitalization ...

161

The departmental project “Digital Agriculture” defines digital agriculture as follows: agriculture based on modern methods of producing agricultural products and food using digital technologies (Internet of things, robotics, artificial intelligence, big data analysis, electronic commerce, etc.). These digital technologies increase productivity and reduce production costs. Thus, it is assumed that the digital economy tools will be used to solve the goals and objectives of improving the efficiency of agricultural organizations. The effectiveness of these tasks is largely due to the coverage provided by digital technology. Directions of digitalization in the agricultural sector of the economy can be considered from different perspectives. The institutional aspects of the analysis of the transformation process of industrial and economic relations in rural areas, under the influence of the development of the digital economy, involve the study of questions about changing functional–organizational forms of collective activity. We can predict the prevalence of cooperation trends over competition and the emergence of new forms of interaction and cooperation, making it necessary to determine rights and responsibilities. Infrastructural aspects of the analysis involve studying the development of networks based on cloud technologies, determining the possibilities of their use and speed of their implementation in agricultural organizations. Here, we can also note the directions of the formation of state platforms, with data on the agro-industrial complex, designed to solve the following problems: forecasting prices for the main groups of agricultural products and answering questions about the advisability of promoting a particular agricultural product to new markets and others. In this area, an analysis of the sufficiency of providing Internet platforms, venues, exhibitions, and other infrastructure facilities to support the production and marketing of agricultural products, including foreign markets, is possible. So, according to the order of the Ministry of Agriculture of Russia dated April 2, 2018 No. 130, a platform with data on agricultural lands is being formed. Currently, the process of forming centers of competence on the issues of digitalization of the agro-industrial complex is actively developing. When solving the problems of implementing and developing Internet platforms, fiber optic lines and 5G technologies are important resource components. The technological aspect of analyzing the process of implementing digital technologies in the agricultural sector involves assessing the degree of their use in implementing direct production activities in the same sector. Here, an assessment of the availability of equipment using information and communication technologies with appropriate software, robotic systems, and artificial intelligence technologies is possible. The implementation of the provisions on import substitution in the field of manufacturing equipment with special software and technology complexes for agriculture is an important area. The use of specialized equipment allows one to optimize business processes and move to the technology of “precision farming,” “smart farm,” “smart field,” and others. Along with this, a historically developed system of consumer cooperation is functioning in the country’s economy. With appropriate state support, it can solve

162

E. N. Lishchuk et al.

the socioeconomic problems of the countryside. The current state policy in the field of cooperation is focused on the emergence and development of such small forms of farming in the countryside as agricultural consumer and production cooperatives. Using the achievements of the digital economy contributes to solving a whole range of problems in the field of agricultural cooperation. Firstly, the unification of cooperatives into a single retail network based on new information technologies, representing direct access to consumers, allows one to successfully compete with global companies. These companies are present in the retail market for agricultural products. Secondly, the development of geolocation technologies can significantly increase the efficiency of agricultural enterprises and reduce the shadow market share in the field of procurement. Thirdly, the creation of information platforms that combine data on cooperatives in rural areas can increase the effectiveness of state support for cooperative entities. Diverse digital data on the agro-industrial complex, including the data of cooperatives, can be used in scenario programming of economic development based on the tools for analyzing big data using artificial intelligence. The above areas characterize the positive role of digitalization in the development of agriculture, increasing labor productivity, and, as a result, the growth of wages of workers in the agricultural sector. However, the digital revolution may lead to negative developments in the rural labor market. K. Frey and M. Osborne provide predictive estimates of the likelihood of a wide range of professions disappearing as a result of digitalization (Frey and Osborne 2017). According to their estimates, the professions with a high probability of disappearance in the rural labor market include accountants (94%), tractor drivers (93%), sellers (92%), and car drivers (89%). However, many scientists do not share such pessimistic forecasts. In particular, Fossen and Sorgner (2019) argue that the digital revolution can lead to both destructive and transforming effects on the labor market. Transforming effects are a modification of the profession, as a result of which the employee acquires new competencies to fulfill his/her labor function (Fossen & Sornger, 2019). To determine which effects (destructive or transforming) will turn out to be more significant in Russia, we analyzed the statistics of the largest job search site in Russia, namely HeadHunter (hh.ru). This site posted over 38 million resumes, registered more than 900 thousand companies, and advertized over 550 thousand vacancies. Figure 1 shows the dynamics of vacancies in professional fields on the Russian labor market for the period of July 2018–July 2019. According to the figure, an increase is evident in such areas as procurement, transport, logistics, accounting, management accounting, and enterprise finance. That is, according to experts, the increase is noticeable in areas that should experience the greatest liquidation risks as a result of the ongoing digital revolution. Consequently, these professions cannot be called dying since the demand for these specialists is evident in the labor market. Based on this, we believe that the development of transforming effects, as a result of which representatives of many

Rural Labor Market and Digitalization ...

163

Fig. 1 Dynamics of vacancies in professional fields, July 2018-July 2019 (according to the site for job search, namely hh.ru), % Source Compiled by the authors according to hh.ru (Internet recruitment company “HeadHunter”, n.d.)

professions will face new challenges, seems most likely. These challenges will be related to the need to acquire additional professional competencies.

4 Discussion The use of digital technologies assumes that employees have both basic computer skills and the skills to use professional specialized programs, applications, etc. The skills that every employee needs in a digital economy are denoted by the term “digital literacy” (Trendov et al. 2019). These competencies are necessary in order to implement the introduction of digital technologies in agricultural organizations and to increase the chances of employment in the inevitable transformation of professions. In rural areas, the acquisition of these skills may be limited due to a less developed education system and infrastructure.

5 Conclusion For organizations operating in rural areas, digital transformation can lead to the following positive effects: • Possibilities of using additional sources of investment based on modern financial technologies;

164

E. N. Lishchuk et al.

• Reducing the organization’s costs through the introduction of “precision farming” tools, geolocation technologies, digital control of all business processes, and “artificial intelligence” technologies; • Using a set of effective tools to advertise and promote goods and services based on web technologies, creating and implementing complexes of electronic platforms with data on the dynamics of the development of each sphere of agribusiness; • Improving the management of their activities through the use of modern analytical tools for processing big data; • Improving the environmental friendliness of production and products, including through consumer awareness of production technologies and product quality. However, digitization also bears the risks associated with the elimination of jobs. Our analysis showed that the disappearance of professions in demand in rural areas in Russia as a result of digitalization is unlikely. The modification of modern professions, which entails the need for employees to acquire additional professional competencies, seems more obvious. Acknowledgements The reported study was funded by RFBR and Novosibirsk Oblast according to research project No. 19-410-540003.

References Bogoviz, A.V., Lobova, S.V., Ragulina, J.V.: The cost and value of human capital in the modern digital economy. Lecture Notes Netw. Syst. 57, 1224–1230 (2019) Fossen, F., Sornger, A.: Mapping the future of occupations: Transformative and destructive effects of new digital technologies on jobs. Foresight STI Govern. 13(2), 10–18 (2019) Frey, C.B., Osborne, M.A.: The future of employment: how susceptible are jobs to computerization? Technol. Forecast. Soc. Change 114(C), 254–280 (2017) Internet recruitment company “HeadHunter”. Russia – labor market statistics (n.d.). https://stats. hh.ru/ Ragulina, J.V., Alekseev, A.N., Bogoviz, A.V., Lobova, S.V.: Automatization of the labor resources market in the age of the internet of things: conceptual substantiation and risk management. Stud. Comput. Intell. 826, 909–915 (2019) Townsend, R., Benfica, R.M., Prasann, A., Lee, M., Shah, P.: Future of food: Shaping the Food System to Deliver Jobs. World Bank Group, Washington, D.C. (2017) Trendov, N.M., Varas, S., Zeng, M.: Digital Technologies in Agriculture and Rural Areas – Status Report. Food and Agriculture Organization of the United Nations, Rome (2019) World Bank: Future of Food: Shaping the Food System to Deliver Jobs. The World Bank, Washington, D.C. (2017)

Information Component in the Construction of Cooperation of Innovatively Active Business Entities Olga V. Emelyanova , Olga G. Timofeeva , and Ilya G. Perepelkin

Abstract This paper focuses on the role of the information component in the interaction of organizations in innovative processes. The analysis identifies the formation trends and development of the information environment between participants in the innovation networks. Such research methods as content analysis of documents and comparative analysis of statistical data were used. The authors demonstrate the features of information support at different stages of the Innovation Life cycle, which determine the methods of making managerial decisions. Horizontal and vertical integration of elements in the information model of regional innovation systems provides the prerequisites for additional effects. Innovative cooperation provides intensive information flows and coordinated individual and group interests of business entities in the Innovation Life cycle. Keywords Innovation environment


Information support
Cooperation
Information

1 Introduction Advanced economies are based on the accumulation of knowledge and the development of high-tech industries; they are characterized by the strengthening of the service sector and the development of information network technologies. The success of the enterprise, to a greater extent, does not depend on increasing the physical volume of output, but on the production of intelligent service products, as

O. V. Emelyanova (&)
O. G. Timofeeva
I. G. Perepelkin Southwest State University, Moscow, Russia e-mail: [email protected] O. G. Timofeeva e-mail: [email protected] I. G. Perepelkin e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_18

165

166

O. V. Emelyanova et al.

well as the speed and adequacy of management responses to changing consumer preferences. The information environment is an essential part of the processes of development and implementation of innovations. For its formation and maintenance, significant efforts and resources, as well as the interaction of various subjects of innovative activity, are required. The authors of the paper draw attention to the role of cooperation and mutual benefit in the process of cooperation between science and business: It significantly determines the competitiveness of each of the parties involved. In this context, the work aims to analyze the changes in the information component in the interaction of innovatively active organizations in current conditions. The study set the following tasks: • to highlight the differences in the information component of the stages of the Innovation Life Cycle in the level of uncertainty and methods for evaluating the effectiveness indicator; • to determine the prerequisites for processing large amounts of life cycle data based on the integration of deterministic, stochastic, and expert knowledge about the product, contributing to positive environmental changes for the functionality of various business entities; • to analyze data, consider the structure of using the software in business entities of the Russian Federation, and characterize the intensity of the development of information flows and the directly related growth of information cooperation in the Russian economy; • to substantiate conclusions on the increasing role of the information component in building cooperation of innovatively active organizations in current conditions. The object of research is the information component in the construction of the cooperation of innovatively active business entities. The subject of the study is the factors involved in increasing the intensity of information exchange in the innovative processes of organizations. The analysis of the dynamics of the development of innovative Russian production over the past decades allows us to conclude two significant trends. On the one hand, there is a gradual consolidation of high-tech enterprises into larger innovative systems (vertical integration). On the other hand, we can see the creation of self-organizing innovation and investment industrial structures in the regional and national economies (horizontal integration). The ultimate goal of the first trend is the formation and development of a national innovation system (NIS), uniting all innovative, industrial, investment, and infrastructure organizations. Horizontal integration involves the creation of networks and clusters of a smaller scale, operating at the levels of individual industries and regions (Golov and Mylnik 2018, pp. 401–411). Innovative territorial cluster is a set of enterprises and organizations located in a limited territory (cluster members), characterized by the presence of:

Information Component in the Construction of Cooperation …

167

• the scientific and production chain in one or more industries that unite the members of the cluster; • the mechanism for coordination of activities and cooperation of cluster members; • the synergistic effect, expressed in increasing the economic efficiency and performance of each enterprise or organization due to the high degree of concentration and cooperation (Fiofanova 2019, pp. 26–33). The noted tendencies suggest the creation of a special kind of information system providing the transfer of knowledge and technologies between participants while creating innovations as a significant factor in the development of high-tech industries and areas of industry. The formation of the information environment corresponds to the concept of open innovation, allowing us to consolidate the national innovation potential, maximizing the volume of innovations introduced into production (Chesbrough 2003).

2 Materials and Methods The Development Strategy of the Information Society of the Russian Federation, open sources of statistical reports on the socioeconomic development of the Russian Federation, and publications published in the OECD library were used in the course of the study. The methodological bases of the study are the principles of the dialectical connection between the subject and the object; the process and the result; single, unique, and general; and the unity of traditions and approaches. For this purpose, the study used general theoretical teaching methods (analysis, synthesis, analogy, comparison, correlation, generalization, classification, systematization, abstraction, interpretation, analysis, generalization of scientific literature and practical experience, statistical data, etc.).

3 Results The demand for innovation in the territorial cluster system should be decisive for the formation of developed innovation infrastructure (Borisoglebskaya et al. 2010, pp. 94–101). In this strategic direction, two important points should be highlighted: The first is related to the development of mechanisms for financial support of innovative projects at all stages of their implementation; the second, directly with the development of infrastructure and information support for interaction chains. As part of the first task, it is necessary to increase the volume of private investments involved in innovative projects, with the participation of venture funds

168

O. V. Emelyanova et al.

and startups, including those based on modern digital technologies (Solovjev 2018, pp. 284–291). For the effective implementation of the second task, it is necessary to maintain a reliable mechanism for the exchange of information, creating informational resources that combine the capabilities of the manufacturing sector of the economy and its interaction with developmental institutions and executive authorities. In our opinion, we should take the significant differences among the stages of the Innovation Life Cycle, as well as their level of uncertainty and methods for evaluating the effectiveness indicator (Fig. 1), into account. Methodologically significant conditions for the formation and presentation of information vary depending on the stage of the product’s life cycle. Thus, the informational component is changing, and as a result, the methods for making managerial decisions based on available information are changing, too. The degree of uncertainty of information decreases during each subsequent stage of the Innovation Life Cycle. During the stages of research, management decisions are made in conditions of uncertainty due to a lack of information available regarding the possible effect of the created innovation. The nature of the uncertainty changes as follows: At the initiation stage, there is fuzzy uncertainty or “true uncertainty” in Knight’s terminology (Knight 1921, pp. 210–235), and at the development stage, there are prerequisites for the transition toward interval and probabilistic uncertainty (Belov and Novikov 2017, pp. 100–136).

The Innovation Life Cycle

Scientific and Scientifictechnical activities

Innovation

Growth

Maturity

Decline

Sales

The creation of innovations Stage 1

Stage 2

Stage 3 Time

Fundame ntal research work

Applied research work

Research Investment and Developme nt activities Investment lag

Budget Financing Knowledge base, Data base, collection of innovation potentials, derivation of ideas, evaluation and release of ideas

Risky Investment Product Life Cycle

Return on investment

Commercialize innovation Stage 4 Investment in production

Intergraph SmartPlant Enterprise, СRM, ERP, SCM – SmartPlant Fusion, system, Product Life cycle Management, Data base Learning Information System Information support of innovation activity

Fig. 1 Information support for innovation activities Source Developed by the authors

Information Component in the Construction of Cooperation …

169

In the first stages, the priority role is played by the methods of examination, assessment, and prediction of the beneficial effect of the developed innovation. At the stages of the “Research and Development activities” and “Investment in Innovation,” decisions are made under conditions of risk, and the effect indicators can be set at intervals or probabilities. Stage 4 is the most informatively determined. The signs of a deterministic situation or lack of uncertainty are typical for the stages of Growth, Maturity, and Decline. In order to assess the effectiveness indicator of the high-tech product implementation, traditional indicators of accounting and financial reporting are used, as well as data from integrated CRM, ERP, SCM systems of corporations. Different stakeholders of the information environment have various goals and tasks; decision-making necessitates the transparency of information. This forms the prerequisites for processing large amounts of data for the life cycle based on the integration of deterministic, stochastic, and expert knowledge about the system. The structure of the mechanism of information support of innovative regional subsystems shows the interaction of its elements, taking into account the form of organization and how this mechanism operates, which differ at each level of the innovative regional subsystems. The horizontal and vertical integration of the elements constituting the information model of regional innovation networks provides the prerequisites for obtaining additional effects that allow avoiding negative and creating positive environmental changes for the functioning of various business entities. The authorities of economic entities use such mechanisms of information support of regional clusters to modify information products that enable business entities to use the necessary information in innovation. Information support for innovation in Russia is regulated by the “Regulation on the State System of Scientific and Technical Information,” approved by the Decree of the Government of the Russian Federation (July 24, 1997 No. 950) and the statistics of science and innovations OECD (2019). The successful implementation of each stage of the life cycle of an innovative product requires specified information since innovations acquire higher informational content and relate to a fair number of components of the internal and external environment of a high-tech enterprise. According to data provided by the Organization for Economic Cooperation and Development (OECD), in 2009–2011, 23% of large Russian innovatively active companies interacted with scientific organizations or with universities in the field of innovation. Comparable statistics published by the OECD for more than 30 countries allow us to note the low rate of formation of scientific and industrial cooperation in Russia. In terms of the share of large innovatively active firms interacting with scientific organizations and universities, Russia is inferior to some new industrial countries (Korea, South Africa, Brazil), as well as to the states of the former Soviet Union (Hungary, Poland, Slovakia, Slovenia, Czech Republic). It should be noted that publicly available statistics do not reflect information on the share of research and development sector organizations collaborating with

170

O. V. Emelyanova et al.

industrial enterprises in the field of innovation development and implementation. Based on survey data, as of 2015, 70% of scientific organizations and 91% of universities carried out research and development in the interests of the industry. A 2012 study of organizations in the scientific research sector noted similar levels of involvement of scientific organizations in cooperation with the industry. At the same time, with a high proportion of scientific organizations, and especially universities, interacting with industry in the research sphere, the extent of such interaction is minimal from the total volume of R&D. Only about every fifth research organization and every fourth university had more than half of the business orders in the research and development budget. The intensity of information flow in the digital economy can be estimated based on data from the Federal State Statistics Service. According to the data, in 2018, only 68.9% of domestic business entities used local area networks in their activities. In 2018, only 48.1% of Russian business entities had a website on the Internet (Federal State Statistics Service 2019). Many small and medium enterprises do not have Internet resources. For comparison: according to 2017 data, in the EU countries, 95.8% of business entities had Internet websites (Bell 2019, pp. 74–78). The noted factors reduce the pace of the development of information flows and the directly related growth of information cooperation in the domestic economy.

Table 1 The main directions of the use of software in business entities of the Russian Federation, % Indicator Organizations using specialized software tools – total of them: For solving organizational, managerial, and economic problems For financial settlements in electronic form Electronic legal reference systems For managing the procurement of goods (works, services) For managing sales management of goods (works, services) For providing access to databases through global information networks For training programs For managing automated production and/or individual technical means and technological processes for design For publishing systems For CRM, ERP, SCM – systems For scientific research For other purposes Source (The Federal State Statistics Service 2019)

2010

2016

2017

2018

89.1

86.3

84.8

86.7

59.7

56.2

52.3

52.9

59.7 53.7 – –

57.0 53.7 36.3 20.3

55.1 52.3 38.4 21.9

55.3 51.8 37.8 21.8

27.8

30.9

31.5

31.0

19.1 18.1

14.8 15.5

14.3 15.1

14.2 14.9

11.8 9.2 7.6 3.3 42.2

11.9 7.1 13.5 4.2 32.4

11.0 5.3 15.4 3.9 32.7

10.8 5.1 15.9 3.4 30.3

Information Component in the Construction of Cooperation …

171

The structure of software used by Russian entrepreneurship reflects the most developed areas of their application (Table 1). The statistical characteristics of the use of individual software elements in organizations of the Russian Federation reflect the use of CRM, ERP, and SCM systems: 15.9% have systems for design, 10.8% have research support, and 3.4% of organizations. The given data determines the importance of the development of the information component in the Russian economy as a whole. Thus, theoretical approaches to the study of the information component in the development and implementation of innovations are formalized in the work. Differences in the information component of the stages of the Innovation Life Cycle in the level of uncertainty and methods for assessing the effectiveness indicator are highlighted. Prerequisites for processing large volumes of life cycle data based on the integration of deterministic, stochastic, and expert knowledge about the product that contributes to positive changes in the environment for the functionality of various business entities are identified. The data analysis made it possible to characterize the low intensity of information flows and justify the need for cooperation among business entities to create prerequisites for increasing the innovative activity of territorial clusters.

4 Discussion Modern works note the importance of establishing information exchange and cooperation, “… which is a strategic tool to help companies innovate quickly. It is the engine of rapid and radical innovation.” (Welborn and Kasten 2003). The development of network interaction between “science, business, the state, and society” is accompanied by an ever-growing demand for the latest information about the state of changing market conditions on the part of participants in cooperative relations, as well as by an offer that satisfies it with subjects of research and educational activities; this satisfaction creates objective prerequisites for the formation of socio-economic symbiosis and territorial clusters. One of the main strategic tasks of innovative cooperation is the development of cooperation among partners in the cooperative movement, or in other words, the development of their targeted economic motivation to achieve the ultimate goals in the framework of targeted, comprehensive regional development programs. Ensuring the fulfillment of these tasks is possible through the widespread use of modern methods of economic and mathematical modeling and IT technologies, which make it possible to analyze the implementation of the scenario for the formation of innovative cooperation, evaluate the influence of exogenous and endogenous factors on the target function of its activity, and adjust innovative processes (Sergeev et al. 2019, pp. 58–63). The study conducted to analyze the changes in the information component in the interaction of innovatively active organizations in current conditions showed:

172

O. V. Emelyanova et al.

1. The insufficient intensity of information flows between business entities in the Russian economy for further development of innovative cooperation. 2. The need to develop an information environment through has enhanced cooperation between business-science-state-society entities for increasing the competitiveness of Russian regions. 3. An increase in the percentage of organizations using integrated software products will create life cycle information arrays based on the integration of deterministic, stochastic, and expert knowledge about the product, reducing the level of uncertainty in making managerial decisions. 4. The formation of information infrastructure will affect the intensity of the development processes of territorial clusters. 5. A developed information environment, coordination of innovative processes by regional authorities, the innovative activity of organizations, the formation of territorial clusters (factors in attracting investors), and the basis for sustainable development of the region. The coordinated activity of subjects in innovative processes is achieved through the joint use of significant arrays of digital information about the constant changes in market conditions, on which basis each subject seeks to optimize the target function of his activity. In this regard, the demand for the latest information necessary for planning rational activities is growing; knowledge is turning into a limited economic resource (Sergeev 2019, pp. 58–63).

5 Conclusion In current conditions, the economy is characterized by a rather high degree of instability and uncertainty; it seems problematic for the subjects of cooperation to develop and make optimal managerial decisions. Authorities coordinate individual and group interests, which are formed based on the exchange of knowledge in territorial clusters. The current stage is characterized by an increase in the interest of the state and regional executive bodies in the intensity of information exchange, the formation of innovative infrastructure, and the holding of forums and fairs in the territories of most Russian regions. Such events can be considered as a significant strategic direction for the development of innovative clusters of organizations, which ensures the growth of business competitiveness through the effective interaction of cluster members, the sharing of technologies, infrastructure, qualified personnel, integration into the market, and attraction of direct investment. Analyzing the economic effects of the formation of the information environment at the regional level, it should be noted that this process contributes to the growth of the investment attractiveness of the regions within which it is implemented. The exchange of knowledge between business entities in the region increases the innovative activity of both scientific and industrial structures, and their possible formation in clusters leads to the dynamic growth of the innovative potential of the

Information Component in the Construction of Cooperation …

173

entire region, which attracts investment companies. The constant satisfaction of a permanently increasing demand for information with an appropriate proposal transforms the economy, the result of which is the reproduction of a high-tech intellectual product.

References Bell, A.: The problems of crypto economy. Vanderbilt University Department of Economics Working 2, 74–78 (2019) Belov, M.V., Novikov, D.A.: Models of adaptation in dynamic contracts under stochastic uncertainty. Large Scale Syst. Control 68, 100–136 (2017) Borisoglebskaya, L.N., Kudina, O.V., Dibraeva, E.Sh.: The economic stability of the development of innovatively active economic entities of the region. Izvestiya Yugo-Zapadnogo Gosudarstvennogo Universiteta (Proc. Southwest State Univ.) 31(2), 94–101 (2010) Chesbrough, H.: Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business School Press, Boston (2003) Federal State Statistics Service: Russian Statistical Yearbook. Publishing House of the Federal State Statistics Service, Moscow (2019) Fiofanova, O.A.: Cooperation of science and production in an innovative cluster situated near Moscow. Fund. Appl. Res. Coop. Sect. Econ. 1, 26–33 (2019) Golov, R.S., Mylnik, A.V.: Conceptual foundations of the transfer of knowledge as drivers of innovative development of the industry. Sci. Works Free Econ. Soc. Russia 2(210), 401–411 (2018) Government of the Russian Federation. Decree “On approval of the Regulation on the state system of scientific and technical information” (July 24, 1997 No. 950), Moscow, Russia (1997) Knight, F.H.: Risk, uncertainty, and profit. Houghton Mifflin Co., Boston (1921) OECD. Education at a Glance. OECD Publishing, Paris (2019) Sergeev, P.V., Aseev, O.A., Sergeev, V.P., Fedorchenko, V.S.: Cooperation of small business – the perspective direction of socio-economic development of regions. Bull. Southwest State Univ. Econ. Sociol. Manag. 9(2), 58–63 (2019) Solovjev, V.I.: Information support of innovation activities of high-tech enterprises. Can the Power of Siberia Increase!? Proceeding from the International Scientific Forum “Education and Entrepreneurship in Siberia: Directions of Interaction and Development of Regions”, pp. 284– 291. Novosibirsk State University of Economics and Management, Novosibirsk (2018) Welborn, R., Kasten, V.: The Jericho Principle: How Companies Use Strategic Collaboration to Find New Sources of Value Hardcover. Wiley, Hoboken (2003)

Strategic Directions for Developing Cooperatives to Benefit the Country’s Economy Elena V. Minaeva , Natalia A. Yershova , Julia F. Anoshina , and Olga V. Yutkina

Abstract The article considers the directions of development of cooperation in Russia and the main stages of its formation, identifies the problems of functioning of regions, considers the experience of effective activity of cooperatives in developed countries, presents the main cooperative forms of work in the Russian economy and their main advantages over other types of property. The factors constraining the development of cooperation of rural producers in the production and sale of products. On this basis, the components of a long-term strategy for the development of the cooperative movement in Russia, providing an increase in the level of employment, quality of life and GDP growth. The purpose of this study is to identify the prerequisites that are the basis for justifying the evolutionary transformations of the state socio—economic management, aimed at strengthening the status of the country, improving the quality of life of the population of the main masses and creating favorable conditions for increasing the GDP of the Russian Federation. The study revealed that in the economy of the country the most common forms of activity of cooperatives are recognized: consumer, as the most preferred by the number of employees, and developed, covering catering and retail enterprises; financial, carrying out the accumulation of Finance, lending and insurance of cooperatives; agricultural, engaged in the cultivation and sale of agricultural products. At the same time, it is proved that credit cooperation contributes to the growth of investment resources; agricultural, represented by supply, production, marketing, veterinary and some other types of cooperatives. The object of this study were different types of cooperatives that occupy a certain place in the economy. The subject of the study is the financial, supply, agricultural activities of E. V. Minaeva
N. A. Yershova
J. F. Anoshina (&)
O. V. Yutkina Russian State University of Justice, Moscow, Russia e-mail: [email protected] E. V. Minaeva e-mail: [email protected] N. A. Yershova e-mail: [email protected] O. V. Yutkina e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_19

175

176

E. V. Minaeva et al.

cooperatives, as well as the factors, conditions of development and the reasons that do not allow these organizations necessary for the country to develop quickly and effectively. The information base is represented by the indicators of The Russian statistical Yearbook; the results of the study; the legislative base of the country to create and expand the activities of cooperatives; materials borrowed from various literary sources; survey data, information from the Internet and the media. Keywords Cooperation


Strategy
Development
Formation
Regions

1 Introduction Determining a development strategy for the economy requires formulating solutions for economic problems that determine its needs at the present stage in accordance with the existing factors of influence on the internal and external environments. One direction toward development that the country is taking is the cooperative movement. In the global community, it is recognized as one of the most effective socioeconomic tools for the development of countries. The development of the cooperative movement leads to the creation of new jobs, an improved quality of life and an increase in the number of economically active people, which allows for the circulation of unused monetary resources. Also, the cooperative movement helps meet people’s needs for quality products and services, increase the innovative level of production and create a favorable climate for investment. Studies of scientists from around the world have made a significant contribution to the development of the cooperative movement. Brown and Aaron paid special attention to the development of livestock production as a source of protein for the population (Brown and Aaron 2001, p. 204). N. Manning and N. Parison gave an assessment of the reforms of international public administration in Russia at the beginning of the 21st century. They paid particular attention to the regulation of small enterprises and cooperatives (Manning and Parison 2003). An analytical statement on the volume of Russian exports confirms the conclusion about the need to increase the Russian production of large and small enterprises (Volodin 2001). Despite the long deadlines, studies of fluctuations in US reserves allow us to determine the range of deviations of the maximum value from its minimum value, which is also relevant to the Russian economy (Blinder and Holtz-Eakin 1986). J. A. Schumpeter developed special business cycles acceptable for the development of enterprises that are experiencing an increase in production volumes and a decrease in pace (Schumpeter 1939, p. 142). Based on the analysis, G. L. Tanase established a relationship between the performance indicators of business entities and the country’s budget. Consequently, GDP growth depends on the activities of the aggregate of enterprises, including cooperatives (Tănase 2015). H. A. Voznyak and A. B. Pelekhatyy believe that the introduction of participatory management contributes to the effective management of human resources and the involvement of employees in direct management of the organization. Participatory management is

Strategic Directions for Developing Cooperatives …

177

an innovative modern method of regulation (Voznyak and Pelekhatyy 2017, pp. 53–56). I. Fuseini noted that the review of spatial planning in the path of socioeconomic development is the prospect of sustainable development of the country and its enterprises (Fuseini and Kemp 2015, pp. 303–320). Scientists at the College of Economics, Finance and Banking at the College of Business at the Northern University of Malaysia note that strategies towards a new paradigm of sustainable development are a transition to sustainable global democracy (Baharuddin 2015, pp. 59–74). R. J. Gordon, in his study, believed that investment in fixed assets of the economy is the engine of accelerated economic growth (Gordon and Veitch 1986, p. 272). Cooperatives, as small forms of managing, being self-governing organizations, allow them to react more dynamically to changes in the economic life of society. And the cumbersome system of collective farms and unconditional implementation of policy plans cannot ensure effective management of the farm. A. V. Chayanov wrote: “The nature of agricultural enterprises itself sets the limits for its enlargement, due to which the quantitative expression of the advantages of large-scale farming over small-scale farming in agriculture can never be especially large” (Tarkhanov 2011, p. 131). When analyzing targeted programs used in the system of state regulation of the economy, A. Tushov singled out the important role of the development of cooperatives. He believed that they contribute to the growth of gross domestic product and provide the population with quality products (Tushov 2012, pp. 151–154). At the same time, it should be noted that, in contrast to general collectivization, material incentives for members of a cooperative allow individuals to be invested in their work. The democratic principles of the organization of cooperation, especially cooperative self-government and material interest, cannot work in conditions of total control and planning by the state (Kanakina 2014, pp. 322–326). The study concluded that the main advantages of the development of agricultural cooperatives of various types in the country might be such areas of economic growth as: • • • • •

Improving the competitiveness of manufactured goods; Ensuring food security of the country; Import substitution growth; Establishing contacts with producers of other countries selling final goods; The accumulation of financial resources for the creation and implementation of domestic high-performance technologies and equipment to increase the level of industrialization of the country.

At the same time, it should be noted that a large-scale cooperative movement necessitates solving a number of extremely complex problems in the near future. These problems include the creation of conditions for the economic benefit of cooperators and the social security of cooperators. Also, these problems include the allocation to the cooperators of land and modern mobile means of production (tractors, combines, seeders and other means of production) to pay for the grown crops in accordance with an agreement with the municipality or entrepreneurial structures.

178

E. V. Minaeva et al.

2 Materials and Methods The theoretical basis of the study was the work of domestic and foreign scientists who worked on the problems of cooperation. The methodological basis of the study was the scientific and theoretical methods of induction and deduction, system analysis, scientific and empirical methods of observation, comparison, analogy, groupings and others.

3 Research Results The study showed that cooperation in Russia has its own development path that is different from Western European countries. The peculiarity of cooperation in Russia is that it was mainly formed in rural areas. Pavlova (2004) singled out 3 “cooperative breakthroughs” in the development of Russian cooperation (p. 76). The first breakthrough occurred after the abolition of serfdom and lasted until the revolution of 1917. The agrarian reform of P. A. Stolypin contributed to the rapid development of cooperatives during this period. It was aimed at the destruction of the peasant community (Volodin 2001). The second breakthrough occurred in March 1921. A new economic policy began to be implemented precisely from that time. In these years, cooperation had gained great importance in the formation and development of industrial services sectors. The main task set by the country’s leadership for cooperation was to help the population to provide them with food. The revival of cooperation began with a return to its basic democratic principles, such as voluntary membership in cooperatives, an explicit order of creation, the practice of entrance fees and shares and the free election of the boards of cooperative associations, that is, self-government (Kanakina 2014, pp. 322–326). The third breakthrough began in the 90s of the twentieth century. It was associated with the transition to the capitalist rails of development. This transition included the following elements: the formation of the legal base of the cooperative movement, the introduction of democratization and privatization of enterprises and the elimination of the shortage of consumer goods (Nikiforov and Kuznetsova 1995). Adopted in 1987, the law “On State-Owned Enterprises (Associations)” testified to the revival of cooperatives in Russia, a modification of the relationship between public authorities, business leaders and employees. According to it, state enterprises or their associations, along with cooperatives, became the main link in the single national economic complex. Unfortunately, the implementation of this law did not provide the expected results. On the basis of the Law of the USSR dated March 7, 1991 No. 2015-1, the law “On state enterprises (association)” has lost force. This happened due to the fact that it contributed to the violation of the fundamental principles of cooperation,

Strategic Directions for Developing Cooperatives …

179

namely the use of hired labor in production activities, the focus on maximizing profits, and the availability of private property. In the course of the study, based on expert estimates, the authors established important factors that depress the profitability of agricultural producers. Such factors include the following: low wholesale prices for the purchase of potatoes (which do not make up for investment costs and do not contribute to stimulating further growth in production), high growth in prices for equipment, spare parts, fertilizers, electricity and other material and technical resources. Also, these factors include imperfect infrastructure, lack of information technology and robotics in the production, storage, and the processing and sale of potatoes (Yazev et al. 2018). In Russia, priority should be given to the revival of numerous agricultural cooperatives in various areas of production and sales of products by analogy with highly developed countries. An analysis of the experience of cooperatives in developed countries indicates the following. Created in 2015, the International Cooperative Alliance (ICA) brought together about 285 large cooperative organizations from 95 countries of the world, the total turnover of which exceeded $ 2.2 trillion (Kanakina 2014, pp. 322–326). The Big Twenty (G20), an authoritative organization of the world, includes such countries as Russia, China, Brazil, Japan, the European Union, Argentina, Great Britain, India, Italy, Indonesia, Canada, Germany, Mexico, USA, Saudi Arabia, France, Turkey, Australia, South Africa. In the cooperatives of these countries, more than 12% of the employed population work. In the entire world community, their number is over 800 million people. EU and US countries recognized as leaders in the population in cooperatives. In the Russian Federation, according to various estimates of scientists, more than 20 million people, to some extent, interact with the activities of cooperatives. Innovation activities, updating the means of production contribute significantly to their economic development. At the same time, innovations should be considered as activities aimed at creating a new product ..., the end result of which are new types of goods, equipment, technologies, methods, and ways of organizing production, labor, and management (Minaeva 2013, pp. 208–213). In the course of the study, it was revealed that the main forms of cooperatives activities are widespread in the country’s economy, such as financial, accumulating finance, lending, and insurance. At the same time, it was proved that credit cooperation contributes to the growth of investment resources; agricultural cooperation is represented by production, supply, marketing, veterinary and other types of cooperatives. According to the Federal State Statistics Service, in Russia in 2016, there were more than 8,300 agricultural production cooperatives and almost 6,300 consumer cooperatives. However, by the end of 2016, their numbers decreased by more than one-third in comparison with 2011 figures. Consumer cooperation includes retailers and catering. In Russia, there are more than 3,000 such cooperatives engaged in activities in which approximately 4,000,000 shareholders (1,300 people) participate. More than 250,000 residents work in the field of Russian consumer cooperatives. To expand

180

E. V. Minaeva et al.

Table 1 Types of benefits of cooperatives for the country’s economy Economic

Social

Innovative

Financial

Growth in production and sales

Team cohesion, distribution of functions depending on experience and skill level Increased sense of responsibility

Increasing the level of equipment of regions and lands with new equipment Replacing obsolete equipment with new, high-performance equipment The widespread introduction of small-sized equipment Mechanization and automation of manual and hard labor Creation of an effective system of logistics service

Growth in income of cooperative members

Production of products with indicators of state standards, cancellation of technical specifications Growth in the number of economically active population

Improving living conditions and home improvement

Commissioning of overgrown and abandoned land

Improving the nation by involving the population in useful labor Strengthening individual family sectors

Preservation of biodiversity of agrocenoses, ensuring their sustainability

Gross Domestic Product growth

Reduction of public funds for the purchase of imported goods Shrinking the shadow economy Replenishment of the deficit of financial and credit resources

cooperative activities, the government decided to reduce the size of social contributions from income to 2.9%, which contributed to the accelerated development of cooperation. The government has developed a set of measures aimed at developing the cooperative sector of the economy. In 2019, Federal Law FZ 3085-1 was approved. It determined the implementation of the following main tasks: • Allowance of the purchase of products from individuals and legal entities for their further processing and sale; • Implementation of food and other goods through retail; • Economic structures that provide various types of services to members of consumer cooperatives; • Information on the principles, assortment and types of activities of cooperatives should be publicly available, etc. (The official website of the Zakonoved: solving legal issues, n.d.). Based on the results and expert evaluations of specialists, the advantages of cooperatives over other forms of ownership in various fields of activity (economic, social, innovative, financial) were formulated (Table 1).

Strategic Directions for Developing Cooperatives …

181

Table 2 Differentiated factors for reducing the level of development of cooperatives Negative factors Economic Low living standards and difficult working conditions of the rural population Hard work

Inability to obtain land for rent

Lack of an effective mechanism for the distribution of income between cooperators and a chain of firms engaged in the sale of their products to the market Distrust of the population to newly organized cooperatives

Material and technical

Financial and organizational

Lack of modern technology, including small-sized, to perform many manual works Lack of funds for the purchase of modern types of agricultural machinery Underdeveloped network of bank soft loans

Lack of personal protection for cooperators and product safety

Infrastructure condition that does not meet modern requirements

Lack of quick and accurate information about the actual benefits of cooperatives

Inadequate financial assistance Lack of qualified personnel. Weak development of mechanisms to attract qualified specialists to cooperatives The bulk of the income from the sale of agricultural products remains with dealers, and not with producers

The low level of prices for goods produced by cooperators and their repeated increase in the subsequent stages of its promotion

The crisis situation in Russia, which has developed due to the lack of modern management methods and methods adapted to market conditions, has also affected cooperation enterprises. This means that in order for an enterprise to function effectively in a market environment, to be competitive, and provide a stable financial condition, it is necessary to develop and master modern methods and forms of crisis management. Based on the results of the study, factors (economic, material-technical and financial-organizational) that reduce the level of development of cooperatives were identified (Table 2). Modern business conditions require enterprises to respond more quickly to changes in the market situation to subordinate production to market needs (Minaeva 2014, pp. 605–608). The need for quick adaptation of enterprises to changing market conditions requires the use of effective tools for managing enterprise transformations, which undoubtedly includes restructuring (Yutkina et al. 2013, pp. 740–743).

182

E. V. Minaeva et al.

4 Discussion of Results The result of the study was that tools were selected. These tools were necessary to develop a unified strategy for the development of the cooperative movement in the country. Such tools include the following: those for the study and use of the experience of the most developed cooperatives of the country and other states, those for the exchange of accumulated knowledge in order to disseminate the most favorable working conditions and achieve profit, and those for developing a unified strategy for the development of a cooperative movement. These tools specifically include the following: promoting the development of domestic facilitation of adaptation of cooperatives to the requirements of the economy, expanding and promoting the image of cooperatives, and developing a cooperative idea among the broad masses of the population. The tools also include training and retraining of cooperative members in mastering the features of production; simplification of the creation procedure; the provision of financial assistance by state, municipal structures and businesses for the growth of manufactured goods, etc. The most important tool for the effective development of the cooperative movement is the involvement of broad masses of the population and the provision of employment for each person who expresses a desire to participate in the work of the cooperative. In order to obtain the highest income, it is necessary to provide the population of the country with the opportunity to work simultaneously, for example, in 2–3 cooperatives producing various products and goods. First of all, in the absence of means and objects of labor, it is advisable to focus cooperators on participating in the sale of retail goods, collecting agricultural products from several owners in an area for existing cooperatives, reducing losses and saving resources. It is known that during harvesting, transportation, preparation for storage, storage, and packaging of agricultural products for transportation to trade organizations, partial losses of products’ use value occur. This is observed in the reduction of volume and quality of the products. Thus, in performing the above operations, it is necessary to strive to minimize product losses (Gusev et al. 2018, p. 15). It is necessary to create a cooperative union among cooperative organizations, and the union should include a computer information center that is responsible for providing the necessary information for functioning. It is also necessary to include an advertising agency in the union that is engaged in marketing and promoting goods and services to consumers. Across the globe, the cooperative movement is seen as a key factor in economic growth, as the movement improves the quality and standard of living of most populations, especially those in rural areas. Also, the movement is a key factor in creating new jobs and equal competitive environments for all participants in market relationships. Therefore, in all developed countries of the world, cooperatives receive significant state support. The United States is characterized by a policy of preferential taxation, an effective system of lending to farmers, guaranteed by the state guarantee and insurance of loans.

Strategic Directions for Developing Cooperatives …

183

German cooperatives receive material and technical assistance from the state. Significant tax incentives providing for the exclusion from the tax base of internal settlements of cooperatives with its participants have been introduced. According to Italian law, cooperatives are referred to as “mutual aid societies,” which are completely exempt from taxes for 10 years after the start of business. Also, goods and services sold within one cooperative are not subject to value-added tax. Service, supply and marketing cooperatives in France are fully exempt from taxes. However, non-cooperative members are taxed. The Russian Federation provides a set of measures conducive to the development of a cooperative movement. The set of measures includes such measures as the provision of tax benefits and the allocation of material assistance from the budget and the application of a simplified tax system for credit consumer cooperatives. Also, the Ministry of Agriculture provides agricultural cooperatives with grants for the development of material and technical bases. This year, 1.5 billion rubles were allocated from the budget to support the cooperative movement in 60 regions of Russia.

5 Conclusion A scientific idea was introduced in the study, providing for the development of an effective mechanism for the massive expansion of a network of cooperatives. Cooperatives contribute to reducing the level of labor intensity and material consumption of products, increase economic activity, reduce unemployment, significantly improve the living conditions of Russians, etc. The government provides the cooperators with the following package of measures: use of a simplified tax system for cooperatives, allocation of material assistance from state and regional budgets, and the provision of tax benefits, which together will help to improve working conditions. Also, the government ensures a reduction in the complexity of the manual work performed, introduces digitalization processes, and increases material support for cooperators to a level that corresponds with developed countries.

References Baharuddin, D.A.H.B.: Sustainable strategies for economic transitions in Malaysia. In: Schwarz-Herion, O., Omran, A. (eds.) Strategies Towards the New Sustainability Paradigm: Managing the Great Transition to Sustainable Global Democracy, pp. 59–74. Springer, Berlin (2015) Blinder, A.S., Holtz-Eakin, D.: Inventory fluctuations in the United States since 1929. In: Gordon, R.J. (ed.) The American Business Cycle: Continuity and Change, pp. 183–236. National Bureau of Economic Research, Cambridge (1986)

184

E. V. Minaeva et al.

Brown, B., Aaron, M.: The politics of nature. In: Smith, J. (ed.) The Rise of Modern Genomics, pp. 230–257. Wiley, New York (2001) Fuseini, I., Kemp, J.: A review of spatial planning in Ghana’s socio-economic development trajectory: a sustainable development perspective. Land Use Policy 47, 309–320 (2015) Gordon, R.J., Veitch, J.: Fixed investment in the American business cycle, 1919–83. In: Gordon, R.J. (ed.) The American Business Cycle: Continuity and Change, pp. 267–358. University of Chicago Press, Chicago (1986) Gusev, V.V., Ryabova, T.F., Sagina, O.A.: Scenarios for the implementation of the program for promoting potatoes to the market of the Moscow region from cooperative agricultural producers of subjects of the Central Federal District. In: Pavlov, A.Yu., Kindaev, A.Yu. (eds.) Collection of Scientific Papers of the International Scientific-Practical Conference “Actual Problems of the Development of Cooperation and Small Business”, pp. 333–337. Penza State Technical University, Penza (2018) Kanakina, V.A.: Development of cooperation in Russia. Young Sci. 21, 322–326 (2014) Manning, N., Parison, N.: International Public Administration Reform: Implications for the Russian Federation. World Bank, Washington, D.C. (2003) Minaeva, E.V.: Innovative formation of corporate business strategies of the organization. Vestnik Universiteta (State Univ. Manag.) 14, 208–213 (2013) Minaeva, E.V.: Formation of promising strategies for the functioning of organizations. J. Econ. Entrep. 6(47), 605–608 (2014) Nikiforov, L., Kuznetsova, T.: The fate of cooperation in modern Russia. Voprosy Ekonomiki 1, 86–96 (1995) Pavlova, G.: About modern agricultural cooperation. Economist 10, 75–83 (2004) Schumpeter, J.A.: Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process, vol. 1–2. McGraw Hill, New York (1939) Tănase, G.L.: An analysis of the existence of a link between budgets and performance in economic entities. Procedia Econ. Finan. 32, 1794–1803 (2015) Tarkhanov, O.V.: The essence of cooperation, according to A.V. Chayanov, and modernity. Econ. J. 21, 119–139 (2011) The official website of the Zakonoved: solving legal issues: Zakonoved: solving legal issues (n.d.). zakonoved.su The Russian Export Center: The Russian Export Center (n.d.). https://www.exportcenter.ru/en/ Tushov, A.A.: Targeted programs in the system of state regulation of the economy. Econ. Sci. 3(88), 151–154 (2012) Volodin, V.M.: Production cooperation in agriculture (theory, methodology, experience). Abstract of Dissertation of Doctor of Economic Sciences, Moscow, Russia (2001) Voznyak, H.A., Pelekhatyy, A.B.: Participatory budgeting as a tool for the implementation of the fiscal policy of regional development of Ukraine. Econ. Ann.-XXI 167(9–10), 53–56 (2017) Yazev, G., Ryabova, T., Zhenzhebir, V.: Differentiation of wholesale prices for organic agricultural products. In: MATEC Web of Conferences, vol. 193, p. 05073 (2018). https://doi. org/10.1051/matecconf/201819305073 Yutkina, O.V., Maslyukova, E.A., Ogneva, T.V.: Restructuring as an effective tool to increase the competitiveness of enterprises. J. Econ. Entrepr. 7(12–2), 740–743 (2013)

Financing Innovative Projects: Challenges, Risks, and Opportunities Mariya V. Myagkova , Tatyana E. Shilkina , Vadim A. Makarov , and Roman R. Hairov

Abstract The implementation of innovative projects determines the main component of effective economic development in contemporary conditions. The relevance of the study is due to the emergence of breakthrough technologies, the acceleration of business processes, the increasing requirements of the competitive environment, and the ongoing search for new growth paradigms. The purpose of the study is to analyze certain trends of innovative economic development and those risks being caused because of financing of innovative projects. Relying on the dominant sources of innovation, the authors identified the categories of innovative sectors of the economy: (1) those being focused on improving efficiency, (2) determined by engineering, (3) customer-oriented, and (4) determined by scientific research. The research shows that the most promising sectors for the development of innovations in Russia are the aerospace sector, the field of nanotechnology, nuclear and hydrogen energy, biomedical life support technologies, and rational nature management. The paper provides a review of possible financing sources for innovative projects. The analysis shows that for managers of innovative projects, there is a choice among various sources—from traditional and time-tested to modern and developing. The authors argue that there are both the high probability of financial losses in innovative entrepreneurship and the need to identify the main risk groups in financing mechanisms for innovative projects. Among them are the risks of design and viability of the project, risks of competence and reliability of project developers, regulatory risks, and risks of cryptocurrency volatility. M. V. Myagkova
T. E. Shilkina (&)
R. R. Hairov Saransk Cooperative Institute (Branch) of the Russian University of Cooperation, Saransk, Russia e-mail: [email protected]; [email protected] M. V. Myagkova e-mail: [email protected]; [email protected] R. R. Hairov e-mail: [email protected] V. A. Makarov PJSC Sberbank of Russia, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_20

185

186

M. V. Myagkova et al.

The authors propose a set of measures aimed at minimizing each risk group and preventing the reduction of financial results when implementing an innovative project. Keywords Innovative development Sources of financing Risks





Innovative activity
Innovation project


1 Introduction In current conditions, innovative development is relevant for enterprises and organizations of any scale and industry. The emergence of breakthrough technologies, digitalization, and acceleration of the product life cycle lead to radical changes in most sectors of the economy. The processes of creating value are changing, profitability zones are shifting, and new participants appear, which significantly accelerates the implementation of new ideas and developments. In the context of globalization, increasing the speed of business processes, increasing demands from the rapidly changing market, the competitiveness of organizations increasingly depends on their rapid adaptation to the changes taking place. In this regard, many business entities implement their activities through projects. Since, in order to achieve a leading position in their industry, enterprises should try to provide unique products and services and offer innovative solutions, an important issue is the development and implementation of innovative projects— a set of measures that are limited in resources, performers, and timelines aimed at creating an innovative product, which implementation allows to receive economic benefits. The goal of this study is the analysis of trends in the innovative development of the economy and the risks of financing innovative projects. It is necessary to solve several tasks to achieve this goal: – to assess the level of innovative development of the economy; – to identify promising industries for the development of innovation; – to systematize knowledge of modern sources of financing innovative projects, analyze the advantages and disadvantages of their use; – to identify the main risk groups in the field of financing innovative projects, determine directions for their reduction.

Financing Innovative Projects: Challenges, Risks, and Opportunities

187

2 Materials and Methods The theoretical basis of the study is the works of domestic and foreign scholars on global trends in innovative development, the issues of choosing sources of financing for innovative projects and identifying the most dangerous risks that can lead to a significant reduction in financial results during their implementation. During the study, we used the reporting data of the Federal State Statistics Service, the Ministry of Finance of the Russian Federation, and information posted on the official websites of legal information systems. The paper is prepared based on the use of such general scientific methods of cognition used in economic science as analysis, synthesis, generalization, modeling, classification, comparison, deduction, and induction. The prepared material is systematized, its comprehensive analysis is carried out, and the corresponding conclusions are formulated using these methods.

3 Results In order to assess the level of innovative development of the Russian economy, categories of innovative industries should be introduced and segmented according to the dominant source of innovation. The definition of categories is a practical and universal tool that takes into account the specifics of certain sectors of the economy, which can be used both at the level of managing the national economy and at the level of managing the company to develop innovative development strategies. Thus, the categories of innovative sectors of the economy should be distinguished as follows: – Innovations aimed at improving efficiency—the introduction of innovative approaches to product development, supply chain management, and production, primarily in the mining, oil and gas, and woodworking industries, metallurgy, and agriculture. – Innovations determined by engineering developments—design and creation of new products due to the integration of technologies with partners in the supply chain in industries such as engineering, electric power, and construction. – Consumer-oriented innovations—offering new products and services, creating alternative business models. The data category includes telecommunications, banks, trade, IT, transport, education, entertainment, food, and textiles. – Innovations defined by scientific research—development of new products based on the commercialization of fundamental scientific research, primarily in the field of pharmaceuticals or petrochemicals. Table 1 presents information characterizing the development of innovative activity in Russia at the present stage.

188

M. V. Myagkova et al.

Table 1 Key indicators of innovation in Russia Indicator

2014

2015

Shipped goods of own 41,233.5 45,525.1 production, performed works and services on its own, billion rubles including innovative, 3,579.9 3,843.4 billion rubles The proportion of 8.7 8.4 innovative goods, works, services in the total volume, % Costs of technological 1,211.9 1,200.3 innovation, billion rubles The share of 2.9 2.6 technological innovation costs in total volume, % Source (Federal State Statistics Service 2019c)

2016

2017

2018

Deviation 2018 to 2014

51,316.3

57,611.1

68,982.6

+27,749.1

4,364.3

4,167.0

4,516.3

+936.4

8.5

7.2

6.5

−2.2

1,284.6

1,404.0

1,472,8

+260.9

2.5

2.4

2.1

−0.8

At the end of 2018, Russian goods were shipped, and the work and services performed amounted to 68,982.6 billion rubles, which exceeded the same indicator from 2014 by 27,749.1 billion rubles (67.3%). The number of innovative goods and the amount of work and services for the period 2014–2018 increased by 936.4 billion rubles; the growth rate of this indicator was 126.2%. At present, one of the main goals of Russia’s development is the search for new paradigms regarding the growth of the gross domestic product (GDP). The country’s GDP has had a positive trend during the studied period (Fig. 1). Thus, according to the results from 2018, the volume of the GDP amounted to 103,875.8 billion rubles, having increased by 24,817.3 billion rubles compared to

Fig. 1 Gross domestic product of the Russian Federation, billion rubles Source (Federal State Statistics Service 2019b)

Financing Innovative Projects: Challenges, Risks, and Opportunities

189

Fig. 2 Financial sources for innovative projects

2014. The essential condition for further growth is the introduction of innovation since other factors do not have significant potential. Business entities engaged in innovative activities have a wide selection of project financing sources. The selection of the optimal ones is based on the analyze of the activity scope, the definition of the project relevance, the stage of its implementation, and the significance within the national economy (Proskurin 2016). There are various approaches to the classification of project financing sources. Based on the previous works of the authors and having studied all possible sources of financing innovative projects, we offer the following composition (Fig. 2). The active state’s role in innovation development contributes to an increase in the growth rate of the development of industries. Figure 3 presents information reflecting the number of funds allocated from the federal budget to finance scientific research. Based on the analysis, it can be concluded that the volume of allocated funds is reduced from 437,273.3 billion rubles in 2014, to 377,882.2 billion rubles in 2017. At the end of 2018, there was a slight increase in funding to 407,409 billion rubles.

190

M. V. Myagkova et al.

Private foundations and investors are more loyal to funded projects because they can take more significant risks. The main selection criterion for them is the prospects of the project. An alternative to such accessible sources of financing as bank credit, leasing, venture financing, with the development of the Internet and new technologies are crowdfunding and ICO. For success, relevance and uniqueness of the product are essential, as well as a factor of trust in the project developers and a loyal audience (Fedorova 2018). It is possible to attract various amounts of funds depending on the amount of website traffic and the project attractiveness. One of the modern sources of financing is Initial Coin Offering (ICO)—a form of attracting investments in the form of selling to investors a fixed number of new units of cryptocurrencies received by a single or accelerated issue (Lukasevich 2019). Innovation is fraught with significant risks since there is virtually no guarantee of a positive financial result in innovative entrepreneurship, and the likelihood of financial losses is very high. The purpose of the risk analysis is to identify the most critical, dangerous risks whose probability is high and which can lead to a significant reduction in the financial result during the implementation of an innovative project, as well as to develop measures to minimize risks. An assessment of the current situation reveals certain risk groups in the field of financing innovative projects: – – – –

risks of design and project viability; risks of competence and reliability of project developers; regulatory risks; and cryptocurrency volatility risks.

Fig. 3 Financing of science from the federal budget, million rubles Statistics Service 2019a)

Source (Federal State

Financing Innovative Projects: Challenges, Risks, and Opportunities

191

4 Discussion Innovative activity is one of the main components of effective economic development. In Russia, as in the world as a whole, the development of different industries, even within the framework of one category of innovative industries, is slightly uneven. When choosing directions for the development of innovations, it is necessary to build up competencies in industries with serious competitive advantages, reliable human resources, and significant demand for innovations. The most promising sectors for the development of innovations, where Russia can claim a leading position, are the aerospace sector, the field of nanotechnology, the production of composite materials, nuclear and hydrogen energy, the development of biomedical technologies for life support and human and animal protection, rational nature management, and environmental protection. The choice of a suitable source of financing for organizations and enterprises is a topical issue for any manager. The main advantage of state financing is its high reliability. The state’s interest in the successful implementation of the project and in obtaining results in the form of finished products, for which the sales market is partially defined at the level of individual state structures acting as consumers, is evident (Kolesov 2017). In recent years, crowdfunding or public finance has become increasingly popular. Through online platforms, any user has the opportunity to put forward an author’s project for discussion, indicating the funds necessary for its implementation and the period during which they must be attracted (Sedov and Kornilov 2016). Despite such high popularity, crowdfunding is not the best financing mechanism for fundamental technical innovations, the implementation of which requires strategic planning, tight control over the distribution of funds, and the availability of financial reserves. Investors, putting their money in an enterprise or project based on blockchain technology, provide the initiators of the placement with financial resources in exchange for tokens, which can later be used as the internal monetary unit of the innovation project. The main drawback of attracting investments by using cryptocurrencies is the high risk of investing in fraudulent projects since the legal status of the ICO is currently undefined, so that users are not insured, and trust is based only on the reputation of the developer of the innovative project (Lisitsyna and Tokarenko 2018; Akhmadova and Garipova 2019). Based on the preceding, it follows that, for managers of innovative projects, there is a possibility of choosing between various sources of financing—from traditional and time-tested ones to modern and still-developing ones. Finding the most optimal of them for a particular stage of the project development and their complementarity are the most important in the implementation of an innovative project. The risks accompanying innovation are very diverse, and their level is quite high, which is why it is so important to take into account the risk factor when evaluating the cost of innovative projects (Gordina 2019).

192

M. V. Myagkova et al.

One of the most significant risks is that of investing in the poor design of the project. In the initial stages, it is difficult to determine its strengths or weaknesses. Moreover, in some cases, the uncertainty is aggravated by dishonest organizers, who cover up the theft of invested funds with failure and the failure of the project (Antonov et al. 2017). The following are recommendations for reducing this type of risk. – The project idea should be accessible and realistic, connected with developing and implementing new technologies, which confirms the likelihood of a high-cost, innovative project in the future. – Scalability: The potential audience of the project should not be limited to a narrow profile, but cover an international audience that is heterogeneous in interests and activity preferences. Taking into account these facts, the cost of the project will increase due to the scale of users. – The project budget should be as transparent and understandable as possible, as well as provide the necessary liquidity in order to assess the viability of the project within the planned time. – Conduct an independent examination of the project. The risk of incompetent and unreliable developers is associated with a large number of people who want to attract financing but do not have sufficient experience and professional knowledge to build a high-quality, innovative project. The directions for reducing this type of risk are as follows: – When choosing an innovative project, it is necessary to obtain information regarding the project organizers and their professional knowledge and experience in the field of relevant technologies. – The legal form of the development team, the presence of a registered legal entity, and the presence of specialized professional funds as co-founders are essential. – Reliable reputation, traceable career path, and extensive experience of the person standing at the head of the project. – The presence of positive reviews on the forums and approving mentions in the top domestic and international media. One of the sources of risk may be the high volatility of assets in the cryptocurrency market, which its use is becoming increasingly widespread and leads not only to an increase in the exchange rate but also to its significant fluctuations. The risk of losses is enhanced by the fact that, with the high volatility of the crypto market, it is not regulated, and there are no tools to stabilize it. It is advisable to include the following tools for reducing this risk: – Since cryptocurrency is a high-risk instrument due to high volatility, it should occupy a smaller part of the personal investment portfolio. – investments in cryptocurrency at the expense of credit funds; in the absence of this action, the entire amount of own funds may be deemed inappropriate.

Financing Innovative Projects: Challenges, Risks, and Opportunities

193

Among other things, central banks are concerned with the danger of the undermining of financial markets and the use of cryptocurrency in illicit enrichment, terrorist financing, and tax evasion. The Bank of Russia and other national regulators consider it necessary to minimize the risks of cryptocurrency by developing a coordinated approach to regulate the market and limit the opportunities for high-risk investments and operations. Difficulties in regulating the cryptocurrency market mostly arise due to the lack of a specific status for this tool. It is necessary to amend the legislation to determine the status of digital technologies used in the financial sector. These measures will allow the attraction of high volumes of financial resources for institutional investors on the market. Among the measures of reducing the regulatory risk, it is necessary to highlight the following: – the need to determine the degree of the market segment’s regulation at the time of attracting the investments for the implementation of an innovative project and its forecast for the near future; – the possible factor of the market’s future regulation—when implementing a project on the ICO market—by the state, which may lead to a loss of expediency of the innovation project as a whole; – the fulfillment by participants of innovative projects of tax and other legal or regulatory requirements of legislative bodies.

5 Conclusion In modern reality, the economic entities of any industry need to comprehensively engage in innovative developments in order to accelerate the pace of development and obtain a significant and sustainable competitive advantage. In the course of the study, all the tasks were solved: an assessment was made of the current state of the innovative development of the economy, the most promising sectors for the development of innovations were identified, an analysis of modern sources of financing of innovative projects was carried out, and the main risk groups in the field of financing innovative projects and the directions for their reduction were identified. In the context of global processes in the development of the economy, the ability to increase the speed of business entities, tighten requirements in the field of competitiveness, and increase the prospects for their development is determined by the implementation of innovative projects. The categories of innovative sectors of the economy include: innovations focused on increasing efficiency, innovations determined by engineering developments, innovations focused on consumers, and innovations determined by scientific research. When choosing directions for the development of innovations, it is necessary to proceed from the criterion of the presence of significant competitive advantages, a

194

M. V. Myagkova et al.

strong personnel potential for the development of the industry, and a significant demand for innovations. The most promising sectors for the development of innovations in Russia are the aerospace sector, the field of nanotechnology, the production of composite materials, nuclear and hydrogen energy, the development of biomedical technologies for life support and human and animal protection, rational use of natural resources, and environmental protection. Leaders of innovative projects have the opportunity to choose among various sources of financing—from traditional and time-tested to modern and developing. After analyzing and studying all possible sources for financing innovative projects, their composition is determined. The primary source of innovation funding is the state. The most important positive factors of this source of financing are its high reliability, the state’s interest in the successful implementation of the project, and the definition of a sales market. The paper notes the role of public finance or crowdfunding, which is becoming increasingly popular. With the help of special Internet sites, it provides an opportunity to raise the necessary funds. ICO is considered as a new source of financing; it attracts investments by selling investors a fixed number of new units of cryptocurrencies. As a result of the study, the main risk groups in the field of financing innovative projects are identified. Their risk probability is high, and that can lead to a significant reduction in the financial result when implementing innovations. The risks include risks to project design and viability and project developers’ competence and reliability, regulatory risks, and risks of cryptocurrency volatility. The paper also developed specific measures to minimize risks and prevent or reduce financial losses.

References Akhmadova, Yu.A., Garipova, Z.L.: Modern sources of financing innovative projects. Financ. Manag. 3, 45–54 (2019) Antonov, G.D., Ivanova, O.P., Tumin, V.M.: Organization Risk Management: A Textbook. INFRA-M, Moscow (2017) Federal State Statistics Service: Financing science from the federal budget, 2000–2018 (2019a). https://www.gks.ru/folder/14477 Federal State Statistics Service: Gross domestic product, 2011–2018 (2019b). https://www.gks.ru/ storage/mediabank/tab1(1).htm Federal State Statistics Service: Key indicators of innovation, 2010–2018 (2019c). https://www. gks.ru/folder/14477 Fedorova, T.A.: ICO and economic security issues. Tech. Technol. Prob. Serv. 1(43) (2018). https://cyberleninka.ru/article/n/ico-i-problemy-ekonomicheskoy-bezopasnosti Gordina, V.V.: Features of accounting for risk factors in assessing the value of innovative projects. Financ. Manag. 1, 57–63 (2019) Kolesov, K.I.: Financing innovative projects: textbook. Allowance. Nizhny Novgorod State Technical University named after R.E. Alekseev, Nizhny Novgorod (2017) Lisitsyna, E.V., Tokarenko, G.S.: Risks of financing ICO projects. Financ. Manag. 1, 98–105 (2018)

Financing Innovative Projects: Challenges, Risks, and Opportunities

195

Lukasevich, I.Ya.: ICO as a tool for financing business: myths and reality. Finance 1, 42–49 (2019) Proskurin, V.K.: Analysis, evaluation, and financing of innovation projects: a training manual, 2nd edn., ext. and rev. INFRA-M, Moscow (2016) Sedov, D.N., Kornilov, D.A.: Financing innovative projects. Innov: Electron. Sci. J. 4(29) (2016). http://www.innov.ru/science/economy/finansirovanie-innovatsionnykh-proe/

The Russian Area Digitalization Index to Assess Digitalization Vectors in the Program-Targeted Administration Model Lilia V. Matraeva , Natalia A. Korolkova , Olga V. Kaurova , Alexander N. Maloletko , and Olga E. Bashina Abstract Foreign and domestic methods, indices and indicators used to assess the level of development of the digital economy are considered. Their critical analysis in terms of regional scalability is provided. The authors present the approach to building the digitalization index of Russian regions. The index measures the level of digitalization in a region by 48 parameters, grouped into three main groups: “perception of the processes of digital transformation of the subject of the Russian Federation,” “preparedness of the digital environment,” and “effects of digital transformation for the economy and social sphere of the region.” The rating provides monitoring, evaluation of development, manageability, efficiency, and effectiveness in the context of interests and involvement of the main participants in the digital transformation process. The main participants in the digital transformation process are the following: authorities (states); representatives of the business community; citizens of the Russian Federation. A feature of the proposed approach is the accounting, when determining subject areas and composition of indicators and strategic priorities of Russia in the field of digitalization. The authors assume that the Index will be used by regional authorities to specify the provisions of regional projects conducted in the framework of federal projects of the national L. V. Matraeva
N. A. Korolkova Russian State Social University, Moscow, Russia e-mail: [email protected] N. A. Korolkova e-mail: [email protected] O. V. Kaurova (&)
A. N. Maloletko Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. N. Maloletko e-mail: [email protected] A. N. Maloletko Research Group OMNIBUS, Moscow, Russia O. E. Bashina Moscow Humanitarian University, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_21

197

198

L. V. Matraeva et al.

program “Digital Economy of the Russian Federation.” Furthermore, the Index will be used to monitor its progress in the field of digital development and analyze problematic issues in the implementation of the digitalization strategy in the constituent entities of the Russian Federation.




Keywords Digital economy Area statistics and measurement index Digital dividends Trust in digitalization








Digitalization

1 Introduction The digital economy is a natural stage of the Fourth Industrial Revolution. Within the digital economy, digitized big data is a key factor in production. Compared with traditional forms of management, the formation of a digital economy can significantly increase the efficiency of various types of production, technologies, equipment, storage, sale, and delivery of goods and services. The introduction of Internet technologies in all areas of not only public but also production activities has necessitated quantitative and qualitative assessments of the degree of development and dynamics of these processes (Antipina 2018, Bukht and Heeks 2017, Demura 2019). The heterogeneity of digital transformation in business and in economic sectors necessitates the development of tools to compare the use and impact of digitalization on the socioeconomic development of different countries and territories (The State Atomic Energy Corporation ROSATOM 2018). A significant amount of research aimed at assessing the digital economy is evidence of this. In international and Russian practice, there are a number of successful and significant examples of rating in the field of evaluating digital transformation processes, including the digitalization of territories. However, existing rating practices focus on various aspects of the digitalization of the economy and have a distinct functional purpose. At the same time, they are at varying degrees of development of research methodology, depth, and completeness of informational foundations. First of all, this is due to the different interpretations of the concept of the “digital economy” since its harmonized definition has not been developed not only in Russian but also in international practice (Gohberg 2019). At the same time, one cannot disagree with the opinion of Polozikhina (2018) about the impossibility of building models and forecasts without studying the very phenomenon of the digital economy. Varying degrees of targeted human actions in accordance with the developed models, forecasts, and plans affect the course of real processes, including in the field of transformation of the digital economy. The most common definitions referenced in normative documents when developing indexes include the following: • An economy in which, thanks to the development of digital technologies, there is an increase in labor productivity, and competitiveness of companies, lower

The Russian Area Digitalization Index to Assess Digitalization Vectors …

199

production costs, creation of new jobs, along with the reduction of poverty and social inequality (Official website of the World Bank 2016); • A global network of economic and social activities supported by platforms such as the Internet, as well as mobile and sensor networks (Australian Government: Department of Broadband, Communications and the Digital Economy 2009); • Digital equipment manufacturing, publishing, media production, and programming (Rhodes and Rathbone 2016; Official Website of the UK Government 2017); • An economy dependent on digital technology (European Commission— Directorate-General for Taxation and Customs Union 2014). In Russia, the term “digital economy” is formulated in the Strategy for the Development of the Information Society in the Russian Federation for 2017–2030. This term is understood as “economic activity in which digital data is a key factor of production. Compared to traditional forms of management, processing large volumes and using the results of data analysis can significantly increase the efficiency of various types of production, technologies, equipment, storage, sale, delivery of goods and services” (Presidential Executive Office 2017). However, a clear answer to the question on which direction should the digital economy be measured and evaluated in this definition is not contained. Analysts at the Russian Electronic Communications Association, which was established in Russia in 2006, provide a more specific definition. In their opinion, the digital economy is made up of market segments where the value added is created using digital technology (Polozikhina 2018). Next, we present several definitions used in the scientific and professional communities, reflecting the different views of the authors on the concept of digital economy: • An economy is based on digital technologies. However, to a greater extent, we mean the implementation of business operations in markets based on the Internet and the World Wide Web (Official website of the British Computer Society (BCS)—The Chartered Institute for IT 2013); • Use of digital technologies to change a business model (Gani and Fernando 2018); • Integration of digital technologies into everyday life by the digitization of everything that can be digitized (Ochs and Riemann 2018); • The process of converting information into a digital (bits—0,1) format (i.e., readable by computers). This allows any information to be stored, processed, and transmitted easily by using a network of computers (Gupta 2019); • This is the integration of digital technologies into everyday life. Digitalization also means the process of digitizing everything possible and the process of converting information into a digital format (Croon Fors 2013). Obviously, the diversity of opinions presented on the essence of the digital economy gives rise to different versions of its description. If we summarize these approaches, then we can distinguish 4 main points of view:

200

L. V. Matraeva et al.

1. Digitalization is the integration of digital technology in everyday life by digitizing everything that can be digitized. Digitalization is a method, practice or process of converting (usually analog) information into a digital form that is read by a computer. This is a term that is sometimes also referred to as “otsifrovka.” Also, this is an interconnected concept that relates to the actual conversion of analog data into digital bits of series 1 and 0, a binary language including the translation of printed materials on digital media. 2. Using digital technology to modify business models. The goal is to capitalize on the use of new, advanced technologies, utilizing the dynamics of a digital network and the gigantic digital flow of information. 3. Changes and transformations in the world as a result of using new ways of communication and virtual world constructions. 4. The following definition of the digital economy is closest to our point of view: the digital economy as the activity of creating, disseminating and using digital technologies and the products and services associated with them (Gohberg 2019). At the same time, we agree with the opinion of Polozikhina (2018) that, in this definition, the relationship between digital and ordinary activities is not clear. Also, it’s not clear what kinds of digital technologies are involved. Currently, the top 10 trends in the digital world, according to Panetta (2018), are autonomous things, augmented analytics, AI-driven development, digital twins, empowered edge, immersive technologies, blockchain, smart spaces, digital ethics and privacy and quantum computing.

2 Materials and Methods 2.1

Overview of International Ratings and the Possibility of Applying Them to the Construction of a Digitalization Rating of Russian Regions

The most authoritative and recognized approach to assessing digitalization at the country level are the following two indexes: the Networked Readiness Index (NRI), created by the World Economic Forum, and the Digital Economy and Society Index (DESI), developed by the European Commission (Cámara and Tuesta 2017). The NRI Index is a comprehensive indicator of the level of development of information and communication technologies. Using the NRI, the drivers and impact of network readiness and ICT capabilities in a country are assessed. It consists of three components. Component 1 is the ICT environment offered by a given country or community (market, political, regulatory, and infrastructural environments). Component 2 is the willingness of key stakeholders of the country (individuals, enterprises, and governments) to use ICT. Component 3 is the use of ICT among these stakeholders. The peculiarity of the index is that it takes into account the equal role and responsibility of all the “players” of digital society

The Russian Area Digitalization Index to Assess Digitalization Vectors …

201

(individuals, business, and government) (The official website of the World Economic Forum 2016). The DESI Index is a comprehensive indicator that summarizes the achievements of the EU countries in 30 indicators. Furthermore, it tracks their evolution in the following five areas of AI: communication (25%), human capital (25%), use of the Internet including for personal purposes (15%), digital technology integration (20%), and state electronic services (15%). The DESI Index is not traditionally economic and technological. The fundamental feature of the index is that it combines the economic and social indicators of the development of society, which are presented in separate sections of the index site. The index has a more social focus and reflects socio-economic integration. Moreover, index databases include the databases of Eurostat, the International Telecommunication Union (ITU), and the United Nations (UN). Currently, the index is gaining popularity, and UNCAD conferences discuss the possibilities of measuring the information society, including the DESI Index (Tkalich 2017). There are a sufficient number of private ratings that give an idea on one of the areas of digitalization, the most complex of which include the following: PwC company rating “The Future is Coming” (PwC, 2017) is a city readiness rating in which large cities and metropolitan areas evaluate their ability to introduce new technologies. The readiness of the city is assessed by several parameters, such as technological readiness; strategies and legislation that support the adoption and use of new infrastructure; the availability of ready-made prototypes; and the social readiness of citizens to use new technologies. In this rating, no attention is paid to the effects of the introduction of technology, but, in our opinion, a very interesting approach in which the social readiness of citizens to use new technologies, including not only skills but also motivation, is considered as one of the key factors of digitalization. The Digital Evolution Index of Mastercard and the School of Law and Diplomacy at Tufts University reflects progress in the development of the digital economy of different countries, as well as in integrating the global network into people’s lives. The rating evaluates the following four main factors that determine the pace of digitalization: level of supply (Internet access and infrastructure development level); consumer demand for digital technology; institutional environment (government policy, legislation, and resources); and innovative climate (investments in R&D and digital startups). An interesting fact is that within the framework of the index, they began to evaluate the level of digital trust of the population since 2017. This is “a factor that is not easy to understand and measure, but which, however, remains a key condition for the development of the digital economy” (Official website of the Mastercard 2017). The following ratings are very narrowly specialized, including the Global Cybersecurity Index (aimed at studying various aspects of cybersecurity), ICT Development Index, and IDI. Also, the rating of the International Telecommunication Union (focused on the parameters of ICT development in the country) and the E-Government Development Index (a rating in one of the areas of the digital economy, namely public administration and public services) are highly

202

L. V. Matraeva et al.

specialized. Within the BCG e-Intensity index, the emphasis has been shifted to mobile technologies. The Global Connectivity Index (GCI, Huawei) takes into account the degree of development of technologies in the country, such as big data, cloud technology, data centers, the Internet of Things, and broadband data. Within this index, particular attention is paid to measuring digital inequality (The State Atomic Energy Corporation ROSATOM 2018; Gnezdova 2017). These ratings are also highly specialized.

2.2

Analysis of Existing Russian Studies in the Field of Digital Economy Assessment

Rating of Russian regions by the level of development of the information society (Ministry of Communications of Russia)—the purpose of this rating is to analyze the current situation in the field of regional informatization. It was created to monitor the achievement of the goals of the concept of regional informatization and the implementation of the state program of the Russian Federation’s Information Society (2011–2020). When calculating a place, the level of development of special information systems is taken into account. Among the priority sub-indices of 2017, the following stand out: ICT infrastructure, e-government, ICT in education, ICT in healthcare, and ICT in the field of transport. This is one of the most comprehensive and methodically developed indexes for assessing the digitalization of territories in the Russian Federation. However, it loses its relevance as it is the information support of the state program, which expires in 2020. National Development Index of the Digital Economy for Cross-Country Comparison (State Corporation ROSATOM). The development of a conceptual index scheme is based on an approach according to which the potential of digital technologies that contribute to socioeconomic development can be realized only under certain conditions. The conditions include the following: state regulation stimulating economic growth; availability of necessary human capital; favorable business climate; effective scientific and innovative system; developed secure digital infrastructure; and a competitive digital economy. The number of basic indicators is 200. Accounting for industry sections and composite indicators, there are more than 400. The index is built on the basis of the sequential aggregation of indicator values. Moreover, aggregation occurs at several levels, allowing you to build country ratings in certain areas and factors of digital transformation with varying degrees of detail. Scaling the index into regions is not possible due to a lack of data in the regional context and the difficulty associated with collecting such data. “Digital Russia” rating (Skolkovo). This rating methodology is based on expert assessment and permits a generalized reflection value of the development of digitalization in open sources at the level of each of the 85 constituent entities of the

The Russian Area Digitalization Index to Assess Digitalization Vectors …

203

Russian Federation (Moscow School of Management SKOLKOVO 2018). To improve the accuracy of the assessment, the study uses the following seven sub-indices, through which a score is made: 1. Regulatory and administrative digitalization indicators; 2. Specialized staff and training programs; 3. The presence and formation of research competencies and technological groundwork, including the level of research and development work; 4. Information infrastructure; 5. Information security; 6. Digitalization economic indicators; 7. The social impact of introducing digitalization. In turn, sub-indices are evaluated through sub-factors. In this study, events, facts, and other information that is obtained from open sources are sub-factors. In our opinion, a purely expert assessment based on informational facts is too volatile a basis for determining the index. In case of widespread use, manipulating the ratings of individual regions through the media is possible.

3 Research Results The framework of the author’s methodology for determining the index of digitalization of Russian regions (IDRAA) highlights three upper-level index components that reflect analytical sections (layers). Analytical sections (layers) focused on key areas that describe the main aspects of the region’s digitalization process and, together, form an extended general framework model for this process. The first index component is “Perception of the processes of digital transformation of the subject of the Russian Federation” (hereinafter referred to as “the first index component”). This index component is built in a regional context based on the public opinion of citizens and the business community of the Russian Federation on the processes of the digital transformation of the region. In particular, it includes a reflection of satisfaction with both state and regional digitalization programs. Also, this index includes a study of factors that influence this satisfaction in Russian realities. The information basis for this index component is the data from specialized sociological studies. These data act as a channel of social diffusion of the possibility of feedback, reflecting the degree of public reaction to digital transformation, including at the regional level. Thus, the index can carry not only an information-analytical function but also be an interactive tool. Through this tool, the main participants in the process of the digital transformation of the region can influence the adjustment of public policy. In particular, they can influence the reform in this area through their direct involvement in the assessment of effectiveness. On the part of the population, general satisfaction with the digital transformation process for the Russian Federation is based on three components: trust, motivation,

204

L. V. Matraeva et al.

and expectations. Many ratings for evaluating the digital transformation of territories are guided only by loyalty assessments. This is insufficient because it reflects only the population’s subjective perception; it is not practical to be limited to the indicated component’s assessment. At the same time, this assessment component allows us to maintain parity between economic, political, and social aspects when implementing state policy in the field of regional digitalization. The information basis for calculating this index component is the results of a specially organized sociological study by region. The recommended sample size is 25,000 effective questionnaires, taking into account the fulfillment of the requirement of sample representativeness at the regional level. The second index component, “Factors for the development of regional digitalization,” reflects the willingness and ability to transform the regional digital environment. It focuses on the description of the main infrastructure factors that can become drivers of the digitalization process in the region. The main infrastructural factors include the following: the availability of appropriate human capital, innovative and investment potential of the environment, and the level of information system development in state authorities. Also, the main infrastructural factors include the level of development of the information and telecommunication culture, and the willingness of the participants in the digitalization process to use domestic software. Within the framework of this index component, a special area of analysis is the assessment of the region’s industry readiness for digital transformation. This direction reflects the degree of penetration of digitalization processes into priority areas of activity, encompassing agriculture, industry, power engineering, urban economy, healthcare, education, transportations and logistics, and public administration. The main data sources are official government data. The third component index is “The effects of digital transformation for the region’s economy and social sphere.” It reflects the final effects of digital transformation for the economy, the social sphere of the region (along the tracks), and the population, business, government, and key industries identified in the second index component. Currently, the main effects of digitalization are associated with the fact that the introduction of new ICTs allows the improvement of technological processes and product quality. Also, new ICTs permit the optimization of the organization in various fields of activity, and finally, it contributes to the enhancement of health and quality of life (Polozikhina 2018). The effects (“dividends”) received from digital transformation are listed in the World Development Report (World Bank, 2016). Effects include the following: increased productivity; increasing the competitiveness of companies; lower production costs; fuller satisfaction of the needs of people; creation of new jobs; overcoming poverty and social inequality.

The Russian Area Digitalization Index to Assess Digitalization Vectors …

205

4 Conclusions The advantages of this assessment can be distinguished as the following: • Objectivity ensured through the use of official and departmental statistics as an information database, which also observes the optimality of the information load on key data providers; • Integrity aimed at the harmonious development of various fields of activity within the framework of the economy and social sphere of the subject of the Russian Federation; • The rating building accounts for the possibility of preventing the occurrence of imbalances in digital transformation at the regional level; • When constructing the rating, both priority goals and objectives in the field of digitalization development at the federal level and priority goals and objectives of the digital transformation of the constituent entities of the Russian Federation are taken into account. Their relationships and interdependencies are also taken into account; • The descriptions and indicators included in the index are not too general; they allow users to give information obtained as a result of monitoring a clear idea of the direction and consequences of the impact factor being studied; • The rating implies a balanced assessment of the development of digital transformation in the regional and sectoral contexts. The construction of the rating takes into account that the set of indicators and indicators of the digital development of the regions reflect the interests and involvement of all of the main subjects of the digitalization process (constituent entities of the Russian Federation). In particular, the rating takes into account aspects of the involvement of representatives of the business community and citizens of the Russian Federation that lie beyond the scope of regulation. At the same time, the formation and selection of indicators not only takes into account state requirements for the digital transformation process (which are established in the main regulatory acts governing digitalization within the Russian Federation) but also on the basis of an analysis of requirements and expectations from representatives of the business community and citizens of the Russian Federation. The proposed index allows for several areas of analysis. These include comparative analyses between regions, individual analyses of the selected index components (which are useful for developing a policy for the regions’ digitalization), and an analysis of the impact of digitalization on industries and target groups. Currently, the limitation of the proposed index is comparability with previous years since many of the indicators only began to be calculated in Russian statistics with the introduction of the national “Digital Economy” program.

206

L. V. Matraeva et al.

References Antipina, N.I.: Transformation of Russian business in the transition to a digital economy: Sectoral and regional aspects. Econ. Sci. Mod. Russia 2(81), 102–111 (2018) Australian Government: Department of Broadband, Communications and the Digital Economy: Australia’s digital economy: Future directions (2009). http://ict-industry-reports.com.au/wpcontent/uploads/sites/4/2012/08/2009-Digital-Economy-Future-Directions-Snapshot-DBCDE2009.pdf Official website of the British Computer Society (BCS) – The Chartered Institute for IT: The digital economy (2013). https://policy.bcs.org/position_statements/digital-economy Bukht, R., Heeks, R.: Defining, conceptualising and measuring the digital economy. Dev. Inf. 68, 1–24 (2017) Cámara, N., Tuesta, D.: DiGiX: the digitization index. BBVA Res. 17(03) (2017). https://clc.to/ NBOBEA Croon Fors, A.: The ontology of the subject in digitalization. In: Luppicini, R. (ed.) Handbook of Research on Technoself: Identity in a Technological Society, pp. 45–63 (2013). https://www. igi-global.com/viewtitlesample.aspx?id=70347&ptid=67420&t=The%20Ontology%20of% 20the%20Subject%20in%20Digitalization&isxn=9781466622111 Demura, N.A., Yarmolenko, L.I., Kazhanova, E.Yu.: Digitalization as a necessary condition for the economic development of Russia and the regions. Econ. Sustain. Dev. 2(38), 126–130 (2019) European Commission – Directorate-General for Taxation and Customs Union: Commission expert group on taxation of the digital economy: Report (2014). https://ec.europa.eu/taxation_ customs/sites/taxation/files/resources/documents/taxation/gen_info/good_governance_matters/ digital/report_digital_economy.pdf Gani, A.B., Fernando, Y.: Concept and practices of cyber supply chain in manufacturing context. In: Mehdi Khosrow-Pour, D.B.A. (ed.) Encyclopedia of Information Science and Technology, pp. 5306–5316. IGI Global, Hershey (2018). https://doi.org/10.4018/978-1-5225-2255-3. ch460 Gnezdova, Yu.V: The development of the digital economy of Russia as a factor in increasing global competitiveness. Intell. Innov. Invest. 5, 16–19 (2017) Gohberg, L.M. (ed.): What is the Digital Economy? Trends, Competencies, Measurement. Publishing House of the Higher School of Economics, Moscow (2019) Gupta, V.: Procurement strategies for digital supply chains: concepts and best practices. In: Sabri, E. (ed.) Technology Optimization and Change Management for Successful Digital Supply Chains, pp. 17–38. IGI Global, Dallas (2019) Moscow School of Management SKOLKOVO: Center for Financial Innovation and Cashless Economics. The methodology for calculating the Digital Russia index of the constituent entities of the Russian Federation. Skolkovo Publishing, Moscow (2018). https://clc.to/bvtFoA Ochs, T., Riemann, U.A.: IT strategy follows digitalization. In: Mehdi Khosrow-Pour, D.B.A. (ed.) Encyclopedia of Information Science and Technology. Information Resources Management Association, Hershey (2018) Official website of the Mastercard: Digital press kits: Digital evolution index 2017 (2017). https:// newsroom.mastercard.com/digital-press-kits/digital-evolution-index-2017/ Official website of the UK Government: UK digital strategy 2017 (2017). https://www.gov.uk/ government/publications/uk-digital-strategy/uk-digital-strategy#executive-summary Official website of the World Bank: World development report 2016: Digital Dividends (2016). https://clc.to/iVHbCg

The Russian Area Digitalization Index to Assess Digitalization Vectors …

207

Panetta, K.: Blockchain, quantum computing, augmented analytics and artificial intelligence will drive disruption and new business models (2018). https://clc.to/m415tQ Polozikhina, M.A.: Digital economy as a socio-economic phenomenon. Econ. Soc. Prob. Russia 1, 8–38 (2018) Presidential Executive Office: Decree of the President of the Russian Federation “On the Strategy for the Development of the Information Society in the Russian Federation for 2017–2030” (May 09, 2017 No. 203) (2017). http://kremlin.ru/acts/bank/41919 Rhodes, C., Rathbone, D.: Digital economy: Statistics and policy. Briefing Paper, CBP 7610 (2016). https://researchbriefings.files.parliament.uk/documents/CBP-7610/CBP-7610.pdf The official website of the World Economic Forum: Global information technology report 2016 (2016). http://reports.weforum.org/global-information-technology-report-2016/ The State Atomic Energy Corporation ROSATOM: National digital economy development index: Pilot Implementation. Rosatom, Moscow (2018) Tkalich, T.A.: Evaluation and forecasting of performance indicators of the digital economy by the method of ABC analysis. Econ. Power 3, 16–20 (2017)

Cognitive Fuzzy-Logic Modeling Tools to Develop Innovative Process Management Procedures for Scientific-Industrial Clusters Arthur E. Zaenchkovski , Elena A. Kirillova , Marina V. Golovinskaya , Elena A. Sazonova , and Veronika L. Borisova

Abstract Making informed decisions at the strategic level is rather complicated and requires a methodological and instrumental base due to the substantial size and heterogeneity of innovative scientific and industrial integration formations. The paper shows existing limitations on the tools used. The authors argue that their improvement with the use of fuzzy logic will enhance the effectiveness of decisions on the development of the region. Thus, the aim of the study is to develop a methodology for managing innovative processes of scientific and industrial structures based on the fuzzy sets theory. This will enable a more complete and clear representation of socio-economic systems. In this regard, it seems most appropriate to integrate fuzzy algorithms with the decision support system in the subject area of this work. To confirm the hypothesis, the authors describe the mechanism developed for managing innovation processes within a regional scientific and industrial

A. E. Zaenchkovski
E. A. Kirillova Smolensk Branch of the National Research University “Moscow Power Engineering Institute”, Smolensk, Russia e-mail: [email protected] E. A. Kirillova e-mail: [email protected] M. V. Golovinskaya
E. A. Sazonova
V. L. Borisova (&) Smolensk Branch, Russian University of Cooperation, Smolensk, Russia e-mail: [email protected] M. V. Golovinskaya e-mail: [email protected] E. A. Sazonova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_22

209

210

A. E. Zaenchkovski et al.

cluster, using elements of the neural simulation framework. As an example confirming the hypothesis of the study, a feasibility analysis for the implementation of an innovative project within the cluster in the territory of the Smolensk region is given. Keywords Innovative processes Cognitive maps


Integration systems
Clusters
Simulation


1 Introduction Integration processes are the main driving force in most developed countries, since they result in the formation of financial, information, production, and intellectual resources that are qualitatively different from natural accumulation and necessary to ensure the long-term sustainable development of an economic unit. Extensive sources of industrial and economic growth cannot give the desired effect; this predetermines availability of integration structures with an innovation component in the capacity of basic development points in the modern national economic system. That is why the issue of integrative cooperation of organizations within the framework of innovative economic modernization is particularly relevant. The above suggests that in the near future, innovation and technological renewal of most industries and the development of entrepreneurship and the competitive environment will be carried out by integrating research and development organizations, small innovative enterprises, and resource-accumulating organizations with significant reserves of production capacity. Thus, creation of cluster formations through science-production alliances becomes a priority, ensuring industry-wide economic growth. The prospect of creating regional research and industrial clusters in Russia is related to issues that cannot be resolved by scattered enterprises, institutions, and venture capital organizations defined in the presidential decrees of the Russian Federation in May 2018. At present, rigid forms of consolidation with the formation of vertically integrated holding structures prevail in the Russian economy, and speculative short-term motives for intercompany integration are dominant. At the same time, the issues of achieving synergy effects and the development of the intellectual and innovative potential of business entities remain unclear. Therefore, integration interaction for strategic development of an innovative organization, along with domestic investment, should be considered strategic course priorities for development of the economy of both individual regions and the country. Because of this, the present study becomes relevant; its purpose is to develop methods for managing scientific and industrial innovation processes based on the application of the fuzzy sets theory, which will enable a more complete and visual representation of socioeconomic systems, as well as what will contribute to the early acceptance and implementation of control actions in economic innovation. Integrating fuzzy algorithms into the information-analytical decision support system is expedient.

Cognitive Fuzzy-Logic Modeling Tools …

211

2 Materials and Methods An approach based on complementary use of traditional economic statistics methods, regional marketing and sociological monitoring methods for managing innovation processes in regional scientific and industrial complexes is noted in the work by Sukhovey. However, these methods are most applicable only concerning the formation of a promising innovative image of a region (Sukhovey and Golova 2012). Cluster analysis methods have great potential for the formation of new competitive advantages of a regional economy, but the poor quality of the business climate and the level of infrastructure development impede the successful development of clusters (Lenchuk and Vlaskin 2017). In order to solve problems of managing innovative processes, such authors as Emeksuzyan, Hadjek, and Henriquez consider the use of game theory models, linear programming, stochastic models, economic analysis and simulation models, and also network models that are more clear than the previously discussed methods and are more effective in the case of integrated use (Emexozyan 2015; Hajek and Henriques 2017; Ayvazyan et al. 2016). Besides simulation, Herrera and Lozano (2009) and Capello and Lenzi (2018) also distinguish methods of evolutionary simulation. However, according to the survey (Use of information and analytical tools, 2018), the use of information and analytical tools to support decision-making at the regional level is not so common, although they are becoming an integral part of the work of most managers at the federal level. In addition, it is worth noting the significant prevalence of standard information and analytical tools which do not always allow in these conditions to obtain a timely picture of the entire situation in the region, to analyze it, and to predict the process development behavior. The described features determine the need to apply methods based on the theory of fuzzy computing to manage innovative integration structures. The fuzzy logic expressions theory is more congenial to human thinking and natural languages than traditional logical systems are. This logic, as a rule, provides effective means of displaying the uncertainties and inaccuracies of the managed socioeconomic systems, which will facilitate the quickest acceptance and realization of control actions in the economic innovation space (García et al. 2015). In particular, it is possible to carry out a simulation of the innovation process within the framework of a scientific and industrial cluster based on the construction and analysis of cognitive maps (i.e., causal networks that reflect the knowledge area of the managerial innovation sphere through arcs and vertices of a fuzzy network). A system of knowledge representation, such as cognitive maps, allows us to perform an assessment and analysis of the current situation and form reasonable recommendations for management decisions. As the key advantages of this approach, many authors (e.g., Bağdatlı et al. 2017; Gupta et al. 2014) point out the rationality of using cognitive maps in situations when one not only must choose between alternative solutions but also thoroughly analyze the situation to identify the relationship between the components of the problem and find optimal solutions.

212

A. E. Zaenchkovski et al.

A characteristic feature of such a problem can be its rather difficult isolation from the context of the situation and the establishment of unambiguous mechanisms for interaction between the elements of a problem system, including in conjunction with the external environment. In this case, the factor aggravating the preliminary study of the problem is most often the lack of information, its asymmetry, and difficulty in determining its level of confidence. At the same time, making decisions in such a situation is complicated by the lack of time and the rapidly changing external environment, including the near neighborhood. The cognitive approach to simulation of such situations contributes to the formalization of models describing the problem area with the leveling of the above objective difficulties. The use of this approach to ensure more active and widespread use of innovations at the enterprise level was justified by Karaev and Naghiev (2012), where the possibility of applying the cognitive approach to a larger number of elements and a higher level of management of innovative systems is also noted. Cognitive maps built on the traditional basis (Papageorgiou 2014) provide an opportunity to assess the expected consequences of the decisions made and predict a qualitative change in the state of the system being assessed but do not allow us to identify and line up the dynamic trends of multidirectional nature within the system, which prevents the adoption of an informed decision. To assess and analyze the scientific and industrial sphere infrastructure components, it is advisable, in the author’s opinion, to use fuzzy cognitive maps. Unlike simple cognitive maps, fuzzy cognitive maps are fuzzy oriented graphs with nodes that are fuzzy sets (Kosko 2018). These maps describe not only the nature and direction but also the degree of influence of concepts on each other. Fuzzy cognitive maps are a relatively new tool for cognitive simulation. The use of fuzzy cognitive maps as a means of simulation systems is due to the possibility of a visual representation of the system being analyzed (for this study, it is a scientific and industrial cluster), the flexibility in displaying the subject area (in particular, the areas of managerial competence), and the ease of interpretation of cause-effect relationships between concepts. Alexandrova and Gubernatorov (2015) and Martin and Viñán (2017) used separate elements of fuzzy computing for in-depth analysis of the innovation sphere. Thus, Hadjileontiadou et al. (2015) focused on applying fuzzy logic simulation to the educational process. At the same time, it would be logical to propose the most general, systematic approach, which allows expanding the scope of application of fuzzy simulation tools and simplifying the procedure for their application in regional scientific and industrial complexes, which will increase the efficiency and effectiveness of the formation of justified management decisions.

3 Research Methodology Due to the specifics of innovation activities, in which a significant part of the information is often presented in the form of qualitative characteristics, it is frequently true that the strength of the relation can be correctly determined only

Cognitive Fuzzy-Logic Modeling Tools …

213

through expert evaluation. Experts evaluate alternatives not according to certain criteria but immediately across the entire set of possible criteria (indicators) in the framework of specially organized expert survey procedures. This option involves the use of a pairwise method of comparing alternatives with the subsequent formation of a matrix of pairwise comparisons. The algorithm for choosing the best alternative is based on the formation of a generalized assessment, which in turn is based on the aggregation of individual criteria (expert) assessments or matrices of individual expert preference orders. Under conditions where there are multiple criteria, an evaluation model allows us to obtain a generalized estimate that provides the basis for ordering preference alternatives, either dividing alternatives into groups ordered by quality or choosing the best alternative. In the case of quantitative estimates of alternatives by criteria (indicators), various convolutions are used to form a generalized estimate (additive, multiplicative, etc.) with the corresponding axiomatic justification, and there are a significant number of methods based on them. However, when expanding the number of concepts, the resulting parameters can be added automatically to the input data set or obtained from relevant external sources. The following indicators can be considered the main concepts of a cognitive map for a certain innovation-industrial association, for example the level of innovation activity of enterprises, the impact of regional taxes on innovation, innovation investment volume, innovation effectiveness, etc. It is proposed to calculate the consonance and dissonance of the map as analytical indicators for the innovation sphere on the basis of a transitively closed matrix of mutual influences between concepts. A consonance determines how consistent the presence of concepts is in the simulated system, and is traditionally calculated by the formula:


Vij þ V ij



Cij ¼




; Vij þ V ij where: Vij —the largest positive path from concept i to concept j; V ij —the smallest negative path from concept i to concept j. The dissonance of the influence of a concept on another concept is determined by the formula: dij ¼ 1  Cij To calculate the mutual influence of a concept on another concept, the following formula is used:

214

A. E. Zaenchkovski et al.





Pij ¼ signðVij þ V ij Þmaxð
Vij
;
V ij
Þ for Vij 6¼ V ij Further, based on the analysis of the cognitive map, it is calculated and evaluated according to the formula of how matched all the elements are for i = 1… n of the map: 1 ~ Ci ¼ n



n
X vij þ
vij




;


vij
j¼1 vij þ


where vij ;
vij —the degree of positive and negative influence (including indirect) of the i-th element of the region’s innovation environment on the j-th element, respectively. If these indicators for some i are below the planned value, the innovation environment should be modified based on the targeted redistribution of the mutual influence of the concepts. To take into account the time factor, which affects (among other things) changes in the “strength” of relations, we can use the following formula: Kj ðt þ 1Þ ¼ Kj ðtÞ 

N X

signðDKi ðDtÞÞ~ wij DKi ðDtÞ;

i¼1

where: Ki and Kj are the values of the i th and j th nodes (concepts) of the cognitive map, ~ ij —weights of the mutual influence of the concepts K i and K j; w t, t +1—discrete points in time; N—number of concepts; sign is the sign function  and —additive and multiplicative convolution operations, respectively. This expression is best suited to reflect relationships that are “dynamic” in nature, that is, significantly changing in time and for which this change is critical. For example, we consider the assessment of the impact of investment on infrastructure factors. During the initial stage, they lead to a decrease in the performance indicators of small innovative enterprises that are created within the framework of the infrastructure, but in case of the successful implementation of the investment project, the influence becomes more positive. Describing relationships with expressions of this type is also required when taking into account the seasonal factor. In this case, it becomes possible to analyze the complex functional dependences of the influence of some concepts on others. For example, the relationship between the impact of the investment value in a certain sector of the regional economy on the receipt of funds into the regional budget can be described by the function having the form shown in Fig. 1.

Cognitive Fuzzy-Logic Modeling Tools …

215

Fig. 1 The relationship between the potential concepts of “investment volume” and “budget revenues” of the cognitive map for an innovation environment

The presented type of function is determined by the fact that at the initial stage, up to a certain level of investment in the relationship between the considered concepts is negative, as the profit of enterprises is reduced. Then, in the segment from, the level of investment may be excessive and provoke an increase in the supply of goods, works, and services. As a consequence, it will also create an increase in the level of competition and a decrease in prices and profits, which, in turn, will cause a corresponding redistribution of the resulting income indicators. Application of the described formulas and models of the cognitive map characterizing the results of the integrated industrial-innovative system activity makes it possible due to its clarity and simplicity to obtain timely information about the current state of the system in today’s dynamic conditions. This forms the basis for making decisions on the management of scientific and industrial clusters: to develop and justify socio-economic and innovative strategies for the development of territories, to determine the target directions of its economic development, and to develop ways to modernize innovative business facilities in general. There is a conceptual algorithm that implements the method for constructing cognitive fuzzy-logical models that describe innovative processes in scientific and industrial clusters. It can be represented as follows. At the first stage, the composition of the structure (set of concepts) of a cognitive fuzzy-logical model is formed and analyzed. Here, sets of concepts are defined that characterize the systemic factors of the system being analyzed; many concepts are formed that characterize the system under study, and the composition of the fuzzy-cognitive model structure is formed. Then, at the second stage, the coordination degree for the relations of influence (causality) is established between each pair of concepts that characterize system factors. It also defines the relations of influence between concepts in the form of weights, which are later displayed as arcs of a directed graph characterizing fuzzy-causal relationships between concepts. After that, a mock-up of a cognitive matrix is created, indicating the interdependencies between the concepts of the set K sys, as well as a reflection of the degree of interaction between them. As a result, a fuzzy-cognitive map is formed, describing the mutual influence of the system factors of the innovation and production business environments. It should be understood that the matrix of influences reflects certain idealized relations of the mutual influence of concepts and may not fully reflect the mutual influence of real processes and objects in the simulated system. Therefore, the

216

A. E. Zaenchkovski et al.

further use of fuzzy mathematical methods allows us to approximate the constructed model with the actual state of the system. To do this, the third stage describes the assessment of the system factors’ influence on the identified target concepts. Within the framework of the model, the input and output variables of the model, the specification of the weights of the input variables, and the definition of the approach are determined, according to which the rate of change of the target concepts is calculated. The weights of the input variables of the estimation model d are specified by an expert. Afterward, the term sets are determined, and the values for the logical-linguistic scales of the model’s input and output variables are set. At this stage, the classification definitions for the qualitative assessments of the output variable Kvl are also determined, and the basis for the production rules of the model in assessing the influence of various elements on the functioning of the innovation-industrial cluster and on the target concepts is determined. On the basis of the classification definitions of the qualitative estimates of the output variable Kvl formed at the previous step, the initial base of the production rules of the fuzzy-logical model is formed. At the last stage, a fuzzy impact assessment model is formed. It is here that the final structure of the model for evaluating and selecting measures for managing innovation processes by the scientific and industrial cluster and its elements is determined, plus the conditions and mechanisms for selecting alternative concepts K are set. The degree of influence of concepts K on target concept Kow is described. Figure 2 shows an example of the structure of a cognitive fuzzy-logical model of the innovation-industrial cluster.

Fig. 2 The structure of the cognitive fuzzy-logical model of an innovation-industrial cluster

Cognitive Fuzzy-Logic Modeling Tools …

217

4 Research Results and their Interpretation Let’s evaluate the innovative project “Structure,” which is planned to be implemented within the framework of the scientific and industrial composite cluster of the Smolensk region, in the capacity of approbation of the described methodology. Within the framework of the project, it is planned to develop the production technology of three-dimensional, woven and nonwoven textile structures and PCM based on them, preforms for the manufacture of blades and other elements of wind generators, as well as products for the automotive industry and shipbuilding. The cost of the project is 183,260,178 rubles; the payback period is four years. We will use the widespread fuzzy logic environment for the implementation of the fuzzy logic apparatus. The following variables, characterizing the main indicators of the estimated innovative project, were chosen as input (Fig. 3): “Opit” is the existing scientific and technical groundwork in the implementation of innovative projects. It is a set of constantly updated reserves of knowledge and technical capabilities as the main source for the further development of innovative and industrial processes at various hierarchical levels. Many authors (Novikov and Veas Iniesta 2019; Kravchenko et al. 2012) attribute this indicator to the key ones, given that the indicator is, in fact, a comprehensive assessment of the availability levels for existing and new technologies (design, production, and testing) necessary to create or modernize existing innovative products in the industry. Innovation solutions, design schemes, and technologies that should be developed and experimentally tested before the start of full-scale development work can serve as such a groundwork. “Uspex” is the share of innovative projects that are involved in the contour of the considered innovative-industrial system and have reached the planned performance indicators. The importance of this indicator is confirmed in the works of a number of authors (Novikov and Veas Iniesta 2019; Kelly et al. 2018). Non-systemic effects (synergies, goodwill formations, restructuring of the value chain, and others) should also be taken into account when evaluating effectiveness, which can also be assessed using the mechanisms of the proposed model, complementing the basic efficiency assessment.

Fig. 3 Membership functions of the InteresRegOrg variable

218

A. E. Zaenchkovski et al.

“Interes” determines the degree of social demand by the region in the implementation of the project. The feasibility of assessing the social significance of the project is confirmed by the data from a number of studies (Novikov and Veas Iniesta 2019; Havas 2016), the authors of which noted that the innovation and industrial spheres should be perceived not so much as a simple set of resources and opportunities to use them, but targeted to the realization of the social needs of society. At the same time, these same resources act as factors that predetermine the effectiveness of ways of organizing innovation activity in an industrial environment in the context of various socio-economic impact factors. The relevance of the social orientation of the innovation process was also confirmed by the comments to the list of critical technologies (counterterrorism, creating a favorable environment, biomedical technology, etc.) within the framework of Russian state programs of the scientific and technological sectors. “NalRazr” shows the availability in the region of the material base for the implementation of an innovative project. The output variable—that is, the actual result of the project analysis—is InteresRegOrg, which reflects how much the commercialization of the analyzed innovation project is necessary for the innovative development of the region. To improve the fuzzy inference apparatus efficiency, all values are normalized by bringing to the range from 0 to one, or from 0 to 100%. For example, the normalization of the variable Opit can be carried out according to the following rule: Opit ¼ n = N; where n is the number of projects implemented by the applicant, and N is the total number of projects in this area implemented in the Smolensk region. In the general case, normalization obtained in the same way (e.g., by an expert method, with a constant composition of experts, a standard method of examination, and the use of interface for interaction with the expert decision support system). The normalization procedure is mandatory when using differentiated data sources in the cases discussed above (semi-automatic and automatic data loading), as well as for other cases where incompatibility of the units of measurement may affect the values of the input variables. The next stage involves setting rules with which the fuzzy inference procedure is implemented (in this case, six are enough, but in general, their number is not limited). Restrictions in the system will be formulated as rules like “If Opit = large and Uspex = many and Interes = small and NalRazr = many, then InretesResOrg = low.” Similarly, other restrictions determined by the needs of the Smolensk region can be formulated. So, for estimates there can be: Opit = 0.8; Uspex = 0.3; Interes = 0.75; NalRazr = 0.8. The implementation of a fuzzy inference block for the innovative project under consideration is shown in Fig. 4.

Cognitive Fuzzy-Logic Modeling Tools …

219

Fig. 4 The results for the functioning of the fuzzy output unit

The final variable of InteresResOrg is shown in the lower right block; its value is set to 0.63. It can be interpreted as having a degree of interest in the implementation of the analyzed innovation-industrial project “Structure” equal to 63%. Since 50% was taken as the threshold for the assessment, the interest in implementing this project within the composite cluster of the Smolensk Region can be interpreted in linguistic terms as high. The above method can be the basis for building a knowledge base containing information on alternative development options for the innovative-industrial system being analyzed. This will reduce the level of uncertainty, which has much more general systemic rather than statistical nature when making key management decisions. In addition, the described methodology is of significant practical importance because it can be used as a scientifically based methodological guideline for regional state authorities when choosing projects for their financial support and developing the regional innovative potential.

5 Conclusion The considered mechanism for management of organizational and integration support of the innovation process within the regional scientific and industrial cluster, which uses neural simulation elements in contrast to other well-known mechanisms, allows us to expand the forecasting and analytical capabilities for simulation of organizational solutions and methods for managing the innovation activities of regional scientific and industrial complexes. Taking into account the specifics of the object of study, the mechanism is able to solve information evaluation and analysis problems, which are characterized by uncertainty and inconsistency, originality, and formalization complexity of algorithms for solving logical inference tasks, as well as forming a reasonable basis for making decisions on cluster management at a strategic level.

220

A. E. Zaenchkovski et al.

On the basis of the proposed model of information-analytical decision-making support system operating in the innovation sphere, it is possible to develop a software shell that will facilitate interaction with it for users and will not require any special knowledge from them. The described tool for managing innovation processes will make it possible to increase the efficiency of the management object (regional innovation processes within the scientific and industrial complexes) by achieving optimal parameters of managerial decisions made in the system itself in terms of its impact on the output parameters and parameters that determine them. In addition, the inclusion of elements of fuzzy cognitive simulation framework in the information-analytical decision-making system for evaluation of innovative projects will allow prognostic identification of imbalances in the resulting economic performance of the innovation sector involving regional scientific and industrial complexes. It will also improve the reliability and efficiency of financial and resource logistics and planning the financial sustainability of regions. The proposed methodology was applied to evaluate the innovative project in a cluster in the Smolensk region. The potential for its implementation was rated as high. Acknowledgements The reported study was funded by RFBR, according to the research project No. 18-310-00222.

References Alexandrov, I.A., Gubernatorov, A.M.: Simulation of innovation processes in industries based on the fuzzy logic principles. Mod. Prob. Sci. Educ. 2, 20–25 (2015) Alfaro García, V.G., Gil-Lafuente, A.M., Alfaro Calderón, G.G.: A fuzzy logic approach towards innovation measurement. Glob. J.Bus. Res. 9(3), 53–71 (2015) Ayvazyan, S., Afanasyev, M., Bakhtizin, A., Nanavyan, A.: Simulation the development of regional economy and an innovation space efficiency. Foresight STI Gov. 10(3), 76–90 (2016) Bağdatlı, A., Akbıyıklı, M.E.C., Papageorgiou, R.: Fuzzy cognitive map approach applied in cost– benefit analysis for highway projects. Int. J. Fuzzy Syst. 19(5), 1512–1527 (2017) Capello, R., Lenzi, C.: Regional innovation patterns from an evolutionary perspective. Reg. Stud. 52(2), 159–171 (2018) Emeksuzyan, A.R.: Synthesis of decision-making methods in the management of innovative processes. Resour. Eur. North. Technol. Econ. Dev. 1(1), 84–90 (2015). https://elibrary.ru/ item.asp?id=25296384 Hadjileontiadou, S.J., Días, S.B., Diniz, J.A., Hadjileontiadis, L.J.: Fuzzy Logic-Based Simulation in Collaborative and Blended Learning. IGI Global, Hershey (2015) Hajek, P., Henriques, R.: Modelling innovation performance of European regions using multi-output neural networks. PLoS ONE 12(10) (2017). https://www.ncbi.nlm.nih.gov/pmc/ articles/PMC5624612/ Havas, A.: Social and business innovations: are common measurement approaches possible? Foresight STI Gov. 10(2), 58–80 (2016) Herrera, F., Lozano, M.: Fuzzy evolutionary algorithms and genetic fuzzy systems: a positive collaboration between evolutionary algorithms and fuzzy systems. In: Mumford, C.L., Jain, L. C. (eds.) Computational Intelligence. Intelligent Systems Reference Library, vol. 1, pp. 83– 130. Springer, Heidelberg (2009)

Cognitive Fuzzy-Logic Modeling Tools …

221

Karaev, R., Naghiev, M.: Cognitive approach in development of innovation management models for company. Procedia Soc. Behav. Sci. 58(1), 812–819 (2012) Kosko, B.: Additive fuzzy systems: From generalized mixtures to rule continua. Int. J. Intell. Syst. 33(8), 1573–1623 (2018) Kravchenko, A.Yu., Smirnov, S.S., Reulov, R.V., Khovanov, D.G.: The role of S&T reserves in the perspective armaments development innovation processes: problems and solutions. Vooruzhenie i Ekonomika 4(20), 41–55 (2012) Gupta, S., Kangur, A., Papageorgiou, C., Wane, A.: Efficiency-adjusted public capital and growth. World Dev. 57, 164–178 (2014) Kelly, B., Papanikolaou, D., Seru, A., Taddy, M.: Measuring technological Innovation over the long run. NBER Working Paper No. 25266 (2018). https://www.nber.org/papers/w25266.pdf Lenchuk, E.B., Vlaskin, G.A.: Russian regions investment and innovation potential. Modernization Innov. Res. 8(4s), 667–681 (2017) Martin, J.C., Viñán, C.S.: Fuzzy logic methods to evaluate the quality of life in the regions of Ecuador. Qual. Innov. Prosperity 21(1), 61–80 (2017) Novikov, S., Veas Iniesta, D.: Analysis of development trends in the innovation industry of the Russian Federation. Amazonia Investiga 8(19), 298–307 (2019). https://amazoniainvestiga. info/index.php/amazonia/article/view/231 Sukhovey, A.F., Golova, I.M.: Innovative image of the region as a successful social and economic development. Probl. Econ. Manage. 9(13), 95–102 (2012)

Investment Attractiveness of the Economy of the Republic of Tatarstan: Determining the Possibility of Integration Processes Asiliar I. Gubaidullina

Abstract Investment attractiveness is an urgent problem in the modern economy. Attracting investment remains one of the most critical tasks in regional economic activity. The investment attractiveness is relevant because the region’s improved investment attractiveness creates the conditions necessary for capital inflow and economic growth. However, to improve investment attractiveness, it is essential to develop an effective investment policy. The creation of an effective investment policy should begin with identifying the most attractive types of economic activities for investment. When choosing the type of economic activity for investment, the preference is given to the competitive sectors of the economy with minimal risk. The development of manufacturing sectors of the economy is essential for favorable economic growth. The development of manufacturing creates a strong impetus to economic growth. The paper analyzes various types of economic activities at the sectoral and regional levels. It also studies the interregional cooperation level to create integration ties between regions to formulate sectoral priorities for economic development as strategic guidelines for sustainable economic growth and investment. The paper reveals the relevance of the investment attractiveness for regions, analyzes the position on the investment attractiveness of the manufacturing sector of the regions of the Volga Federal District.








Keywords Investment attractiveness Investment risk Manufacturing industries Types of economic activity Localization Region







1 Introduction One of the main factors in the economic development of the national economy is an investment, which ensures economic welfare growth. A. I. Gubaidullina (&) Center of Advanced Economic Research in the Academy of Sciences of the Republic of Tatarstan, Kazan, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_23

223

224

A. I. Gubaidullina

One of the main tasks of economic systems is the ability to attract investment. The assessment of the region’s investment attractiveness is the most critical aspect of making any investment decision. Depending on its correctness, there may arise certain consequences for the investor, the regional economy, and the country as a whole (Safiullin and Gubaidullina 2017). The investment attractiveness of the region is an essential element in the formation of the investment flow and a key factor for the investor to decide. Management of investment attractiveness requires the development of a methodology for its assessment and the diagnosis of critical factors that determine its strategic level (Safiullin and Gubaidullina 2017). The analysis of economic literature showed that the approaches of different authors in the definition, assessment, and analysis of the concept of “investment attractiveness” differ and complement each other (Bogoviz 2019; Ravzieva and Safiullin 2016; Safiullin and Gubaidullina 2018, Sayfudinova et al. 2016). Thus, I. S. Roizman and I. V. Grishina note that investment attractiveness is interpreted as an indicator of potential solvent demand for investments in fixed assets (Safiullin et al. 2017). According to I. A. Blank, investment attractiveness is a combination of the advantages and disadvantages of investment activities from a particular investor. M. N. Kreinina notes that investment attractiveness is directly dependent on several ratios that characterize its financial condition (Safiullin et al. 2017). A. Mogzoev argues that investment attractiveness is a combination of external and internal investment conditions that determine the possibility of a boundary transition of investment resources (Safiullin et al. 2017). Yu. P. Ryabov and E. P. Ryabova understand the investment attractiveness as socio-economic characteristics of an object according to several parameters, allowing an investor to evaluate the effectiveness of investment (Safiullin et al. 2017). An effective investment policy cannot be substantiated without analysis aimed at selecting the economy’s most attractive sectors. There are many approaches to determining “investment attractiveness”. The analysis of the manufacturing sectors of the Republic of Tatarstan [RT] for identifying the most attractive types of economic activities for the investment and the formation of sustainable preconditions for economic growth requires a multi-level study. Investment risks that create the instability of the processes and the uncertainty of their results are essential elements destabilizing the processes associated with investment activities at the regional level. Riskiness is one of the organic properties of investment activity of all types and forms, regardless of time, which makes it necessary to evaluate and control the parameters of investment activity at all levels of decomposition of the investment potential and the associated investment process. A key factor in the investment attractiveness of economic systems is the “minimality of risks”.

Investment Attractiveness of the Economy …

225

2 Materials and Methods When forming approaches to improving the investment attractiveness of regions, it is crucial to select competitive types of economic activities, since investors are interested in investment objects that show growth in production and profits, because of the desire to minimize investment risks. In this work, we analyze the competitive positions of the regions of the Volga Federal District to determine the Russian regions and the types of economic activities that are most attractive for investment. The competitive position of the economy of the RT is determined. The study was carried out in the form of a dynamic and comparative analysis of economic indicators according to the type of economic activity. The analysis was made based on the type of economic activity in the manufacturing industry. The development of the manufacturing sector is a generator of industrial growth in the territories since the development and deployment of production forces associated with the manufacturing industry in the region lead to the creation of new jobs, improving the economic condition of the region, increasing production and commodity circulation. A powerful factor in the development of the processing sector of the territories is the attraction of investments. Investors prefer the most competitive sector of the economy with the least investment risk. Additionally, economic growth is achieved through the development of innovative entrepreneurship. Therefore, regional economic policy should be aimed primarily at identifying competitive types of economic activities located on the territory of a subject, with subsequent measures for innovative and investment support of such industries. The economic literature cites many factors of the competitiveness of economic systems. Human capital, administrative resources, productive potential are distinguished among competitive factors. In our work, the competitiveness of the manufacturing sector is analyzed through production potential. The production potential of the regional economy includes the combined results and features of the economic activities of enterprises operating in the region (volume and dynamics of production, size of assets, quality and efficiency of their use), the sectoral structure of the regional economy, the level of development of innovative industries. As shown in Fig. 1, the Republic of Tatarstan is the leader in the volume of shipped products [VSP] among the regions of the Volga Federal District, which indicates the strong production potential of the Republic of Tatarstan. The largest share of shipped products belongs to the “production of petroleum products,” which is 30% of the total volume of shipped products from all types of manufacturing activities. The “chemical production” is the second with the specific VSP amounting to 24% in 2016. “Food production, including drinks and tobacco,” is in the third place. The specific volume of shipped products for this type amounted to 16% in 2016. The fourth place is occupied by the “production of rubber and plastic products;” the specific VSP of these products amounted to 7%.

226

A. I. Gubaidullina

Fig. 1 The volume of shipped products in the regions of the Volga Federal District for 2014– 2016 (million rubles) Source (Gubaidullina 2019, pp. 40–42)

“Production of electrical equipment” amounted to 6%, “metallurgical production and production of finished metal products,” and “production of machinery and equipment”—5% each (Safiullin and Gubaidullina 2017). Even though “production of petroleum products” takes the first place in the volume of shipped products in the manufacturing sector, the volume of shipped products of the production of petroleum products in 2016 showed a negative trend relative to 2015. In manufacturing, in 2016, positive dynamics were observed in the chemical industry (106%) and the production of rubber and plastic products (109%). The volume of shipped products in the production of vehicles and equipment in 2016, compared to 2015, increased but did not reach the values of 2014 (Safiullin and Gubaidullina 2017). Thus, in analyzing the competitiveness of the type of economic activity, to highlight the most attractive investment activities, it is not enough to rely only on structural analysis. When analyzing the structure of industry markets at the mesoscale, it is necessary to analyze the localization coefficient (Safiullin et al. 2017): ILj ¼ Djkn=DJk,

ð1Þ

where: ILj—the localization coefficient of industrial production according to the jth type of economic activity of the nth territory; Djkn—the share of shipped products of the jth type of economic activity in the total volume of shipped products according to the kth section of the Russian Industry Classification System (k = 1;6) or in the industry as a whole of the nth territory.

Investment Attractiveness of the Economy …

227

Djk—the share of shipped products of the jth type of economic activity in the total volume of shipped products in the kth section of the Russian Industry Classification System (k = 1;6) or industry in the whole country. If the calculated values of the coefficient are higher than unity, this type of economic activity is a profile for the territory, has competitive advantages, and is potentially attractive for further development. If the calculated value equals unity, then the type of economic activity satisfies only local demand and is mainly oriented to the domestic market). If the localization coefficient takes values less than unity—the territory does not specialize in this type of economic activity, domestic demand is replaced more by imports from other regions (Safiullin et al. 2017). A comparative analysis of localization coefficients by shares of economic activities in the sectoral turnover of the Russian Federation and the Republic of Tatarstan shows that, at the beginning of 2017, the following types of economic activities are core for the Republic of Tatarstan (Safiullin et al. 2017): 1) 2) 3) 4) 5)

chemical production (2.93); manufacturing of rubber and plastic products (2.73); vehicle manufacturing (1.96); petroleum production (1.48); manufacture of machinery and equipment (1.08).

3 Results The economic integration of the national economy gives a positive synergistic effect. To achieve the maximum effect from the joint interaction of the regional economies, it is vital to know the strong and weak components of the economies. Besides this, before solving the tasks of integrating national economies, it is necessary to find the potential for effective cooperation within the country or federal districts. Thus, it is necessary to carry out a comprehensive assessment of potentially attractive types of economic activities. The identification of prior activities by analyzing the localization of types of economic activity gives a clear picture of the primary types of economic activity for the economies of the regions of the Volga Federal District, which helps to select areas for further interaction. Figure 2 shows the rating of the regions of the Volga Federal District by the number of specialized types of economic activity for 2016. The Chuvash Republic is leading by the number of specialized types of economic activities (9 types). The second place is occupied by the Kirov region, the third—by the Ulyanovsk region, and the fourth—by the RT.

228

A. I. Gubaidullina

Fig. 2 The number of specialized types of economic activity in the regions of the Volga Federal District for 2016 Source (Gubaidullina 2019, pp. 40–42)

4 Discussion A significant role in investment attractiveness is also given to the innovative potential of economic systems. To maximize the return on investment, the innovative activity of economic systems should also be raised. Attracting innovations can be considered as one of the reasons for investment attractiveness because innovations create an impetus for attracting investments through modernization of production and scientific and technological progress. However, it should also be noted that the development of innovation is impossible without investment. Investments are a prerequisite for innovation, its primary source. Thus, investment attractiveness and innovation should be considered in tandem.

5 Conclusion Investments play a crucial role in ensuring economic growth—they represent a qualitative change in production. The integration of the best practices in specific types of economic activity, as well as the interaction between regions, will maximize the investment attractiveness of all integration participants.

Investment Attractiveness of the Economy …

229

Acknowledgements This work was carried out at the expense of the funds allocated by the State Budget Institution “Center for Advanced Economic Research of the Academy of Sciences of the Republic of Tatarstan”.

References Bogoviz, A.V., Ragulina, J.V., Barcho, M.K.: Influence of innovations on regional socio-economic development. Lecture Notes in Networks and Systems, vol. 57, pp. 1200– 1207 (2019) Gubaidullina, A.I.: The position of the Republic of Tatarstan among regions of the Volga Region on investment attractiveness. In: Proceedings from the III All-Russian Economic Forum with International Participation “Economics in a Changing World.” Kazan State University, Kazan (2019) Ravzieva, D.I., Safiullin, A.R.: Reasons and benefits of region manufacturing profile specialization. Source Doc. J. Econ. Econ. Educ. Res. 17(Special issue), 27–35 (2016) Safiullin, A.R., Gubaidullina, A.I.: The study of the competitive positions of the types of economic activity of the Republic of Tatarstan. Kazan Econ. Bull. 6(32), 22–31 (2017) Safiullin, M.R., Safiullin, A.R., Mukhametova, G.Z., Gubaidullina, A.I.: Investment attractiveness of territories by types of economic activity of the Republic of Tatarstan. Artifact, Kazan (2017) Safiullin, A.R., Gubaidullina, A.I.: Approach to the risk and investment attractiveness estimation for regional economic activity types. Int. Trans. J. Eng. Manag. Appl. Sci. Technol. 9, 455–467 (2018) Sayfudinova, N.Z., Safiullin, M.R., Safiullin, A.R., Zainullina, M.R.: Modeling of the economic system of the development of the Russian Federation system. J. Econ. Econ. Educ. Res. 17, 334–346 (2016)

The Socio-economic Importance of Education in a Knowledge-Based Economy Irina A. Firsova , Inna V. Lukashenko , and Svetlana P. Azarova

Abstract In modern society, the priorities and importance of education are outlined, which is an essential condition for upward mobility and successful implementation of professional plans of modern youth in all countries of the world. With the development and improvement of the knowledge-based information, economy, and society, the value of education and knowledge increases. Education is becoming a fundamental condition for the competitiveness of a person in the labor market. This view dramatically expands the boundaries and meaningful basis of the need for knowledge. In recent years, the awareness of the value of knowledge in the younger generation is increasing. Young people evaluate education as a specific value in the direction of their future choices. Currently, young people are focused on such a level of education that would guarantee success in their professional activities, high wages, and career growth. Modern youth come to the understanding that to develop competitiveness and demand in the labor market, they need to improve their education and professional qualifications. In this regard, s activity is considered by young people as an essential condition for self-development and self-improvement, as an opportunity to realize their knowledge and skills in the professional sphere. World globalization leads to competition among countries and to compete in leadership positions in the field of innovative technologies, which indicates a direct correlation between the quality of training of qualified specialists. Education is considered a valuable and effective way to invest in the future. It is the period of youth that is important for the formation of a value system. In this regard, the problem of priority values of youth, in particular the value of education, is becoming relevant. The conditions, problems, and factors that influence the attitude of young people to education and the value of knowledge are identified.

I. A. Firsova (&)
I. V. Lukashenko
S. P. Azarova Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: ifi[email protected] I. V. Lukashenko e-mail: [email protected] S. P. Azarova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_24

231

232

I. A. Firsova et al.




Keywords Education system Role of education in the knowledge economy Youth attitude towards education Knowledge value







1 Introduction When assessing the role of education, it is necessary to note its social significance. The importance of education and the value of knowledge in gaining an attractive job and career are apparent. As annual surveys of graduates show, not all students are ready to work in the specialty studied at the university. A study of the future professional activity of Moscow students (Firsova and Gruzina 2018) showed that at least 65% plan to work in their specialty. The initial goals in obtaining a good education in the future act as a means of achieving life success. In the modern knowledge-based economy, the instrumental attitude to knowledge leads to a springboard for occupying high social positions. The paper focuses on the role and socio-economic importance of education in a knowledge-based economy. Section 2 of the paper provides a brief overview of the scientific literature on the topic. Section 3 gives an analysis of the attitude of young people to education and defines the role and significance of education in a knowledge-based economy. Section 4 discusses the predictive model of education. Section 5 provides recommendations.

2 Materials and Methods The government and educational organizations study the problems and prospects of youth development in the field of production, science, and education. A significant number of scholars are involved in this problem. We identified several papers that, in our opinion, are essential for understanding the importance of this topic. Chuprov (2010) identified the main trends in changing the social status of youth in the knowledge-based economy, determined the forms of possible social conflicts and the peculiarities of youth integration in society. Gorshkov and Sheregi (2010) summarized existing approaches to the interpretation of youth’s social problems in the field of education. Konstantinovsky and co-authors (2011) identified the trajectories of the interaction of educational and professional processes. The monograph defines the specifics of the formation of youth employment spheres, which are formed under the influence of general factors of the economic development of education and the attitude of young people to education. It is noted that social factors determine the conditions for the socialization of youth. Gorbatko (2012) considered the structure of education in Russia, made conclusions on the modernization of the education system, which will contribute to the development of the knowledge economy. Several works by Firsova (2016; 2017)

The Socio-economic Importance of Education …

233

Fig. 1 The model of continuing education Source (Gorbatko 2012)

disclose the problems and characteristics of education in the development of a knowledge-based economy. The state youth policy is evaluated, and motivational approaches to attracting young people to the sphere of science, technology, and innovation are proposed in the framework of the research “The Analysis of Youth Stimulation in the Field of Science, Technology, and Innovation.” Such methods as analysis, survey, statistical methods, modeling, and others were used during the research. The education model considered by Gorbatko (2012) is based on regulatory acts enshrined in the Federal Law “On Education in the Russian Federation” (Fig. 1). The model shows a specific relationship between the stages and levels of education.

3 Results Young people focused on career growth and professional success consider the value of knowledge as a means of achieving success in life. Moreover, education and diploma are used as a springboard for occupying high social positions. Modern society is rightly called the knowledge economy. World Bank Rating: (Knowledge Economy Index (KEI)) reflects the progress of the development of a country or region, its economic incentives, innovative potential, educational level of the population, and the development of information infrastructure. According to the knowledge economy index, in 2018, Russia rose by nine positions compared to 2000 (Federal State Statistics Service n.d.). It is important to note that the value of knowledge as one of the indicators for assessing a knowledge-based economy became one of the weakest and most vulnerable places for Russia because it lost its leadership and the high position in the world in science, education, and security achieved in the post-war years. Over the past decade, Russia saw a dynamic development of the digital economy, which is also based on knowledge. The presence of positive experience in the

234

I. A. Firsova et al.

1500 Non-state organizations

1000 500

State organizations

0 1990 1996 2001 2006 2011 2018

Fig. 2 The dynamics of development of the university system of Russia from 1990 to 2018 Source (Firsova 2017)

100% 95% 90%

Non-state organizations

85%

State organizations

80% 75% 1996

2001

2006

2010

2018

Fig. 3 The proportion of students enrolled in non-state universities Statistics Service n.d.)

Source (Federal State

use of information technology in Russia is confirmed by actively developing economic institutions: electronic commerce, Internet banking, single-window system, e-government and e-clinical systems, etc. Some success was achieved by companies that increase the availability of digital services to the public and business communities. An example is the availability of the Internet, mobile, and broadband. In Russia, there are digital corporations created from scratch, which have only digital portals and ecosystems: Yandex and Mail.ru services, Transas electronic navigation systems, Avito electronic ad platform, and the VKontakte social network. Let us analyze the statistics reflecting the educational potential of different countries. Thus, Germany has only 17% potential, Italy—14.4%, France—17.5%, the UK —28%, and Russia—27.3% (Firsova and Gruzina 2018). The dynamics of the development of the university system of Russia from 1990 to 2018 are shown in Fig. 2. As can be seen from the figure, for 1990–2011, the number of educational organizations increased. However, from 2011 to 2018, there was noted the association of educational organizations of all types. The dynamics of the number of educational organizations is shown in Fig. 3. As can be seen, the proportion of students studying in non-state universities, starting from 2001, increases up to 2011, and only then begins to decline. This suggests that the quality of education in non-state universities ceased to satisfy students.

The Socio-economic Importance of Education …

235

During the study, the analysis of essential characteristics in the attitude of young people to education was given, which showed their value orientations and orientation of social behavior. Thus, from 2011 to the present, the proportion of young people seeking to receive specialized secondary education has been increasing. In 1997, the proportion was 29.4%, with a decline in 2000—19.8%, and a significant increase in 2018—23.5%). More than 50% continue their further studies at the university. In our opinion, young people’s attitude to the terminal value (development of abilities, need for knowledge, common culture) and the instrumental value, which characterizes the attitude to education as a means of achieving goals (Chuprov 2010) is of particular interest. According to our findings, the attitude towards education as a terminal value is growing. Therefore, it amounted to 41% in 2000 and 59.4% in 2017. As for the instrumental values of youth, they amounted to 59% in 2000 and exceeded 70% in 2018. The next stage of the study lay in the field of the influence of social factors on the attitude of young people to education. This includes material and non-material situations, innovations in education, various social groups. Figure 4 presents the attitude of young people to education, depending on material conditions. The possibility of getting a higher education by young people depends on material opportunities and life situations, which significantly adjusts attitudes towards education. Young people’s attitude to education is the next factor in the demand for a graduate in the labor market. A young specialist working in the specialty consolidates and develops competencies based on knowledge acquired at the university, which allows increasing the NPV of the young specialist and the enterprise.

8.2 28.9

43.3

high income

16.6 3

middle income low income

Fig. 4 Youth attitude to education depending on material conditions Gruzina 2018)

Source (Firsova and

236

I. A. Firsova et al.

4 Discussion The value orientation of young people to the knowledge component is considered with the awareness of the value and social significance of all educational processes. It takes into account axiological, motivational, and activity components. On the one hand, they provide motivation to acquire knowledge and competencies and the desire to use them in future professional activities. On the other hand, these components ensure the readiness to improve and use them in professional activities. We should also separately single out the formation of terminal values that are opposed to fundamental values. These include such values as life, creative, professional, and personal fulfillment. In the development of motivational approaches to attracting young people to higher education in research, innovation, and project activities, a model of an innovative educational system is proposed. Currently, in Russia, there is an interconnection of two critical directions of state policy: the development of the national innovation system and the young personnel potential in the field of research. The model consists of an information-learning platform built based on network interaction between higher education institutions and the business community, as well as professionally-oriented innovative educational networks around which it is possible to create a creative, innovative, and active environment (Fig. 5). The creation of a unified information-learning platform and its methodological support will improve the management of innovative and educational activities; the creation of mechanisms for inter-university interaction and centralization of management will allow for the dissemination and management of innovative and educational resources.

Venture financing

Information Learning Platform

Projects

Programs

University Administration Departments Faculties

Grants

Business Communities

Professionally-oriented Social Networks

Endowment fund

Fig. 5 The model of the system of knowledge formation in the modern economy Developed by the authors

Source

The Socio-economic Importance of Education …

237

This will also allow developing network forms of organization of the educational process. Professionally oriented social networks suggest the creation of an Internet portal, which content will be interesting for young people. Such a portal has various forms of communication between its visitors. Existing social networks are not aimed at the interaction of youth and the business environment in a specific sphere of interest. Therefore, the creation of such a system is of high social significance because it will allow young people to exchange ideas and experiences. Based on motivational approaches, the proposed activities will contribute to the creation of professional youth communities united by common goals and a unified methodological and information platform, allowing young people to add value to education and knowledge. Orientation to the value of knowledge determines the features and nature of the individual’s relationship with the external environment and, thus, determines its behavior.

5 Conclusion The study results showed that the attitude of young people to the value of knowledge is increasing: more than 65% believe that knowledge is the main asset of a person, and more than 57% are convinced that knowledge is never superfluous. For young people, an important criterion is the quality of education, where the teacher’s personality is an essential criterion for assessing the quality of the entire educational process. Students identified the following essential qualities of a teacher: professionalism (71.7%), sociability (19.4%), and objectivity (18.9%). It is important to note that students have much lower requirements for themselves. The motives that drive young people to pursue higher education were also studied. It turned out that the majority of young people have the motivation to “become a specialist in a certain field”—50% and “get a well-paid job”—42%. The desire to acquire new knowledge and self-development in obtaining an education guide 35% and 34% of respondents. At the same time, 70% of young people believe that higher education is necessary. Only 7% of youth are ready to go to work right after school. Therefore, young people’s attitude to education is not unique, but the value of knowledge among young people is growing.

References Chuprov, V.I.: Youth and Crisis: The Dialectic of Uncertainty and Certainty in the Social Development of Youth. URAIT, Moscow (2010) Federal State Statistics Service: Official website (n.d.). http://www.gks.ru/wps/wcm/connect/ rosstat_main/rosstat/ru/statistics/population/education

238

I. A. Firsova et al.

Firsova, I.A.: What does it mean to be talented? Or how to develop talented youth? Manag. Sci. Mod. World 2(1), 67–70 (2016) Firsova, I.A.: How to develop talents. Manag. Sci. Mod. World 1, 648–650 (2017) Firsova, I.A., Gruzina, Yu.M.: The analysis of youth stimulation in the field of science, technology, and innovation. Risk 2, 36–41 (2018) Gorbatko, E.S.: Investments in continuing education as a form of social responsibility. In: Psareva, N.Yu. (ed.) Social Responsibility of Business as a Factor in the Sustainable Development of Business and Society, vols. 1–2, pp. 45–48. Publishing Center AL&SR, Moscow (2012) Gorshkov, M.K., Sheregi, F.E.: The Youth of Russia: A Sociological Portrait. Center for Social Forecasting and Marketing, Moscow (2010)

The Methodology for Multivariate Statistical Analysis of Innovation Potentials: The Case of Russia Marina R. Efimova , Ekaterina A. Dolgikh , Tatiana A. Pershina , and Lidiya S. Parshintseva

Abstract The paper analyzes the leading indicators characterizing the development of innovation in the Russian regions. We formed a system of indicators that characterizes the innovative regional potential in terms of conditions determining the possibilities for the development of innovative activity, scientific and technical potential, and the results of innovative activity. The aggregated components of the integral index of the innovative regional potential were calculated based on the data array obtained from open sources. According to the values of the obtained enlarged components, particular attention is paid to the characteristics of leading regions and lagging regions. Based on these components, the integral index of innovative potential was calculated. This index provides a rating of Russian subjects. Based on the value of the generalized component and the value of the component reflecting the results of innovation, the entire set of regions was divided into four groups depending on the effectiveness of implementing socio-economic and scientific-technical potential. The regions were divided into two groups for each component—with component values above and below the median values. The results of analyzing the ratings of individual regions, as well as changes in the composition of groups of regions, may be the basis for the development of differentiated measures to support and stimulate innovative activities. The results can also help to monitor and control the implementation of innovative regional development programs.




Keywords Innovations Scientific and technical potential indicator Multidimensional average





Regions
Integral

M. R. Efimova
E. A. Dolgikh (&)
T. A. Pershina
L. S. Parshintseva State University of Management, Moscow, Russia e-mail: [email protected] M. R. Efimova e-mail: efi[email protected] T. A. Pershina e-mail: [email protected] L. S. Parshintseva e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_25

239

240

M. R. Efimova et al.

1 Introduction Managing innovation processes and increasing their effectiveness is impossible without the development of differentiated measures for various subjects. Under these conditions, the importance of a comparative analysis of innovative potential in the regional aspect is growing. This necessitates a comprehensive statistical assessment of the level of innovative regional potential, which allows us to form a rating of subjects and study the influence of various factors on the formation and change of innovative potential (Titov 2015; Efimova and Dolgikh 2018).

2 Materials and Methods In developing methodological recommendations for calculating and forming a system of criteria for assessing the innovative potential of constituent entities of Russia, we should take into account the following assumptions and requirements for a full description: • the assessment of innovative activities in the regions should be based on the definition of an integral indicator characterizing various conditions and aspects of the implementation of innovative potential; • the system of criteria characterizing the potential of innovative regional systems should include indicators reflecting socio-economic and scientific-technical factors determining innovative development and the results of innovative activities; • the indicators used in the formed assessment should be based on publicly available official statistics. Given the above requirements, to compile a rating of subjects according to the level of innovative potential, we propose a multidimensional integral indicator “index of the innovative regional potential.” The potential innovation index of a region is a multidimensional average based on 23 indicators, either published in open official statistical sources or calculated based on the information provided in them (for most indicators, data for 2017, some for 2016). All 23 indicators included in the calculation of the index were combined into three aggregated components characterizing the socio-economic conditions that determine the possibilities for the development of the innovative activity, the scientific and technical potential of the region, and the results of innovative activity in the subject. Each of the components, in turn, is characterized by the arithmetic mean of the indicators included in its composition.

The Methodology for Multivariate Statistical Analysis …

241

The proposed index of the region’s innovative potential makes it possible to identify the place of each subject in the rating by indicator level, build a rating of regions separately for each component of the index, form groups of regions with the closest values of innovation potential in general, and separate groups of determining factors. The index’s values and the components included in its composition vary from 0 to 1. The higher the value of the index, the higher the level of the subject’s innovative potential. The formation of a system of criteria and the calculation of the integral index of the innovative regional potential occur in several stages. At the first stage, a system of indicators characterizing the innovative regional potential was formed, and the selected indicators were distributed into three blocks (components). The proposed index of innovative regional potential included 23 indicators grouped in three sections (Table 1). Based on the information on the levels of the listed indicators for 83 constituent entities of Russia, we formed a data array. It was the basis for calculating the integral assessment of innovative potential (the Jewish Autonomous region and Chukotka Autonomous region were excluded from the study due to missing data for most of the studied indicators). In the second stage, we calculated the aggregated components of the integral index of the innovative regional potential. Among the selected indicators, there stand out stimulants and destimulants of innovative development. Depending on the direction of influence of a particular indicator on the region’s innovative potential, the order of inclusion of the indicator in the enlarged component will change. The values were normalized using the linear scaling method. The normalized indicator’s value is the quotient of dividing the difference between the current level of the indicator and its minimum value in the aggregate, by the magnitude of its value in the aggregate. If the studied indicator has a feedback relationship with the innovative regional potential, the inverse linear scaling method was used. Of the entire set of analyzed indicators, three indicators were identified as factors negatively affecting the level of innovative potential: unemployment rate, degree of depreciation of fixed assets, and the number of economic crimes. Determining the values of the enlarged components for each subject makes it possible to conduct a consolidated assessment of the distribution of regions according to the results of innovation and socio-economic and scientific-technical potentials.

242

M. R. Efimova et al.

Table 1 The system of indicators characterizing innovative regional potential Component

Indicator

Socio-economic conditions of the regions that determine the possibilities for the development of innovation

(1) GRP per capita, rubles (2) the number of enterprises and organizations, units (3) the number of enterprises with foreign capital, units (4) the share of manufacturing in the GVA (5) the share of GVA by type of economic activity “Transport and Communications” (6) surplus (deficit) of the regional budget (in % of GRP) (7) tax potential (share of tax revenues to the budget in % of GRP) (8) the share of non-tax revenues in regional budget revenues, % (9) the degree of depreciation of fixed assets, % (10) investments in fixed assets (in% of GRP) (11) unemployment rate, % (12) the number of economic crimes, units (13) the number of employees of state bodies and bodies of local self-government per 10,000 people, people (14) the share of employees with higher education in the total number of employees, % (1) the number of organizations performing research and development, units (2) the proportion of personnel engaged in research and development in the total number of employees, % (3) the share of persons with academic degrees of candidates and doctors of sciences in the total number of employees, % (4) internal costs of research and development in % of GRP (high-tech GRP) (5) patents issued per 1000 people employed in research and development, units (6) patents issued for billion rubles of internal costs of research and development, units (1) the proportion of organizations engaged in innovative activities, % (2) the proportion of innovative goods, works, and services in the total shipped goods, % (3) the number of advanced production technologies used per one organization that has carried out innovative activities, units

Scientific and technical potential

Innovation results

Source Developed by the authors

The Methodology for Multivariate Statistical Analysis …

243

3 Results The analysis of the results of ranking the entities according to the values of each of the index components for 2017 allowed us to conclude that the presence of a high level of socio-economic and scientific-technical resource support in the region does not always lead to high or corresponding results of innovative activities, which cannot but affect the final assessment of the innovative regional potential. The values of the enlarged components identified the leading regions and lagging regions in 2017. The analysis of the distribution of subjects according to the values of individual components showed that the composition of the leading and lagging groups of subjects is different for all components. The basis of the group of leaders in terms of socio-economic potential is the constituent entities of the Far Eastern Federal District (6 entities). The maximum value of the studied component is observed in the Yamalo-Nenets Autonomous Okrug, which also fell into the group of leaders in terms of scientific and technical potential, and according to the innovation results. Moscow occupies the 4th position in terms of socio-economic potential, but at the same time, it is in the first position in scientific and technological potential. This group consists mainly of subjects of the Central (3 subjects), Volga (2 subjects), and Siberian (3 subjects) Federal Districts. The basis of the group of subjects leading by the results of innovation was constituted by the subjects of the Volga and Central Federal Districts (4 and 2 subjects, respectively). The group of subjects with the minimum values of the component characterizing the socio-economic potential is represented mainly by the subjects of the Volga Federal District (6 subjects). In the last place is the Udmurt Republic. As for the group of subjects with minimal scientific and technical potential, it mainly included the subjects of the Far East (3 subjects), Siberian (3 subjects), and North-West (2 subjects) Federal Districts. The worst situation is observed in the Magadan region. It is important to note that two entities, the Sakhalin Oblast and the Nenets Autonomous Okrug, were included in the group of entities with minimal scientific and technical potential, as well as in the group with the worst results of innovation. Half of this group were constituent entities of the North Caucasus Federal District. Disproportions in varying degrees of development of subjects in certain areas of the formation and implementation of innovative potential cannot but affect its comprehensive assessment. In a comprehensive assessment of the innovative regional potential, it is necessary to take into account the development of the factors shaping the innovative potential and the results of innovative activities and the efficiency of using the existing socio-economic and scientific-technical potential (Efimova 2016). It was previously noted that the development of certain factors characterizing innovative potential in a particular region is at a different level. At the same time, there is a significant gap between the level of socio-economic, scientific, and technical potentials, and the results of innovation.

244

M. R. Efimova et al.

It is proposed to introduce a generalized (aggregated) component into the integral indicator. This component characterizes the degree of development of the conditions for the formation of innovative activities: Igenj ¼

IIj þ IIIj ; 2

where: Igenj —the value of the generalized index component for the jth region; IIj—the value of the component characterizing the socio-economic conditions of the jth region; IIIj—the value of the component characterizing the scientific and technological potential of the jth region. The distribution of regions according to an aggregate assessment of the formation of innovative potential is quite uniform. The coefficient of variation was 6.5%. Based on the values of the generalized component and the values of the component reflecting the results of innovative activities, it seems possible to divide the entire set of regions into four groups depending on the effectiveness of the implementation of socio-economic and scientific-technical potential. The regions were divided into two groups for each component—with component values above and below the median values (Fig. 1). Above the median value, there are regions with a level of factors providing innovation above the average (I and II quadrants). To the right of the median value, there are regions with the results of innovation above the average (II and IV quadrants). Lower the median value, there are regions with a level of socio-economic and scientific and technical potentials below average (III and IV quadrants). There are regions with the results of innovative activity below average (I and III quadrants) to the left of the median value. If the results of an innovative activity exceed the conditions ensuring it, then we can assume that the region is effectively using the available resources, if the situation is reversed, then it is inefficient (Kuznetsov 2015).

Ineffective use of factors providing innovative development (I)

The results of innovation corresponds to the level of factors (II) Median

The results of innovation corresponds to the level of factors (III)

Effective use of factors providing innovative development (IV)

Fig. 1 Groups of regions on the effectiveness of the use of innovation resources

The Methodology for Multivariate Statistical Analysis …

245

All subjects were divided into four groups: 1. Regions with a low level of socio-economic, scientific, and technical potential and low results of innovative activities are “Regions with low innovative potential”; 2. Regions with a high level of socio-economic, scientific, and technical potential, and low results of innovative activities are “Regions inefficiently realizing the innovative potential”; 3. Regions with a low level of socio-economic, scientific, and technical potential, and high results of innovative activities are “Regions effectively realizing innovative potential”; 4. Regions with high levels of socio-economic, scientific, and technical potential, and high results of innovative activities are “Regions with high innovative potential.” The determination of the final rating according to the level of innovative potential must be made, taking into account the above group of regions. The ranking position for each region was first determined within each group, and then through the ranking of all regions. The integral assessment of the subject’s innovative potential was determined as the average of the normalized values of the generalized component of the factors ensuring innovative development and the component reflecting the innovation results. For each group of regions, the maximum values of the index components that were used during the normalization were determined (Table 2). Based on the obtained values of the integrated assessment (the index of innovative regional potential), the regions were ranked within the selected groups. The highest rating (1st) was assigned to the region with the highest index of innovative potential, the lowest—to the region with the lowest index of innovative potential. After determining the rating of the subject in each group, its place among all subjects was determined due to their belonging to one or another group of regions. Table 3 presents the results of ranking the Russian regions by the values of the innovation potential index in 2017. Table 2 Maximum values of the index of innovative regional potential by groups of regions Regions

The generalized assessment of factors providing innovative development

Low innovation 0.259 potential Inefficiently realized the 0.393 innovative potential Effectively 0.252 implemented innovative potential High innovation 0.465 potential Source Developed by the authors

The assessment of the results of innovation 0.180 0.174 0.536

0.549

246

M. R. Efimova et al.

Table 3 The distribution of regions by the level of innovative potential Regions with high innovation potential

Regions that effectively realize innovative potential

Regions that inefficiently realize innovative potential

Regions with low innovation potential

The Republic of Tatarstan Yamal-Nenets Autonomous Okrug Moscow

The Chuvash Republic

Kaluga region

The Republic of Mordovia

Stavropol region

The Republic of Adygea Pskov region

Penza region

Vologda region

St. Petersburg

Sverdlovsk region

Kemerovo region

Nizhny Novgorod region Khabarovsk region Lipetsk region Moscow region The Mari El Republic Tyumen region

Tula region Vladimir region

The Republic of Sakha (Yakutia) Ivanovo region

Yaroslavl region Samara region Rostov region

Astrakhan region Sevastopol Amur region

Omsk region Saratov region Oryol region

Perm region

The Republic of Buryatia The Republic of Khakassia Irkutsk region

Volgograd region Orenburg region

Belgorod region

Tambov region

Arhangelsk region Krasnodar region Tomsk region

Altai region Chelyabinsk region Ryazan region

Novosibirsk region

The Republic of Bashkortostan

Voronezh region

Leningrad region

Kostroma region

The Udmurt republic

Kamchatka region Ulyanovsk region Kursk region

Tver region

Nenets Autonomous Okrug The Kabardino-Balkarian Republic The Komi Republic

Kirov region

The Chechen Republic

Novgorod region

Bryansk region

–

The Republic of Dagestan The Karachay-Cherkess Republic

Source Developed by the authors

Primorye region The Republic of Kalmykia The Republic of North Ossetia-Alania

Krasnoyarsk region Murmansk region Kurgan region Smolensk region

The Altai Republic Magadan region The Republic of Karelia Khanty-Mansi Autonomous District Transbaikal region Kaliningrad region Sakhalin region The Republic of Ingushetia The Republic of Crimea The Tyva Republic

The Methodology for Multivariate Statistical Analysis …

247

Thus, the leaders in innovation potential, in 2017, include the Republic of Tatarstan, the Yamalo-Nenets Autonomous Okrug, Moscow, St. Petersburg, and the Nizhny Novgorod region. The worst situation is observed in the Kaliningrad and Sakhalin regions, as well as in the Ingushetia, Crimea, and Tuva Republics. The results of the analysis of ratings of individual regions and changes in the composition of groups of regions can be the basis for the development of differentiated measures to support and stimulate innovative activities, as well as in the control and monitoring of the implementation of innovative development programs (Subacheva 2018).

References Efimova, M.R.: Socio-Economic Statistics: A Textbook for Academic Baccalaureate. Urait, Moscow (2016) Efimova, M.R., Dolgikh, E.A.: The statistical analysis of the development of the information society in the Russian Federation. Bull. State Univ. Manag. 9, 90–95 (2018) Kuznetsov, N.V.: The management of sustainable, innovative development of the region based on an indicative approach. In: Trachuk, A.V. (ed.) Sustainable Development Management, pp. 289–308. Real Economy, St. Petersburg (2015) Subacheva, V. S.: Regional aspects of the activities of personnel engaged in research and development. In: The Almanac of Scientific Works of Young Scientists of ITMO University, St. Petersburg, Russia, pp. 253–255 (2018) Titov, D.D.: Innovation potential. Assessment of the innovative regional potential. Sustain. Dev. Strategy Russian Regions 29, 44–49 (2015)

The Methodology of Design Thinking as a Tool for Forming Innovative Solutions Olga V. Belyaeva , Natalia V. Vysotskaya , Alfia I. Gazizova , Tatiana B. Kurbatskaya , and Nurzidya J. Myavlina

Abstract The problem of modeling business problems and the process of forming the most effective and “elegant” (less radical, more minimalistic) ways to solve them is one of the central and most essential tasks of benchmarking and innovation management since they can significantly improve and optimize company performance. Any aspect of the business will have a more favorable result from such planning and implementation of the latest solutions to achieve the objectives. It is impossible to effectively and consciously approach the organization of innovative activities at an enterprise. This paper examines in detail some of the most interesting decisions in planning, modeling, and strategic thinking, from process design and adaptation of the methodology to achieve the objectives. The authors consider such factors as personal experience, language, thought processes, preferences, and prejudices as integral and essential factors of design thinking. The research methodology includes a comparison and analysis of available information on the methods of the formation of innovative solutions, their effectiveness, and their initial focus. The research methodology includes analysis of the results obtained for their implementation in the company’s practical activities.

O. V. Belyaeva Volga Region Cooperative Institute (Branch) of the Russian University of Cooperation, Engels, Russia e-mail: [email protected] N. V. Vysotskaya
N. J. Myavlina (&) Russian University of Transport, Moscow, Russia e-mail: [email protected] N. V. Vysotskaya e-mail: [email protected] A. I. Gazizova Kazan National Research Technical University named after A. N. Tupolev, Kazan, Russia e-mail: [email protected] T. B. Kurbatskaya Moscow University named after S. U. Vitte, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_26

249

250

O. V. Belyaeva et al.










Keywords Design thinking Innovative solutions Problem solving Innovative models Specialization Innovative planning Meta-models Communication Feedback Language Thinking






















1 Introduction Under the variability and uncertainty of the functioning and development of the modern economy, companies have to solve strategic tasks and problems of an innovative nature regularly. The result of solving these problems and tasks is a wide variety of innovations. They differ by nature, importance, the direction of impact, the depth of the introduced changes, the extent of distribution, the nature of the needs being met, the degree of novelty, reasons of occurrence, area of application, etc. However, despite the diversity of innovations, it is possible to identify their various types. Thus, the summarization (aggregation, classification, and typification) of innovations can be obtained through various mathematical theories and methods and various sets of classification features. Moreover, if the classification of innovations is carried out according to the values of one attribute, then it is a one-dimensional classification. If the classification of innovations is carried out immediately on several grounds, it represents their multidimensional classification. Despite the diversity of innovations and the fact that each of them belongs to a certain type of innovation, there are many management technologies for each type of innovation. The use of each of them is aimed at the development and implementation of a particular type of innovation in organizations. As a result, significant experience in the theory and practice of innovative management was accumulated. There are many techniques, methods, and technologies for making and implementing innovative solutions developed and successfully used in managerial practice by managers and specialists in innovative management.

2 Materials and Methods Despite such an optimistic situation, it becomes clear that the fundamental lessons learned in creating innovations and their implementation do not give a complete picture of how innovations are created. It is not particularly apparent how innovative management decisions are constructed and/or obtained naturally. At the same time, many models describing and predicting innovative solutions were created. To one degree or another, all these models are correct, verified, and confirmed. However, acting based only on economic and managerial knowledge, it is very difficult to choose the appropriate one for a particular situation and at a particular moment.

The Methodology of Design Thinking …

251

It is believed that if all market entities acted rationally, guided only by complete and correct information, then the problem could be solved mathematically. This situation is unrealistic. The fact is that the worldview, psychological characteristics, and the entire set of intellectual baggage of participants influence the formation of innovative management decision options and the choice of the best solution (in a certain sense). Therefore, in perceiving a problematic situation as a problem with an innovative “desired result,” ideas from other sciences should appear along with the factors and actors that generated it. This is what is called “practical wisdom,” increasing the likelihood of making the right choice (Vysotskaya et al. 2019; Vysotskaya 2010). This idea led to the concept of a “lattice of intellectual models,” in which the decision-maker [DM] should streamline his experience, speculative and direct. The more extensive the experience of the DM, the more precise the orders, and the more chances to choose a relevant, innovative solution model or method of action at a particular moment. At the same time, the decision maker does not experience confusion, which, as a rule, leads to errors in making an innovative management decision. The content of the concept of “lattice of intellectual models” can be generalized and supplemented by “organizational practical wisdom”. This means that each participant in forming an innovative solution has its own “lattice of intelligent models”. When forming options for innovative solutions and selecting one or more of them, in the described decision-making situation, it is advisable to use a working model of design thinking with the help of employees. This is because employees can approach the organization’s problems from different points of view, finding breakthrough ideas. They can also provide a better balance between research and operational activities and transform the business with more innovative solutions. Design thinking is not a unique method as an understandable “operating system of thinking,” which suggests that ideas are created through a subjective and individual human experience. The strength of design thinking is the ability to set abstract goals. Design thinking can work in a situation of uncertainty because its first stage (empathy) is dedicated to plunging into the identified problem as deep as possible. The main idea of design thinking is that almost any business process can be considered from the point of view of the system and its design. This means that we can use the approaches that professional designers use. This approach allows one to use methods and techniques that not only describe the whole system but also analyze individual subprocesses and contribute to solving the company’s internal problems. Individual subprocesses include strategic planning, innovative planning, mission, and vision of the enterprise, current planning, marketing research and innovation, organizational transformation (Brown 2012). According to Tim Brown, the design methodology is based on three principles. The first principle is the principle of determining needs, including focusing on a problem or new opportunity through observation. The key link is the person, not the target market, segmented into demographic categories. The second principle is the desire to quickly prototype an object or interface, to create a quick prototype that

252

O. V. Belyaeva et al.

can be tested as a working or idle hypothesis. The philosophy of design thinking boils down to the following statement: “Try fast, make mistakes often”. The third principle is the interdisciplinary nature of the project activity, namely, the union of specialists from different disciplines within the framework of one project. Creating a cross-cultural, multidisciplinary team allows us to look at the problem from different angles and points of view. It is evident that, with a high degree of probability, this will lead to a non-standard solution to the problem. Such communication is organized at different levels (from the exchange of ideas to the synthesis of a common methodology and concept). The organization of such work requires not only professional knowledge and skills from participants but also experience in interacting in an interdisciplinary environment. It is essential to note the involvement of experts. At the same time, the project can affect many different areas: technical, social, natural-scientific, and humanitarian. The expert helps to accelerate the work on the project and update it for the environment in which the future product or service will exist. Design thinking as a category and as a methodological approach appeared in the 1980s. It was actively disseminated by the IDeo team, primarily in the works of David Kelly. It should be noted that IDeo is the first company that laid the foundation for the active use of design thinking to solve business problems and its corporate clients’ problems.

3 Results Since the early 2000s, several large companies from various sectors integrated the design thinking model into their work. However, few empirical studies tracing the link between design, thinking, and innovation were published nowadays. We will show the significant role of design thinking in strategic and innovative management by the example of foreign and Russian companies by analyzing elements of design thinking. After analyzing the literature and Internet sources (Hramkova 2018; Sean 2016; Lidtka and Ogilvy 2015), we can distinguish three aspects of the design thinking methodology. They require further study to build the structural basis of the design thinking implementation methodology at the organization level and formulate the features that distinguish design thinking from other techniques (Table 1). Thus, using design thinking and considering the organization’s specialization and the main areas of its related activities, the following tasks can be solved to improve communication within the company and interaction with partners and customers: (1) the formation of strategic goals and objectives of the company (such as entering new markets, developing in an existing market niche, creating new niches independently, etc.);

The decrease in demand due to customer distrust, lack of facility management when renting housing

• The desire of customers to eliminate physical contact with the bank (queues, waste of time traveling to the bank office) • Reluctance to understand the variety of tariffs, types of cards, and services • The need for customers to understand a banking product on their own or when visiting a bank reduces the demand for some additional services

Airbnb is an online barter booking service worldwide

Rocketbank is the first Internet bank in Russia to operate through a mobile application

1. Determination of needs (new opportunity) through empathy and observation

Solved problems

Company and its activities

Stages

• Increase in capitalization ($ 31 billion) • Increase in the number of customers • Increase in the number of bookings for five months by 60% • Confirmation of the status of a world market leader

• Placing photos of rental housing on the website • Organization of chat acquaintances of a potential tenant and homeowner, posting reviews on the transaction of tenants and homeowners on the site • The inclusion of hotel facility services to the tenant • Endless queues and a colossal waste of time replaced by a click in the phone application • The bank created a unified tariff, set a minimum limit on the turnover of card funds, and provided all maintenance services for free, including issuing a card • Rocketbank is the first company to introduce viral marketing and a new style of communication with customers using a simple language and instant messengers in a mobile application

(continued)

• By the end of the second year of existence, these solutions brought the Rocket about 16 thousand customers • At the moment, according to surveys of banki.ru website users, Rocketbank is the most attractive bank for most customers • They practice continuous service improvement based on design thinking, thereby continuing to increase their target audience

Consequences of the implementation of decisions

Innovative solutions

Table 1 Stages of the design thinking process (examples of application in Russian and foreign companies)

The Methodology of Design Thinking … 253

• Promote the brand and increase customer loyalty • Become an industry leader • Search for parking spots. On average, drivers drove 15 extra kilometers per month to park

The complex and erratic process of collaboration between remote teams and freelancers, the lack of timely feedback

Korean S-Oil refueling network

RealtimeBoard is a startup to create workflow tools

• The implementation of online boards and online stickers in the workflow allowed for collecting all information, controlling its movement, and synchronous work, and exchanging information instantly • One can create quick knowledge bases where special navigation and archive information are not required

• Home delivery of films, which is easy to arrange with mail and bank payments • Special conditions for regular customers (profitable annual subscription for delivery and watching movies online) • The first online streaming service for watching movies and TV shows • The company set up an experiment with yellow helium balls over a free parking space • Developed luminous signs for main entrances and exits in parking lots

• Limited time for returning DVDs in rentals, complex paperwork and sanctions surcharges • The development of online video streaming sites, the end of the DVD era

Netflix is an American entertainment company that provides movies and TV shows based on streaming media

2. Creation of prototypes and models for testing and development of ideas

Innovative solutions

Solved problems

Company and its activities

Stages

Table 1 (continued)

As a result, S-Oil achieved the following Took care of users, Boosted sales, Earned the image of a company that saves oil and is not indifferent to the environment This is a classic example of applying design thinking to solve business problems The effectiveness of collaboration between remote teams increased, which led to the rapid growth in the use of this method of work by other companies. Now, on the website, prototypes, solutions, hypotheses, registration forms, and functions are regularly tested Operational mode, where testing and prototyping are distinctive features (continued)

Successfully using the model of design thinking in the business, over ten years of existence on the market, the company grew from a startup to the most valuable multimedia corporation in the world. Last year, it overtook Disney. For 2019, its annual turnover is $ 11 billion

Consequences of the implementation of decisions

254 O. V. Belyaeva et al.

Yandex is a multinational company that owns a search service and Internet services

3. The interdisciplinary nature of the activity

Source Developed by the authors

VTB is a Russian universal commercial bank with state participation

Company and its activities

Stages

Table 1 (continued)

Together with the fleet of Kia Rio and Renault, which provide rental cars for taxis, they launched the Yandex. Drive project. This is a car booking service for independent travel customers

• Reduced user interest in the Yandex Taxi project in the face of high competition in the Russian market • Customers need their vehicle, but a reluctance to buy their car Reduced daily travel expenses from home to work, daily purchases, transfers, and payments The convenience of life without unnecessary actions and barriers With the help of the developed “customer travel card,” together with the Moscow metro, the issue was the “Super Troika” debit card. It charges 5–10% cashback for all transportation expenses

Innovative solutions

Solved problems

Caring for regular customers and attracting new customers for two cross-marketing companies

Russia’s first car-sharing service provided customers with a unique service, taking care of their customers, and earning the status of a modern and reliable company

Consequences of the implementation of decisions

The Methodology of Design Thinking … 255

256

O. V. Belyaeva et al.

(2) the isolation and optimization of the company’s internal business processes (improvement of business processes, organization of cooperation between departments within the organization, etc.); (3) setting innovative goals and objectives (creating new products and services, as well as improving and developing existing ones).

4 Discussion It is essential to use well-known linguistic models and communication tools to implement an effective dialogue when applying design thinking technology. Such linguistic models and communication tools include meta-model, accuracy model, “soft” systems, methodology, and others. In design thinking, such a concept as a meta-model is considered. This concept seeks to establish a connection between the individual experience of a person and the language spoken by the person. The practice shows that the use of a meta-model is objectively necessary for collecting information, clarifying the semantic meanings of the speaker, and identifying possible limitations. Furthermore, the use of a meta-model is objectively necessary to identify new options for a subject’s possible choice (Buchanan 1992). The meta-model is an incredibly effective approach to making and analyzing unstructured decisions. For example, it is useful if old-fashioned models are not productive, especially if flexibility in decision making is essential (namely, in education, in business, in making non-trivial managerial decisions). One of the main ideas of meta-modeling is that people only construct reality using language. The real meaning and semantic understanding in a specific individual situation remain only an interpretation of the interlocutor. For this understanding to be more accurate, it is necessary to clearly understand the words of the interlocutor or the client based on individual experience or various predispositions of the interlocutor. In this case, it is important to highlight three points. Firstly, the meta-model allows for the collection of high-quality information about the object and uses it rationally when it is necessary to analyze the information received from the interlocutor correctly. In management, wrong actions can be taken if the manager misunderstands the instruction. Secondly, this approach to communication allows one to extremely accurately collect and analyze information about the predisposition and understanding of the question’s essence by the interlocutor, building peculiar restrictions or frameworks for questionnaires. This approach includes casual conversation, persuasion, training, and negotiation. At the same time, errors and misunderstandings that are inherent in a normal conversation are excluded. Thus, in the meta-model, attention is focused on accuracy and mutual understanding during dialogue.

The Methodology of Design Thinking …

257

People transmit a minimal amount of information in clear text or simple words. In a live conversation, the voice (shade and intonation of the voice), posture, gestures, and facial expressions are used. Real communication involves more than a set of words, commas, and periods. It is known that during communication, the impact of words is approximately 7%, voice tone is 38%, body language is 55%. That is why pause, intonation, and voice make such a big difference in the meaning of what was said. A great difference is created not only by what a person says but also by how it is said. At the same time, it must be remembered that the interlocutor cannot always understand the meaning of what is being said. Thus, the basic principle of communication is as follows—the meaning of communication lies in the reaction that a person receives. The third, and probably the most important, aspect of meta-models is the choice. The meta-model allows limiting potential answers and establishing the true meaning of what was said. Setting questions, exceptions, and consequences allows us to analyze what was said and to open up new possibilities for available information (Hunington and Martin 2014). The meta-model also considers it essential to establish a connection between language and individual human experience. It became known long ago that specific words and gestures help the interlocutor or listener to receive specific emotions and build images. Words can create, destroy, and establish friendships, long-term cooperation, or strong partnerships. They can also intentionally or accidentally unleash conflicts or generate hatred. The words used by the interlocutor have the power to immerse the listener in sadness or to cheer up. A person makes words meaningful by fixing associations between these words and objects or experiences in life. Thus, words formulate, describe, model, and even create reality. At the same time, in some cases, it is essential to express oneself accurately (during management, in business, etc.).

5 Conclusion Thus, understanding and integrating the latest knowledge, methods, and techniques of meta-thinking allows us to optimize and improve innovative activities, current and strategic planning, and other functional aspects of the modern enterprise. The awareness of the fact that all people are truly and not trivially different, the work on establishing effective communication and improving it will help to use all the advantages. The work on establishing effective communication and its improvement will allow us to level the most acute shortcomings in the work of a particular company. Such activities can be a prerequisite for effective planning and innovation. If communication works efficiently, all the company links, regardless of the disagreements, directions, and preferences of its structural divisions, also work effectively.

258

O. V. Belyaeva et al.

Speech is most fully able to convey those unique skills and knowledge of a person. Speech is unchanged, depending on the environment of an individual. It plays a large role in the concentration of images and ideas in the human mind. It should be noted that a person’s thoughts are not determined only by language. While a person can think in words, thoughts turn out to be a mixture of mental pictures, sounds, and sensations. The knowledge of the language means is the understanding of the way to interpret these pictures, sounds, and sensations into words. For different people, words have different meanings, depending on age, education, life experience, and other factors. At the same time, polysemy is traced in the language of different people. The description of the impact of language in the communication process is a meta-model designed to provide concreteness and clarity. The meta-model restores the connection between the language and the experience of a particular person. Finally, in the practice of design thinking, the meta-model is a way of collecting and interpreting information.

References Brown, T.: Design Thinking in Business. Mann, Ivanov, and Ferber, Moscow (2012) Buchanan, R.: Solving problematic tasks using design thinking. Des. Issues 8(2), 2–17 (1992) Hramkova, E.N.: New in world practice: design research. Finan. Expert 1(20), 79–82 (2018) Hunington, B., Martin, B.: Universal Design Methods. Piter, St. Petersburg (2014) IT in Belarus official website: Design thinking in the XX and XXI centuries. How to design changes for the better (2018). https://dev.by/news/design-thinking Lidtka, J., Ogilvy, T.: Think like a designer. Design thinking for managers. Mann, Ivanov, and Ferber, Moscow (2015) LiveJournal. Stanford virtual design thinking course (2012). https://hsw-mba.livejournal.com/ 115262.html Sean, J.: Reflective Practitioner. Eksmo, Moscow (2016) Vysotskaya, N.V.: Transformation of entrepreneurship in post-soviet Russia: a management aspect. AP “Nauka i obrazovaniye”, Moscow (2010) Vysotskaya, N.V., Sergeeva, M.G., Gridneva, T.M., Zhulina, E.G., Kurbatskaya, T.B., Leonova, O.Yu., Roman, M.Yu.: Specialist model in the conditions of continuous professional education. Amazonia Investiga 8(21), 460–467 (2019)

Social and Economic Systems Research for Cooperative Theory and Practice

A Review of Agent-Based Modeling in the Cooperative Sector of Economics Vitaliy A. Brodskiy, Daniil M. Pimenov, Pavel L. Chernov, Marina D. Dzhamaldinova, and Nataliya O. Kurdyukova

Abstract The authors note the growing complexity of social and economic processes, the study of which involves the consideration of many factors and subjects of economic activity. The already developed econometric models, enormous volumes of already accumulated data, and the growing computing power allow us to build and test simulation models of carious kinds. The authors consider key aspects of using an agent-based modeling in various fields of knowledge. In particular, agent-based modeling allows one to ask and then consider the complexity of social and economic processes, which consists of such elements as behavioral patterns, decision-making methods, strategic vision, the need for a resource base (including the necessary information), learning strategies in the process of functioning, adaptive mechanisms, etc. The authors consider different perspectives available in agent-based modeling: agent-agent, agent-environment, environment-environment. The analysis carried out by the authors shows that the scientific literature has a gap in the application of agent-based models in the cooperative sector of the economy. The article considers the main areas of using this methodological toolkit for the analysis of the cooperative sector of the economy, including deepening theories of the cooperative economy; obtaining unique data on the interaction of cooperatives with each other and with the external environment, including through simulation; V. A. Brodskiy (&) Russian University of Cooperation, Moscow, Russia e-mail: [email protected] D. M. Pimenov
P. L. Chernov Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] P. L. Chernov e-mail: [email protected] M. D. Dzhamaldinova
N. O. Kurdyukova State Educational Institution of Higher Education Moscow Region “University of Technology”, Korolev, Russia e-mail: [email protected] N. O. Kurdyukova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_27

261

262

V. A. Brodskiy et al.

developing a better understanding of economic policy in the cooperative sector of the economy, etc. Keywords Cooperatives


Simulation
Quantitative study
Complexity

1 Introduction Contemporary studies of socio-economic systems are faced with the problem of the presence of many independent agents, the unpredictability of the external environment, the complexity of the interactions between the agents themselves and between agents and the external environment. Thus, the need to develop models that take into account the growing complexity of socio-economic systems is growing steadily. In addition, due to the fact that we live in an information society with a growing number of digital technologies with increasing computing power, scientists (like never before) have the ability to collect and process huge amounts of data. These trends are driving a growing interest in agent-based modeling. According to (Konovalov et al. 2012), “Modern economics includes aspects of behavioral economics, network theory, simulation, chaos theory, as well as ideas borrowed from physics, biology, anthropology, cognitive psychology, and other natural sciences and humanities as applied to economics and management problems” (p. 66). Agent-based modeling is one of such methods that arose at the intersection of interdisciplinary and can be used in various industries to create theoretical and applied scientific knowledge. In particular, agent-based modeling is very actively used to analyze economic systems. For example, (Ramzaev et al. 2017) reviews the possibilities of using simulation to analyze high-tech integrated structures in an industrial region. Another prominent researcher, (Makoveev 2016), reviews agent-based models for analyzing territorial socio-economic development in Russia. The applicability of agent-based models with geographic information systems are discussed by (Gulin and Rossoshanskii 2016). The authors of this article consider the main approaches to understanding the agent-based approach, analyze the concepts of “agent,” “environment,” “design stages,” provide the step-by-step strategy of building models. Thus, the presented scientific research fills the gap existing in the scientific literature and can serve as one of the starting points for further scientific research.

2 Materials and Method In fact, agent-based modeling is rooted in, on the one hand, rooted in methods of mathematical statistics that have been actively developed over the past 150 years. On the other hand, given the computational complexity, the development of agent-based modeling (and simulation) received a completely different impetus due

A Review of Agent-Based Modeling …

263

to an increase in the computing power of computers, not to mention their mass distribution. As a rule, the most important areas of application of agent-based models are related to the study of socio-economic phenomena and processes, the analysis of agent behavioral strategies, testing of various mathematical models for the development of complex systems, etc. (De Wildt et al. 2020; Kagho et al. 2020; Yıldız and Çağdaş 2020; Li et al. 2020). Such an orientation and enormous methodological tools are of great interest to the cooperative sector of the economy, because the latter includes various sectors, since cooperative organizations can be created and work in various sectors of economic activity. Based on the published literature, the authors of this study consider the main approaches to understanding agent-based modeling as a type of simulation modeling, reveal the main characteristics, consider the applicability of this simulation to study complex processes in the cooperative sector of the Russian economy.

3 Results We consider agent-based models as a subspecies of calculated models that consist of many agents whose behavior can be set and tracked using computer simulation methods. Thus, the opportunity is created to consider a whole set of agents and track the results of their interactions. Agent-based modeling allows economists to model complex systems changing under the influence between different agents. Generally speaking, this approach to the study of complex systems has a very wide applicability in various fields of scientific research, from epidemiological studies (Nelson et al. 2018) to marketing (Serrano and Iglesias 2016). This distribution is due to the fact that the basis of agent-based methods consists in the analysis of multi-agent systems (such systems that consist of the interaction of several agents), which received its initial wide distribution in computer sciences. Moreover, along with an increase in the computing power of computers and an increase in the ability to collect data, the tools of this approach gradually grew and expanded. In particular, agent-based modeling is based on advanced research in the framework of evolutionary programming (An 2012), game theory (Adami et al. 2016; Kaviari et al. 2019), Monte Carlo methods (Daoud and Mahmoud 2008; Stroeve et al. 2009), Computational Economics (Damaceanu 2008; Pourabdollahi et al. 2017), etc. Agent-based modeling has two basic elements—“agent” and “environment”. Agents can be various, including subjects of economic activity (for example, members of cooperatives or cooperatives themselves). Agents become heterogeneous, different in the process of system development, and agent-based modeling allows you to take into account these processes and get amazing results. As for the second “basic” element of the agent-based approach, the environment, this is a continuous space for the functioning of agents with a predetermined form. This space has a certain effect on agents (direct or indirect) and sets the conditions for

264

V. A. Brodskiy et al.

their functioning. Various geographic information systems are often used as an environment, having set parameters for agents. Thus, only three types of bonds are studied using an agent-based approach: agent-agent, environment-agent, environment-environment. Thus, the scientist can set parameters at which the agent learns independently within the framework of the environment, improves his behavioral strategies, interacts with other agents and with the environment. A particular advantage is the study of the relationship between different environments, which can be used quite actively to analyze institutional theories of economic development. In addition, the scientist can track the influence of the agent on the environment as a result of his behavioral strategies. Analysis of the effectiveness of various behavioral strategies in a variety of environments is also an excellent opportunity for applying an agent-based approach. What opportunities does the agent-based methodology offer? Firstly, using this methodology, a scientist can create models of complex systems whose behavior depends entirely on the behavior of agents. Based on methodological tools, a scientist studying a specific problem is engaged in the construction of computational tools. This toolkit takes into account a set of agents. The scientist sets these agents by attributing to them a set of properties and rules of behavior and essentially making them independent (at first glance). The whole model is permeated with interdependencies, starting from the lower level of the model and ending with the highest levels. From the point of view of analyzing the behavior and interactions between agents, agent-based modeling allows you to set and then consider the entire complexity of such elements as behavioral patterns, decision-making methods, strategic vision, the need for a resource base (including the necessary information), strategies learning in the process of functioning, adaptive mechanisms. Agents have the following basic properties: autonomy, intelligence, representativeness, location in time and space. Based on the tasks facing researchers, agents can also have additional properties: the presence of a life cycle, independence, interaction, determination, world perception, the ability to learn, the ability to adapt, the presence of a resource base (Fattakhov and Fattakhov 2015). Thus, the scientist independently sets the characteristics of agents and systems, based on the tasks set for themselves and their complexity. As a result, agent-based modeling allows one to look into the complexity of economic relations, making it possible to more deeply study the theoretical and applied processes taking place in the cooperative sector of the economy. Since this methodology allows us to consider interactions between a huge number of different agents, a scientist can consider the synergy of their interaction and detect “emerging phenomena”. They cannot be found and studied only if one agent is being studied. The ability to track behavioral patterns and interactions results in an understanding of the functioning of the system. Thus, the scientist who created the model has the ability to consider the non-linearity of agent behavior and also consider various development options for this system. The use of agent-based modeling is of particular interest in the cooperative sector of the economy, since there are no published scientific studies using

A Review of Agent-Based Modeling …

265

agent-based modeling to study complex processes and phenomena in the cooperative sector of the Russian economy. We can use two different types of agent-based models. The first type of model focuses on the behavior of agents in a static environment. The second type of model mainly considers changes in the environment itself. Thus, we can get a dynamic idea of the development of the cooperative movement in Russia, and it is impossible to get it in the framework of static models. Of course, the study of the interaction of agents and the social environment. The use of agent-based modeling to study the complex processes taking place in the cooperative sector of the economy implies the construction of a mathematical model. In this scientific article, we will not discuss various approaches to the construction of mathematical models, since this issue is too extensive and may qualify for a separate discussion. As noted above, agent-based modeling is imitative in nature. As a rule, we can divide the entire study into three large parts, and the general sequence is shown in Fig. 1. First, a scientist must think through research design very well. This step involves the formulation of the research problem on the basis of an extensive analysis of the scientific literature on this issue and the use of practical knowledge. It is especially important to analyze which agents the authors will be considered and for what purpose. The scientist must set the agent behavior parameters in great detail, collecting the necessary information. Since we are dealing with complex systems, scientists must take into account a large number of factors. However, we strongly recommend keeping the models as simple and efficient as possible. In particular, scientists are required to pay close attention to the boundaries of research, because this will affect the boundaries of the environment itself. Scientists must remember that there is no task to fully define the behavior of the entire system. The key task is to describe the behavior of only elements of the system itself, paying particular attention to issues of increasing their independence. A simulation experiment determines the behavior of the entire system. The next stage is associated with setting the parameters of the agent-based model itself, which should have a strictly defined structure, correspond to the tasks set, take into account the behavior of agents, and reflect the parameters of a strictly defined environment. In addition, it is very important at this stage to collect high-quality data for the model, because they will determine the quality of the results obtained in the future. Typically, a model runs several times. The first time the model is launched on the basis of a small sample of data so that the creators of the model can “run around” (test) the model used. If any defects are found or irrelevant results are found, then scientists have the opportunity to make the model more accurate. Then, the model is used throughout the database. In the end, the scientist analyzes the results and plans to continue using this agent-based model with new data. The model should help to answer (or immediately categorically answer) to the posed research problem. Regarding the use of appropriate data analysis software, there are a wide variety of products. However, we can divide these products according to two criteria: “modeling capacity” and “modeling complexity.” The use of software is an absolute must, because agent-based modeling involves the study of complex

266

V. A. Brodskiy et al.

Fig. 1 The sequence of steps in building an agent-based model. Source Compiled by the Authors

socio-economic systems. The highest potential in terms of “modeling capacity” and “modeling complexity” are possessed by Swarm, Ascape, Repast S, AnyLogic, and programming languages (C++, Java, C, Pascal). Everyone can additionally learn about programming options in the following sources: (Abar et al. 2017), (Zaffar et al. 2011), (Dhavachelvan and Uma 2005), (Batchkova and Ivanova 2019).

4 Discussion Thus, in our opinion, the use of agent-based modeling to study the cooperative sector of the Russian economy has great advantages, especially since there are no agent-oriented studies of cooperative organizations in modern scientific literature, at least in Russian. In our opinion, we should consider the possibility of using agent-based modeling to create deep and modern knowledge about the cooperative economy in Russia in the following areas: (1) deepening the theory of cooperative

A Review of Agent-Based Modeling …

267

economics; (2) obtaining unique data on the interaction of cooperatives with each other and with the external environment, including through simulation; (3) the formation of a better understanding of economic policy in the cooperative sector of the economy, its analysis, making recommendations at macro and micro levels; (4) the study and analysis of cooperative markets, as well as markets for goods produced by cooperatives; (5) the study and analysis of behavior in a bargaining situation for various types of cooperative markets; (6) study of the impact of monetary policy on the cooperative sector of the economy; (7) advanced study of the labor market of the cooperative sector of the Russian economy.

5 Conclusion Thus, we can draw the following conclusion on the basis of the study: agent-based modeling is a very convenient method for studying the cooperative sector of the economy, including the modeling of cooperative networks as complex socio-economic objects consisting in direct interaction with each other and with the environment in which they are located. The use of this method will help to better understand the current state of cooperatives in Russia, assess the dynamics of their development, and consider the impact of cooperatives on the socio-economic environment of villages, cities, and regions. In addition, scientists will be able to collect and process a large amount of unique data by constructing such models that will be used for research in other countries. Of course, the main contribution of such research will be to the scientific literature, in which there is now a serious gap.

References Abar, S., Theodoropoulos, G.K., Lemarinier, P., O’Hare, G.: Agent based modelling and simulation tools: a review of the state-of-art software. Comput. Sci. Rev. 24, 13–33 (2017) Adami, C., Schossau, J., Hintze, A.: Evolutionary game theory using agent-based methods. Phys. Life Rev. 19, 1–26 (2016) An, L.: Modeling human decisions in coupled human and natural systems: review of agent-based models. Ecol. Model. 229, 25–36 (2012) Batchkova, I., Ivanova, T.: Model-driven development of agent-based cyber-physical systems. IFAC-Papers OnLine 52(25), 258–263 (2019) Damaceanu, R.-C.: An agent-based computational study of wealth distribution in function of resource growth interval using NetLogo. Appl. Math. Comput. 201(1), 371–377 (2008) Daoud, M., Mahmoud, Q.H.: Monte Carlo simulation-based algorithms for estimating the reliability of mobile agent-based systems. J. Netw. Comput. Appl. 31(1), 19–31 (2008) De Wildt, T.E., Chappin, E.J.L., van de Kaa, G., Herder, P.M., van de Poel, I.R.: Conflicted by decarbonisation: five types of conflict at the nexus of capabilities and decentralised energy systems identified with an agent-based model. Energy Res. Soc. Sci. 64, 101451 (2020) Dhavachelvan, P., Uma, G.V.: Multi-agent-based integrated framework for intra-class testing of object-oriented software. Appl. Soft Comput. 5(2), 205–222 (2005)

268

V. A. Brodskiy et al.

Fattakhov, R.F., Fattakhov, M.R.: Agent-oriented approach as a new way of obtaining knowledge. Reg. Econ.: Theory Pract. 10(385), 47–62 (2015) Gulin, K.A., Rossoshanskii, A.I.: Russian and foreign experience of integration of agent-based models and geographic information systems. Econ. Soc. Changes: Facts Trends Forecast 6(47), 141–157 (2016) Kagho, G.O., Balac, M., Kay, W., Axhausen, K.W.: Agent-based models in transport planning: current state, issues, and expectations. Procedia Comput. Sci. 170, 726–732 (2020) Kaviari, F., Saadi Mesgari, M.A., Seidi, E., Motieyan, H.: Simulation of urban growth using agent-based modeling and game theory with different temporal resolutions. Cities 95, 102387 (2019) Konovalov, V., Karaev, A., Melnitshuk, M.: Agent-based models in economic activity. Transp. Bus. Russia 6(2), 66–72 (2012) Li, F., Li, Z., Chen, H., Chen, Z., Li, M.: An agent-based learning-embedded model (ABM-learning) for urban land use planning: a case study of residential land growth simulation in Shenzhen, China. Land Use Policy 95, 104620 (2020) Makoveev, V.N.: The use of agent-based models in the analysis and forecasting of socio-economic development of territories. Econ. Soc. Changes: Facts Trends Forecast 5(47), 272–289 (2016) Nelson, M.F., Murphy, J.T., Bone, C., Altaweel, M.: Cyclic epidemics, population crashes, and irregular eruptions in simulated populations of the mountain pine beetle, Dendroctonus ponderosae. Ecol. Complex. 36, 218–229 (2018) Pourabdollahi, Z., Karimi, B., Mohammadian, K., Kawamura, K.: A hybrid agent-based computational economics and optimization approach for supplier selection problem. Int. J. Transp. Sci. Technol. 6(4), 344–355 (2017) Ramzaev, V.M., Khaymovich, I.N., Chumak, V.G., Kukolnikova, E.A.: Using agent-oriented modeling for analysis of high-tech integrated structures of the region industry. Bull. Samara Municipal Inst. Manag. 2, 98–105 (2017) Serrano, E., Iglesias, C.A.: Validating viral marketing strategies in Twitter via agent-based social simulation. Expert Syst. Appl. 50, 140–150 (2016) Stroeve, S.H., Blom, H., Bakker, G.: Systemic accident risk assessment in air traffic by Monte Carlo simulation. Saf. Sci. 47(2), 238–249 (2009) Yıldız, B., Çağdaş, G.: Fuzzy logic in agent-based modeling of user movement in urban space: Definition and application to a case study of a square. Build. Environ. 169, 106597 (2020) Zaffar, M.A., Kumar, R.L., Zhao, K.: Diffusion dynamics of open source software: an agent-based computational economics (ACE) approach. Decis. Support Syst. 51(3), 597–608 (2011)

Mathematical Modeling of Consumer Behavior, Taking into Account Entropy Mikhail M. Ermilov , Liudmila E. Surkova , and Roman V. Samoletov

Abstract Modeling of economic consumer behavior is studied in classical economic theory, which assumes exclusively rational consumer behavior. On the other hand, behavioral economics explains the consumer’s “irrationality”. The paper aims to build a mathematical model that describes the modern consumers’ behavior, taking into account those random factors that are different from the rational consumer model. Based on the methods used for analyzing the research in this area, a comparatively flexible mathematical model of the consumer is developed. It is assumed that not only the goods and impressions acquired, but also their diversity in itself is of value to the consumer. In physics, entropy is a measure of diversity. Almost all physical probability distributions directly follow from the principle of maximum entropy. The authors tried to extend this principle to the economic field. The resulting mathematical model of the consumer takes into account both personal characteristics and the inevitable random deviations in their choice. As a result, general formulas for an arbitrary consumer utility function were obtained. The paper provides evidence that the amount of cash costs is subject to a gamma distribution if an arbitrary homogeneous function represents the utility function. The constructed model can be applied to describe real economic processes.







Keywords Rational consumer Probability density Maximum entropy Homogeneous function Statistical characteristics of the model







M. M. Ermilov
R. V. Samoletov Russian University of Cooperation, Mytischi, Russia e-mail: [email protected] R. V. Samoletov e-mail: [email protected] L. E. Surkova (&) National Research Moscow State University of Civil Engineering (MGSU), Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_28

269

270

M. M. Ermilov et al.

1 Introduction Mathematical modeling in solving economic problems is one of the components of system analysis. Modeling of economic consumer behavior is studied in classical economic theory, which assumes exclusively rational consumer behavior. On the other hand, a separate area of “behavioral economics” has developed in the economy, which tries to explain the behavioral paradoxes of a person, explicitly taking into account the psychological characteristics of a person, their judgment and perception, which explains the consumer’s “irrationality” in terms of obtaining material benefits (Bogoviz et al. 2020a; Bogoviz et al. 2020b). Let us try to take into account this “irrationality” of the consumer in the mathematical model. In traditional models of economic behavior, collectively called “rational consumer,” the concept of the utility function (UF) is central: uðxÞ; x ¼ ðx1 ; x2 ; . . .xn ÞT ; where the elements of the demand vector x are the number of units of goods and services purchased by the consumer. The UF determines the preferences of a given consumer. It is assumed that the prices for these services are known; they form a vector of the same dimension: p ¼ ðp1 ; p2 ; . . .pn ÞT According to the basic tenet of these models, a rational consumer seeks to achieve the highest possible value of the UF. Models of this kind differ from each other, mainly in the composition of the restrictions imposed on the possible values of the demand vector x. Thus, for example, if the only restriction comes down to setting the amount of money that the consumer disposes of, then we have the classical task of achieving a conditional maximum of the UF. As is known, in such cases, the system of equations should be solved: (

@ @x uðxÞ T

¼ kpT

p x¼q

ð1Þ

In some cases, for example, when the UF is the so-called Cobb-Douglas function, this system has an analytical solution. In the general case, the solution to system (1) must be sought using computer programs. A solution to system (1) exists, and, at the same time, it is unique. Thus, a “rational consumer” is a deterministic model. This suggests that the model is only an approximate reflection of real market processes, in which elements of randomness are necessarily present to some extent. On the other hand, some probabilistic models describe various kinds of systems, including economic ones.

Mathematical Modeling of Consumer Behavior, Taking …

271

This work aims to build a mathematical model that describes the behavior of the modern consumer, taking into account random factors, which distinguish it from the rational consumer model. As known, in physics, the measure of diversity is entropy, in which a system achieves maximum value in equilibrium. Let us try, having studied the papers available in this direction, to extend this principle to the economic field while keeping in mind that each living consumer has their personal preferences.

2 Materials and Methods The paper used methods of analysis and study of work in this direction, as well as mathematical modeling, a search for an extremum of functions, and the entropy method. The materials of the paper are theoretical studies of consumer behavior.

3 Results The analysis of works that use entropy has shown that the entropy explanation for predicting consumer behavior is proposed in Lesser and Lusch (1988). A fairly detailed account of the entropy analysis in economics is given in Livshits and Seagal (2014). Fundamental domestic studies of stochastic, social, and economic processes can be found in the works of Popkov (Popkov 2006a, b, c; 2015) where entropy methods are also widely used. The objects of research are large (economy as a whole and market models). The entropy method was also used in the work of Getmanchuk and Ermilov (2012). As regards the purely entropic models of an individual consumer (Panyukov 2015), as a rule, difficulties arise with attempts to take into account individual consumer preferences. It is clear, however, that the economic behavior of a more or less typical consumer should be neither completely random nor strictly determined. In our opinion, one of the essential values for any consumer, in addition to the goods and services, is the possibility of their arbitrary choice, i.e., diversity is valuable for consumers. In statistical physics (Pressé et al. 2013; Belashev and Suleimanov 2002), entropy is a measure of diversity, and based on the econophysical approach, entropy must be included in the number of arguments of the modified UF in one way or another on par with other parameters. Such a view is unlikely to cause particular objections. However, the question is in building such a UF that could realize both the personal consumers’ preferences and their tendency to change their choices randomly. A particular sufficiently justified criterion is needed. It seems convincing to us and, at the same time, relatively easy to implement the approach proposed by E. Jaynes (Jaynes 1982), who also wrote several works on information theory and statistical methods (Jaynes 1957; Jaynes 1963).

272

M. M. Ermilov et al.

We also want to note that precisely the same functions as those of Jaynes were considered earlier by Stratonovich (1975), and Kulback (1967). Each of these authors solved their tasks purely. The stability of the form of function (2) below, which appears in the solutions of problems with absolutely nothing in common, seemed to us a sufficiently convincing argument for taking it as a basis. As applied to economics, the Jaynes method can be formulated, for example, in this way: We look for the distribution of demand that would correspond to the maximum entropy value for a given level of well-being (that is, a given value of the usual UF). We can choose another criterion: for example, let us look for a distribution that corresponds to the maximum of a linear combination of the logarithm of the UF and entropy. It is characteristic that, in both cases, variational problems have solutions of almost the same kind, given below (2). In this model, it is believed that, in principle, it is possible to purchase any quantity of each product under the natural condition that the mathematical expectation of the total cost of purchases is equal to a certain value q. That is, it is assumed that in some cases, the consumer’s cost may exceed q, for example, using savings, but, in others, it will be less than this value. The utility function is also present in this model; it is in the UF that personal consumer tastes and preferences are reflected. We will assume that the UF takes only positive (non-negative) values. Consider such a function: a

ðxÞ uðxÞ ¼ f ðxÞ ln uf ðxÞ ð a  0Þ

ð2Þ

Here f ðxÞ is a specific joint probability distribution density of all variables x1 ; . . .xn . A priori, this density is not known. The numerical values of the parameter can be varied, giving any non-negative values. Let us note that when a ¼ 0 the function uðxÞ in (2) disappears, we get the function whose integral in the space x gives the classical entropy corresponding to a specific density f ðxÞ. This paper is devoted to the study of the applicability of this function for probabilistic consumer modeling. The range of possible values of the elements of the vector x is denoted by X, and the “volume” element is denoted by dX. As for the function ua ðxÞ, we proceed from the assumption that the integral (3) converges in the domain X: Z ð3Þ I ðaÞ ¼ ua ðxÞdX X

The integral of uðxÞ will be called modified entropy. The difference from the standard entropy ua ðxÞ is that a utility function raised to the power a, is introduced in the integrand. The values of the non-negative parameter a can be changed over a wide range. To explain the motives for considering function (2), we prove one characteristic property:

Mathematical Modeling of Consumer Behavior, Taking …

273

Lemma 1. For any proper functions f ðxÞ, the integral of function (2) takes the maximum value equal to e1 IðaÞ, which is achieved under the condition f ðxÞ ¼ e1
ua ðxÞ. The proof is not given here. Now we proceed to find such a probability density f ðxÞ that the modified entropy reaches its extreme value when some additional natural conditions are imposed on the density. The first condition is that the integral of f ðxÞ is equal to unity—this is a requirement that is mandatory for any densities. Secondly, we require that the mathematical expectation of the scalar product of a fixed price vector pT and vector x be equal to some positive value q. This number is equal to the average value of the amount of money that the consumer is willing to spend on goods and services. Since we are now talking about a conditional maximum, we apply the method of Lagrange multipliers. The Lagrange function is introduced, which, in this case, has the following form: Z  L¼

f ðxÞ ln X

 ua ðxÞ  k0 f ðxÞ  kf ðxÞpT x dX f ðxÞ

The first variation of this integral at the extreme point must be equal to zero. From this requirement it follows that the density f ðxÞ satisfies the equation: ln

ua ðxÞ  1  k0  kpT x ¼ 0 f ðxÞ

Solving it concerning the density, we obtain:   f ðxÞ ¼ A
ua ðxÞ
exp kpT x

ð4Þ

It was marked here that A ¼ expð1  k0 Þ. Unknown coefficients A and k are determined by the two following qualities: 8R a T < A
u ðxÞ
expðkp xÞdX ¼ 1 X R : A
ua ðxÞ
pT x
expðkpT xÞdX ¼ q

ð5Þ

X

If, following the methodology of Jaynes, we introduce a function (which we will conditionally call generating; in purely mathematical terms, it is the Laplace transform of the ua ðxÞ function, with the parameter pT ): Z     ua ðxÞ
exp pT x dX ð6Þ Z pT ¼ X

274

M. M. Ermilov et al.

– then conditions (5) are written more briefly. We come to the system of the following form: 

A
Z ðkpT Þ ¼ 1 d T dk ln Z ðkp Þ ¼ q

ð7Þ

The second equation in (7) completely determines the value k. Thus, ZðkÞ is a function that completely determines all the properties of the solutions of these systems. In the general case of arbitrary UF uðxÞ, the Eq. (7) can be solved only with the help of computer programs. However, in exceptional cases, one can go quite far in their analysis. Let us consider one of them. In the traditional theory of the rational consumer, one of the most frequently considered cases is when the UF is represented by a homogeneous function of some order a. Let us consider the effect of the homogeneity assumption on expressions (6)–(7). As is known, if uðxÞ is a homogeneous function of the first order, then for any non-negative number t, the following equalities are performed: uðtxÞ ¼ t
uðxÞ; ua ðtxÞ ¼ ta
uðxÞ

ð8Þ

Let us prove the following statement: Lemma 2. Let x be a n-dimensional vector and ua ðxÞ a homogeneous function of the order a. Then, ZðpT Þ is a homogeneous function; its order is ðn þ aÞ. The proof is not given here. Thus: ZðkpT Þ ¼

1 ZðpT Þ kn þ a

ð10Þ

Direct substitution of this expression into the second equation of system (7) brings this equation to the form   @ @ nþa ln Z kpT ¼  ln kn þ a ¼  ¼ q; @k @k k where we get: 8 < k ¼ n þq a ; nþa

1 k : A ¼ Z ðkp T Þ ¼ Z ðpT Þ ¼



nþa q

n þ a


Z ð1pT Þ

We call the value cðxÞ ¼ pT x, a function of consumer spending.

ð11Þ

Mathematical Modeling of Consumer Behavior, Taking …

275

Let us consider the characteristic function (CF) of consumer spending.  

uðc; tÞ ¼ exp itpT x Angle brackets indicate statistical averaging. For the cost function, CF can be found analytically. Theorem 1. Let ua ðxÞ be a homogeneous function of order a. Then the value of the expense function is a random variable with a gamma distribution. Proof. Let us find the CF of the expense function, taking into account both the homogeneity of the function ua ðxÞ and equality (11): R uðc; tÞ ¼ hexpðitpT xÞi ¼ A
ua ðxÞ expðitpT xÞ
expðkpT xÞdX X R R ¼ A
ua ðxÞ exp½ðk  itÞpT xdX ¼ ðkit1Þn þ a A
ua ðxÞ expðpT xÞdX ¼

X

A ðkitÞn þ a

X

nþa

k Z ðpT Þ ¼ ðkit ; Þn þ a

that is: uðc; tÞ ¼ 

1 1  kit1

ð12Þ

n þ a

The CF of the form (12) corresponds to a gamma distribution with the density  f ð#; k; n þ aÞ ¼

kn þ a n þ a1 k# e ; Cðn þ aÞ #

0;

#0 #\0

ð13Þ

where there Cð
Þ is a gamma function: Z1 CðaÞ ¼

xa1 ex dx

0

The proof is complete; gamma distribution parameters turned out to be equal to n þ a; k ¼ n þq a . Perhaps the most curious result is that for a given average level of expenses q, the distribution of random realizations of these expenses does not depend on the price vector pT or even on the specific form of the homogeneous function uðxÞ. In mathematical statistics, it is often not the CF itself that is used but its logarithm. According to the well-known properties of the logarithm of the CF, we obtain expressions for the mathematical expectation and variance of the sum of expenses:

276

M. M. Ermilov et al.

hci ¼ i @t@ /ðtÞjt¼0 ¼ n þk a ¼ q; 2 2 r2c ¼  @t@ 2 /ðtÞjt¼0 ¼ n kþ2 a ¼ n qþ a Naturally, the mathematical expectation of consumer spending is q, and the 2 variance of costs is equal to n qþ a. As can be seen, as parameter a tends to infinity, and the dispersion of costs tends to zero. As one would expect, in the limit a ! 1, this probabilistic model converges to the classical deterministic model of a rational consumer. Let us find how the generating function Zð
Þ determines the initial and second initial moments of the demand vector coordinates. Theorem 2. Let the UF ua ðxÞ be a homogeneous function. Then, the mathematical expectation of the demand vector, its covariance matrix, and its derivative with respect to the price vector is determined by the corresponding derivatives of the generating function logarithm. hxi ¼  1k @p@ T ln Z ðpT Þ;

covðxÞ ¼ k12 @p@T @p ln Z ðpT Þ; 2

@ @p hxi

¼

ð14Þ

2  1k @p@T @p ln Z ðpT Þ

Let us carry out the proof by points in the same order. 1. According to (4), the expectation vector is Z

Z     A @ A
x
ua ðxÞ
exp kpT x dX ¼  ua ðxÞ
exp kpT x dX T k @p X X Z   A @ A @   ¼  n þ a þ 1 T ua ðxÞ
exp pT x dX ¼  n þ a þ 1 T Z pT @p @p k k

h xi ¼

X

According to (11): A¼

kn þ a ; Z ðp T Þ

we obtain the first formula from (14). 2. Let us find the matrix of the second initial moments of the demand vector. T

xx ¼

Z X

  A @2 A
xxT
ua ðxÞ
exp kpT x dX ¼ 2 T k @p @p

Z X

    @2 1 1 @2 Z pT ¼ n þ a þ 2 T Z pT ¼ 2 T T @p @p k k Z ðp Þ @p @p A

  ua ðxÞ
exp kpT x dX

Mathematical Modeling of Consumer Behavior, Taking …

277

Using this and previous results, we find the matrix of second derivatives of ln Z ðpT Þ: @2 @ 1 @ 1 @2 1 @ @ Z ¼ Z ln Z ¼ Z 2 TZ
T T T @p Z @p Z @p @p Z @p @p @p @p



¼ k2 xxT  khxi
k xT ¼ k2 covðxÞ 3. It follows directly from (14) that the derivative of the mathematical expectation of the demand vector with respect to the price vector is proportional to its covariance matrix:   @ 1 @2 ln Z pT ¼ k
covðxÞ hxi ¼  T @p k @p @p

ð15Þ

Thus, Theorem 2 is proved.

4 Conclusion As a result, a probabilistic model is constructed that describes a consumer whose behavior differs from the so-called rational consumer. The modification of the formula proposed in the works of Kulbak and Stratonovich allowed us to arbitrarily change the consumer’s tendency to a variety of goods and services. General formulas were obtained for an arbitrary UF consumer. In it, depending on the value of a special numerical parameter, it is possible to smoothly control the influence of entropy on consumer demand—from the state when the maximum of entropy is the only factor determining this demand, and to the opposite limit, when the consumer, constrained by the means, actually implements a rigid model of the rational consumer. The most interesting results were obtained when the consumer utility function was represented by an arbitrary homogeneous function. It is proved that, in this case, the amount of cash costs is subject to the gamma distribution. It is characteristic that the parameters of this distribution depend, naturally, on consumer income, but there is no dependence on the specific type of the homogeneous UF. We assume that the constructed model allows certain generalizations. As a result, it can be used for the probabilistic description of the economic behavior of homogeneous consumer spending.

278

M. M. Ermilov et al.

References Belashev, B.Z., Suleymanov, M.K.: The method of maximum entropy. The statistical description of systems. Phys. Elem. Part. Atomic Nuclei Letters 6, 44–50 (2002) Bogoviz, A.V., Bolonin, A.I., Kletskova, E.V., Romantsova, T.V., Karp, M.V.: Growth of the modern global economy: market optimization versus counter-cyclical regulation. Lecture Notes in Networks and Systems, vol. 73, pp. 219–226 (2020a) Bogoviz, A.V., Shkodinsky, S.V., Skomoroshchenko, A.A., Mishchenko, I.V., Malyutina, T.D.: Scenarios of development of the modern global economy with various growth poles. Lecture Notes in Networks and Systems, vol. 73, pp. 185–192 (2020b) Getmanchuk, A.V., Ermilov, M.M.: Entropy method for constructing probability models of consumer behavior. Bull. Russian Univ. Coop. 2, 139–146 (2012) Janeys, E.T.: Information theory and statistical mechanics. Phys. Rev. 106(4), 620–630 (1957) Janeys, E.T.: On the rationale of maximum-entropy methods. Proc. IEEE 70(9), 939–952 (1982) Jaynes, E.T.: New engineering applications of information theory. In: Bogdanoff, J.L., Kozin, F. (eds.) Engineering Uses of Random Function Theory and Probability, pp. 163–203. Wiley, New York (1963) Kullback, S.: Information Theory and Statistics. Russia, Moscow (1967) Lesser, J.A., Lusch, R.F.: Entropy and the prediction of consumer behavior. Behav. Sci. 33(4), 282–291 (1988) Livshits, V.N., Segal, A.V.: On the entropy analysis of a transition economy. Econ. Math. Methods 50(3), 86–104 (2014) Panyukov, A.V.: Mathematical Modeling of Economic Processes. LENAND, Moscow (2015) Popkov, A.Yu.: Entropy model of an investment portfolio. Autom. Telemech. 9, 179–190 (2006a) Popkov, Yu.S: Entropy models of demo-economic dynamics. Proc. ISA RAS 28, 3–43 (2006b) Popkov, Yu.S: Fundamentals of the theory of dynamical systems with an entropy operator and its applications. Autom. Telemech. 6, 75–105 (2006c) Popkov, Yu.S: Macrosystemic Models of Spatial Economics. LENAND, Moscow (2015) Pressé, S., Ghosh, K., Lee, J., Dill, K.A.: Principles of maximum entropy and maximum caliber in statistical physics. Rev. Mod. Phys. 85, 1115–1141 (2013). https://www.physics.rutgers.edu/ grad/677/Physics_677_2018_files/Presse_Dill_RevModPhys2013_MaxCaliber.pdf Stratonovich, R.L.: Information Theory. Soviet Radio, Moscow (1975)

The Cooperative Sector of the Smolensk Region: Current State and Development Problems Vladimir M. Lavrushin , Vladimir A. Gimarov , Vladimir V. Gimarov , Olga Yu. Kramlikh , and Svetlana A. Chudakova Abstract The cooperative movement is a unique phenomenon in socio-economic history, embodying the desire of people for equal work for the common good. Cooperation has significant antitrust potential and allows small businesses to compete at the regional level with large businesses. The paper presents the results of a study on the development of consumer cooperation in the Smolensk region. The purpose of the study is to identify trends and patterns in the development of organizations operating in the cooperative sector in a regional aspect. The scientific novelty is due to the insufficient practice of studying the cooperative system at the regional level, which leads to problems of modeling and forecasting the development indicators of the cooperative sector. The study relies on unique statistical materials, variation analysis, time series analysis, structural analysis. Cooperative organizations of the Smolensk region demonstrate economic effectiveness, steadily reducing distribution costs, increasing net profit, and increasing financial stability. At the same time, a steady tendency towards a decrease in the number of employees with a decrease in real wages was revealed. There is a clear differentiation of indicators of the development of consumer cooperation by the region. Based on the results of the study, promising areas of the development of consumer cooperation in the region are identified and discussed by the authors. Keywords Study Region


Cooperative sector
Consumer cooperation
Cooperative


V. M. Lavrushin (&)
V. A. Gimarov
V. V. Gimarov
O. Yu. Kramlikh
S. A. Chudakova Smolensk Branch of the Russian University of Cooperation, Smolensk, Russia e-mail: [email protected] V. A. Gimarov e-mail: [email protected] V. V. Gimarov e-mail: [email protected] O. Yu. Kramlikh e-mail: [email protected] S. A. Chudakova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_29

279

280

V. M. Lavrushin et al.

1 Introduction Cooperation is a unique socio-economic phenomenon, reflecting the constant desire of people to mutually beneficial cooperation, mutual assistance, and equal relations in all spheres of public life. The history of the development of the cooperative movement convincingly proves that cooperation could survive in various socio-economic and political conditions and shows an example of the effectiveness of collective forms of management (Samorodsky and Kramlikh 2007). New time poses new challenges for Russian cooperation. Globalization is increasing; economic sanctions against Russia are expanding. Along with this, the issue of employment of villagers and increasing their income does not lose relevance (Gimarov et al. 2019; Chudakova 2011). Cooperation can and should take part in solving these and many other problems. Its main essence is to unite people for tasks that they cannot solve on their own, to allow engagement in productive labor, and to benefit from it. Rural cooperation is the most promising and popular in the Smolensk region (Kramlikh 2008). The activities of consumer cooperation organizations are aimed at improving the quality of life of the rural population by guaranteeing the provision of goods, services, marketing surplus agricultural products, raw materials, food production, creating additional and seasonal jobs, increasing income from personal subsidiary plots, delivering bulky goods, and providing means of medicine (Russian Federation 1992; Federal Center for Agricultural Consulting of the Agricultural Complex n.d.). When producing a real product and allowing its members to work and earn, cooperatives pay taxes, participate in the formation of budgets, and allocate funds to extra-budgetary funds. Their contribution to the social sphere, improvement, and development of rural infrastructure is noticeable (Voronin et al. 2017). In many villages, cooperative enterprises are the only place of employment, centers of cultural leisure, and solving everyday problems. In the future, cooperatives may become an alternative to small businesses. This determines the need for state support to organizations of the cooperative sector (Kopytov et al. 2016; Puritz 2010). The development of effective measures to support Russian cooperation imposes high demands on the informational support of the expert community with relevant and reliable data on the current state and development prospects of the sector. At the same time, conducting qualitative research and, accordingly, obtaining reliable information is complicated by the presence of several problems. First of all, there is no single information base, which data could be used for complex research. The lack of comparable statistics makes it impossible to model and predict the development indicators of the cooperative sector. At the same time, state statistics bodies give priority to the activities of agricultural consumer cooperatives.

The Cooperative Sector of the Smolensk Region …

281

Despite a significant number of scientific publications, the study of the cooperative system at the regional level has not been fully considered (Chudakova et al. 2017; Shklyar 2012; Bogoviz et al. 2019; Bogoviz et al. 2018). The subject of the study is the performance of consumer cooperation at the regional level. The purpose of the study is to identify trends and patterns in the development of consumer cooperation in the region.

2 Materials and Methods The methodological basis of the study is statistical observation, a summary, a grouping of statistical materials, analysis of variation, analysis of time series, and structural analysis. In order to visualize the results of the study, tabular and graphical methods are used. The basis of the statistical observation is the analysis of the annual reporting data of the Smolensk Regional Consumer Union. In order to justify the system of statistical indicators, a survey of the heads of regional consumer organizations was conducted. The results of the summary and grouping contain a summary numerical characteristic of the organizations of the Smolensk Regional Consumer Union, according to the most significant features (Table 1). The methods used and the system of statistical indicators can be used for an in-depth analysis of the development of consumer cooperation in the regions. Also, the generated data array allows a comparative analysis of consumer cooperation organizations in a regional context.

Table 1 Performance indicators of the Smolensk Regional Consumer Union Indicators Costs of trading activities, thousand rubles Costs of catering, thousand rubles The level of profitability of trading activity, % to turnover The level of profitability of public catering, thousand rubles The number of employees Labor productivity of workers, thousand rubles The average salary of employees, rubles

Years 2015

2016

2017

2018

910,706 168,953 21.94

847,986 163,155 21.96

759,619 158,927 21.9

704,263 159,341 21.9

40.59

42.32

43.05

44.53

4,102 120.2

3,726 121.7

3,262 125.0

2834 134.4

15,794

15,900

16,230

17,615

282

V. M. Lavrushin et al.

3 Results The results of the study indicate a steady reduction in the number of employees of the Smolensk Regional Consumer Union. In general, over four years, the indicator decreased by 1,268 people. Such dynamics contribute to increased social tension in the countryside, since, in some rural settlements of the Smolensk region, there is no alternative to employment besides consumer cooperation. It should be noted that the growth rate of the number of employees in any district of the region did not exceed 100%. The maximum number of employees was recorded in Safonovsky, Roslavl, Velizh, Dukhovshchinsky, and Shumyachsky regional consumer unions. The Kardymovsky, Krasninsky, and Kholm-Zhirkovsky districts are engaged in consumer cooperation the least of all. Uneven employment across district consumer organizations is noted throughout the study period. A decisive factor is the stable growth of labor productivity, which increased by 14.2 thousand rubles over four years, and, in 2018, reached 134.4 thousand rubles. In relative terms, the indicator increased by 11.8%. A constant increase in labor productivity determines an increase in average wages. Nevertheless, the salary of employees of the Smolensk Regional Consumer Union in 2018 reached only 60.0% of the average monthly value in the region, which amounted to 29,397 rubles. The analysis of the dynamics of wages shows that the average growth rate is 3.7%. This indicates that wage growth is less than the official inflation, which in recent years has been at least 4.0%. As a result, the real incomes of the workers of consumer cooperative are gradually declining. There is a constant decrease in distribution costs for both trading activities and public catering, which reflects the effectiveness of the efforts of workers to reduce them. It forms the basis for increasing the efficiency of cooperative organizations in the Smolensk region. In relative terms, indicators decreased by 22.7 and 5.7%, respectively. In the structure of distribution costs of the Smolensk Regional Consumer Union in 2018, more than half are labor costs; this is, in general, is a typical phenomenon for cooperation. The fifth part is the cost of rent and maintenance of premises (Fig. 1). Over the past four years, the structure of circulation costs has been stable. A similar structure of distribution costs with a noticeable predominance of labor costs is also traced in catering. According to the results of 2018, the maximum level of costs is observed in Safonovsky, Shumyachsky, Novoduginsky, Roslavlsky, and Smolensky regional consumer unions. The trading profitability of the Smolensk Regional Consumer Union, after minor changes in 2017 and 2018, stabilized at 21.9%. At the same time, the profitability of public catering enterprises continued to increase and, in 2018, reached 44.53%. According to the results of 2018, the cooperative organizations of the region received a net profit of 144,795 rubles. The most significant commercial successes

The Cooperative Sector of the Smolensk Region …

The expenses for repairs of fixed assets, 2,2%

283

Other expenses 10,8%

Rental and maintenance costs 20,2%

Insurance contributions to extra-budgetary funds 15,4%

Labor costs 51,3%

Fig. 1 The structure of distribution costs for trading activities of the Smolensk Regional Consumer Union in 2018

were achieved by consumer companies in the Shumyachsky, Safonovsky, Novoduginsky, Demidovsky, and Pochinkovsky districts, which account for 42.5% of the total net profit. At the same time, the Sychevsky district received a net loss of 1,494 rubles. The analysis of the dynamics reveals that over four years, net profit increased only in a third of the district. The increase in the indicator is most noticeable in the Velizh, Roslavl, and Dorogobuzh districts. Thus, consumer cooperation in the Smolensk region demonstrates the effectiveness of commercial activities. However, the indicators differ significantly by the district. Capital investments in consumer cooperation, in 2018, amounted to 53,834 rubles and decreased over four years by 5.7%. Among the districts, Demidovskiy, Dukhovshchinskiy, and Safonovskiy consumer unions reached the maximum volumes of capital investments. At the same time, investments were practically made in the Gagarinsky, Krasninsky, and Khislavichsky districts. According to the results of 2018, capital investments were mainly made in trade, public catering, and production (Fig. 2). A significant amount of capital investment was made in trade because it continues to be the most important type of activity for organizations in the cooperative sector of the economy. At the same time, the analysis shows that over four years, the share of investments in trade has decreased, and catering and production have increased. In order to characterize the financial condition of consumer cooperation in the Smolensk region, an analysis of sustainability indicators was carried out. During the analyzed period, there was a steady tendency to increase indicators of the financial stability of the Smolensk Regional Consumer Union (Table 2). At the same time, indicators correspond to normative values.

284

V. M. Lavrushin et al.

Fig. 2 The structure of capital investments of the Smolensk Regional Consumer Union in 2018 Table 2 Indicators of financial stability of the Smolensk Regional Consumer Union Indicators

Date 01.01.2016

01.01.2017

01.01.2018

01.01.2019

The ratio of own working capital Mobility ratio of current assets Current liquidity ratio Coefficient of independence Financial stability ratio

0.37 0.32 1.60 0.65 1.84

0.39 0.33 1.66 0.67 1.99

0.47 0.36 1.88 0.70 2.36

0.48 0.38 1.98 0.71 2.47

The results of the study showed that the most stable are consumer organizations in the Velizh, Demidovsky, Dorogobuzh, Dukhovshchinsky, Yershichsky, Monastyrshchinsky, Pochinkovsky, Rudnyansky, Safonovsky, Sychevsky, Ugransky, and Kholm-Zhirkovsky districts.

4 Discussion The strategic direction of the Smolensk consumer cooperation continues to be the service of the rural population. Its main goal is to form an extensive and continuously developing network of trade, domestic services, and the production of their goods to improve the quality of life of the region’s inhabitants. The practical application of the research results involves the implementation of the following measures: – the development of mutually beneficial relations with consumer cooperation organizations of the Republic of Belarus; – the integration of district consumer companies in order to reduce administrative expenses, utilities, depreciation of fixed assets, and income from the rental of premises;

The Cooperative Sector of the Smolensk Region …

285

– the diversification of production and the production of essential goods in rural areas; – the development of the procurement industry for the development of rural infrastructure and job creation; – revival and development of folk crafts; – the creation of meat processing and sale complexes with a slaughtering center for cattle; a workshop for the production of semi-finished products; – the organization of points for the reception of milk, meat, eggs, vegetables, and berries; – the creation of the necessary material and technical base for the procurement and storage of potatoes, fruits, and vegetables; – the expansion of exhibition and fair activities with a tasting of products made from local raw materials; – technical modernization of enterprises; the improvement of technological processes; – the revival of sales of goods on credit to shareholders. These measures will improve the socio-economic efficiency and sustainability of cooperative organizations in the region.

5 Conclusion Russian statistical authorities do not pay enough attention to the analytical support of consumer cooperatives, giving a clear priority to the activities of agricultural consumer cooperatives. As a result, there is no free access to data on the cooperative sector of the Russian economy. This significantly limits the ability of researchers to conduct a qualitative analysis and receive scientific forecasts for its development. At the same time, this increases the value of the results of individual studies. The study allowed us to describe the state and identify the problems of the development of the cooperative sector of the Smolensk region. The analysis allowed us to conclude a stable negative dynamic in the number of employees. Amid increasing labor productivity, wages are also rising. However, the growth rate is not enough to outstrip inflation, which leads to a reduction in the real incomes of workers. A similar situation of reducing employment with a simultaneous decrease in the standard of living of workers creates danger of increasing social tension in rural settlements. This contradicts the spirit of the cooperative movement and may negatively affect the prospects for the development of consumer cooperation. A decisive factor is the constant reduction of distribution costs, which contributes to an increase in the efficiency of the district. However, the possibility of further decline is limited. More than half of the distribution costs account for labor

286

V. M. Lavrushin et al.

costs. In the face of a decline in the standard of living of workers, the possibilities of their optimization are almost exhausted. The positive value of net profit confirms the commercial effectiveness of cooperative organizations in the Smolensk region. At the same time, 42.5% of profit is generated in the five best district consumer organizations. Nevertheless, the analysis of the dynamics reveals that over four years, net profit increased only in a third of district enterprises. The structure of capital investments of the Smolensk regional consumer union, as a whole, remains stable and is characterized by a predominance of investments in trading activities. This is due to the priority of trade in the structure of economic activity. The study established a significant unevenness in the development of consumer cooperation in the districts of the Smolensk region. Based on the results of the study, the development directions of the cooperative sector in the region are proposed.

References Bogoviz, A.V., Ragulina, J.V., Barcho, M.K.: Influence of innovations on regional socio-economic development. In: The Future of the Global Financial System: Downfall or Harmony. Lecture Notes in Networks and Systems, vol. 57, pp. 1200–1207 (2019) Bogoviz, A.V., Semenova, E.I., Alekseev, A.N.: New challenges for regional economy at the modern stage. In: The Impact of Information on Modern Humans. Advances in Intelligent Systems and Computing, vol. 622, pp. 574–580 (2018) Chudakova, S.A.: Strategic management of regional trade organizations in the system of consumer cooperation (based on materials from the Smolensk region). Dissertation of candidate of Economics. Moscow Academy of Entrepreneurship under the Government of Moscow, Moscow, Russia (2011) Chudakova, S.A., Lavrushin, V.M., Yekimenkova, E.N.: Current situation and prospects for the development of the foreign economic activity of the Russian Federation. Fund. Appl. Res. Coop. Sect. Econ. 6, 117–123 (2017) Federal Center for Agricultural Consulting of the Agricultural Complex: The concept of development of cooperatives in rural areas until 2020 (n.d.). http://www.mcx-consult.ru/d/ 77622/d/proekt-koncepcii–razvitiya-kooperacii-na-sele-na-period-do-2020-goda_1.doc Gimarov, V.A., Zhutaeva, N.A., Kramlikh, O.Yu., Lavrushin, V.M., Sazonova, E.A., Sidorenkova, I.V., Chudakova, A.A., Borisova, V.L., Timofeeva, I.Yu., Lavrova, E.V., Morgun, T.N.: The study of the potential border position of the region as a factor in the development of trade: a monograph. In: Kramlikh, O.Yu., Lavrova, E.V. (eds.) RUSCIENCE, Moscow (2019) Innovation Promotion Fund: Program “Cooperation.” (n.d.). http://fasie.ru/programs/programmakooperatsiya/ Kopytov, M.N., et al.: Agricultural consumer cooperation: economic and legal aspects of functioning and development: scientific and practical edition. Ural State Agrarian University, Ekaterinburg (2016) Kramlikh, O.Yu.: Food security: directions of development, formation, and management (based on materials from the Smolensk region). Dissertation of Candidate of Economics. All-Russian Institute of Agrarian Problems and Informatics, Moscow, Russia (2008). A.A. Nikonova

The Cooperative Sector of the Smolensk Region …

287

Puritz, S.M.: Credit cooperation: nature, functions, role in the socio-economic development of the country/risk: resources, information, supply, competition. Institute for the Study of Product Distribution and Wholesale Market Studies, Moscow (2010) Russian Federation: Federal Law “On Consumer Cooperation” (consumer societies, their unions in the Russian Federation) (as amended Federal Laws dated July 11, 1997 No. 97-FZ, dated April 28, 2000 No. 54-FZ, dated March 21, 2002 No. 31-FZ) (1992) Samorodsky, V.A., Kramlikh, O.Yu.: State regulation of food security on the example of the Smolensk region. Food Ind. 10, 16–17 (2007) Shklyar, M.F.: Economics of Credit Cooperatives. Dashkov and K°, Moscow (2012) SME Corporation: Recommendations on the development of agricultural cooperation development programs (n.d.). https://corpmsp.ru/razvitie_selkhozkooperacii/programmi_subectov_rf/ Voronin, B.A., Kot, E.M., Voronina, Y.V., Fateeva, N.B., Malanicheva, A.V.: Agricultural consumer cooperation in modern Russia: state, problems. Agrarian Bull. Urals 4(158), 62–68 (2017). www.avu.usaca.ru/

The Place and Role of Family Commodity Farms and Cooperation in the Formation of Territorial Complexes Vladimir G. Egorov , Andrey A. Inshakov , and Alexey V. Kuznetsov Abstract The paper focuses on updating the agro-territorial approach in the formation of national agricultural systems, in which, due to natural qualities, the central place belongs to family commodity farms. The paper analyzes the views of foreign agricultural scholars on the problem of family commodity production. Also, the authors conduct a comparative analysis of both Russian and foreign state programs for lending to farms, as well as features of agricultural tax policies. Certain features of the insurance system and regulation of the ecology of farm business in the United States are considered. The authors argue that family farms conducting subsistence farming have significant difficulties already in the space of starting positions of commodity activities. An essential property of family farms is their immanence to cooperate, the authors conclude. Particular attention is given to the state policy of cooperation, which helps to overcome the institutional limitations of small forms of agricultural organization. The fundamental basis of rural cooperation is based on a traditional rural institution, in which the missing labor of relatives was gradually replaced by the labor and resources of other agricultural enterprises. The authors argue that the creation of a material basis in the form of commodity-oriented small farms is a prerequisite for accelerating cooperation in the agricultural sector of the economy.




Keywords Agro-territorial approach Family farm Public policy Agricultural cooperation





Institutional constraints


V. G. Egorov
A. A. Inshakov (&)
A. V. Kuznetsov Plekhanov Russian University of Economics, Moscow, Russia e-mail: [email protected] V. G. Egorov e-mail: [email protected] A. V. Kuznetsov e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_30

289

290

V. G. Egorov et al.

1 Introduction The solution to the global food security problem, which is one of the most critical areas for the implementation of the UN Sustainable Development Goals, largely depends on “creating more productive and sustainable agricultural systems” (FAO 2017). The optimal approach to the formation of the architecture of these systems with the actualized world experience in the development of agriculture is agro-territorial, which, along with the creation of conditions for the sustainable growth of the industry, preserves the traditional places of residence of the rural population, recruiting it into economic activity and incorporating agricultural production into the local economic system including manufacturing enterprises and complex structured supply chains (Bogoviz 2019a; Bogoviz 2019b; Nechaev et al. 2017). The central place in agro-territorial constructions belongs to family farms. Social sciences have accumulated sufficient material confirming the effectiveness of small forms of agricultural organization. A. Ashby wrote about the importance of family farms in the development of the British agricultural industry while noting the adequacy of this organizational form for various agricultural industries: poultry, dairy cattle, gardening, sheep, and small-scale farming (Ashby 1935). Researchers D. Allen and D. Lueck, in their study, showed why the agriculture of the American West as a whole did not evolve from small family farms to large enterprise-type corporate firms (Allen and Lueck 1998). When discussing the question of whether to expect modern agriculture to be organized in large food factories, Y. Kislev suggested that maintaining the dominant position of the family farm had prospects (Kislev and Peterson 1991). In a report presented at the nineteenth IAAE Conference, H. Newby stated that the trend towards increased concentration of production was not accompanied by the disappearance of family farms or the peasantry (Newby 1985). At the fifth Congress of the European Association of Agricultural Economists, A. Nielsen (1985) concluded that the ability to adapt to changing environmental conditions is the main reason why a family farm is a sustainable institution (Nielsen 1985). More than six decades ago, E. Heady wrote, “The motivational forces behind the farm production unit are inspired by consumption as well as profit. The optimal use of resources in production or the optimal distribution of income in consumption cannot be determined if these two basic sets of economic relations are not connected” (Heady 1953). At the same time, several problems are arising in connection with the building up of economic potential by family commodity farms and their development.

The Place and Role of Family Commodity Farms and Cooperation …

291

2 Materials and Methods The Commodification of Family Agricultural Production. An obstacle to the acquisition of material wealth by family farms that increases the migratory mobility of members of related groups is the low economic level, which determines the “natural character and orientation toward personal consumption.” In general, in the world, 85% of family farms have plots that are not even two hectares. The small material potential of family farms does not allow full-fledged market production. The reason for the static situation of non-commodity or low-commodity family farms, which creates the potential for rural unemployment and population migration from the village, is rooted partly in limited possibilities to expand the area of their land plots. However, this problem is equally acute in the global agricultural sector. According to a 2017–2018 survey conducted in Belgorod, Lipetsk, the Nizhny Novgorod regions, and the Krasnodar Territory of Russia, 46.1% of farmers cite the inability to increase the volume of their cultivated lands as one of the main obstacles to development (Fig. 1). However, while already functioning peasant farms are experiencing difficulties with expanding their production, for family collectives engaged in subsistence farming, the main insurmountable challenge involves starting positions of commodity activity. The problem with market development remains fundamental even in the developed European sectors of the farm economy. More than half of all European farmers included in the 2019 survey (except Belgium) experienced problems associated with agricultural production (Fig. 2).

Fig. 1 What difficulties hinder the development of your farm?

292

V. G. Egorov et al.

Fig. 2 The level of problems of European farmers (2019) Source (European Agricultural Fund for Rural Development 2019)

Fig. 3 Difficulties experienced by European farmers in 2018 (%)? Source (European Agricultural Fund for Rural Development 2019)

Moreover, most of the problems of European farmers, like everyone else, are associated with entering and promoting their products in the market and overcoming the obstacles faced by small-scale enterprises (Fig. 3). Bottlenecks that are an obstacle to the effective development of family farms as full-fledged actors in a market economy are well known. Some of them directly follow from the limitations of the competitiveness of small forms of management (institutional), others are different, mediated primarily by state policy in the agricultural sector.

The Place and Role of Family Commodity Farms and Cooperation …

293

3 Results State Agricultural Policy. It should be noted right away that state policy in the economy in general and in agriculture, in particular, has functional limits beyond which state regulation measures have counterproductive results. Rational measures are the ones that only aim at creating equal opportunities for all market entities, bearing in mind the replenishment of potential that is lacking due to their institutional nature. The small scale of family commodity farms requires government involvement to fully ensure the creation of the necessary infrastructure for normal farming. This refers not only to the construction of roads, but also the investment in education, healthcare, the “food system” (storage facilities, cold warehouses, and wholesale markets), metropolitan areas, including cities and towns “located in the vicinity of rural areas,” R&D, and promotion of new technologies. A separate aspect of state support measures for peasant farms is tax policy that facilitates the market adaptation of small rural enterprises. Researchers note that the tax policy of the state can effectively influence farmers’ investments in fixed assets (Durst 2009). Other analysts believe that fiscal policies can stimulate the expansion of farm enterprises (LeBlanc and Hrubovcak 1986). Thus, the Income Tax Act, which exempts farmers from part of the fiscal burden, allows Canadian farmers to save part of their pension funds (LCGE). This benefit is applied individually and allows property owners to be exempted from up to one million dollars from this tax (Government of Canada 2019). State non-tax support for small farms provides a reduction of the obstacle associated with their institutionally limited investment opportunities, which are “crucial for renewal and the future agricultural sector.” According to a survey of European farmers (2017–2019), only 16.5% of them (under the age of 40) used at least one “banking product,” which is approximately equal to the share of those who used funds received from friends (16.2%). The structure of the reasons that banks refuse to grant loans to farmers by specific weight clearly shows the institutional limitations of farms. At the same time, ranking the results by the age of the respondents is of fundamental importance, since it shows an increasing trend in problems with lending to young farmers, who are associated with the country’s future, and more clearly presents the difficulties associated with the recruitment of new representatives of farming (European Agricultural Fund for Rural Development 2019). Banks reject more than 60% of loan applications for young farmers (for comparison, farmers over 40 years old only face an 18% rejection rate) due to a lack of collateral—35% (for comparison, for farmers over 40 years old—13%). Thus, the limited possibilities of farming block the road to active economic activity for those who decided to start their business from scratch, which undoubtedly narrows the prospects for the development of the farming sector in agriculture. Given this state of affairs, Canada, for example, uses special investment programs to support young people working in the agricultural sector. In order to

294

V. G. Egorov et al.

expand the prospects for the development of farming, a five-year state investment program of $3 billion has been implemented since April 2018 to provide scientific support for farms, research, and innovation in the agricultural sector, which, of course, increase that sector’s attractiveness (Government of Canada 2019). The US Department of Agriculture programs are working to fill the constraints associated with the low investment potential of small businesses, including so-called commodity subsidies designed to support primarily the production of raw materials, including feed and food grain as well as cotton and oilseeds, and environmental subsidies to compensate farmers for natural disasters and land acquisition for nature reserves. The share of commodity subsidies in the total state financing of agriculture ranges from 51% to 57% (Ó’Donoghue et al. 2009). A new phenomenon in the US government policy toward farmers has become financial compensation measures that should make up for their losses due to increased duties on the export of agricultural products to China and forced additional imports of agricultural goods ($22 billion in 2018), i.e., losses from “unjustified retaliation” in the trade war. At the end of August 2018, the American Department of Agriculture announced the first tranche of aid to national agricultural producers in the amount of $6.1 billion (Congressional Research Service 2018). A specific system of state support for family farms exists in Norway, in which the difficulties of their development are associated not only with institutional restrictions but also with harsh natural conditions. In order to maintain prices for agricultural products at a level that allows the efficient functioning of small-scale farming (the average size of a Norwegian farm is 22 hectares and the average size of a herd is 24 heads of cattle), the government has introduced high tariffs on the import of products that can be produced domestically. At the same time, the negative consequences of protectionism are being stopped due to restrictions on prices for agricultural products established by agreement between the government and farmer organizations (Tine n.d.) There are three farmer support programs in Russia. Of these, the most in-demand are a grant for beginning farmers, a grant for family farms, and the Agrostartap program. The maximum grant for beginners is 3 million rubles for livestock breeders and 1.5 million rubles for farmers. The applicant’s funds for the grant in the project should be at least 10% of the project cost. Between 2012 and 2018, the amount allocated by the federal budget for these purposes amounted to 16.7 billion rubles. Between 2015 and 2017, 11,832 beginner farmers received grants (Ministry of Agriculture of the Russian Federation 2018b). The grant for family farms aims to foster the development of existing farms. Under this grant, livestock breeders receive no more than 30 million rubles, and farmers no more than 21.6 million rubles, primarily for the creation of processing infrastructure and the purchase of animals or equipment. The personal investments of farmers should be at least 40% of the cost of the subsidized project. Between 2012 and 2017, the number of federal funds to support 14,663 family livestock farms amounted to 14.7 billion rubles (Ministry of Agriculture of the Russian Federation 2018a).

The Place and Role of Family Commodity Farms and Cooperation …

295

Agrostartap grant recipients may be small entrepreneurs who have discovered their intention to start a business in the agricultural sector. For this type of support, up to 3 million rubles are provided for individual applicants and 4 million rubles for cooperatives. (Association of Peasant Farms and Agricultural Cooperatives of Russia 2019a).

4 Discussion Self-organization of Farmers in Agricultural Cooperation. An essential component in the formation of sustainable agricultural systems based on an agro-territorial approach, which has as a starting point the arrangement of rural areas with an economically active population with capable local self-government, is the cooperation of small producers. According to economists, cooperative farmers’ associations successfully solve the problem of reducing the operational costs of entering the markets, increase the opportunities for obtaining services to disseminate best practices and increase the potential in borrowing markets (Prowse 2008). Other researchers note the democratic principles of the functioning of cooperatives, which significantly increase the motivation of their members for active production activities (Agrawal and Perrin 2009). Cooperatives are inherently endogenous to the agricultural sector in general and peasant farming in particular. The natural basis for the cooperation of commodity producers was laid in a traditional rural institute—a family in which the missing work of relatives was gradually replaced by the labor and resources of other agricultural enterprises, which also felt the need to increase the efficiency of the enterprise. It is precisely because of the family relationship of cooperative associations with family farms that they did not become antagonists to the traditional rural way of life, which, due to a different nature, large agricultural corporations inevitably become. For example, 13.46% of Russian agricultural farms and 21.05% of livestock farms called competition with large agricultural enterprises the main obstacle to their development. (Sample survey data, 2017–2018). On the contrary, 10.53% of Russian farmers, 15.79% of farmers engaged in agricultural raw materials processing, 21.05% of farmers in supply, and 52.63% of farmers in sales of products declared the need to unite with others to increase the efficiency of livestock farms in the field of equipment sharing. The same desire for cooperation is evident among agricultural farms. According to the data of the study already cited, 10.5% of farmers are ready to organize the cooperative rental of equipment, 12.28% of farmers are engaged in the processing of agricultural raw materials, 38.3%—in sales, 16%—in land cultivation, 10.58%— joint acquisition of complex equipment, and 15.79%—in supply. The correctness of the data presented is confirmed by the experience of cooperative construction in the US agricultural industry, where a large share of joint

296

V. G. Egorov et al.

ventures account for collective sales of products (36% of farm dairy products and 41% of grain production). The cooperative sector plays an equally important role in the European agricultural sector. In total, in Europe, in 2015, 51,392 agricultural cooperatives united 9.6 million farmers with an annual turnover of 347 billion euros. In many European countries, the functioning of the cooperative sector is enshrined in the constitutional norm (Belgium, Bulgaria, Greece, Spain, Malta, Portugal, Hungary, and Italy) (ICA 2016).

5 Conclusion Thus, due to the diversity of activities that significantly expand the capabilities of family commodity farms, agricultural cooperatives are an essential component of the agro-territorial complex. It should be borne in mind that, despite the constructive potential, the cooperation of agricultural producers cannot be solely the result of the propaganda of cooperative ideas or the policy of planting it “from above.” Without a material basis in the form of commodity-oriented small farms, any attempts to accelerate cooperation in the agricultural sector of the economy are counterproductive. So, the result of the indisputable orientation of the Russian agrarian policy towards large-scale agricultural business is the low level of positive dynamics in the scale and development of the sector represented by peasant farms. The proceedings of the XXX Congress of the Association of Peasant (Farm) Farms of the Russian Federation have data from a national survey. From these data, it follows that at an annual level of registration of 20–30 thousand peasant farms, 40–50 thousand annually leave the activity, and 80% of those operating experience difficulties with functioning (Association of Peasant (Farm) Farms and Agricultural Cooperatives of Russia 2019b). The current level of development of family-owned commodity farms, not least due to state policy in the agricultural sector, corresponds to the stagnant dynamics of the size of the cooperative agricultural sector. Since 2012, the number of operating agricultural cooperatives decreased by 16.8% over three years. Since 2014, over the next three years, it remained at the same level (3750) (Kurakin and Gusakov 2018). Thus, the agro-territorial approach to the formation of national agricultural production systems implies family commodity farms as their primary “link,” as they do not lose their importance as large industrial technologies advance into the agricultural sector. The special natural qualities of small-scale commodity production—which generate a specific direction of agricultural concentration—can contribute to overcoming institutional limitations associated with scale by means of cooperation.

The Place and Role of Family Commodity Farms and Cooperation …

297

State support for family farms contributes to solving the problems of a modern village: preventing depopulation of the countryside, actively recruiting its population into economic activity, and developing self-government for territories on a democratic basis. Acknowledgements This paper was carried out as part of the implementation of the RFBR grant 18-010-00437 “Cooperation as an instrument for the development of rural territories and economic self-organization of the population,” contract No. 18-010-00437/19 of March 14, 2019.

References Agrawal, A., Perrin, N.: Mobilizing rural institutions: a comparative study of rural institutions for improving governance and development - Afghanistan, Ethiopia, India, Vietnam, and Yemen. Social development working papers; no. 114. Community driven development and local governance series Washington, D.C.: World Bank Group (2009). http://documents.worldbank. org/curated/en/938831468154156176/Mobilizingrural-institutions-a-comparative-study-ofrural-institutions-for-improving-governance-and-development-Afghanistan-Ethiopia-IndiaVietnam-and-Yemen Alekseev, A.N., Bogoviz, A.V., Ragulina, J.V., Lobova, S.V., Boboshko, V.I.: The place and role of local entrepreneurial structures in the process of acceleration of growth of the modern global economy. In: Growth Poles of the Global Economy: Emergence, Changes and Future Perspectives. Lecture Notes in Networks and Systems, vol. 73, pp. 271–278 (2020) Allen, D.W., Lueck, D.L.: The nature of the farm. J. Law Econ. 41(2), 343–386 (1998) Ashby, A.W.: The family farm. In: Proceedings from the Third International Conference of Agricultural Economists. Oxford University, Press Humphrey Milford, London (1935) Association of Peasant (Farm) Farms and Agricultural Cooperatives of Russia: Farmer support programs in Russia (2019a). https://www.akkor.ru/statya/6216-programmy-podderzhkifermerov-v-rossii.html Association of Peasant (Farm) Farms and Agricultural Cooperatives of Russia: Proceedings from the XXX APFAC Congress, Moscow, Russia (2019b) Bogoviz, A.: Innovative potential of the agricultural sector of Russia and its prospects in conditions of the Eurasian Economic Union. IOP Conf. Ser.: Earth Environ. Sci. 274, 012003 (2019a). https://doi.org/10.1088/1755-1315/274/1/012003 Bogoviz, A.: Transforming the agricultural sector for better sustainable development: perspectives from Russia as a member state of the Eurasian Economic Union. IOP Conf. Ser.: Earth Environ. Sci. 274, 012001 (2019b). https://doi.org/10.1088/1755-1315/274/1/012001 Congressional Research Service: Farm policy: USDA’s 2018 trade aid package (2018). https://fas. org/sgp/crs/misc/R45865.pdf Cogega, C.: Results of the multi-national farmers’ confidence index 2019Q1. An optimistic outlook for farmers, Brussels, Belgium (2019) Durst, R.: Federal Farm Policies and Farm Households. U.S. Department of Agriculture. Economic Research Service. EIB-54 (2009) European Agricultural Fund for Rural Development: Survey on financial needs and access to finance of EU agricultural enterprises, Brussels, Belgium (2019) FAO: The state of food and agriculture. Using food systems for inclusive rural change, Rome, Italy (2017) Government of Canada: Official website (2019). https://www.canada.ca/en.html Heady, E.O.: Economics of Agricultural Production and Resource Use. Prentice-Hall, New York (1953) ICA: World cooperative monitor (2016). https://monitor.coop/en

298

V. G. Egorov et al.

Kislev, Y., Peterson, W.: Economies of scale in agriculture: a reexamination of the evidence. In: Antle, J.M., Sumner, D.A. (eds.) Essays on Agricultural Policy in Honour of D. Gale Johnson (1991) Kurakin, A., Gusakov, T.: Agricultural cooperation in Russia and abroad (2018). https://www. agroinvestor.ru/opinion/article/29287-selskokhozyaystvennaya-kooperatsiya-v-rossii/ LeBlanc, M., Hrubovcak, J.: The effects of tax policy on aggregate agricultural investment. Am. J. Agr. Econ. 68, 767–777 (1986) Ministry of Agriculture of the Russian Federation: Grant for the development of family livestock farms, Moscow, Russia (2018a) Ministry of Agriculture of the Russian Federation: Support for beginning farmers, Moscow, Russia (2018b) Nechaev, V.I., Saifetdinova, N.R., Bogoviz, A.V.: Theoretical aspects of state regulation of agriculture within the classical and physiocratic schools: a modern view. In: Perspectives on the Use of New Information and Communication Technology (ICT) in the Modern Economy. Advances in Intelligent Systems and Computing, vol. 726, pp. 870–884 (2017) Newby, H.: The changing structure of agriculture and the future of rural society. In: Proceedings from the 19th IAAE Conference: International Association for Applied Econometrics, Nicosia, Cyprus (1985) Nielsen, A.H.: The family farm in a changing technological and economic environment. Eur. Rev. Agric. Econ. 14(1) (1985) Ó’Donoghue, E., Roberts, M.J., Key, N.: Did the federal crop insurance reform act alter farm enterprise diversification? J. Agric. Econ. 60, 80–104 (2009) Prowse, M.: Making Contract Farming Work with Cooperatives. Overseas Development Institute, London (2008) TINE: Family farming: the key to food production in Norway (n.d.). https://www.tine.no/english/ about-tine/family-farming-the-key-to-food-production-in-norway

Mathematical Modeling of Economic Processes in the Activities of Cooperative Organizations Andrey V. Potashev , Elena V. Potasheva , Alfira M. Ahmedova , and Ludmila A. Gaynulova

Abstract This paper shows the process of constructing mathematical models for measuring the changing of income in a cooperative enterprise over time. The model allows to control for various assumptions about the behavior of the consumption function. The influence of the choice of models and their parameters on the dynamics of changes in income is demonstrated. Also, using the Solow model as an example, we demonstrate the application of differential equations in mathematical modeling and study the process of economic growth. Keywords Income Economic growth


Consumption
Differential equations
Solow model


1 Introduction Problems arising in the management of economic policies of cooperatives require modern methods for the most effective solution. Moreover, the problem of modeling and forecasting economic processes is relevant. To predict the resulting consequences of changing various parameters, it is advisable to use mathematical modeling. A quantitative description of the processes occurring in the reality surrounding us, and in the economy in particular, is possible exclusively in the language of differential equations. A special role of the theory of differential equations is that their methods give the most fruitful, theoretically substantiated results, which A. V. Potashev (&)
E. V. Potasheva
A. M. Ahmedova
L. A. Gaynulova Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected] A. M. Ahmedova e-mail: alfi[email protected] L. A. Gaynulova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_31

299

300

A. V. Potashev et al.

allows us to analyze the influence of various factors on the development of the processes under study. Thus, the opportunity to influence the results of processes by changing its parameters and achieve positive trends in their development appears (Granberg 1985; Ivanova et al. 2016).

2 Materials and Methods 2.1

Researching Models of Social Product and National Income Dynamics

Let y be the income of the cooperative. Usually, it is divided into the following two parts: u is the accumulation of fixed assets or “accumulation”; c—is the remainder of the income or “consumption,” that is yðtÞ ¼ uðtÞ þ cðtÞ:

ð1Þ

The differential equation of the income dynamics model can be obtained under the assumption that the accumulation of production assets uðtÞ is directly proportional to the growth rate of income—yðtÞ: uðtÞ ¼ By0 ðtÞ: Here, the B value expresses the capital intensity of income. Given equality (1), we obtain the following differential equation: y0 

y cðtÞ ¼ : B B

ð2Þ

Equation (2) is a linear differential equation with constant first-order coefficients with respect to the income function yðtÞ. We will consider the solution of Eq. (2) under various assumptions (models) about the behavior of the consumption function. The first model is as follows: cðtÞ ¼ 0 that is, all income goes to “accumulation” to expand production. Moreover, there is no “consumption.” In this case, Eq. (2) is simplified and becomes a differential equation with separable variables. It has the following form: y0 

y ¼ 0: B

ð3Þ

Mathematical Modeling of Economic Processes in the Activities …

301

Its decision is easy to write in the following form: t

yðtÞ ¼ y0 eB :

ð4Þ

Here y0 is the initial value of income. The second model is as follows: cðtÞ ¼ c0 ¼ const that is, “consumption” is always maintained at a constant level. Under this condition, Eq. (2) becomes a linear inhomogeneous differential equation with a constant right-hand side (c0 =B). The solution to such an equation is found in the form of the following sum of two functions: yðtÞ ¼ YðtÞ þ ~yðtÞ:

ð5Þ

t

In expression (5), the first term YðtÞ ¼ CeB is the general solution of the homogeneous differential equation and is written as (see (4)). The second term ey ðtÞ is a particular solution to the inhomogeneous differential equation (2). Given that the right side of Eq. (2) is equal to c0 =B, it’s easy to get that ey ðtÞ ¼ c0 . Substituting the obtained expressions for YðtÞ and ey ðtÞ into equality (5) and taking into account the initial condition yð0Þ ¼ y0 , we get the following equation:   c0 t t yðtÞ ¼ ½y0  c0 eB þ c0 ¼ y0 1  eB þ c0 : y0

ð6Þ

An analysis of solution (6) shows that if y0 [ c0 (that is, at the initial time, part of the income goes to expand production, and not just consumption), then at any time t [ 0, income remains positive yðtÞ [ 0. In this case, revenue increases exponentially. The third model is as follows: cðtÞ ¼ c0 ert , that is, consumption grows exponentially over time. The general solution of the equation is also sought in the form t (5). The first term remains the same YðtÞ ¼ CeB , as in the second model. The term ye ðtÞ will be a particular solution to the differential equation (2) with the following right-hand side:  cB0 ert . Applying the theory of solving such equations, we obtain the following: ~yðtÞ ¼

c0 ert : 1  Br

Then, substituting YðtÞ and ey ðtÞ into equality (5), we obtain the following: yðtÞ ¼

c0 t ert þ CeB : 1  Br

Taking into account the initial condition yð0Þ ¼ y0 , we find an arbitrary constant c0 C ¼ y0  1Br . Thus, the solution r 6¼ 1=B is written in the following form:

302

A. V. Potashev et al.

yðtÞ ¼

h c0 c0 i t ert þ y0  eB : 1  Br 1  Br

ð7Þ

In the obtained solution (7), as in the previous model, it is natural to assume that y0 [ c0 . In the solution (7), we will consider the quantity r as a control parameter. As in the previous case, we will take y0 [ c0 . If, then r ¼ 1=B, we get a resonance, and the decision takes the following form: h c0 i t yðtÞ ¼ y0  t eB : B

2.2

ð8Þ

Solow Economic Growth Model

When studying the dynamics of the economic development of society, the Solow economic growth model is of great importance (Solow 1956, 1957). American economist Robert Merton Solow (Fig. 1) is a Nobel laureate in economics. He received the prize for his fundamental research into the process of economic growth and the creation of its rigorous theory. The Solow model is based on a number of the following assumptions that simplify the resulting mathematical model: • The production function is investigated, defining the final product; • The manufacturing process depends on determining factors: – Capital (production assets) K; – Labor resources L, taking into account both the number of employees and labor-saving technical progress that determines labor efficiency; – Labor force growth rates k and savings rates s are considered constant and determined by external factors.

Fig. 1 Robert M. Solow

Mathematical Modeling of Economic Processes in the Activities …

303

The following neoclassical production function is considered in the Solow model: Q ¼ FðK; LÞ. The concept of neoclassical function QðXÞ (here X ¼ ðx1 ; x2 Þ  ðK; LÞ) implies the following conditions: • There is an increase and convexity of the production function Q0xi [ 0 Q00xi \0. • There is linear homogeneity QðkXÞ ¼ kQðXÞ. The representation of the pro  duction function QL ¼ f KL is a consequence of this. lim lim • Inada terms Q0 ¼ 1 Q0 ¼ 0 apply. xi ! 0 xi xi ! 1 xi • The materiality of the production resource also applies Fð0; LÞ ¼ FðK; 0Þ ¼ 0. The constancy of the growth rate of labor resources k and savings rates s leads to proportional conditions of labor resources per their size. dL ¼ kL dt

ð9Þ

The rate of change in capital is proportional to the value of the production function. dK ¼ sQ dt

ð10Þ

The solution of Eq. (9), which is a differential equation with separable variables, is written as follows: L ¼ L0 ekt

ð11Þ

Here L0 is the volume of labor at the onset t ¼ 0. When studying the process of changing the volume of capital over time, the Cobb-Douglas production function is used in the Solow model: Q ¼ K a Lb :

ð12Þ

Here, a  0 is the coefficient of elasticity; according to work, b  0 is the coefficient of elasticity for capital. For definiteness, we consider this case a þ b ¼ 1. Here, the Cobb-Douglas function is linearly homogeneous and models the process of economic growth under conditions of constant returns when the scale of production changes. Next, we will introduce the capital-labor ratio. k¼

K L

ð13Þ

304

A. V. Potashev et al.

Then we can write the production function (12) as follows: Q ¼ Lka :

ð14Þ

If we substitute expression (14) into Eq. (10), then we arrive at the following equation: dK ¼ sLk a ; dt

ð15Þ

Considering that by virtue of (13), equality holds K ¼ kL, we obtain the following: dK dk dL ¼ L þk : dt dt dt Substituting here (9), we find the following: dK dk ¼ L þ kkL: dt dt

ð16Þ

Equating the left sides of equalities (15) and (16), we obtain the Bernoulli differential equation for capital ratio kðtÞ dk þ kk ¼ sk a : dt

ð17Þ

The solution of Eq. (17) has the following form: kðtÞ ¼

s k

þ Ceð1aÞkt

1 1a

;

ð18Þ

where the constant C is from the initial conditions Lð0Þ ¼ L0 , Kð0Þ ¼ K0 , or kð0Þ ¼ K0 =L0 in the following form:  C¼

K0 L0

1a

s  : k

ð19Þ

The analysis of solution (18) with t ! 1 showed that over time, the stabilization of the capital-labor ratio k ¼ K=L, which tends to a constant value, occurs. lim kðtÞ ¼ lim

t!1

t!1

s k

þ Ceð1aÞkt

1 1a

:¼

1  s 1a

k

:

The equilibrium value of capital-labor ratio k ¼ K=L increases with an increase in the share s of savings in income and decreases with an increase in the rate of growth of labor k.

Mathematical Modeling of Economic Processes in the Activities …

305

If we differentiate function (18), then we get the following: k 0 ðtÞ ¼ kC

s k

þ Ceð1aÞkt

a 1a

eð1aÞkt :

ð20Þ

It can be seen that the sign of this derivative is completely determined by the sign of the constant C, since all other factors in the expression (20) are positive. It follows from this that, by virtue of (19), the capital-labor ratio increases over time if C\0, i.e., when  1a s K0 [ : k L0

ð21Þ

Otherwise, the capital ratio falls. Taking into account relations (11), (14) and (18), expressions for the dependences KðtÞ QðtÞ were found: KðtÞ ¼ L0 ekt

hs k

þ Ceð1aÞkt

1 i1a

QðtÞ ¼ L0 ekt

hs k

þ Ceð1aÞkt

a i1a

3 Results 3.1

Researching Models of Social Product and National Income Dynamics

The dynamics of the behavior of income and consumption at fixed values y0 c0 B will depend on the value of the r parameter. The results of the calculations y0 ¼ 1 c0 ¼ 0:8 B ¼ 1 are shown in Figs. 2 and 3. The case r ¼ 0 corresponds to the second model. It shows a constant increase in income y while maintaining the c magnitude of “consumption.” With positive values r, an increase in “consumption” c is present. However, in this case, income Fig. 2 Consumption cðtÞ by the third model

306

A. V. Potashev et al.

Fig. 3 Income yðtÞ by the third model

Fig. 4 Consumption cðtÞ by the fourth model

  can behave differently. Since r 2 ð0; r0 , then r0 ¼ B1 1  cy00 , there is a constant increase in income y. With a further increase r (r 2 ðr0 ; 1=BÞ), at first, there is a certain increase in income, and then it falls to negative values. In this case r ¼ 1=B, a steady drop in income occurs (see (8)). The fourth model is as follows: cðtÞ ¼ ky that is, consumption is a fixed part of national income. In this case, Eq. (2), as in the first case, is homogeneous. y0 

1k y¼0 B

ð22Þ

Its solution is as follows: 1k

y ¼ y0 e B t

ð23Þ

The calculation results for the fourth model are shown in Figs. 4 and 5. When k ¼ 0 (there is no consumption), solution (23) coincides with the solution according to the first model (4). This case is not realistic but shows the highest possible rate of growth of national income. When k ¼ 1 (all income goes to consumption), we get a constant value of income. In the case when k [ 1, instead of an increase in income, we observe a decrease in income, at the same time, consumption also falls.

Mathematical Modeling of Economic Processes in the Activities …

307

Fig. 5 Income yðtÞ for the fourth model

Fig. 6 Results of example 1

Fig. 7 Results of example 2

3.2

Solow Economic Growth Model

To illustrate the solutions obtained, numerical calculations were performed. Figures 6 and 7 show the results for two cases of setting the initial parameters. In both examples, a = 0,25, k ¼ 0:1 and L0 ¼ K0 ¼ 1000 values were fixed. In the first example (Fig. 6), the following was supposed: s ¼ 1, a = 0,73, and in the second (Fig. 7) was s ¼ 0:05, a = 0,73.

308

A. V. Potashev et al.

The above results confirmed the stabilization of capital-labor ratio with the unlimited growth of time. Also, it can be seen from the figures that when inequality (21) is fulfilled, the capital-labor ratio will increase (Fig. 6); otherwise, it will fall (Fig. 7).

4 Discussion Studies of the dynamics of changes in income have shown that the result obtained substantially depends on the assumptions laid down in the mathematical model of the process, and the values of the parameters of these models. Therefore, when planning an economic policy pursued by a cooperative, one should carefully choose the distribution strategy of “savings” and “consumption,” depending on the goals.

5 Conclusion Summing up, we note that the constructed mathematical models of economic processes and their analytical solutions have once again demonstrated the importance of using the mathematical apparatus of differential equations in economic research. It is the knowledge of this apparatus that allows not only researchers but also practitioners (enterprise managers) to obtain qualitative and quantitative results of the economic development of enterprises and organizations (including cooperative ones). Knowledge of this apparatus allows us to build reliable forecasts on this basis and determine a development strategy. Acknowledgements The authors are grateful to the students of the Kazan Cooperative Institute Alina I. Alikina and Anastasia A. Moreva for their help in the calculations and presentation of their results.

References Granberg, A.G.: Dynamic Models of the National Economy. Ekonomika, Moscow (1985) Ivanova, A.A., Potashev, A.V., Potasheva, E.V.: Using differential equations in mathematical ecology problems. Nauchnoye Obozreniye 12, 251–256 (2016) Solow, R.M.: A contribution to the theory of economic growth. Q. J. Econ. 70(1), 65–94 (1956) Solow, R.M.: Technical change and the aggregate production function. Rev. Econ. Stat. 39(3), 312–320 (1957)

System Studies of Socio-cultural Activities of Consumer Cooperatives of the European North Elena V. Dianova

Abstract The purpose of this paper is to review the systemic research in the field of non-core (non-trade and non-production) activities of regional cooperative organizations of the first third of the 20th century. The paper describes the main historical sources (archival and published materials) as the main information materials for conducting systematic research on this topic. Integrative and interdisciplinary methodological approaches to solving a scientific problem are presented. The novelty of the study lies in the fact that, for the first time, the study of the socio-cultural activity of consumer cooperation in the European North is positioned in the plane of systematic studies of inculturation as a process of dissemination and assimilation of cultural values, achievements of the world and national culture. The author argues that these areas of research are promising, can be extended to the next decades of the twentieth century, and affect not only the northern but also neighboring regions of the country. Keywords Consumer cooperation educational work Inculturation





Sociocultural activity
Cultural and

1 Introduction With the abandonment of the administrative-command model of the economy and the return of Russia to the sphere of market relations, the cooperative movement revived and began to develop. Currently, cooperative organizations, like their predecessors, are interested in educating and improving the cultural level of their members. The study of the socio-cultural activity of the cooperation of the European North of the first third of the 20th helps to solve the practical problems of interacting with business and culture.

E. V. Dianova (&) Petrozavodsk State University, Petrozavodsk, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_32

309

310

E. V. Dianova

The relevance of this research topic is determined by pressing needs of the modern socio-economic development of Russia as a whole and its regions, including the European North, when the problem of the relationship between education and the economy has become especially important. No less important is the study of specific forms and directions of activity of cooperative associations in the socio-cultural sphere. Currently, consumer societies are concerned about raising the cultural level of shareholders and organizing their leisure time. Studying the history of consumer cooperation as a mass social movement and an element of a market economy allows us to use the historical experience of the functioning of cooperative organizations to solve not only pressing socio-economic problems but also issues of culture and education.

2 Materials and Methods In domestic historical science, the ideological principle in the context of Marxist-Leninist historiography has been replaced by new paradigms and theories in the process of revising basic methodological principles. The change in the initial conceptual schemes and models in the formulation of the most significant problems led to an intensive search for other scientific and methodological approaches. The rejection of a one-sided scheme for studying historical events, processes, and phenomena has had a beneficial effect on the study of cooperation and the cooperative movement in Russia. It has allowed scholars to expand the methodological base of research significantly. Thus, the process of institutional formation of domestic cooperation at the beginning of the 20th century is often studied from the perspective of the formation of civil society. The cultural and educational activities of cooperation can be studied in the framework of the theory of modernization. Modernization processes involve corresponding changes in culture and socio-cultural space, including the development of a system of general and professional education and the expansion of access to cultural achievements, which has often been due to the emergence of mass forms of art associated with technological progress—for example, with the advent of cinema. The methodological foundations of studying the sociocultural activities of cooperation are the principles of historicism and scientific objectivity, general scientific methods of cognition of history, including methods of formal logic (induction, deduction, classification) and traditional methods of historical research, including the narrative or historical narrative method, used to create historical representations of events and phenomena related to the spiritual and material culture of past eras. In solving specific research problems, comparative-historical, causal, and problem-chronological methods of historical research are of great importance. The modern scientific paradigm makes it possible to consider the cultural and educational activities of cooperation from interdisciplinary knowledge of historic facts, phenomena, and processes, and the use of the achievements of other scientific disciplines. The methodological basis for studying the cultural and educational

System Studies of Socio-cultural Activities of Consumer …

311

activities of cooperation is an interdisciplinary (integrated) approach based on borrowing theories and methods of other humanities, including cultural studies, pedagogy, art criticism, museology, and philology, and it is very effective for identifying and presenting various areas of cultural and educational activities of cooperation. The methodology of an integrated approach and interdisciplinary research allows us to understand the psychological, social, and spiritual phenomena of society in their development and relationship. An integrated approach involves a comprehensive study of the historical phenomenon based on a combination of various sources, written, ethnographic, linguistic, folklore, onomastics data, and other information from the adjacent humanities. The study highlights the systemic method, which acts as the leading method for studying the cultural and educational work of cooperative associations in the European North as a system in the first third of the 20th century. This involves a thorough study of the interconnected elements and various directions that were part of this system, an analysis of the content of a historical phenomenon and process, and the identification of its essence, character, structure, and function. The systemic method/approach to the study of the socio-cultural activities of the cooperation in the European North in the first third of the 20th century requires the study of a vast array of archival sources. The central and regional archives of Moscow, St. Petersburg, Arkhangelsk, Vologda, and Petrozavodsk, have documents of a legal nature. These are directives, instructional materials, newsletters, circulars on conducting political and educational work at the local levels, regulations on community halls and reading houses, and instructions on holding holidays and cooperative campaigns. They also include provisions and decisions of the All-Union Central Council of Trade Unions on cultural, educational, and mass work; on establishing cooperation between trade unions; and on urban workers’ cooperatives in the field of cooperative education. Among unpublished sources, a significant part is occupied by the business-production documents of cooperative unions. They include protocols, resolutions, reports on cultural and educational work in cooperation; programs of cooperative courses, conclusions, and comments on the reports of instructors of the Central Union concerning the educational, cooperative and educational work of the unions of consumer societies; information on the organization and operation of cooperative corners; information summaries and reports on the conduct of socio-political and reporting re-election campaigns, and holidays in cooperative organizations; materials of all-union meetings on cooperative education; survey results of consumer cooperation, and the organization of cooperative commissions. In the paperwork of consumer societies, one can find materials on instructor and organizational work in the local consumer cooperation system. These are reports of instructor meetings and board meetings of unions, correspondence of organizational departments, acts of instructor examinations; plans for the cultural and educational work of primary cooperatives, and quarterly and annual reports of consumer societies; reports of meetings of authorized unions and trade-instructor meetings, reports of the heads of organizational departments on campaigns conducted in the

312

E. V. Dianova

1920s; grams of cooperative courses, conditions for admitting students, lists of teachers and students; information on cooperative circles, information on the distribution of books by district unions, and the supply of literature to consumer societies. In order to recreate the full understanding of the cultural and educational work of the cooperation, it is necessary to know the published sources: laws and regulations, various reports, periodicals, works of theorists of cooperation, teachers, and extracurricular workers, public and political figures.

3 Results The results of this research make it possible to find out the ideological sources and legal foundations of the social and educational work of cooperation. Systematic studies have allowed us not only to create a holistic and comprehensive understanding of the socio-cultural activities of consumer cooperatives in the European North of the first third of the 20th century, but also to determine its main and priority directions. Thus, we found out that before World War I, the cultural endeavors of consumer societies were sporadic. Educational events were carried out irregularly, from case to case, but with the introduction of the “dry” law in 1914, the public faced the task of filling up the free time with reasonable entertainment. The development of social and educational work was facilitated by an increase in the funds allocated by cooperatives to various events. This increase in allocations was explained by the strengthening of the financial and economic power of cooperation in connection with the massive influx of new members into consumer societies due to food difficulties. Co-operators took responsibility for organizing leisure activities, and the creation of libraries, museums, cultural and educational clubs, folk theaters, and cinema. In the northern provinces, thanks to the activities of cooperators, the foundations of cooperative education were laid. At first, cooperative education of the population was carried out during public readings, lectures, and conversations, then, at cooperative courses, where the theory of cooperation was taught, and practical classes were held. With the establishment of Soviet power, there was an attempt to eliminate parallelism in extracurricular activities, and subordinate the socio-cultural work of cooperation to the Proletcult or combine it with communist agitation and propaganda. With the creation of the Main Political and Educational Committee in 1920, all out-of-school work, including the socio-cultural activities of the cooperatives, ultimately came under state control, and the cooperatives were tasked with clarifying Soviet decrees. With the transition to NEP, there has been a sharp reduction in state funding for cultural and educational institutions. Cooperation was a source to the existence of cultural centers. In cities and villages, consumer societies financed work clubs, reading houses, schools, and peasant houses; they gave out money to purchase

System Studies of Socio-cultural Activities of Consumer …

313

books, subscribe to newspapers and magazines, hold holidays, performances, film screenings, and social and political campaigns. Teachers played a significant role in the cooperative movement in the European North. They often became the initiators of the creation of cooperatives, led the work of consumer societies and unions, organized, and conducted cultural events (Dianova 2016). In the 1920s, secondary educational institutions appeared in the system of cooperative education. They conducted courses to train and improve the qualifications of ordinary workers and the leadership of cooperative unions and the local network. Cooperative unions of the European North sent students to study at the Leningrad Cooperative College, the Vologda Cooperative, and Petrozavodsk Industrial and Economic College, which also took part in sociocultural work and the organization of the International Day of Cooperation and other holidays. The main results of systematic studies are also presented in scientific works and the monograph “Cultural and educational activities of cooperative organizations of the European North (1900–1920)” (Dianova 2017).

4 Discussion The discussion of the results of systematic studies of the sociocultural activities of the cooperation of the European North of the first third of the 20th century is carried out at various international, all-Russian, and regional scientific forums, scientific and practical conferences. Speeches on various topics, for example, on the use of artistic means of cooperative agitation and propaganda, such as ditties, proverbs, and sayings, cooperative remakes of folklore and oral folk art, works of Russian and Soviet poets and satirical stories have always been and always are interesting for listeners.

5 Conclusion Thus, systematic studies of the sociocultural activities of consumer cooperation in the European North of the first third of the 20th century allow us to conclude that cooperatives are significantly involved in the inculturation of the population (i.e., in introducing the urban and rural residents of the northern provinces to the enduring values of world and domestic culture). These studies, having an auspicious character, suggest a further study of the sociocultural activity of consumer cooperation in the next decades of the 20th century. Acknowledgements The author would like to thank the outstanding scientist, professor of St. Petersburg University, and Doctor of Historical Sciences T. M. Kitanina, as well as all the scientists of Moscow, St. Petersburg, and other cities of Russia who provided the author with comprehensive support in the process of working on this research.

314

E. V. Dianova

References Dianova, E.V.: Teaching and Cooperation of the European North (First Third of the Twentieth Century). Publishing House of Petrozavodsk State University, Petrozavodsk (2016) Dianova, E.V.: Cultural and Educational Activities of Cooperative Organizations of the European North (1900–1920). Karelian Scientific Center of RAS, Petrozavodsk (2017)

The Role of Integration Processes in the Development of the Cooperative Sector of the Russian Economy Elena V. Tokar , Rodion V. Kononenko , Tatyana N. Igolkina , and Igor I. Salnikov

Abstract The need to develop a conceptual approach to the study of modern cooperation and integration problems, in our opinion, is caused by the ongoing search for stabilizing factors in the cooperative sector of the economy. The cooperative management system was formed in the Soviet period. Its elements were agricultural production cooperatives in the form of collective farms, consumer cooperatives represented by the consumer cooperation system of the Central Union of the USSR, and other cooperative organizations, including housing, garage, gardening, and other cooperatives. However, after the start of market transformations, the cooperative management system suffered significant losses and lost its position in the national economy. However, the cooperative sector still exists. Also, in recent years, there has been a trend towards its revival by providing an alternative form of business activity. The revival of the cooperative sector of the Russian economy should be accompanied by the development of previously proven areas, the most important of which is the functioning of cooperating participants based on economic integration. The authors analyze the conditions for improving the socio-economic efficiency of particular cooperative organizations and the cooperative system as a whole based on the resumption and intensification of integration processes in the agricultural sector. In this paper, the authors identify the main problems that exist in the cooperative sector of the economy, present their view on the factors constraining the development of this sector, and discuss their definition

E. V. Tokar
R. V. Kononenko
T. N. Igolkina (&)
I. I. Salnikov Belgorod University of Economics, Cooperation, and Law, Belgorod, Russia e-mail: [email protected] E. V. Tokar e-mail: [email protected] R. V. Kononenko e-mail: [email protected] I. I. Salnikov e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_33

315

316

E. V. Tokar et al.

of the “cooperative sector of the economy.” As a result of the study, the authors proposed directions for the development of the cooperative sector of the economy, including based on the revival of the procurement institution and procurement organizations.








Keywords Cooperative sector of the economy Cooperatives Consumer cooperatives Integration Vertical integration Integration processes Integration relations










1 Introduction The contradictions formed during globalization have contributed to the strengthening of stabilizing factors, which include cooperation. The intensification of social and property inequality is most pronounced in developing countries, where there is overpopulation in agrarian areas and a significant influx of peasants into the city. The phenomenon of mass migration from developing countries into the European Union is noted. It is during this period that cooperatives become increasingly crucial in this sector of the global economy. More than that, this research is also of great importance for the sustainable development of the Eurasian Economic Union (Bogoviz et al. 2018a, b).

2 Materials and Methods Methodological tools include the methods of goal-setting, logical conclusions, the argumentation of the evidence base, and scientific debate. The analytical work was based on the authors’ publications, observations, and conclusions obtained in the course of the study.

3 Results The cooperative sector of the global economy covers about 800 million people in 100 countries with a wide variety of socioeconomic and climatic conditions. Cooperation makes a significant contribution to the world economy. About half of the world’s population uses the services of cooperative enterprises (organizations) in the fields of trade, catering, production, marketing, procurement of agricultural products, construction, operation, housing, credit banking, insurance, transport, education, the media, etc. Currently, over 700,000 cooperatives, including 120

The Role of Integration Processes in the Development …

317

species and varieties, unite the adult population of the planet (members of cooperatives). The cooperative population is unevenly distributed across the continents: 63.0% in Asia, 22.0% in Europe, 13.0% in the U.S., and 2.0% in Africa (Kononenko 2013). At the national economic scale, cooperatives traditionally demonstrate the advantages of mutual economic assistance among producers and numerous consumers. They can constitute a real alternative to private business at corporate and unincorporated levels. This distinctive feature of cooperatives led to their effective functioning in most countries of the world and at all stages of the development of market relations beginning in the 1840s. In the USSR, in the 1920s and 1930s, the cooperative form of entrepreneurial activity successfully competed with private entrepreneurship, which was revived as a result of the New Economic Policy (NEP). In the current economic environment, cooperative organizations of various forms and types together constitute a whole sector of the Russian national economy. In recent years, the scientific community has shown great interest in the cooperative sector of the economy due to its originality and the alternative it presents to private entrepreneurship. Among domestic authors, one can distinguish the works of K. I. Vakhitov, S. G. Itkulov, S. M. Osadcha, and I. V. Rozdolskaya (Kononenko 2007; Kononenko 2018; Helmut 1977). Their scientific research has mostly formed the modern vision of the cooperative sector as an element of the national economy. Based on the works of the authors mentioned above, we can formulate a definition of the cooperative sector. The cooperative sector of the economy is part of the national economy, the activity of which is determined by the functioning of organizations having standard features of cooperatives (cooperative ownership, the use of the principles and values of the international cooperative movement), carrying out commercial and non-commercial activities following the cooperative model of entrepreneurship in the interests of their members. This sector of the economy operates in the service sector, including financial, manufacturing, and processing sectors. It is represented by credit, consumer, agricultural, housing, insurance, and other cooperatives. All of them relate to self-organizing economic entities based on solidarity and private initiative (Kononenko 2010, p. 31). At the same time, it should be noted that a significant difference from private business structures is a significant social component of the activity of cooperatives, defined as “social responsibility of the subjects of reproduction processes” (Helmut 1977, p. 506). It should be noted that the cooperative sector had a positive development experience in the USSR. By the beginning of the 1990s, a significant cooperative sector was formed in the country. The main elements of this sector were the system of agricultural cooperation in the form of collective farms (agricultural production cooperatives), consumer cooperation, represented by a system of cooperative consumer cooperatives led by the Central Union of the USSR, and a system of housing, garage, gardening, and other cooperatives. The main distinguishing feature of cooperatives was the provision of alternative opportunities for citizens. Thus, housing cooperatives allowed citizens to improve

318

E. V. Tokar et al.

their living conditions on an initiative basis, which was an alternative to receiving housing from the state. The activity of the cooperative sector in the USSR was most clearly manifested in the activity of the consumer cooperation system under the leadership of the Central Union. The system of consumer cooperation of the USSR was the link between the village and the city that ensured the exchange of agricultural products and raw materials for industrial products. This created the conditions for commercializing exchange and, ultimately, increased the real incomes of the rural population, ensuring food security in the country. Due to the involvement of resources (both industrial and commodity) of agricultural producers and production enterprises, economic growth was achieved. One of the most important factors ensuring the implementation of these functions was the development of integration processes, which made it possible to significantly reduce the cost of involving resources, including transaction costs. One of the features of the functioning of the consumer cooperation system was its monopoly in rural areas on the purchase of surplus agricultural products and providing trade services to the rural population. However, it is worth noting that the monopoly position provided not only an opportunity to earn money but also imposed various obligations, whose implementation often brought losses. Such responsibilities included the provision of commercial services to remote and sparsely populated rural settlements, the accumulation of surpluses, as a rule in small amounts, of agricultural products from personal subsidiary plots, and the maintenance of a stationary trading network and procurement points. Unfortunately, these circumstances were not taken into account during the period of market reforms in Russia in the 1990s, and the consumer cooperation system was persecuted as a monopolist organization. Also, it is necessary to note another significant distinguishing feature of the consumer cooperation system—the development of integration ties and functioning on the principles of economic integration. It should be noted that the economic integration of the subjects of economic relations is a sufficiently comprehensive concept. With the help of this category, the interconnection of entities in the economic system is characterized based on the deepening of their interaction, mutual influence on economic processes in business entities, etc., while “integration” is considered as a joint activity of economic entities. As shown by the experience of consumer cooperation in Russia gained in the 1990s and the beginning of the 21st century, flexibility and resistance to negative manifestations characteristic of market competition can be provided due to the preservation and development of integration ties in consumer cooperation organizations. The expansion and deepening of economic integration provide the conditions for increasing the socioeconomic efficiency of particular cooperative organizations and the cooperative system as a whole. Also, the development of integration processes creates prerequisites for increasing the stability of cooperative organizations in a competitive environment.

The Role of Integration Processes in the Development …

319

It should be noted that vertical integration is the basis for integration in the cooperative sector. It is the elimination of negative aspects in the interaction of organizations within the technological chain that can increase the stability of cooperative organizations in the system of consumer cooperation, as well as in the production, processing, and sale of agricultural products and raw materials. In agriculture, the interaction of agricultural, marketing, and processing cooperatives will eliminate intermediaries and reduce the cost of promoting products in technological and supply chains. Agricultural cooperation is a form of joint economic activity to achieve financial results, satisfying economic and social needs that cannot be achieved in individual activities. Cooperation is implemented in the activities of various cooperative entities (production and consumer cooperatives). The main difference between the cooperative form of production and other types of associations is that cooperation is a combination of property, labor, and management relations. Whereas in other forms of association, workers (in most cases) are separated from the functions of ownership and/or management. The need to use a collective form of conducting agricultural production is based on the high riskiness of agricultural production, which was especially characteristic before the modern period in the development of the economy. The use of industrial technologies, although it increased the resilience of agricultural production to traditional risks, could not entirely exclude them due to their natural origin. Understanding the problem and the high degree of economic risk in the agricultural sector in the context of the industrial development of the rural economy forced the state to intervene in the activities of agricultural enterprises and related industries actively. As a result, in the 1960s, in most industrialized countries, integration associations were formed. They realized the tasks of stabilizing and improving the economic security of the functioning of the agro-industrial sector. At the same time, the USSR chose the direction of integration of agricultural enterprises and enterprises of related industries within the agricultural production complex. This approach allowed us to reduce the risk in the activities of individual farms due to a stable source of sales and control at various stages. Moreover, in the interest of increasing the number of agricultural products, particular emphasis was placed on the development of large-scale commodity production. The main types of agricultural producers were collective farms and state farms. Collective farms were a cooperative form of agricultural producers, but, due to the specifics of the social system, the spirit of the collectivity of labor and management was largely lost. The significant cluster of small-scale agricultural producers, in the form of personal subsidiary plots of the population, played a significant role in meeting the needs of the population, especially for some food products (potatoes, vegetables, honey, etc.). However, they were not considered promising and, therefore, were not given significant attention. In European countries with developed agriculture, as well as in the USA and Canada, they have taken the path of forming agricultural holdings of industrial-type with the same principles and tasks as the Soviet agro-industrial complex, which were only implemented in a market rather than a command-administrative model of

320

E. V. Tokar et al.

economic development. However, unlike the USSR, other forms of agriculture (farms) also received support and were considered as a significant element of the agricultural sector. It should be noted that, to a large extent, the stability of the farming cluster in a market economy was ensured by consumer cooperatives of various directions (sales, processing, credit, etc.). At the end of the nineteenth century and the beginning of the twentieth century, the system of consumer cooperation played a significant role in the system of economic relations of the agricultural sector. It should be noted that government agencies for the procurement of agricultural products were oriented primarily to the procurement of industrial crops on collective farms and state farms, which provided significant volumes of harvesting activity and brought significant profit. Consumer cooperatives of the Central Union system were aimed at working with private farms, as well as with collective farms for certain types of agricultural products. (Usually, it was costly to organize procurement and logistics of these.) By the beginning of the 1980s, a stable pattern of interconnections had been developed in the territory of the USSR in the field of processing and marketing of agricultural and food products based on the activities of consumer cooperatives of the Central Union of the USSR. It should be noted that this system of cooperative organizations was initially aimed at collecting (purchasing) agricultural products from agricultural producers and their subsequent supply to cities in exchange for manufactured goods. The purpose of consumer cooperatives was to ensure the connection of agricultural producers with consumers of these products. Such a scheme of interaction between manufacturers and product distribution channels stimulated production in the low-commodity sphere—households, which were a significant source of agricultural products. The beginning of agricultural reform in Russia in the early 1990s was a factor that destroyed the previously created system of economic ties in the agricultural sector. The collapse of the system of purchase and procurement of agricultural products and raw materials, based on the work of state procurement enterprises and organizations of the consumer cooperation system, created conditions for the deterioration of the situation with the sale of agricultural products. If government procurement and procurement structures ceased to exist due to a change in the principles of state management of the economy, then the destruction of the procurement system of consumer cooperation was caused by several objective and subjective factors. The following factors can be indicated among the objective factors: the lack of work experience in a market economy; the formation of a competitive environment in the procurement of agricultural products; and the loss of competitive advantage in the form of the ability to provide access to “unique” opportunities—the acquisition of necessary goods (imported consumer goods, automobiles, etc.). However, in our opinion, the greatest damage to the consumer cooperation system was caused by subjective factors. It should be noted that the negative attitude of the country’s leadership and the fight against the “monopolism” of consumer cooperation in the goods and services market in rural areas caused significant reputational damage. The opportunistic behavior of several leaders and

The Role of Integration Processes in the Development …

321

employees of consumer cooperatives also caused significant loss of prestige and damage to economic opportunities. The effect of these factors was a reduction in the volume and breadth of coverage of consumer cooperation organizations. This was most significantly manifested in procurement activities, as well as in the processing of agricultural products and raw materials. From 1992 to 1995, the network of pick-up points decreased ten times, and the number of processing enterprises decreased several times. All of these processes resulted in the formation of a system of interconnection between producers and buyers of agricultural products and raw materials in Russia’s agricultural sector on new principles. The main disadvantages of this system are as follows: • the lack of stability in working with agricultural producers due to market changes of goods and services, as well as the general mobility of a market economy; • the narrowness and instability of the procurements assortment, which is explained by the priority of the cost-benefit assessment scheme when choosing purchased products; • the reduction in the degree of procurement coverage of agricultural products and raw materials in remote and inaccessible areas as a result of the unfavorable cost-result ratio. As a result of all of these processes, by the beginning of the revival of agricultural production in Russia at the beginning of the 21st century, households, including peasant (farmer) households, that provided more than 55% of the production of all agricultural products and raw materials in Russia were left without a reliable sales system that covered most of the products produced in Russia. This problem is exacerbated by the fact that households, by their nature, are agricultural producers with a small volume of marketable products. This situation has created prerequisites for reducing their attractiveness for trade, and processing enterprises as a source of agricultural products and raw materials in comparison with large agricultural enterprises (JSC, agricultural holdings, etc.). This is due to the low attractiveness of the costly process of accumulating small commodity batches of agricultural products. The decrease in sales opportunities for agricultural products has led to a reduction in the marketability of domestic agricultural producers. As a result, the market does not receive domestic products and has to resort to purchasing imported products, which often have low consumer properties. Thus, we can talk about the urgent need to reform the system of interaction of agricultural producers, primarily with small volumes of production, to enhance their activities. This problem was especially acute in the context of Russia’s entry into the WTO. The success of Russian agriculture and its survival under the current level of competition in the agricultural sector requires the creation of a system of interaction between producers and consumers of agricultural products and raw materials that could create conditions for stimulating growth in the production of agricultural

322

E. V. Tokar et al.

products and raw materials, including in households, and also increase the economic efficiency of the domestic agricultural producer. It should be noted that, at present, special attention in the formation of a marketing system for agricultural products should be directed to small producers. Large producers of agricultural products are most often structural units of agricultural holdings that have a developed sales network for their products. Also, the predominance of large networked retail trading systems creates a predominant demand for standard products in large quantities. Small producers have no access to such marketing systems and are forced to use the services of intermediaries interested in maximizing profits for the provision of their services. As a result, the purchase price from the manufacturer is underestimated, which significantly reduces their income and does not stimulate the growth of production volumes. This situation has led to a gradual reduction in the proportion of households in agricultural production. Thus, according to the Federal State Statistics Service of Russia, only in the last three years, the share of households in the structure of agricultural production decreased from 37.4% in 2015 to 34.6% in 2017. The proportion of households in the production of potatoes decreased in 2015 from 77.6% to 77.2% and for vegetables from 67.0% to 62.9%, respectively. Moreover, in the early 2000s, the proportion of households in these types of agricultural products was significantly higher. Thus, the share of households in the production of potatoes in 2002 was 93.0% and for vegetables 81.5%. Currently, the production and socioeconomic potential of households are not being used effectively enough. Owners of households experience a whole range of problems of various kinds. They are: • the restrictions on access to high-quality seed material, highly productive livestock, feed, fertilizers, etc.; • the shortage of agronomic, veterinary, and zootechnical services, economic consultations, record keeping, etc.; • the lack of agricultural machinery, equipment, and the need for their repair; • problems of sales of manufactured products (the lack of information about market conditions, potential partners, inability to influence prices due to small batches of products sold, etc.); • the lack of capacity for storage, pre-sale preparation, refinement, processing, and packaging of products, which leads to its sale at low prices.

4 Conclusion The problems listed above can, as evidenced by global practice, be primarily resolved through the development of agricultural consumer cooperatives. In order to ensure the procurement system, it is necessary to form or revive the institution of procurement and procurement organizations that will purchase agricultural products from agricultural producers, primarily from peasant (farmer)

The Role of Integration Processes in the Development …

323

households. As a result, the conditions for the accumulation of small batches of agricultural products and raw materials will be created. Large suppliers, based on the accumulation of resources of small commodity farms, will have great opportunities for stable and active work in the market of agricultural products and raw materials. Consumer cooperatives should become the basis for such a system. This will create a socially responsible system of interaction between agricultural producers and buyers. Currently, the state is making efforts to develop a cooperative movement in agriculture, including financial, organizational, and constituent support programs for the creation and functioning of agricultural consumer cooperatives under the State program for the development of agriculture and the regulation of agricultural products, raw materials, and food markets for 2013–2020. However, despite the ongoing reforms, the development of agricultural consumer cooperatives is currently constrained by several factors: – the lack of financial resources, due to the complicated procedure for obtaining them, underdeveloped credit cooperation system, and active opposition from other participants in the financial market; – high competition in the market of agricultural products and food products from various structures; – discrediting the cooperative form of farming in the agricultural sector. The most negative, in our opinion, is the last factor since it forms a regular rejection of the processes of unification of agricultural producers. One of the main reasons for this situation is the non-obviousness of the attractiveness of joint activities for producers, as well as distrust of joint activities as an equal partnership. As an alternative direction, to create local agricultural consumer cooperatives, it is possible to attract organizations of the consumer cooperation system that have the relevant competencies, potential, and experience in carrying out such work. Also, consumer cooperatives have a stable relationship with the population that owns farms, which allows cooperative organizations to respond to any changes that occur in the activities of farms in the agricultural sector more quickly and to implement measures aimed at helping them. Additionally, consumer cooperation organizations can carry out the functions of ensuring agricultural production. Moreover, the list of provided services can be extensive, and assistance can be provided at all stages of agricultural production, both in crop production and in animal husbandry. As experience shows, consumer cooperation organizations can provide the following services: material and technical support, fuel and lubricants supply, agrochemical and veterinary support, including artificial insemination of livestock, and more. As a result of providing organizations of consumer cooperatives of households with means of production, materials, and services, necessary conditions to increase their marketability and product quality will be created. Thus, the development of integration relations between consumer cooperative organizations and agricultural producers will allow them to intensify the

324

E. V. Tokar et al.

involvement of commodity resources in circulation, contribute to the well-being of the rural population, as well as increase domestic commodity resources and reduce dependence on imports of agricultural products and food. Moreover, the created integrated structure will be socially responsible, which involves taking into account the interests of all members of the association.

References Bogoviz, A.V., Semenova, E.I., Alekseev, A.N.: New challenges for regional economy at the modern stage. In: The Impact of Information on Modern Humans. Advances in Intelligent Systems and Computing, vol. 622, pp. 574–580 (2018a) Bogoviz, A.V., Sozinova, A.A., Ostrovskaya, V.V.: Approaches to managing economic growth of socio-economic systems. In: Management of Changes in Socio-Economic Systems. Studies in Systems, Decision and Control, vol. 135, pp. 131–137 (2018b) Helmut, F.: Geschichte der Genossenschaftsbewegung. Knapp, Frankfurt am Main (1977) Kononenko, R.V.: Vertical Integration in the System of Consumer Cooperation: Essence, Assessment, Development Directions. Cooperative education, Belgorod (2007) Kononenko, R.V.: Improving the competitiveness of industries of consumer cooperation organizations based on the development of integration processes. Sci. Pract. J. Consum. Coop. 1(28), 25–32 (2010) Kononenko, R.V.: Increasing the volume of agricultural products and raw materials in households based on the development of integration ties with cooperative organizations. Bull. Belgorod Univ. Coop. Econ. Law 1(45), 170–175 (2013) Kononenko, R.V.: Integration processes in the agricultural sector as a factor in the development of cooperatives in agricultural production. In: New Challenges and Prospects for the Development of the Cooperative Movement: Materials of an International Scientific and Practical Conference, pp. 132–140. Belgorod University of Cooperation, Economics, and Law, Belgorod (2018) Zentralverband deutscher Konsumgenossenschaften: Mitgleider (n.d.). www.zdk-hamburg.de/ mitglieder/

Approaches to the Study of Factors Stimulating the Development of Cooperation Between Large and Small Businesses in Russia and the Republic of Belarus Alexander N. Maloletko , Olga V. Kaurova , Anna N. Ermilova , Valery A. Oganyan , and Yulia V. Steklova

Abstract The authors understand the cooperation of small and large enterprises as a model of synthetic knowledge, individual judgments of which, being within the boundaries of the economic theory of cooperation, lose their former autonomy. And individual judgments of synthetic knowledge integrate with new approaches to answering big challenges and become elements of a new system. A specific fundamental task is the initial development of a number of new provisions derived from the theory of economic cooperation, which substantially express answers to objectively arising external situations. As such provisions, the authors propose to develop the following. First, Russian and Belarusian economists are still mistakenly considering small businesses exclusively as subordinate elements of their national economies. At the same time, modern researchers often do not consider an objective change in the role and importance of cooperation between small and large businesses against the backdrop of constantly changing economic conditions and consumer preferences. Second, large-scale production both in Russia and the Republic of Belarus continues to satisfy the demand for standard consumer goods. They recognize the advantages of small businesses in responding to the individualization of consumer demand. Moreover, shifts in socio-economic structures, A. N. Maloletko Research Group OMNIBUS, Moscow, Russia e-mail: [email protected] A. N. Maloletko
O. V. Kaurova
A. N. Ermilova
V. A. Oganyan (&)
Y. V. Steklova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] O. V. Kaurova e-mail: [email protected] A. N. Ermilova e-mail: [email protected] Y. V. Steklova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_34

325

326

A. N. Maloletko et al.

changes in consumer sentiment require a significant reevaluation of the importance of cooperation of small and large enterprises for the economies of Russia and Belarus. Third, the declared economic internationalization in Russia and Belarus, in the context of the actual centralization of production, on the one hand, creates the prerequisites for cooperation between large and small farms. On the other hand, disintegration processes that are becoming apparent, as well as the growth of small business observed both in Russia and Belarus, create prerequisites for cooperation between large and small enterprises. Therefore, the following becomes necessary: rethinking the forms of interaction between large and small enterprises, conducting a comprehensive analysis of the advantages of cooperation and its disadvantages, identifying the specifics of the interaction of large and small businesses in the economies of Russia and the Republic of Belarus. The authors propose research approaches that fill the stated problems. Keywords Cooperation Factors Incentives





Small business
Large business
Russia
Belarus


1 Introduction The authors of the article understand the cooperation of small and large enterprises as a model of synthetic knowledge, individual judgments of which are within the boundaries of the economic theory of cooperation. But his individual judgments lose their former autonomy, integrate with new approaches to answering big challenges, and become elements of a new system. This is due to the following provisions. First, economists still mistakenly view small businesses solely as subordinate elements of national economies. At the same time, modern researchers leave outside the scope of their attention an objective change in the role and significance of cooperation between small and large businesses in the context of constantly changing economic conditions and consumer preferences. Secondly, large-scale production both in Russia and the Republic of Belarus continues to satisfy the demand for standard consumer goods. At the same time, they recognize the advantages of small businesses in responding to the individualization of consumer demand. Moreover, shifts in socio-economic structures and changes in consumer sentiment require a significant reevaluation of the importance of cooperation of small and large enterprises for the economies of Russia and Belarus. Thirdly, the declared internationalization of the economies of Russia and Belarus, in the context of the actual centralization of production, on the one hand, creates the prerequisites for cooperation between large and small farms. On the other hand, disintegration processes that are becoming apparent, as well as the growth of small business observed both in Russia and Belarus, also create prerequisites for cooperation between large and small enterprises. Therefore, the following becomes necessary: rethinking the forms of interaction between large and small enterprises, conducting a comprehensive analysis of the

Approaches to the Study of Factors Stimulating the Development …

327

advantages of cooperation and its disadvantages, and identifying the specifics of the interaction of large and small businesses in the economies of Russia and the Republic of Belarus. Modern economists consider small business as a subordinate element of the national economy, deprived of the opportunity to develop independently. In other words, small enterprises successfully integrated into the economic complexes of Russia and Belarus are still opposed to large business. Indeed, small business was pushed by economic giants to the periphery of economic development during the period of growth of large economic structures. But, constantly changing economic conditions, the uncertainty of the economic environment, the unpredictability of the behavior of some economic entities, and changes in consumer preferences change the importance of small forms of management (Bogoviz et al. 2019). In these conditions, the importance of small business increases dramatically. This is explained by the ability of small businesses to quickly respond to changes in market conditions, flexibly restructure production, and adequately respond to changes in demand. Today, two main trends prevail in the Russian and Belarusian economies. The first is characterized by the desire for the centralization of resources and the globalization of information and enterprise networks. The second trend indicates the desire of large businesses to disintegrate and restructure. In this regard, the role of small business and its cooperation with subjects of large business is changing. Apparently, the influence of globalization processes on the national economies of Russia and Belarus requires identifying the specifics of interaction between small and large economic entities, as well as conducting a study of the prerequisites and new conditions for their cooperation.

2 Materials and Methods In recent years, a number of studies have been carried out by Russian scientists regarding the development of cooperation. From 2015–2018, the following aspects were investigated: organizational and economic mechanisms of rural cooperation (Shakhabov 2015; Enina 2016; Kashirskikh 2017; Maksimov 2017; Lilimberg 2017; Didichko 2018; Anufrieva 2018), competitive foundations of cooperation (Dzhamolidinov 2016; Rettieva 2016), mutual relations of economic entities (Epifantseva 2016; Sabatkoev 2016; Zaikina 2018), retail consumer cooperatives (Pulatova 2016; Gutnikova 2018), problems of industrial (Kurganov 2018; Kirpichev 2018; Krechko 2019) and international cooperation (Khvalevich 2018; Kashbraziev 2018), problems of credit consumer cooperatives (Tikhonov 2017), consumer preferences (Maloletko et al. 2018a, b) and micro-segmentation of consumers (Maloletko et al. 2017). An analysis of the above works indicates that the current state of research in this area is characterized by a tendency toward rural consumer cooperation. At the same time, there are a number of works by Russian researchers related to determining the

328

A. N. Maloletko et al.

place and role of cooperation in the modern world. Among them, the works of Egorov (2005) on the place and role of cooperation should be highlighted. Among foreign studies, works devoted to the following aspects should be distinguished: cooperation evolution, cooperation and competition, collaboration opportunities, theories of justice, competition and cooperation, the development processes of cooperative inter-organizational relations, and cooperative strategy. Moreover, most of the highly cited papers deal mainly with the theory of cooperation. At the same time, there is a clear lack of work affecting the problems of cooperation between small and large businesses. The authors of this article hope that a study of the problem areas of the current cooperation of small and large enterprises in Russia and Belarus will fill this gap. For this, a number of studies need to be conducted. The purpose of one of these studies will be to obtain new fundamental knowledge about the changing interests of economic entities. Moreover, the influence of factors contributing to the development of cooperation between large and small businesses in Russia and the Republic of Belarus must be taken into account (Yatsevich 2018). To achieve this goal, researchers will need to solve the following problems: • Analysis of the cooperation practice of large and small businesses in the Russian Federation and in the Republic of Belarus (Bondarenko and Grishina 2018); • Analysis of the best international practices to support small business (Tinyakova et al. 2017); • Identification and analysis of factors stimulating the development of cooperation between large and small businesses (Timoshenko et al. 2017); • Development of proposals for creating conditions that stimulate the development of cooperation between large and small businesses. As a result of solving the above problems on the basis of the supplemented information array, researchers can gain new knowledge about the current cooperation of small and large businesses in the Russian Federation and the Republic of Belarus. This knowledge will allow us to rethink operational models (including key processes, risks, etc.) of cooperation between small and large enterprises. The new knowledge gained about the problem areas of the current cooperation of small and large enterprises of Russia and Belarus will allow us to do the following. Taking into account the need for effective answers to big challenges, new knowledge will allow developing new fundamental approaches to determining the cooperation strategies of large and small business entities in Russia and the Republic of Belarus.

Approaches to the Study of Factors Stimulating the Development …

329

3 Research Results The impact of globalization processes on the national economies of Russia and Belarus requires identifying the specifics of cooperation between small and large economic entities. First, it is necessary to study production organization methods, which carry out the division of labor between customers, contractors, and suppliers, whether registered in one of the countries of the Union State or when one of the parties functions outside the Union State. Secondly, in order to identify legal regulation methods that contribute to the development of cooperation between large and small businesses in the Russian Federation and the Republic of Belarus, it is necessary to study the practice of clustering and clusters. At the same time, one should bear in mind the multiplicity of legal restrictions involved in, for example, being in the Union State and in the EAEU simultaneously. Thirdly, in relation to the cooperation of large and small business entities of Russia and the Republic of Belarus, it is necessary to study the practice of outsourcing, which allows for the interaction of two interrelated elements: management and division of labor. In order to solve this problem, it will be necessary to solve the sub-task of identifying the most commonly used types and forms of cooperation between large and small businesses. For these purposes, it is necessary to propose a model of integration interaction of large and small business entities of the Russian Federation and the Republic of Belarus. The model is based on a comparison of the practice of cooperation between business entities in Russia and the Republic of Belarus with Japanese, American, and European subcontracting models. It is necessary to study the most significant approaches of foreign countries in the implementation of state support for small business. In particular, it is necessary to study the experience of the Small Business Administration, created in the USA in the middle of the 20th century. US government small-business support programs need to be explored. In this case, special attention should be paid to the following four areas: access to capital, education, assistance in obtaining state orders, and defense in courts and at the level of lawmaking. It is necessary to study the experience of supporting small business in Canada, first of all, the practice of infrastructure support, as well as the practices of counseling, training, and financing. The experience of the “locomotives of the economy” of the European Union, namely Germany and France, needs to be investigated. In particular, the experience of educational and advisory support programs, a secondary school curriculum on the basics of entrepreneurship in Sweden and Finland, needs to be investigated. The conditions for the development and growth of the middle class in Germany must be investigated. Also, the features of stimulating the innovative potential of small businesses in the field of R&D, which provides a significant share of inventions by German small- and medium-sized enterprises, must be investigated. Models of

330

A. N. Maloletko et al.

financial support for small businesses in Japan and the creation of an attractive investment climate in Singapore need to be explored. In order to analyze the forms of territorial organization of production, as a condition for the development of cooperation between large and small businesses, it will be necessary to analyze the forms of territorial organization in Russia and the Republic of Belarus. The following need to be investigated: large economic zones, industrial areas, industrial agglomerations, industrial centers, industrial centers and industrial centers of Russia and the Republic of Belarus. The possibility of identifying regional economic zones and industrial areas will need to be analyzed. Researchers will need to highlight the territorial economic entities of Russia and the Republic of Belarus. These territorial economic entities are characterized by a high level of territorial concentration of enterprises of various sectors of the economy, infrastructure facilities and scientific institutions, as well as a high population density, forming industrial agglomerations. Researchers will have to identify the subjects of large and small businesses, compactly located in a small area and forming industrial nodes. Researchers will need to identify industrial centers that do not have technological connections between themselves and reduce the possibility of cooperation (for example, district centers and urban districts). And also, researchers will have to identify the subjects of large and small businesses, which are one or more city-forming industries forming industrial points. In addition, holdings should be investigated as new forms of integration of joint-stock companies with the participation of federal or regional state capital. They should be investigated in order to analyze the forms of territorial organization of production as conditions for the development of cooperation of large and small businesses. Also, financial and industrial groups (FIGs), uniting large businesses and banks, technopolises and technology parks created in Russia and the Republic of Belarus should be investigated.

4 Discussion The authors believe that it is required to evaluate a set of objects according to a list of characteristics or variables. This must be done in order to identify and analyze factors that stimulate the development of cooperation between large and small businesses. In the first step of the study, it will be necessary to avoid the use of random characteristics or characteristics that are not significant for describing large and medium-sized enterprises. This is necessary in order to exclude the output factors that poorly describe and distort the interpretation of the resulting factor structure. In the second step, it is necessary to construct a mixing matrix (Xnk), which will contain the results of estimating n objects with k variables. In the third step, the researchers must assume that each measured feature is actually a linear configuration of other characteristics common to all variables. These characteristics are

Approaches to the Study of Factors Stimulating the Development …

331

factors that stimulate the development of cooperation between large and small businesses. The fact is that the number of these factors is assumed to be significantly lower than the number of variables that were used to describe objects. Moreover, the values of the variables themselves will be presented as the sum of the products of the values hidden in them for each variable by their weight characteristics, called “factor loads.” Thus, the task of factor analysis will be to decompose the mixing matrix into the following two parts: the transposed matrix of factor loads (P’kf) and the matrix of factor values (Fnf). The task of decomposing of the mixing matrix should be solved by members of the scientific team based on the analysis of the correlation matrix (Rkk), which reflects the pairwise relationships between all variables. The problem should be solved as follows. First, based on the mixing matrix, it is necessary to calculate pairwise correlations between all the variables that were measured, and thus build the correlation matrix. Then, if the correlation matrix is statistically and reliably different from the unit, it will be necessary to carry out the inverse transformation of the correlation matrix. At the same time, it is necessary to distinguish not only the variables themselves but also their factor loads. Researchers will need to use two main types of factor analysis: exploratory and confirmatory. In the course of an exploratory, or reconnaissance, factorial analysis, the search for common factors underlying the particular characteristics of a complex object must be carried out. The goal will be to answer the following question: “Is there a more general feature behind the set of characteristics of the development of cooperation between subjects of large and small business that unites them?” For example, researchers may ask the following question: “Do such sets of characteristics as the subject of large business and the subject of small business have a certain characteristic uniting them, or are these independent, unrelated characteristics?” The task of exploratory factor analysis will consist of the factor structure of the available data, thereby reducing the number of variables that are used to describe them. In the course of confirmatory factor analysis, it is necessary to verify the effectiveness of the model that these factors form. On this basis, researchers will make more or less accurate assumptions about the number of factors that stimulate the development of cooperation between large and small businesses. Also, researchers will make assumptions about their content and relationship with the methods of legal regulation. The final stage of factor analysis will be the procedure for a meaningful interpretation of the selected factors. Interpretation will be based on the study of the matrix of factor loads or a graphical representation of the results of factor analysis.

332

A. N. Maloletko et al.

5 Conclusion According to the authors, the results can be obtained during the study, given that the following have scientific and applied significance: The first scientific result will be to analyze the practice of cooperation of large and small businesses in the Russian Federation and in the Republic of Belarus. In this case, it is possible to give a scientifically based description of the situation of large and small businesses in the Russian Federation and in the Republic of Belarus. The priorities of the Russian Federation and the Republic of Belarus in the development of cooperation of large and small businesses will be described. Organizational, regulatory, and informational foundations of cooperation of large and small businesses in the Russian Federation and in the Republic of Belarus will be investigated. The main indicators of the state of cooperation of large and small businesses in the Russian Federation in the Republic of Belarus will be analyzed. The second scientific result will be obtained in the analysis of the best international practices of supporting small businesses. At the same time, the practice of supporting small businesses in the USA, the European Union, Japan, and Singapore will be investigated. In addition, the practice of supporting small business in Russia and the Republic of Belarus will be mirror studied by Belarusian and Russian research teams. The third scientific result will be obtained by identifying and analyzing factors that stimulate the development of cooperation between large and small businesses in Russia and the Republic of Belarus. The formalization of the scientific result will be made on the basis of a list of characteristics used for the development of cooperation of subjects of large and small businesses, compiled by a scientific team. In the future, the research team will create a matrix of mixing factors, a transposed matrix of factor loads, a matrix of factor values for the development of cooperation between large and small businesses, and a correlation matrix. The obtained scientific results will be partially presented in the form of graphs that illustrate the interpretation of factor analysis. Acknowledgements The study was funded by RFBR according to the research project No. 20-510-00020: “The comparative study of factors stimulating the development of cooperation between entrepreneurship and businesses in Russia and the Belarussia.”

References Anufrieva, A.: Development of the cooperative sector of the agrarian economy of the Voronezh region. Dissertation of Candidate of Economic Science, Moscow, Russia (2018) Bogoviz, A.V., Ragulina, J.V., Barcho, M.K.: Influence of innovations on regional socio-economic development. In: The Future of the Global Financial System: Downfall or Harmony. Lecture Notes in Networks and Systems, vol. 57, pp. 1200–1207 (2019)

Approaches to the Study of Factors Stimulating the Development …

333

Bondarenko, O.G., Grishina, V.T.: System analysis of the influence of factors of the marketing environment on the activities of trade organizations of consumer cooperation in Belarus as a tool for determining the directions of future development. Fund. Appl. Res. Coop. Sect. Econ. 2, 101–109 (2018) Didichko, E.: Development of state support for agricultural consumer cooperatives. Dissertation of Candidate of Economic Science, Moscow, Russia (2018) Dzhamolidinov, A.: Competitive fundamentals of the sectoral market of the national economy (on the example of consumer cooperation of the Republic of Tajikistan). Dissertation of Candidate of Economic Science, Dushanbe, Tajikistan (2016) Enina, D.: Development of agricultural consumer cooperation in the dairy subcomplex of the regional agro-industrial complex. Dissertation of Candidate of Economic Science, Moscow, Russia (2016) Epifantseva, A.: Application of cooperative games in research on the relationship of economic entities in the field of leasing. Dissertation of Candidate of Economic Science, Moscow, Russia (2016) Gutnikova, O.: Strategic development of trade enterprises of consumer cooperation. Dissertation of Candidate of Economic Science, Moscow, Russia (2018) Kashbraziev, R.: Financial and institutional mechanisms for ensuring international production cooperation. Dissertation of Candidate of Economic Science, Moscow, Russia (2018) Kashirskikh, P.: Development of cooperation in outsourcing of agricultural machinery. Dissertation of Candidate of Economic Science, Moscow, Russia (2017) Khvalevich, A.: Using international cooperation to develop Russian export of oil and gas production services. Dissertation of Candidate of Economic Science, Moscow, Russia (2018) Kirpichev, E.: Mechanisms for managing innovative cooperation of subjects of industrial clusters. Dissertation of Candidate of Economic Science, Moscow, Russia (2018) Krechko, S.: Organizational innovations in ensuring the technological development of enterprises of industrial cooperation networks. Dissertation of Candidate of Economic Science, Moscow, Russia (2019) Kurganov, Yu.: Management of industrial cooperation of Russian enterprises in the automotive industry. Dissertation of Candidate of Economic Science, Moscow, Russia (2018) Lilimberg, S.: Improving the development efficiency of rural consumer cooperation. Dissertation of Candidate of Economic Science, Moscow, Russia (2017) Maksimov, A.: Formation of organizational and economic conditions for the functioning and development of agricultural credit cooperation in Russia. Dissertation of Candidate of Economic Science, Moscow, Russia (2017) Maloletko, A.N., Volkov, D.V., Kaurova, O.V.: Formation of bounded consumers’ rationality based on micro-segmentation. Eur. Res. Stud. J. 21(4), 754–762 (2018a) Maloletko, A., Mityushina, E., Kaurova, O., Andryushchenko, G., Shatskii, A.: Current employment patterns in the labor market of the Eurasian Economic Union. Rev. ESPACIOS 38(49), 19–21 (2017) Maloletko, A., Volkov, D., Vishnyakova, V., Shatsky, A.: The effect of supply chain and consumer preferences on the formation of economic model. Int. J. Supply Chain Manag. 1(7), 684–689 (2018b) Pulatov, U.: Development of the cost management system for the retail trade of consumer cooperation in a market economy. Dissertation of Candidate of Economic Science, Moscow, Russia (2016) Rettieva, A.: Cooperation and competition in dynamic models of renewable resource management. Dissertation of Candidate of Economic Science, Moscow, Russia (2016) Sabatkoev, T.: Development of horizontal cooperation of counterparties of supply chains of food industry enterprises. Dissertation of Candidate of Economic Science, Moscow, Russia (2016) Shakhabov, I.: Improving the organizational and economic mechanism for the development of rural consumer cooperation. Dissertation of Candidate of Economic Science, Moscow, Russia (2015)

334

A. N. Maloletko et al.

Tikhonov, K.: Credit consumer cooperative as a subject of financial law. Dissertation of Candidate of Law, Moscow, Russia (2017) Timoshenko, M.V., Kolesnikov, A.A., Yatsevich, N.V., Gavrikov, A.V.: Key factors, problems and promising directions of development of foreign economic activity of consumer cooperation of the Republic of Belarus. Consum. Coop. 2(57), 25–31 (2017) Tinyakova, V.I., Maloletko, A.N., Kaurova, O.V., Vinogradova, M.V., Larionova, A.A.: Model of evaluation of influence of globalization on the national stock market. In: Popkova, E. (ed.) Russia and the European Union, pp. 261–272. Springer, Cham (2017) Yatsevich, N.: Youth and entrepreneurship: basis of creation of University 3.0. Consum. Coop. 4, 18–22 (2018) Zaikina, E.: Management methods for technical re-equipment of territorial generating companies based on network intercompany cooperation. Dissertation of Candidate of Economic Science, Moscow, Russia (2018)

Cooperation as a Form of Interaction in Modern Educational Society Anna G. Alyabyeva , Julia V. Ganicheva , Irina A. Korsakova , and Anna I. Shcherbakova

Abstract The purpose of this article is to identify the features and philosophical sense of the concept of “cooperation,” to find areas of modern society that are built on the principles of cooperation. Also, the purpose of the article is to reveal the relevance of these principles for the development of innovative processes in various fields, primarily in education. First of all, cooperativeness is a Russian phenomenon dating back to the ancient forms of human dormitory (community, artel). It manifests itself in various forms of bringing together like-minded people engaged in a single noble cause. There are many organizations and associations today. However, not all of them are based on cooperative principles. Market, competition, leisure, and more are not grounds for cooperative communities. Here, the phenomenon of “corporatism,” which is of the Western European origin, is manifested to a greater extent. And voluntariness, collectivism, the priority of the spiritual principle over the material and other features laid down in the Russian mentality can serve as the foundation for the formation of cooperative unions. Among the organizations of a creative orientation, we can identify the following associations: a university scientific community of the university, a student union, a creative team, and a scientific and educational creative laboratory.








Keywords Principles of cooperation Cooperativity Self-organization Synergistic effect Russian mentality Modern educational space







A. G. Alyabyeva
J. V. Ganicheva
I. A. Korsakova (&)
A. I. Shcherbakova Moscow State Institute of Music named A.G. Schnittke, Moscow, Russia e-mail: [email protected] A. G. Alyabyeva e-mail: [email protected] J. V. Ganicheva e-mail: [email protected] A. I. Shcherbakova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_35

335

336

A. G. Alyabyeva et al.

1 Introduction In modern studies in the fields of economics, sociology, and political science, interest has arisen in such a thing as cooperation. As a principle of organization of a social system, the phenomenon of cooperativeness contributes to its sustainable development, helps in the development of new strategies, promotes cooperation between countries and dialogue of cultures. At the beginning of the twentieth century, research began on cooperation in the field of sociology (G. Spencer, A. Comte). Scientists came to the conclusion that cooperation is one of the factors in the existence of society, since it determines the target orientation of communication between individuals. E. Durkheim emphasizes professional cooperation in which people of different professions unite with each other. And they interact “not for the sake of individual and group enmity, but because of a deep and mutual need for each other” (Durkheim 1995, p. 119). Researcher E. O. Kolokolova believes that cooperation in social interaction involves understanding the intentions of others, and they, in turn, understand our intentions (Kolokolova 2012, p. 23). Thus, social reality develops as a result of interaction and mutual adaptation of subjects to each other. The theory of cooperation has been greatly developed in economics (starting with R. Owen and Ch. Fourier and ending with modern developments). R. Owen and Ch. Fourier note the important feature of cooperation as the willingness to unite people in order to achieve any—most often economic—goal. According to the views of the modern Russian economic school, cooperation is a form of self-organization of the population for the collective realization of economic interests and the joint receipt of goods and services in various types and forms (Egorov 2014, p. 465). Significant research has emerged in the field of synergetics. Cooperation is considered to be a factor in the self-organization of nature and society, which allows for maintaining a dynamic balance in the development of our planet, smoothing out conflicts between nature and humanity. G. I. Ruzavin calls these processes “eco-civilization” (1993). It is important to note that cooperation is possible on the basis of cooperative values. Unity in a cooperative is based on common interests, common goals, and a single spiritual platform. The aim of cooperation is to achieve a synergistic effect in achieving a common goal. Such a form of communication as leisure communication cannot lead to the creation of cooperation until like-minded people have a common goal. This goal should be such that all members of the community are involved in active efforts to achieve it. In turn, the goal is achievable only if there is a well-coordinated collaboration.

Cooperation as a Form of Interaction in Modern Educational Society

337

2 Materials and Methods The term “cooperation” has a substantive philosophical aspect related to the process of self-organization of complex systems that arise at the following three levels: inanimate nature, wildlife, and society. During the life of the system, a synergistic effect arises from the interaction of its parts. It leads to stability and equilibrium, as well as the activation of the system, associated with the internal potential of the system itself, and not with external influences. This effect arises due to the coordinated work of all components and arises in the process of communication of system elements. In human society, cooperation gives a special “additional” effect associated with the division of labor and the use of tools and objects of activity. In fact, the combination of “living” and materialized forms of human experience is a cooperation of various factors. And the presence of consciousness gives an additional synergistic effect associated with reflection, self-observation, and self-reference. N. N. Moiseev, in his works, pays great attention to the terms “cooperation,” “cooperativity,” “cooperative principle,” etc. The scientist notes the inconsistency between the interests and goals of the system and those of its individual components. Considering the evolution of life, the scientist believed that “a reasonable person” entering into cooperative relations should sacrifice his personality for the sake of social development. A conscious movement toward the future should bring moral issues related to the coevolution of nature, humans, and space to the forefront (Moiseev 1989, p. 58). In modern philosophy, cooperation is defined as “a form of organization of social life, involving the joint participation of people in the implementation of any business” (Maslin 1999, p. 236). As a theoretical concept, “cooperation” came into scientific use in the middle of the XIX century. Cooperation is defined as the cooperation of several individuals to achieve a common goal. Cooperation entails an increase in labor productivity that, in terms of the expenditure of time and energy, is much larger than what can be provided by each of the participants. Despite the fact that the term “cooperation” did not receive a sufficiently theoretical elaboration in Russian philosophy, it is, above all, a Russian phenomenon. It is rooted in historical forms of social interaction, such as community and artel, and it is consistent with the Russian mentality. The idea of cooperation is associated with the concept of “collegiality,” which means free spiritual unity of people—their communication in love and brotherhood. The community was the traditional and historically first form of public organization of people. This form was characterized by collective labor and consumption; the territory and its gifts were the subjects of joint, inseparable use. Mutual relations between community members were based on common interests and principles of mutual assistance. The artel was one of the earliest forms of voluntary association of people for joint activities. The peculiarity of Russian artels (for hunting, fishing, rural activities, etc.) was a special atmosphere in which the personal principle was not

338

A. G. Alyabyeva et al.

absorbed by the environment but, on the contrary, developed and harmonized. Fundamentally, Russian artels had a spiritual beginning. E. D. Maksimov (often published under the pseudonym M. Slobozhanin) wrote that the basis of artel cooperation was “doing good,” “universal popular love,” and “the desire for life, for its emergence and maintenance” (Slobozhanin 1919, pp. 31–76). P. A. Kropotkin identifies such forms of human hostel as “community,” “workshop,” “guild,” “medieval city,” “scientific or cultural community,” and “commune.” All these are forms of joint activity of people based on the principle of cooperativeness. L. I. Mechnikov considered cooperation a characteristic feature of social life since it is a necessary condition and the result of the struggle for survival (Mechnikov 1924, pp. 57–58). According to the scientist, cooperation can also be seen as a trend in social progress: “Just as the waters of every great river reach the sea, so every river civilization must perish or dissolve in some broader cultural stream” (cited by Mechnikov 1924, p. 14). L. I. Mechnikov examines several levels of civilization, anticipating the ideas of globalism, and notes the ever-increasing role of social cooperation in the interaction of peoples. P. L. Lavrov introduces the concept of “solidarity,” noting the spiritual nature of self-governing communities. N. N. Moiseev also spoke about the spiritual cooperativeness of modern society, noting that the spiritual crisis of modern civilization requires a “new morality.” And “the transformation of the planet into a single organism” is possible only on the basis of a new “cooperative ideology” based on a “collective universal planetary strategy” and “collective intelligence” (Moiseev 1991). The ideas of cooperativeness are being developed by modern scientists in the framework of a new direction, namely, sociosynergetics. Its representatives (V. P. Shalaev, V. S. Kapustina and others) continue the ideas of N. N. Moiseev, V. N. Mikhailovsky and others about cooperation as self-organization in nature and society (Mikhailovsky et al. 1994). Scientists believe that the cooperative structures that arise in society do not appear out of a targeted need but are inherent products of the environment itself. This triggers the principle of volunteerism, which is another feature of cooperative communities. Modern philosophy recognizes cooperativeness as the foundation of economic and spiritual development. The search for harmony, unity, and cooperativeness “is considered as the goal and means of optimizing the life of mankind as a whole” (Prischep 2006). Today, the role of cooperation is growing. Cooperatives aimed at achieving a synergistic effect have played an important role in history. They can enhance the development of the “nature—humanity—society” system in the context of global evolution. According to the scientist S. G. Kara-Murza, the Russian peasantry is the future of post-industrial agriculture, since it provides the only form of management that “will be able to feed humanity and not destroy the environment” (Kara-Murza 2001, p. 29). Unlike in the case of Russian artels, the European origin of this phenomenon comes from the Italian “artisan.” creating industrial-craft associations based on individualistic principles. The purpose of such associations is material gain, while

Cooperation as a Form of Interaction in Modern Educational Society

339

the Russian artel puts the spiritual and moral needs of the individual at the forefront. A feature of Russian artels is mutual responsibility, with all members of the community responsible for each other. The family characteristic of the Russian artel is emphasized in the following Russian proverbs: “artel gruel denser lives,” and “the gruel is thicker in the family.” Everyone participated in the artel, regardless of age or social status. The head of the artel (headman, chieftain) was elected at a general meeting. The following associations can be examples of cooperative cultural communities: “Moguchaya kuchka” is a creative community of composers, an association of artists-wanderers, abramtsevskiy art group (mamontovskiy group), art association “World of Art” and other associations of Russian artists, musicians, theatrical figures. Cooperation is the opposite of another type of Western European organization, namely the corporation (rooted in medieval guilds and the workshops of artisans and merchants). The basis of the corporation is a formal legal association of persons with the aim of obtaining economic benefits, providing for the shareholding of owners. Corporations are divided into the following types: public (cities, districts, state enterprises, etc.) and private (created on the initiative of individual citizens to fulfill their private interests). Also, corporations are commercial (specially created for profit from the sale of goods or services) or non-profit (schools, colleges, charitable, and religious organizations). In modern society, there are organizations built on various principles. Going back to its etymological root of “cooperation,” the word “cooperative” indicates an open community built on the principle of coercion and not voluntariness. The economic interest of each member of the cooperative is at the forefront of the cooperative’s activity (unlike cooperative communities, in which the interests of the community are higher than the interests of each of its members). In cooperatives, an atmosphere of partnership and cooperation reigns, and the management system is focused on democratic principles. Joint-stock companies of both open and closed types, along with other social organizations, were created based on the organizational principles of cooperatives. Of course, the following synergy law applies in these communities: The organization is considered to be an artificial association created to achieve goals, and such an organization functions due to a synergistic effect, i.e., energy gain exceeding the sum of the efforts of its individual members. However, competition and emphasis on material benefits to the detriment of spiritual unity cast doubt on the prospects of such communities. Today, organizations and communities built on the cooperative principles of voluntariness, spiritual unity, and the significance and engagement of each community member enjoy competitive success and recognition. M. I. Tugan-Baranovsky believes that “the supreme goal of human society is not the happiness of the majority, but the greatest height of the human person, the greatest inner wealth of the spiritual content of a person” (Tugan-Baranovsky 1996, p. 49). A person should become the center of a modern cooperative community, and this is the main value of cooperation.

340

A. G. Alyabyeva et al.

In connection with the development of new information and network technologies, virtual communities are gaining great popularity. Also, there are communities among them, built on the following cooperative principles: bringing people into virtual groups for the sake of achieving a single noble goal and discussing and developing common positions. Also, with each member of the community feeling that they are part of a single organism or a large family, the desire for improvement and self-realization for the good of the common cause are signs of a cooperative community. However, business orientation, competition, leisure, personal ambition, and communication for the sake of communication are models of non-cooperative virtual communities, even if one of the signs (for example, the presence of informal ties) is fully manifested. Cooperative values embedded in the Russian mentality, such as mental comfort and family atmosphere, are the criteria for accommodation and life success for most contemporary Russians. A market economy focused on achieving material well-being in the form of a monetary equivalent is gradually losing its position without the inclusion of spiritual and emotional components. Another type of modern cooperative community is a network organization built on the principles of cooperation. A. V. Oleskin defines it as “a small group of people with a decentralized hierarchy, partial leaders, with a wide specialization of participants, with the stimulation of informal (individualized) relationships in the team” (Oleskin 2007). In various forms of network organization (dynamic, hierarchical, corporate, vertical and horizontal, etc.), the advantages of a particular type of cooperation are revealed. Among these, there are both purely economic (risk reduction, profit-making, sustainable sales of products, etc.), and intangible (the possibility of more stable functioning, the receipt of additional intangible assets, such as brands, knowledge, access to new information, etc.) advantages (Makhmudova 2010). In cooperation, in its modern sense, the ideas of collectivization are combined with spiritual and intellectual values. In fact, in the figurative expression of G. Gachev, “the world outlook of a Russian peasant raised to intellectual heights” was embodied (Gachev 1991, p. 794). Such an understanding of cooperation is consonant with the words of V. S. Solovyov, that the economy “obeys the highest moral principle, so that, in its economic life, society is an organized exercise of good” (Solovyov 1988, p. 412).

3 Results The ideas of cooperation can be successfully used in the modern educational space. Research communities, student unions, creative teams, scientific and educational creative laboratories, and other associations created on a voluntary basis to achieve high goals are examples of cooperative communities. The goals of such communities can be the realization of everyone’s creative potential, search for truth, and the achievement of harmony. They perform the most important function in the

Cooperation as a Form of Interaction in Modern Educational Society

341

implementation of the educational process. Namely, they play an important role in the process of comprehensive training of a specialist who owns all the competencies necessary for successful professional and personal self-realization in a rapidly changing society. The scientific student community is a union of like-minded people, in which each participant, remaining a person, improves him or herself, drawing knowledge, skills in professional communication, and examples from senior colleagues. Each member of such an alliance—adopting a scientific school and mastering various forms of dialogue with associates—contributes to the creation of new ideas. These ideas make it possible to comprehend unexplored scientific fields, bring new knowledge and discoveries to the scientific community, and improve the educational process. Student Union is a voluntary activity within the framework of a volunteer movement. Volunteer teams are created on the basis of educational institutions (schools, colleges, and universities). Students participate in projects of various levels like the following (from regional to international): World Cup—2018, Moscow Games—2019, etc. Participants of volunteer groups accompany olympiads and festivals, implement educational projects, and provide assistance to people with disabilities, children from orphanages, elderly single people, and other vulnerable groups of the population. Also, participants of volunteer groups work on improving memorial places, Walks of Glory, etc., gain experience in volunteering in the field of environmental protection and solving environmental problems. The knowledge and experience of volunteering form the personal qualities necessary for a full, happy life in modern society. The creative team (student orchestra or choir) is not only an educational team that fulfills the tasks of teachers and the requirements of standards but is also an integral part of the activity of the entire educational institution. It fulfills its mission and carries its image in a professional educational space. The creative team is the collective subject of a single creative process. Each member of such a team is a unique person who realizes his creative potential in performing activities, improves himself and the world around him for the benefit of society. The scientific and educational creative laboratory is a structure created within the framework of an educational organization, built on the following cooperative principles: • • • • •

Single-target orientation; Volunteerism; Collectivism; Prioritization of the spiritual beginning; Possibilities of personal realization in the framework of a common cause.

An example of a scientific and educational creative laboratory may be the “Schnittke Center” of the Moscow State Institute of Music named after A. G. Schnittke. The laboratory was established in 1999. Today, it celebrates the 85th anniversary of the birth of the great composer, whose name the institution has carried for more than 20 years.

342

A. G. Alyabyeva et al.

4 Discussion The Schnittke Center is part of the Department of Philosophy, History, Theory of Culture and Art and has the following: sheet music, iconography, literature, video, audio, and collection of newspaper and magazine clippings. It also stores documentaries, feature films, and cartoons with the music of the composer. Scientific conferences, creative meetings, and masterclasses are regularly held at the Schnittke Center. Family members and friends of A. Schnittke, many famous composers, conductors, musicologists, performers, and representatives of other creative professions visit the museum. Scientific collections, conversations, and memories of the life and work of the great musician of the twentieth century are published. The Schnittke Center conducts work in several areas: • The research area includes the following: the study of the heritage of A. Schnittke and his contemporaries; • The institute regularly publishes materials on the life and work of A. Schnittke, as well as music publications of the composer’s works in various arrangements. They are performed by orchestras and other creative teams of the university; • The educational area includes promoting the work of the composer and his contemporaries, as well as creating interactive information projects, lectures, webinars, and excursions (some of which are in foreign languages). They are held for a wide audience with the participation of students; • The educational area includes the following: Schnittke Center is always open for students and teachers of the Institute. There are classes, rehearsals, and concerts, as well as informal events—for example, “Initiation into students.” The walls themselves help reflect the spirit of Schnittke by providing a spiritual impulse— a creative “ticket to life.”

5 Conclusion Thus, cooperation as a form of interaction is successfully implemented in the modern economic and sociocultural space. The increased demand for organizations and communities founded on cooperative principles supports this. These associations are able to solve many important tasks in the field of education, ultimately contributing to the increase of economic potential and welfare in Russian society.

Cooperation as a Form of Interaction in Modern Educational Society

343

References Durkheim, E.: Sociology, Its Subject, Method, Purpose. Rules for Evidence. Kanon, Moscow (1995) Egorov, V.G.: The place and role of cooperation in a market economy (theoretical analysis). Dissertation of Doctor of Economic Sciences. A. S. Griboedov Institute of International Law and Economics, Moscow, Russia (2014) Gachev, G.: Russian Duma. Portraits of Russian Thinkers. Novosti, Moscow (1991) Kara-Murza, S.G.: Soviet Civilization. From the Beginning to the Great Victory. Algorithm, Moscow (2001) Kolokolova, E.O.: Cooperation in the structure of interactions and connections of sociosystems. Dissertation of Candidate of Philosophical Sciences. Ogarev Mordovia State University, Saransk, Russia (2012) Makhmudova, A.I.: Varieties of the network form of integration in industry. Vestn. Astrakhan State Techn. Univ. Ser.: Econ. 1, 211–218 (2010) Maslin, M.A. (ed.): Russian Philosophy (Dictionary). Terra - Book Club; Republic, Moscow (1999) Mechnikov, L.: Civilization and the Great Historical Rivers (Geographical Theory of Progress and Social Development). Golos Truda, Moscow (1924) Mikhailovsky, V.N., Gusev, S.S., Efimov, Yu.I. (eds.): Self-organization in Nature and Society. Philosophical and Methodological Essays. Nauka, St. Petersburg (1994) Moiseev, N.N.: The logic of universal evolutionism and cooperativity. Vop. Filosofii 8, 52–66 (1989) Moiseev, N.N.: Universal evolutionism. Vop. Filosofii 3, 10–21 (1991) Oleskin, A.V.: Biopolitics. The Political Potential of Modern Biology: Philosophical, Political Science and Practical Aspects. Nauchnyy mir, Moscow (2007) Prischep, E.N.: Cooperativeness as a principle of self-organization of social systems: noospheric aspects. Dissertation of Candidate of Philosophical Sciences. Ivanovo State University, Ivanovo, Russia (2006) Ruzavin, G.: The paradigm of self-organization as the basis of a new worldview. Svobodnaya Mysl 4, 51–62 (1993) Slobozhanin, M.: New Constructions in the Ideology and Theory of Cooperative-Artel. Printing House of the Petrograd Union of Workers of Consumer Societies, Petrograd (1919) Solovyov, V.S.: Works, vol. 1. Mysl, Moscow (1988) Tugan-Baranovsky, M.I.: For a Better Future. ROSSPEN, Moscow (1996)

Topical Problems and Current Trends in the Development of Cooperation and Integration Processes in the Context of Humanitarian Knowledge Julia Yu. Rybasova , Flera L. Mazitova , Alla Yu. Filkova , Chulpan Kh. Samatova , and Zulfia Sh. Yakhina Abstract The paper focuses on current issues and modern trends in the development of cooperation and integration processes in the context of humanitarian knowledge. At the present stage of improving the educational process, higher education is interested in training not only a highly qualified and competitive professional, but also a highly educated personality of culture. In this regard, the role of humanitarian disciplines taught at the university and aimed at broad-based training of specialists who know not only their specialty but also can speak one or several foreign languages, meet the needs of society, and is in demand on the labor market, is growing. In the educational environment, the cooperation and integration of humanitarian knowledge are based on an interdisciplinary approach, which involves close interdisciplinary connections with profiling departments, the use of innovative forms and methods of instruction in the educational process, and their successful integration into educational activities. Strengthening intersubject communications and the orientation of educational material on the practical activities of students should take their rightful place in the work of the department of humanitarian disciplines. The weak connection of objects, as a rule, causes severe difficulties in the formation of full-fledged professional competencies among students, an integral picture of the world, and an organic perception of culture. In the context J. Yu. Rybasova (&)
F. L. Mazitova
A. Yu. Filkova Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected] F. L. Mazitova e-mail: [email protected] A. Yu. Filkova e-mail: fi[email protected] C. Kh. Samatova Institute of International Relations, Kazan (Volga Region) Federal University, Kazan, Russia e-mail: [email protected] Z. Sh. Yakhina Academy of Social Education, Kazan, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_36

345

346

J. Yu. Rybasova et al.

of interdisciplinary communications, integrated practical exercises are of particular importance. The authors offer their own experience of various kinds of classes, in which students and teachers participate in the dialogue. Non-standard forms of training on the implementation of intersubject communications are binary bilingual classes. A new approach to humanitarian knowledge and its introduction to the higher education system should meet the requirements of modern educational projects.








Keywords Cooperation and integration processes Interdisciplinary approach Humanitarian knowledge Intersubject integration Education culture Dialogue of cultures Self-realization of students Innovation processes













1 Introduction The modern system of higher education is characterized by trends in the development of cooperative and integration processes for obtaining quality knowledge in the humanities field. The dramatic changes that are taking place in this area are aimed at improving the regulatory framework of educational institutions and the conditions for their implementation. The main goal of the self-improvement of students and the creation of a unified structure of the educational space provides state guarantees for educational quality. The introduction of innovations in humanitarian knowledge in higher education takes place within the framework of the national project “Education,” which, in the section “New Opportunities for Everyone,” discusses the introduction of an integration platform for continuing education that provides navigation and support for citizens when choosing educational programs and organizations (President of the Russian Federation 2018). Theoretical aspects of modern trends in the development of cooperative and integration processes in the context of humanitarian knowledge. The modern system of high education is focused on the formation of a specialist personality through higher education based on the offered services that meet the demands of the labor market. In this regard, the role of humanitarian knowledge is qualification wide-profile training and meeting the demand for highly qualified personnel. The development of cooperative and integration processes reveals the essence of interdisciplinary knowledge and constructive interdisciplinary dialogue (Bogoviz et al. 2020a, 2020b). An interdisciplinary approach should contribute to the creation of a holistic picture of the world in which a person is a perfect creation of nature, developing his abilities and capabilities (Dvoryatkina et al. 2018). In this context, the ideas of J. H. Pestalozzi are relevant, which reveals the interconnectedness of educational subjects and emphasizes the danger of their rupture (Pestalozzi 1981). An interdisciplinary approach is disclosed in the scientific books of the doctor of pedagogical sciences, professor V. Sh. Maslennikova. She, in her reasoning, interprets the interdisciplinary approach as intersubject integration in vocational

Topical Problems and Current Trends in the Development …

347

education, which focuses on teaching on the formation of knowledge and skills. According to her, the educational process should set a goal to apply different types of cognition methods and cooperate them in education with the help of educational technologies. An important role here should be played by the professional skill of the teacher, who can prepare the student for his future profession (Maslennikova 2017). Z. Sh. Yakhina, discussing an interdisciplinary approach to teaching, says that it is necessary to educate a free-thinking, creative personality of a future professional. The culture of education, organized by humanitarian knowledge, contributes to the formation of a sustainable, integrative learning environment based on a dialogue of cultures. To this end, the curriculum and the educational process should be structured in such a way as to reflect all areas and types of the professional activity of students (Yahina 2015). The interdisciplinary approach to teaching is based on interdisciplinary connections between different disciplines of the curriculum for preparing students (Nikitenko 2013). Interdisciplinary communication can be considered within the framework of several educational tasks: 1. intersubject communications should reflect the correctness of scientific knowledge in the educational process; 2. interdisciplinary communication should coordinate curricula and educational programs; 3. in intersubject communications, scientific, systematic, integrity, continuity, and consistency principles should take place (Maslennikova 2017). The doctor of pedagogical sciences, professor R. Kh. Gilmeyeva, in the framework of an interdisciplinary approach, says that the interdisciplinary integration of student learning in a university is multifaceted, as it consists of invariant and variable components, that is, from humanitarian, general cultural, and vocational training. The invariant component of the structure of student training is associated with the acquisition of fundamental theoretical knowledge. The variable component includes special disciplines (Gilmeeva and Zelenkova 2013). Thus, the interdisciplinary integration of professional and general educational disciplines makes it possible to form a students’ thinking culture, master the techniques of the cultural and professional language of communication, and, using methods, forms, and training tools, join the future professional activity and create conditions for the formation of knowledge, skills, and abilities. Forms of organizing the construction of educational and cognitive activities for the development of cooperative and integration processes in the context of humanitarian knowledge. The main goal of a qualitatively new education system is to develop a steady interest of students in the studied subjects, to attract them to scientific research, to self-education, and self-improvement from the first courses of study. It is the

348

J. Yu. Rybasova et al.

introduction of innovative methods and technologies in the educational process that is designed to help to qualitatively and quickly solve the goals and objectives. The controlled processes of perception, assessment, development, creation, and application of various pedagogical innovations in teaching students in the educational system are innovative. The word “integration” is translated as “innovation” from Latin. Based on leading innovative ideas, modern learning models, educational strategies, methods, and educational technologies were formed. However, one should never forget that innovative methods and technologies should cooperate and integrate into the educational process along with traditional, classical methods that have been developed for centuries and have the right to be preserved in educational activities. A special form of organizing educational and cognitive activities at the university is active and interactive learning. Its essence lies in the fact that all students participate in integration and cooperation in the process of cognition and joint action. Each student individually contributes in the form of actions, statements, approaches, ideas, decision-making, etc. Thus, the exchange of ideas, knowledge, and methods of activity is actively carried out. Interactive learning is required in an atmosphere of mutual understanding, cooperation, goodwill, and respect. In the innovative educational process, parts of the integration and cooperation processes of improving humanitarian knowledge are widely used in: • • • • • • • •

gaming and problematic technologies; technologies of work in a study group and a team; simulation technologies of active learning; a case study; educational project activities involving an innovative project method; collaboration training; master classes; training and case study methods.

The task of university teachers who use innovative technologies and techniques in work is acting as moderators, clearly and correctly coordinating their actions and the actions of their students. The functions of the moderator are to coordinate and integrate the educational process, collect and generalize the opinions of participants, and summarize the discussion. The ability to draw conclusions and evaluate the individual experience of participants is the art of a moderator (Boguslavsky and Neborskiy 2016). The results of the use of cooperation and integration processes in the context of humanitarian knowledge. Learning technologies are a way to implement learning content. In teaching humanities, the teacher is focused on the culture of education and the professional training of the student as a polymath, professional, and thinker.

Topical Problems and Current Trends in the Development …

349

We propose to consider the process of integration and cooperation in the context of humanitarian knowledge in the framework of an open lesson on the topic: “The humanistic ideal of the man in the Renaissance.” The purpose of the lesson is to influence the professional culture of a modern graduate of a higher school and make students acquainted with the work of Renaissance masters. The form of the lesson is a lecture with the use of role-playing and theatrical elements. At the beginning of the lesson, students are to listen to a small introductory lecture on the Renaissance to get acquainted with humanists and their ideas. The second stage involves the division of students into two groups, where one group plays the role of contemporaries, and members of the other group are assigned the roles of great architects, artists, and thinkers of the Renaissance. In the third stage, students will act out a meeting of contemporaries and historical figures, with the latter played by students from the Platonic Academy of the city of Florence. Together, they will discuss the traditions and customs of the Renaissance. Next, a dialogue will take place between them. The following issues will be discussed during the dialogue: 1. How is “dignity” defined in the understanding of humanists, and how is it related to humanitarian knowledge? 2. What role did religion play in the life of Renaissance humanists? How did the understanding of religion in this era differ from the Middle Ages? Are the Madonna of Raphael, Leonardo da Vinci, or Botticelli secular or cult images? 3. In what sense are they talking about “universalism” and “titanism” of the great personalities of the Renaissance? 4. What is the role of traditions and experience in the life of geniuses? 5. What is the difference between the modern understandings of humanism and the Renaissance? At the fourth stage, the moderator suggests writing an essay to contemporary students, in which they will present their views on Leonardo da Vinci’s statement: “Every person is always in the center of the world.” The fifth stage will end with the film Florence. In the footsteps of the geniuses of the Renaissance. According to modern pedagogue-innovators, it is impossible to form a culture of learning and professional training only within the framework of teaching one subject. For this, a logical connection between the subjects must be built in the curricula of higher education. Also, the current level of teaching at the university should have a creative approach to the educational material that is offered to students. A correctly set goal and well-chosen communicative and professionally-oriented language material with the wide use of modern didactic principles of suggestiveness, visualization, innovative technologies, and techniques will help to achieve the desired results.

350

J. Yu. Rybasova et al.

Increasing the motivation to study a particular discipline is facilitated by creating thematic situations and playing them out in the audience. This increases the emotional tone of the lesson and leads to the fact that, for example, learning a foreign language becomes a creative process for students, and language and psychological barriers are less noticeable (Mazitova and Andreeva 2016). We offer several types of classes based on intersubject communications: 1) A binary lesson is a type of training session in which two academic disciplines cooperate in the form of a lecture or a seminar. The peculiarity of this lesson is that there is an integration of the problem of one academic discipline into another. Within the framework of a binary lesson, the same topic is considered by teachers of different disciplines. We would like to offer an example of such a lesson on the topic, “International Cultural Exchange in the Age of Enlightenment.” This class covers two disciplines: “international cultural exchange and business communications,” and “foreign language.” Group work with bachelors was preceded by a binary bilingual class on the topic, “International Cultural Exchange and Language Development in Different Eras of Russia’s Formation.” 1. Organizational stage. The topic of the lesson is proposed (“International Cultural Exchange in the Age of Enlightenment”), the goal and objectives are outlined, and both the means of achieving this goal and the participants of the binary bilingual lesson are presented. The main goals of the binary bilingual lesson are to provide students with knowledge about the development of international cultural exchange and languages in the Enlightenment, as well as to consolidate and expand their foreign language skills. In the lesson, the primary educational tasks were completed: 1. The cognitive task is to ensure the acquired knowledge and skills in the course of the lesson will help students understand the goals and objectives of joint actions with representatives of other cultures and, thereby, increase their motivation for self-improvement through the study of integrated disciplines. 2. The educational task is to assist students in becoming acquainted with cultural values and instilling love and respect for the languages of other people by using the example of the Enlightenment period. 3. The developing task was to bolster students’ level of cultural and communicative competence in the process of exploring the Enlightenment Age to facilitate optimal intercultural communication. Also, the following general cultural and linguistic problems were solved in a binary bilingual lesson; for their solution, two languages (Russian and English) were used: • Improve the quality of knowledge and skills through solving the problems of relationships and interaction of cultures and arts in the Enlightenment Age.

Topical Problems and Current Trends in the Development …

351

• Analyze the forms and means of intercultural communication and enlightenment of the people in the era of the New Age. • Increase interest among students through the linguistic and artistic work of educators in intercultural communication. • Consolidate, develop, and expand existing skills in a foreign language. • Expand the vocabulary of students in the studied foreign language. • Increase motivation to learn a foreign language. • Introduce creative and personal components in the meaningful structure of language training. • Use educational innovation. • Work with various sources of information—print and electronic. Educational tools of both a traditional and an innovative nature that were used in an open lesson include: Multimedia tools—This is a complex mix of hardware and software that allows one to use different types of work with text, illustrative, and specific material, organized in the form of a single information environment. The Internet information network and electronic dictionary is an invaluable aid to students while preparing for the lesson, during independent work, and in selecting material for presentations. Students develop skills to independently improve their knowledge and ability to work with a large amount of material, including a foreign language. There is a consolidation of skills for information analysis as well as incentives to improve proficiency in a foreign language. Roleplay involves modeling events and specific activities of people. 2. The control of the initial level of knowledge. Checking homework—Students prepared reports on the following topics: “Cultural and linguistic heritage in the work of Voltaire”; “Language as a form of enlightenment of the mind according to Helvetius”; “Encyclopedic knowledge of Denis Didro”; “The mechanical picture of the world in the era of the New Age (I. Newton and J. Locke)”; “Charles Louis Montesquieu: French Enlightenment”; and “Aesthetic ideas of German enlighteners.” During the presentation, which consisted of 40 slides, students made reports and informational, educational material in Russian and English. 3. Training stage. All students took an active part in preparing and conducting a bilingual, binary lesson: working on finding material in two languages, practicing the pronunciation of English language material, making a colorful and informative presentation, and —together with the teachers—presenting it in two languages. This, of course, teaches, educates, and helps to form professional, communicative competencies. A significant educational effect is an introduction to the content component of the language training of creative and personal components. This is evidenced by carefully prepared reports by students about prominent figures of the Age of

352

J. Yu. Rybasova et al.

Enlightenment and a presentation about this critical stage in the development of human civilization. 4. The control of the final level of knowledge acquisition. Monitoring the knowledge of students obtained in a practical lesson, discussing presentations and reports, and checking the understanding of the material is an essential part of the lesson, as it determines the degree to which the goal is achieved. Further, students watch the educational video in English on the Age of Enlightenment as well as answers to questions on the thematic video questionnaire. At the final stage of the binary bilingual lesson, we concluded this form of the lesson could fully realize the interdisciplinary solutions to significant problems. Such classes provide an opportunity to apply the acquired knowledge in practice more widely. 2) An integrated lesson is a lesson in which the stated problem is considered from different viewpoints by using several educational disciplines. When conducting an integrated lesson, the educational topic in one discipline is supplemented by knowledge from another. It can be carried out by two or even several teachers. An interdisciplinary approach to teaching students requires a significant amount of time and participation from all teachers. Meanwhile, an interdisciplinary approach in the process of bachelors teaching gives great advantages: 1) it allows the use of modern pedagogical and educational information technologies; 2) it creates opportunities for the integration of theoretical knowledge and practical skills necessary in future professional activities (Rybasova and Mazitova 2018).

2 Conclusion In summation, we can state that the problems and current trends in the development of cooperation and integration processes in the context of humanitarian knowledge should be solved in terms of the demand for specialists in the modern world. They must be professionally competent, competitive, mobile, have knowledge of their native and foreign languages, and have a high level of cultural and professional training. The personality of the student with the inherent individual characteristics of thinking and cognition should be integrated into the educational process. Particular attention should be paid to the principle of cooperation and “student-centeredness,” as well as the ability to build an individual humanitarian and educational trajectory of a student.

Topical Problems and Current Trends in the Development …

353

References Bogoviz, A.V., Kletskova, E.V., Sultanova, M.K., Lavrova, E.V., Shapoval, E.V.: The new concept of social justice in the globalizing economy. In: Growth Poles of the Global Economy: Emergence, Changes and Future Perspectives. Lecture Notes in Networks and Systems, vol. 73, pp. 1001–1008 (2020a) Bogoviz, A.V., Shvakov, E.E., Tretyakova, O.G., Zakharov, M.Y., Abramov, A.N.: Globalization of education in the conditions of formation of the global knowledge economy: regularities and tendencies. In: Growth Poles of the Global Economy: Emergence, Changes and Future Perspectives. Lecture Notes in Networks and Systems, vol. 73, pp. 993–1000 (2020b) Boguslavsky, M.V., Neborskiy, E.V.: The concept of development of the higher education system in Russia. World Sci. Pedag. Psychol. 4(5) (2016). http://mir-nauki.com/PDF/07PDMN516.pdf Dvoryatkina, S.N., Mkrtchyan, M.A., Rozanova, S.A.: Spiritual and moral effect as a result of the integration of mathematical and humanitarian knowledge in higher education. Integr. Educ. 22 (2), 353–368 (2018). https://cyberleninka.ru/article/n/duhovno-nravstvennyy-effekt-kakrezultat-integratsii-matematicheskogo-i-gumanitarnogo-znaniya-v-vysshey-shkole Gilmeeva, R.Kh., Zelenkova, E.V.: Interdisciplinary integration as a condition for the formation of pedagogical competence of students of a musical university. Kazan Pedag. Mag. 5(100), 43–50 (2013) Maslennikova, V.Sh.: Methodological approaches to the development of the organizational and target component of the model for the integration of training and education in the vocational education system. In: Mukhametzyanov, I.Sh. (ed.) The Formation of the Civic Identity of Youth in the Socio-Economic Realities of Russian Society, Proceedings from International Scientific and Practical Conference, p. 156. Academy of Social Education, Kazan (2017) Mazitova, F.L., Andreeva, E.A.: The formation of professional knowledge in the training of specialists for the economy and the service sector in classes in a foreign language, relying on intersubject communications. Kazan Pedag. Mag. 5(114), 159–163 (2016) Nikitenko, O.A.: The formation of an integrative basis for teaching a foreign language in a magistracy of a non-linguistic university through information and communication technologies. Abstract of the Dissertation of the Candidate of Pedagogical Sciences. St. Petersburg Polytechnic University, St. Petersburg, Russia (2013) Pestalozzi, J.H.: Selected pedagogical works (Vols. 1–2). In: Rotenberg, V.A., Klarina, V.M. (eds.) Pedagogy, Moscow, Russia (1981) President of the Russian Federation: The decree “On national goals and strategic objectives of the development of the Russian Federation for the period until 2024” (May 7, 2018 No. 204) (2018). http://www.kremlin.ru/events/president/news/57425 Rybasova, Yu.Yu., Mazitova, F.L.: General Cultural Training of Bachelors at the University. RUSSCIENCE, Moscow (2018) Yahina, Z.S.: The interdisciplinary approach to the formation of cultural competencies among social work bachelors. In: Krieger, W. (ed.) Soziale Arbeit im Ost-West-Vergleich. Jacobs Verlag, Ludwigshafen am Rhein (2015)

Cooperation and Integration Process Transformation Trends Svetlana V. Mamontova , Elena A. Bessonova , Mikhail V. Kulikov , Ekaterina A. Panarina , and Ekaterina A. Zhukova

Abstract In the context of digitalization, the strengthening of integration processes is one of the most important areas of development of the Russian and foreign economies. Cooperation and integration make it possible to increase the effectiveness of IT technology implementation by concentrating resources in strategic areas, increasing competitiveness and increasing investment attractiveness. Integration processes in industries that determine the state’s production potential are of particular importance. However, the success of joint collaboration depends largely on the nature of the emerging ties and relationships of integrated associations. The article emphasizes the need for information technology in the context of the transformation of cooperation and integration processes. Keywords Cooperation Transformation


Integration
IT technology
Digitalization


1 Introduction The transformation of the economic system is irresistible; the whole world is focused on building a digital economy. Naturally, these guidelines cannot remain aloof from business, the development and change of forms of organization of production, their management, etc. S. V. Mamontova (&)
E. A. Bessonova
M. V. Kulikov
E. A. Panarina
E. A. Zhukova South-West State University, Kursk, Russia e-mail: [email protected] E. A. Bessonova e-mail: [email protected] M. V. Kulikov e-mail: [email protected] E. A. Panarina e-mail: [email protected] E. A. Zhukova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_37

355

356

S. V. Mamontova et al.

All occurring changes are associated with the development of scientific and technological progress. When the potential of productive forces is exhausted, then the transformation of the economic system sets in, which has also been observed earlier. These transformations affected the Russian Federation, both internationally and domestically. As a result, issues related to the restructuring of the market based on IT technologies have arisen. Russia seeks to meet the requirements of world standards and is looking for ways to be among the first innovators. “Digital Economy,” the adopted state program, is evidence of this.

2 Materials and Methods When conducting the study, we used various methods and techniques. The main ones were the following: dialectical, imperialistic, heuristic, statistical-economic, and method of comparisons. The information base of the analysis was the scientific works of Russian and foreign scientists. These are the works of scientists studying the processes of cooperation and integration in the conditions of transformation of the economy, focused on the construction of the fourth technological structure, and in some economic systems, the fifth and the sixth.

3 Research Results Early studies have shown that every business entity is in a complex system of connections and relationships. Each business entity interacts with many administrative, regulatory, legal, entrepreneurial, control, and audit bodies, institutions, and enterprises. Accordingly, the nature of the emerging ties and relations largely determines the success and effectiveness of economic activities of entities. After all, these connections and relationships can positively or negatively affect the results of their functioning (Mamontova 2013). The same thing happens in relationships and connections of the various national economies. The essence of the national economy lies in the current system of national and social reproduction of the state, where industries, types and forms of social labor are interconnected. These sectors, types and forms of social labor have developed as a result of the country’s historical evolutionary development. The development of the socio-economic system of the Russian Federation, which includes a combination of productive forces and industrial-economic relations and relationships, lags significantly in time, content and functions. In essence, the transformation of the system that took place earlier was carried out in a short time. Therefore, in spite of the obvious changes, the former features have survived to the present.

Cooperation and Integration Process Transformation Trends

357

As for modern developed countries, they apply a mixed economic system (traditional, centralized and market), where the role of the state is to regulate antitrust, social, tax and other types of economic policy. To a large extent, this contributes to the economic growth of the country, raising the living standards of the population and economic freedom of producers. Entrepreneurs make their own decisions in the course of their activities and do not take government directives into account. Naturally, with the development of scientific and technological progress, a change in state policy and other factors contribute to the following. These factors contribute to the development and construction of cooperation in a new format of relations, taking economic globalization into account. The ongoing changes indicate the need for transformation of national economic systems. The inefficiency of socio-economic relations, the exhaustion of the potential for progress in production and economic relations are the rationale for this. Accordingly, it is necessary to identify new development paths, management mechanisms, and the influence of external and internal factors on the current situation, in order to find reserves for building and “new” type of economy. The economic system model being created today is aimed at a qualitative transformation. The transformation is able to provide comfortable living conditions for the population, integrating IT-technologies in the production and technological complex (Mamontova and Panarina 2019). Naturally, the processes of cooperation and integration should be based on the results of automation and computerization. They should be expressed in the end-to-end digitalization of many physical assets, integrating into the digital ecosystem based on the construction of a digital platform or their complex. It is integration and cooperation with partners participating in value chains that are united by a single information environment that can reduce transaction costs. At the same time, digital technology packages are used, and the division of labor system is changing. The principles of digital transformation of integration processes are the following: • Application of the architectural approach to the description of processes (general processes and integration processes); • Application of the project process approach and launch of priority projects implemented as part of the digital modernization of integration processes; • The design of common processes and the functioning of integration processes based on digital transformation should become the main management processes in the work of the Eurasian Economic Commission; • Formation and functioning of the Unified system of regulatory and reference information of the EEC; • Formation of a digital platform based on the development of an integrated information system of the EEC, creation of conditions for the growth and development of other digital platforms; • Formation of a service approach and mechanisms of public-private partnership in the creation or operation of digital platforms in the EEC.

358

S. V. Mamontova et al.

The digital transformation of cooperation and integration processes takes place in the following planes: • Vertical integration of processes within the industry and within industry enterprises; • Horizontal integration of processes and the construction of cross-sectoral, interstate and transnational processes; • Digitalization of products, services, business models and consumer access to the ecosystem (Golubkova and Miz 2018). The main source of capitalization in the context of the digitalization of the economy is represented by digital platforms and digital resources. Digital assets are created on the basis of modern business models and technologies that have chances for further development and the likelihood of using integrated solutions based on a variety of technologies in the sale of assets. In this regard, digital platforms are an important component of technological development. This activity is carried out as part of the comprehensive cooperation of business entities within the national economy and participating countries based on cross-cutting processes. This involves attracting stakeholders who operate in different traditional and modern industries, on the same digital platform, around the same digital objects. The creation of digital platforms, as a type of digital asset, by residents of member states increases their competitiveness. This allows their owners and jurisdictions to constantly receive additional intellectual and material value and benefits and to accumulate experience for entering global markets. The digital platform of the Eurasian Economic Union is based on the integrated information system of the Union. It serves as an evolutionary development in the next chain: Integrated Information System of Foreign and Mutual Trade of the Customs Union (IISFMT)—Integrated Information System of the Union (IISU)— Digital Platform of the Union (DPU). The characteristic of the EAEU digital platform consists of the following features: • • • • •

This is a supranational integration platform; It promotes the electronic interaction of subjects of different categories; It operates on the basis of the Union’s integrated information system; It is formed in accordance with a single architecture and model; It has no analogs in society (Knobel 2015).

In the framework of integration cooperation, the following sectors interact: industry, agriculture, trade and construction. The development of a set of initiatives and the formation of cooperation among interested members of business communities with investment support from participating countries are carried out in each of these sectors (Mamontova and Panarina 2019).

Cooperation and Integration Process Transformation Trends

359

These processes are also widely used in areas such as the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Internet of Things; Industrial Internet of Things; Cloud technologies; Robotization; Artificial intelligence; Big data; Paperless technologies; Additive technologies; Foggy computing; Unmanned technologies; Mobile technologies, etc. (Bstudy—articles for higher education. Official Website, n.d.).

In the digital transformation of industry, the process approach is presented in the form of a diagram (Fig. 1). At this point in time, there are four areas of the technological revolution of recent years that have significantly affected the structure of the IT market (Table 1). Thus, digital transformation is a deep penetration of IT into business, into the consciousness of people behind business processes, and then into the processes themselves.

Development

Production

Logistics

Sale

Service

Elements of the digital transformation of industry Digital R&D Center

Digital factory

Digital warehouse & Digital transport

Ecommerce (B2B, B2C, smart store)

Digital services

Industry digital transformation tools Technology transfer networks

Industrial cooperation networks

-

Fig. 1 The process approach to digital transformation of industry

-

-

360

S. V. Mamontova et al.

Table 1 Directions of the technological revolution “Straightening” the chain of application delivery from seller to consumer

Transferring corporate IT infrastructures to data centers

Migrating many integration services to cloud providers

Formation of many IT purchasing points at customers

The significance of the integrator in such a chain lies in established relations with the customer (primarily with his/ her IT service), in knowledge of the features of his/her information system. With the functioning of the cloud model, when the software as a service is provided to the customer directly by the seller or his/her service partner, the value of the integrator is significantly reduced

The development of the cloud model dealt a noticeable blow to the traditional business of integrators, namely to the supply and integration of IT infrastructure. Now, service providers are purchasing servers and infrastructure software for their data centers, as this applies to service providers, public services, and private clouds

Most of the services for integration and support of corporate software goes into the category of “managed services” and is already implemented in the data center, where these systems are deployed

The classic business model of integrators has always been focused on close interaction with the IT-service, which centralizes IT-purchases within the company. Today, the most diverse “verticals” of the corporation (lawyers, HR-specialists, marketers, sellers, etc.) act as buyers of IT

For example, a successful experience that brought the first results is the creation of a large-scale project, an integrated information system by the EAEU member countries. Namely, the EAEU member countries have created a universal infrastructure for information interaction in many applied areas for interstate electronic information exchange. The project contributes to the development of a cross-border space of trust, allowing the recognition of digital signatures and electronic document management. Thus, it allows accelerated access to foreign markets and the functioning of world-class digital cooperation. In addition, in the digital transformation of integration process management, transformations in the activities of business entities are inevitable. That is, the implementation of the design process approach is inevitable. The success of the project will depend on the speed with which changes are introduced, the reengineering of many established processes, and the transition to a more adaptable agile approach. It is necessary to create an environment that will ensure the development of digital transformation projects in the form of regulatory “sandboxes.” This will help to develop regulatory models, test projects, and make sure that they can be commercialized in the early stages of development. All this requires digital skills and competencies, the willingness of the population to face the challenges of the digital world, including the loss of many jobs and widening the gender gap.

Cooperation and Integration Process Transformation Trends

361

These development issues are discussed at the highest international and national levels. The shortage of high-level digital competencies in the world is exacerbating, and leads to increased competition for intellectual potential. The digital economy needs more advanced competencies. This is due to the fact that modern professions are associated with modeling in mathematics and forecasting, with the construction of algorithms, system analysis, and analysis of a large amount of information (Dozorova and Alexandrova 2015). In modern conditions, labor is an almost global resource, because thanks to the Internet, labor mobility is increasing dramatically. And the labor market crosses the borders of the state, especially in the service sector. In the context of building a digital economy, global integration processes, and changing technical and economic conditions, the future of employment requires a different format for providing highly qualified personnel for the modern labor market. Any industrial revolution is accompanied by a crisis of providing the labor force with the necessary qualifications for innovative transformations (Mamontova 2019). National economic integration is expressed in the establishment of economic, organizational and production relations between entities. These relations take into account the specifics of the subjects and are based on the principles of sovereignty, respect for the interests of the population and the achievement of mutual economic benefits (Afanasov 2018). In this situation, the state should assist industrial entities in developing their models. The state should determine the prospects for their development, taking into account the complex modern conditions (artificial crises created by the conditions of sanctions announced by different states). One of the effective mechanisms is the activation of integration and cooperation processes in the industrial complex. This mechanism contributes to the consolidation of the industrial business and the security of small business forms in a competitive environment. In determining the assessment of relationships, it is necessary to take into account the nature of integration relations and the objective probability of identifying various economic consequences from the channels of sale of goods. Also, in determining the assessment of relationships, it is necessary to maintain a close dependence of suppliers on the results of operations. The financial result is determined not only by the quantity and assortment of manufactured products but the flexibility of production and ability to respond quickly to a rapidly changing market structure. Consequently, the sources of revenue generation must be used by taking into account the real conditions of the existence of one or another participant of the integration industrial association. Such an integration industrial association may be an associate community on a contractual basis. This will create the conditions for their independent production and economic activities, with the subordination of goals and objectives to corporate interests. Therefore, cooperation and vertical integration will contribute to the optimal use of industrial products and reduce transaction costs. This will create opportunities for organizing uniform loading of processing organizations with raw materials and maneuvering financial and labor resources (Sviridova et al. 2017).

362

S. V. Mamontova et al.

The resumption of the domestic industrial sector of the economy needs special recommendations, including the formation of cooperative types of management and the organizational and economic mechanism of their activities. Production consumer cooperatives contribute to the competitiveness of small industrial producers. Also, production consumer cooperatives contribute to their profitability growth by reducing the number of resellers and increasing the marketability of production (Dozorova and Alexandrova 2015). In order to increase the performance of consumer cooperatives and consumer-cooperative organizations of the Russian Federation in the field of procurement, processing and the sale of industrial products, the following steps are proposed: 1) The implementation of training and advanced training of workers for production consumer cooperatives in cooperative, as well as higher and secondary educational institutions; 2) Industrial authorities of the constituent entity of the Russian Federation need to practice the conclusion of contractual research on a cooperative topic with cooperative, technical universities and research bases; 3) Creation of regulatory documents on the provision of small business forms of industrial complexes of guarantees and sureties at the expense of guarantee and collateral funds of constituent entities of the Russian Federation; 4) Providing production cooperatives with regional and local tax benefits; 5) The use of a simplified trading regime in relation to industrial producers who sell their own products through consumer cooperation (Kireeva 2016). The predominance of small organizational structures in the industrial economy increases the inequality of exchange between producers of goods and the service sector to a greater extent. Under the current conditions, the need for the formation of specialized consumer protection institutions is increasing. These specialized institutions ensure the successful conduct of business and the development of industrial self-government institutions. At the moment, joining a cooperative does not lower the importance of their independent economic activity. The main factor hindering the establishment of cooperatives is a lack of funds to create a material and resource base, which includes the premises and equipment for processing products. Therefore, the need for investment loans for participants in cooperatives is increasing. Therefore, at the moment, the issues of transformation of international processes of cooperation and integration, as well as management mechanisms at the level of the subject of the Russian Federation, are becoming relevant. The integration of IT technologies in the production and technological complex and the synergetic effect obtained from such interaction is an indisputable factor.

Cooperation and Integration Process Transformation Trends

363

4 Discussion of Results Today, the global market is aimed at building a fourth technological structure, and in some highly developed countries, a fifth and sixth. In these conditions, it is necessary to quickly modernize production using IT technologies in order to satisfy consumer demand. In our work, we tried to give an objective assessment of the existing processes of cooperation and integration in the context of building a digital economy. We examined the prospects for its development at the level of international cooperation and domestic industries, identified problems and identified mechanisms to address them. Problems include the weak MTB of Russian industry, the controllability and unpredictability of final results, the serious dependence on industrialized countries, and fuel and raw materials orientation. All this makes Russia vulnerable and weakly competitive in the global economic system.

5 Conclusion What follows is a series of recommendations for overcoming the problems this paper has identified: 1. It is necessary to improve communications and relations, both in the external market and within the national economic system; 2. Creation of system technologies due to the features of production in an integrated system; 3. The possibility of implementing investment projects for the development of production; 4. Application of innovative technologies in production; 5. Building a corporate management system; 6. The use of cost-effective leverages on participants in the integration; 7. Creation of an effective organizational management structure in compliance with generally accepted principles of cooperation and integration. Thus, the above recommendations will contribute to the effective development of cooperation and integration. The issue of providing highly qualified personnel with the competencies necessary in the conditions of transformation of the labor market and the construction of innovative forms of cooperation associations comes to the fore. Therefore, it is necessary to implement measures for the training of cooperative personnel within the framework of the State program in cooperative universities of the consumer cooperation system of Russia. It is necessary to create a specialized training center, ensuring its funding from the State budget (Ivanov 2016). It is necessary to more intensively include cooperative disciplines in training programs for industrial workers in educational institutions of the country.

364

S. V. Mamontova et al.

References Afanasov, P.O.: Domestic experience of companies’ integration. In: Dremova, L.A. (ed.) Collection of Student Scientific Papers. Based on the Materials of the XVI All-Russian Student Scientific Conference with International Participation “World Experience and Economy of Regions of Russia”, pp. 23–25. Universitetskaya kniga, Kursk (2018) Bstudy – articles for higher education. Official Website. Legal regulation of the digital economy: the new reality of public administration (n.d.). https://bstudy.net/628865/pravo/pravovoe_ regulirovanie_tsifrovoy_ekonomiki_novaya_realnost_gosudarstvennogo_upravleniya Dozorova, T.A., Alexandrova, N.R.: Improvement of organizational and economic relations between producers and processors of oilseeds. In: Siptits, S.O. (ed.) Proceedings of the XX International Scientific and Practical Conference Nikonovskiy Readings – 2015: Agrarian Policy of Modern Russia: Scientific and Methodological Aspects and Implementation Strategy, pp. 113–116. “Analitik” LLC, Moscow (2015) Golubkova, E.R., Miz, A.O.: Industrial Internet of Things as a basis for economic growth. In: Pashtova, L.G. (ed.) Prospects of Financial Activity of Modern Companies in Figure, pp. 229– 236. KnoRus Company, Moscow (2018) Ivanov, V.V.: Fundamentals of the strategy of scientific and technical development of Russia. Sci. Works Free Econ. Soc. Russia 197(1), 67–79 (2016) Kireeva, N.V.: New methodological approaches to energy efficiency management and production costs in industry. Sci. Works Free Econ. Soc. Russia 197(1), 180–189 (2016) Knobel, A.Yu.: Eurasian economic union: prospects of development and possible obstacles. Econ. Issues 3, 87–108 (2015) Mamontova, S.V.: Reproduction of Relations and Relations of Subjects of Agro-Industrial Complex. Publishing house of “Teacher” LLC, Kursk (2013) Mamontova, S.V.: Remote employment in the conditions of innovative transformations: problems and prospects of development. In: Burmistrova, A.A., Sayapin, A.V., Kharitonova, E.V. (eds.) Materials of the All-Russian Scientific and Practical Conference: New Consumer Cooperation – the Driver of Food Import Substitution and Socio-Economic Well-Being of the Russian Village, pp. 50–57. “Derzhavinsky”, Tambov (2019) Mamontova, S.V., Panarina, E.A.: Analysis of the system of production and economic complex in terms of building a digital economy. Bull. Kursk State Agric. Acad. 1, 188–194 (2019) Sviridova, S.V., Elfimova, I.F., Povekvechnykh, S.A.: Development of integrated interaction of industrial enterprises based on the creation of clusters. Prod. Organ. 25(3), 15–26 (2017)

The Relevance of Cooperative Principles in Current Economic Conditions Dmitry I. Valigursky , Olga M. Valigurskaya, Leonid P. Dashkov , Irina O. Ryzhova , and Vera K. Romanovich

Abstract The issue of the social security of the population is especially relevant during the development of market relations. The Government of the Russian Federation is taking all possible measures for this: raising pensions, lowering the refinancing rate. However, the market is changing rapidly, and the demand for goods and services is falling. Many organizations are cutting jobs while trying to keep up. Small businesses are faced with the problem of expensive loans and lack of sales. In this regard, the authors argue that the development of cooperation in various industries and fields becomes highly relevant.




Keywords Cooperation Market conditions Government Regulation





Competition
Small business


1 Introduction Nowadays, there are more than 12 types of cooperatives in the Russian economy, namely: consumer, supply, industrial, agricultural, credit, construction, housing and communal, garden, garage, and others. All of them are intended to solve social issues, satisfy consumers, shareholders, and principal founders. Each cooperative type has its characteristics and can solve the problem of cooperation in Russia. D. I. Valigursky (&)
L. P. Dashkov
I. O. Ryzhova
V. K. Romanovich Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] L. P. Dashkov e-mail: [email protected] I. O. Ryzhova e-mail: [email protected] V. K. Romanovich e-mail: [email protected] O. M. Valigurskaya “DANCE2” LLC, Mytishchi, Russia © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_38

365

366

D. I. Valigursky et al.

2 Russian Consumer Cooperatives: Market Principles Russian consumer cooperatives have a long development history. They have existed for more than 180 years. Regardless of the types of cooperatives, the principles of cooperation are the same. They were published in the “Declaration on Cooperative Identity” of the International Cooperative Alliance in 1995. These principles of continuous activity are identified as basic cooperative principles and serve as criteria for the following principles: 1. 2. 3. 4.

The difference between cooperatives by type of activity; Coverage of these principles by all cooperatives; Interaction of these principles at the international level; The criteria for the usefulness and social responsibility of cooperatives at the level of international standards. 5. Accessibility, attractiveness, profitability of the needs of most cooperatives. Let us consider the content of each of these principles. There are eight of them. The first principle is the principle of voluntariness and openness of the members of the cooperative. This principle provides for the possibility of voluntary entry into a cooperative and openness of communication between its members. The second principle is democratic membership control. It shows the social activity of the cooperative members and the quality of the work of councils and commissions. This principle provides for the active participation of each member of the cooperative in the work of the cooperative itself. The basis of this principle during voting is “one share—one vote,” regardless of position, rank, and financial support. The democratic principles of cooperation provide for equal rights in voting and decision-making. The third principle is the principle of the economic participation of shareholders in a cooperative. The compliance with this principle provides for the payment by cooperative members of a share and entry fee, which is the fundamental financing of the cooperative. The economic participation of cooperative members in its work is aimed at solving the social problems of the cooperative members themselves. The amount of both the share and entry fee is determined by the general meeting of members of the cooperative. Economic participation is expressed in the creation of new goods and services. The shareholder-buyer of new goods and services receives bonuses and part of the return of the trade allowance when purchasing these goods and services in the cooperative store. The economic participation of a shareholder is one of the ways how cooperatives influence the motivation for partnerships between shareholders and the economic activities of the cooperative itself. According to the law of the Russian Federation, “On consumer cooperation,” the size of cooperative payments should not exceed 20% of the income of consumer companies. The fourth principle is the principle of independence and autonomy. It provides for the establishment of cooperative funds: indivisible, mutual, development, support, training, and reserve funds.

The Relevance of Cooperative Principles …

367

The fifth principle is the principle of education, advanced training, and information. This is one of the most important principles since it provides the training to all cooperative members, regardless of the age, location, and financial situation of a member of the cooperative. Each member of the cooperative should improve their skills, professionally develop their professional activities, be an expert in their field. The development of the digital economy provides for the availability of a modern information field with new ideas, new investors for improving the quality of work of the consumer cooperative itself, and the quality of life of the shareholders. In this case, the quality of life of the shareholder in the first place. This includes their well-being, lifestyle, education, and life expectancy. The sixth principle is the principle of cooperation between cooperatives, which means strengthening the cooperative movement in various territories, Russian regions, and international levels. This is the creation of unions, associations. The seventh principle involves concern for society. It was first designated by the Congress of the International Cooperative Alliance in 1995. The essence of this principle is that it is the creation and formation of civil society and the participation of shareholders at different levels of government: starting from the development of local self-government and ending with the participation of deputies of various levels in the elections. The eighth principle is the principle of time, the survival of a cooperative in the historical interval. It was proposed by Peter Stefan, the President of the Central Union of Bulgaria. This principle shows that cooperatives are in demand at the historical stage of the development, especially during a period of social tension and a decline in the standard of living. The study of cooperatives shows an essential feature. The goal of the cooperation is to bring people together, solve their social problems and tasks, in the first stage, and to generate income for further development, in the second stage. For example, ten young mothers united in the cooperative “Kindergarten” and determined the entry fee as 1 thousand rubles. The share payment is 100 thousand rubles. They rented a room of 300 m2, hired a teacher, a nanny, a good cook, and provided full-quality educational services to their children. As members of a newly formed cooperative, they solved their primary needs. They got twenty more extra places for other children. On this, the cooperative can earn a certain income for further development or make cooperative payments. This shows the essence of cooperation. First of all, it is the satisfaction of the needs of its members, and then it is the organization of economic activity and income generation. Cooperation is often considered as a private entrepreneurial structure. In the period of development of market relations, where the main principle is: price, demand, supply, and competition, and profit is the primary goal of commercial structures. Profit is put above human relationships. The goal of the cooperation is different. It is to meet the needs of shareholders, the provision of social guarantees, the creation of new jobs, and the fight against poverty (Valigursky and Kuzmina 2017a, 2017b; 2018; Valigursky and Stefanov 2015; Valigursky 2018).

368

D. I. Valigursky et al.

3 Conclusion Nowadays, there are various types of cooperatives in Russia. The most effective are: consumer, agricultural, industrial, and credit cooperation. However, the state only supports agricultural cooperation but only conditionally. The government controls the allocated grants for five years. In five years, all the property and real estate can be privatized by members of the cooperative. Thus, the state itself does not set the development of cooperation as a global goal. The second significant problem is that each type of cooperative has its law. However, as we said earlier, the principles of cooperation are the same regardless of the cooperative type. We believe that the law on cooperation should be uniform as the core of a tree, and the branches of this tree should be all kinds of cooperatives. It is necessary to revive and revise the entire regulatory framework for the development of cooperation in Russia.

References Federal State Statistics Service of the Russian Federation: Critical indicators of agriculture in Russia in 2017 (2018). http://www.gks.ru/wps/wcm/connect/rosstat_main/rosstat/ru/statistics/ publications/catalog/doc_1140096652250 Federal Tax Service of the Russian Federation: Unified register of small and medium-sized enterprises (n.d.). https://rmsp.nalog.ru/statistics.html Federation Council of the Russian Federation: On the long-term development strategy of the agro-industrial complex of the Russian Federation. Anal. Bull. 10(699) (2018). http://council. gov.ru/media/files/fWLOrakrPBDj1xsbmvFic7V3nJLaCMga.pdf Government of the Moscow Region: The forecast for socio-economic development of the Moscow region for the medium-term period 2018–2020 (2017). http://www.mosreg.ru Government of the Russian Federation: The Order “On Approving The Strategy for the Development of Small and Medium-Sized Enterprises in the Russian Federation for the Period up to 2030 (together with the “Plan of measures (“roadmap”) for implementing the Strategy for the Development of Small and Medium-Sized Enterprises in the Russian Federation for the period up to 2030”) (June 2, 2016 No. 1083-r, as amended on August 12, 2016) (2016). http:// www.consultant.ru/document/cons_doc_LAW_199462/ Ministry of Agriculture of the Russian Federation: The forecast of scientific and technological development of the agro-industrial complex of the Russian Federation for the period until 2030. Ministry of Agriculture of the Russian Federation, Moscow (2017) Valigursky, D.I., Kuzmina, T.T.: The rise of the Russian economy as a factor in the development of the educational services market. In: Cooperation and Social Economics: Science and Practice, pp. 24–31. Publisher “Kantsler”, Moscow (2017a) Valigursky, D.I., Kuzmina, T.T.: Professional competencies and their impact on the labor market. Fund. Appl. Res. Coop. Sect. Econ. 5, 60–67 (2017b) Valigursky, D.I., Kuzmina, T.T.: The cooperative future of Russia. Fund. Appl. Res. Coop. Sect. Econ. 2, 21–27 (2018)

The Relevance of Cooperative Principles …

369

Valigursky, D.I., Stefanov, P.I.: Social-market model of development of the society based on cooperation. In: Perspective Scientific Research and Development in the Cooperative Sector of Economy: Practical Conference in the Framework of the Annual Chayanov Readings, vols. 1– 2, vol. 1, pp. 67–75. Publisher “Kantsler”, Moscow (2015) Valigursky, D.I. (ed.): Trading Business: Commerce, Marketing, Management. Theory and Practice, vol. 2. Dashkov and Ko, Moscow (2018)

Modern Cooperation and Integration Processes in Solving Social Problems Olga O. Afanaseva , Olga A. Anikeeva , Anastasia V. Karpunina , Valeria V. Sizikova , and Elena I. Zritneva

Abstract The purpose of this article is to identify cooperative processes in the social sphere and their role in solving social problems. The study proceeded from an activity and resource approach and was carried out using both theoretical and empirical methods. Methods include such as: comparative analysis, structural-functional and system analysis, probe survey, interviewing, expert survey. As a result, a theoretical analysis of the concepts of cooperation is presented; a number of modern social technologies used to solve social problems based on the principles of cooperation are highlighted. These modern social technologies include such as: technologies of social partnership and intersectoral interaction (social orders, grants, volunteer projects, as well as crowdsourcing and crowdfunding, which have been developed thanks to information technologies). We have proposed a basis for systematization of technologies for solving social problems, which are based on the processes of cooperation, based on the subjects of cooperation. Also, the article reveals the prospects for their development in modern conditions. Keywords Cooperative processes Social partnership


Integration processes
Social problems


O. O. Afanaseva (&)
O. A. Anikeeva
A. V. Karpunina
V. V. Sizikova Russian State Social University, Moscow, Russia e-mail: [email protected] O. A. Anikeeva e-mail: [email protected] A. V. Karpunina e-mail: [email protected] V. V. Sizikova e-mail: [email protected] E. I. Zritneva North-Caucasus Federal University, Stavropol, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_39

371

372

O. O. Afanaseva et al.

1 Introduction Problems of cooperation have interested scientists for two centuries. However, the concept of cooperation is so multifaceted that in every historical era, the social value and the assessment of its essence were determined completely differently. In the same way in our time, the concept of integration and cooperation remains a relevant subject of study in contemporary science. However, in Russian sources, it is most often considered in the context of the development of the economy or the agro-industrial complex. Indeed, by studying world experience, we can conclude that both production and consumer cooperation develop only in a market economy. However, as Russian researcher V. G. Egorov notes, in the context of informatization, modern cooperation overcomes the limitations associated with the immanence of small economic forms (Egorov 2014). In modern conditions, we can talk about a broader understanding of the cooperative and integration processes in society, primarily in understanding their social significance or “social profitability” (in the terminology of A. V. Chayanov). Cooperation penetrates into all spheres of life and naturally has a great impact on the social sphere (Chayanov 1989). As one knows, various organizations and associations of citizens working to resolve vital problems are an indicator of civil society. This is confirmed by the practical experience of the Scandinavian countries with a high level of social protection for citizens. Regardless of the economic and political situation, cooperation is effective precisely in the social sphere, where the state cannot cover the entire market of social services. In particular, it concerns the solution of problems of poverty or exclusive consumer requests (Bezugly et al. 2016; Boldyreva and Boldyrev 2014; Egorov et al. 2018; Kabanov 1997; Kosov et al. 2016). We find confirmation of these statements in the works of modern scientists. For example, I. V. Mosyakov and V. E. Mosyakov note that today, productivity is not the only solution to the problem, but the joint where collective intelligence and assistance lead to an early resolution of the issue is obvious (Mosyakov and Mosyakov 2016). However, these are two of the few modern authors who consider cooperation regarding the social sphere and solving social problems. At the same time, the practice of solving the social problems of modern society shows that, in this area, cooperation and integration processes are increasing. And in many areas of activity, they become the main factor of effectiveness in the social protection of the population, which requires close scientific attention and reflection (Sobolev 2004; Kelly 1998; Kopnina 2011c; Kudrinskaya and Karpunina 2018; Petty et al. 2000; Sargeant and Shang 2010).

Modern Cooperation and Integration Processes …

373

2 Materials and Methods The study conducted in this article aims to identify the value of cooperative and integration processes in solving social problems. During the study, the authors set the following tasks: conduct a theoretical analysis of the concepts of cooperation and its social significance in the literature; identify innovations related to cooperation and integration processes in solving social problems of modern society. Also, the study posed such tasks as: give a typology of the forms and directions of cooperation and integration activities in the social sphere; evaluate their significance; and show the prospects of their development in modern conditions. Research methods can be divided into two groups: theoretical and applied. Theoretical methods include the following: comparative-historical (comparative analysis), structural-functional, and system analysis. And also, activity and resource approaches, which are theoretical methods of particular importance in identifying ways to solve the social problems of modern society. Applied methods include the following: probe survey, interview, and expert survey. Applied research was carried out in Russia (Omsk) and in Germany (Darmstadt) on the following topic: “Participation of technical students in charity and fundraising.” The study was conducted using the hand-out questionnaires of students at technical universities. The target sample was as follows: N—970 (Omsk), N—79 (Darmstadt). An expert survey was conducted among social workers in Moscow in 2018 (N—39). The subject of the expert survey was as follows: “The role of fundraising activities in social service organizations”. Interviews were conducted among Moscow philanthropists (N—24) in order to identify the readiness of social services organizations to interact with other entities in solving social problems. As a hypothesis, we put forward the following assumption. Initially, at the end of the 20th to the beginning of the 21st centuries in modern Russia, the development of the following forms of social partnership was a striking example of cooperation and integration processes: • • • • • •

Charity; Volunteering; Fundraising technologies in the activities of social organizations; Grant funding for the implementation of social projects; Public procurement and public-private partnerships; Attraction of public expertise to assess the work performed and quality of execution of social orders; • Involvement of local community resources; • Reliance on the resources of citizens themselves or groups in need of social assistance and support.

Are these forms of partnership a cooperation? Can we say that cooperation is an effective tool in solving social problems? Are the processes that are currently taking place in the social sphere and aimed at solving social problems cooperative?

374

O. O. Afanaseva et al.

3 Results The task of studying theoretical literature required a rather large depth of analysis in terms of attracting literature. This is due to the fact that a new understanding of cooperation in various spheres of life goes back to the foundations of social theories of the XIX and XX centuries. We can call R. Owen and Ch. Fourier the first theorists of the cooperative movement. Their works were dictated by the desire to renew the world and create a new social reality based on the activities of cooperative-type communities. E. Durkheim’s concept of mechanical and organic solidarity became the most scientifically significant continuation of this idea. He believed that organic solidarity is based precisely on complex social realities, the division of labor, and the possibility of cooperation of efforts in various spheres of life. This idea especially took root in Russia, where community foundations anticipated the possibility of mutual assistance. P. Kropotkin, one of the largest social thinkers in Russia, wrote that mutual assistance in the history of mankind is the most important fundamental law. He drew parallels between community and cooperation and regarded the future of mankind as a system of free, self-governing cooperations (Kropotkin 1991). In our opinion, the works of Kropotkin can be the basis for the following statement: Such a modern phenomenon as social partnership, as well as all the concepts and technologies included in it, correspond to the classical definitions of cooperation. Tugan-Baranovsky, Chayanov, and Kondratiev gave more attention to the issues of economic cooperation development. M. I. Tugan-Baranovsky defines cooperation as follows: “A cooperative is such a business enterprise of several voluntarily connected individuals, which aims not to receive the greatest profit on the spent capital. And its goal is to increase, thanks to the general management of the economy, the labor income of its members or to reduce the expenses of these members for their consumer needs” (Tugan-Baranovsky 1916). Transferring this definition to the modern plane, we formulate it as follows: a cooperative is a legal entity created by voluntary association of persons (individuals and legal entities). Its purpose is not to make a profit, but to improve the results of labor activity or reduce the expenses of these members for their consumer needs (for their activities). A feature of the cooperative theory of A. V. Chayanov and N. D. Kondratiev is that they put the laboring peasant economy at the center of the theory. And they studied this economy, from an organizational point of view, as the initial basic unit of a cooperative system. According to A. V. Chayanov, the essence of the theory of peasant cooperation is not in making profit, but in supporting the peasant family, ensuring its consumption needs are met. In all the works of A. V. Chayanov, the advantages of cooperation, in comparison with other forms of association, are emphasized. In particular, the benefits of vertical cooperation, rather than horizontal, are emphasized. The basis of vertical cooperation is an independent peasant economy, which transferred part of its operations and functions to cooperatives.

Modern Cooperation and Integration Processes …

375

Horizontal cooperation, however, involves the complete socialization of agricultural production. All those operations in which the optimum does not exceed the size of the peasant economy remain entirely within its framework. Summarizing Chayanov’s conclusions and applying the induction method, we can conclude that cooperation, in relation to any sphere, including social, does not have profit as the main goal. It is aimed at supporting the work of the organization participating in the cooperation process and achieving its main goals. Here, first of all, we mean the fulfillment of the social goals that underlie the work of organizations in the social sphere. This proves the social significance of classical cooperation, which ensures the stability of the social status of members of the cooperation. It is defined by A. V. Chayanov as social profitability. Reflecting on the optimums, we draw the following parallel. Today, organization–member of social partnership (NPO, state, or commercial organizations) acts as an independent peasant farm. It does not cease to fulfill her individual tasks specified in her charter, and it generates the resources necessary for joint activities in the social sphere. P. A. Kropotkin emphasizes that from the very first steps of its existence, cooperation, as a new social phenomenon, focused not only on improving the material well-being of its members but also on their spiritual well-being. Turning to his ideas, we are even more convinced that cooperation fully applies to the social sphere, which includes social work. In social work, the activities of organizations are primarily aimed at meeting the needs of recipients of services, and these needs are far from always material. N. Nelson, a famous figure in English cooperation, confirms this idea in the following: “The mission of cooperation is to make people and economic relations moral” (Figurovskaya and Pirumova 1991). Economic activity creates a solid basis for cooperation activities and is not limited to purely economic goals. The main goal of economic activity is not only profit but a combination of profit with a wide cultural and educational program and the principles of equality and justice. As we see, a century ago, the most important foundations of the concept of social interaction in the context of the development of integration cooperation were laid. However, in the twentieth century, this work did not stop. J. Galbraith, R. Coase, O. Williamson, and other representatives of the institutional economic school revealed some aspects of the integration processes. The economic context is also seen in the writings of H. Demsetz, R. Hilferding, R. I. Kapelyushnikov, D. North, and other scientists. They examined integration processes from the point of view of saving transaction costs and solving the problems of coordinating the activities of economic systems. In Soviet economic literature, the theoretical, methodological, and practical aspects of cooperation and integration were considered in the works of L. I. Abalkin, E. S. Ogloblin, A. D. Jakhangirov, A. M. Onishchenko, V. A. Dobrynin, and others. In recent years, more and more social work has appeared, analyzing the problems of social partnership, mutual assistance, and integration of the efforts of many

376

O. O. Afanaseva et al.

parties, and identifying their resources (Khananashvili 2000; Zamaraeva 2009; Zaslavskaya 2001; Kopnina 2011a; Karpunina 2017a; Mushtey 2018). The diversity of approaches is also characterized by the fact that the authors represent the most diverse branches of knowledge and the most diverse scientific schools. Thus, today, two conclusions are obvious to us. First, cooperative types of management have a great foundation and significance, not only economically but also socially, socioculturally, and even spiritually. Secondly, because cooperative activity is understood as a consolidation of efforts in a particular sphere of life, it is extremely important in the context of growing social problems and contradictions. It is precisely this activity that is able to overcome the limitations of state social assistance, unite the opportunities and resources of many partners, and make social assistance truly effective. This confirms the relevance of studying cooperative and integration processes occurring in the social sphere and having a positive effect in solving social problems. Applied studies to confirm theoretical conclusions are given in a study that was carried out in Russia and Germany. The research topic is as follows: “Participation of technical students in charity and fundraising” (Karpunina 2017b). It was the students of technical areas of training who were chosen as the target audience to exclude additional motivation factors related to the specifics of the expected professional activity (in the social sphere). Interviewed students said they consider charity a significant social activity (according to a 5-point system, 3.4 were in Germany, 3.9 were in Russia). In percentage terms, more than 60% of respondents in both Russia and Germany declared their desire to help people in need as the main motive for charity. Some respondents believe that helping people in need is part of their nature (32.3% of respondents in Germany and 24.5% of respondents in Russia gave such an answer). The proportion of those who participate in charity so that others turned to them for help is quite large (34.2% of respondents in Germany and 17.2% of respondents in Russia gave such an answer). The proportion of those who participate in charitable activities on religious grounds is approximately the same (4.6% of respondents in Germany and 4.3% of respondents in Russia gave such an answer). The shares of respondents who consider participation in charitable activities as part of their personal self-realization vary quite widely (7.7% of respondents in Germany and 1.9% of respondents in Russia gave such an answer). Of course, additional research is required for scientifically based conclusions. However, we can conclude that about a third of students highly value participation in charity work. If we consider that this phenomenon is relatively new for the new Russia, then the readiness of Russian students to cooperate in efforts and participate in fundraising activities can be estimated as high. During the study, preferred forms of participation were identified. Cash assistance comes first (32.9% of respondents in Germany gave such an answer, and 54.9% of respondents in Russia gave such an answer). Meanwhile, 57.0% of respondents in Germany chose in-kind assistance, and 34.5% of respondents in Russia chose in-kind assistance. At the same time, 64.5% of respondents in

Modern Cooperation and Integration Processes …

377

Germany preferred volunteering, and 21.9% of respondents in Russia preferred volunteering. Traditional donation amounts vary. In Germany, the amount of traditional donations is 30.4 euros. In Russia, the amount of traditional donations is 14.8 euros. But in the end, the share of highly appreciating charitable causes and fundraising activities amounted to 76.0% in Germany and 59.4% in Russia. This applied research was probing. However, even such a pilot project shows that young people are ready to cooperate when trying to solve social problems. An expert survey was conducted among specialists in social work in Moscow in 2018. (N—39). The research topic is as follows: “The role of fundraising activities in social service organizations” (Karpunina 2017a). As such, 20.5% of interviewing respondents rated fundraising activities highly; however, 46.1% think that it is not significant at present. Moreover, 37.8% of respondents believe that today, Russian society is not ready for mass fundraising activities in the social sphere. The majority of respondents (71.8%) believe that state support is necessary for the development of fundraising activities, and 28.5% believe that the subjective will of citizens is necessary for this. The results of the expert survey were checked (clarified) during an interview with Moscow philanthropists in order to identify the readiness of social service organizations (SSOs) of the population to interact with other actors in solving social problems. Most respondents believe that SSOs are not ready for such interaction (79%). Fifty percent believe that state participation is necessary (stimulating and motivational, regulatory); 37.5% hope that this should be the subjective will of citizens. Together, applied research has shown that in society, the attitude towards cooperation and integration of efforts to solve social problems is rather contradictory. We can assume that the identified processes indicate transition, and Russian society is on the verge of big changes.

4 Discussion In modern scientific literature, integration in the social sphere is understood as the process of establishing optimal relations between relatively independent social entities that are relatively unrelated to each other (individuals, groups, social classes, and states). These relations are established to solve social problems and, in the future, turn into a single, holistic system whose parts are coordinated and interdependent on the basis of common goals and interests. This conclusion is important for the development of a new concept of social work and social protection in modern societies. This conclusion is also important for the development of such a concept that the modern community, both in Russia and abroad, develops on the basis of practical experience of social inquiry. In modern scientific literature, attention to the problems of social partnership, charity, sponsorship, volunteering and fundraising, and other forms of cooperation efforts and integration in social activities is great (Sizikova and Anikeeva 2016;

378

O. O. Afanaseva et al.

Karpunina 2017b, 2018; Israelyan 2009). Currently, a social partnership is a joint, collectively distributed activity of various social groups, which leads to positive effects shared by all participants in this activity. The more popular definition of social partnership is as follows: social partnership is a form of interaction between social institutions, groups, individuals, allowing them to freely express their interests and find effective ways to implement them. Thus, social partnership involves cooperation (“jointly divided activities”) of people and social institutions to solve social problems. In a broad sense, social partnership is understood as the relationship between a state acting through the government, its bodies, and representatives with other entities. These entities are the following: a person, a family, associations, non-governmental organizations, and state organizations. Considering social partnership as a cooperation of legal entities, we find direct compliance with the definitions of cooperation given by Chayanov, Tugan-Baranovsky. The exception and innovation of modernity are that an association of legal entities is not always a legal entity. Implementing joint projects aimed at solving social problems without a separate legal entity is possible. Most social partnership technologies fall within this definition. The following technologies fall under this definition: charity (including corporate social responsibility [CSR]); fundraising technologies in the activities of social organizations; grant financing for the implementation of social projects; public procurement and public-private partnerships; attracting public expertise to assess the work performed and the quality of execution of social orders; involvement of local community resources (Kopnina 2011b). However, the existence, along with legal entities, of physical persons encourages us to think that cooperation processes can occur between legal entities and individuals. Numerous social volunteer projects can serve as an example. The charity of modern philanthropists can partially serve as an example. Fundraising can also be implemented by a legal entity, and funds can come from both legal entities and individuals. As part of the technology of organizing community foundations, the resources of individuals can also be attracted to solve social problems. Crowdsourcing and crowdfunding technologies are a vivid example of cooperation processes occurring largely due to global informatization and digitalization of public institutions. In these technologies, the individual, as a system that independently functions and generates resources (intellectual, material) for joint activities as part of a team, is the smallest unit, similarly to Chayanov’s theory, where the smallest unit is the peasant economy (Afanasyeva 2018a, b). Crowdsourcing and crowdfunding practices, as network forms of interaction, create a synergy effect. It is formed by combined problem-solving efforts of the current active majority expressing their initiatives and willingness to share their resources. “The combination (synergy) of the skills and efforts of several individuals, applied successively, can lead to the fact that their action significantly exceeds the effect of each individual component in the form of their simple sum” (Mosyakov and Mosyakov 2016).

Modern Cooperation and Integration Processes …

379

All of these technologies began to be introduced into Russian reality a little less than three decades ago, and they have shown that the path of cooperation is effective in solving social problems. Thus, grant activities, public-private partnerships, and the public procurement system have clear advantages over the budgetary public financing system, which they replaced. Grant activities, public-private partnerships, and the public procurement system are aimed at finding the best ways to solve a wide variety of social problems. The impact on the social problem (and, ultimately, on social policy as a whole) becomes most effective when it acquires a well-defined, namely, socio-technological solution. This solution is proposed as a result of the cooperative processes outlined above. The introduction of information technology has opened up new opportunities for using the possibilities of cooperation of intellectual and material resources to advance the initiatives of the users of social services themselves. And the introduction of information technology has opened up new opportunities for creating new products to meet the needs of recipients of social services. This directly fits into the framework of the theories of cooperation of Chayanov, Kondratiev, Kropotkin, etc.

5 Conclusion The result of our study was the following conclusion. The technologies of social partnership that we have designated may well be considered as cooperation and integration processes that have a tangible socio-economic effect due to the solution of various social problems. Social partnership technologies include the following: fundraising technologies in the activities of social organizations, grant financing for the implementation of social projects, and state order system. Also, social partnership technologies include the following: attracting public expertise to assess the work performed and assess the quality of execution of social orders, community resource mobilization, and development of charity (including philanthropy, CSR). Technologies for attracting and developing volunteering and, of course, crowdsourcing and crowdfunding are technologies of social partnership. We have systematized these technologies on the basis of the following subjects of cooperation: 1. Legal entities; 2. Legal entities and individuals; 3. Individuals. As a result of cooperation processes, the communication basis of which are information technologies and the digitalization of society, it is possible to achieve an ever greater effect in solving social problems.

380

O. O. Afanaseva et al.

References Afanasyeva, O.O.: Promising areas of innovation in the social sphere. In: Klushina, N.P., Zritneva, E.I., Bakhutashvili, T.V. (eds.) Proceedings from VI All-Russian Scientific-Practical Conference with International Participation on Actual Problems of the Theory and Practice of Social Work and Education. AGRUS, Stavropol (2018a) Afanasyeva, O.O.: The use of innovative technologies in the development of social work. Otechestvennyy Zhurnal Sotsial’noy Raboty 4, 54–59 (2018b) Bezugly, E.A., Kutergin, N.B., Alekseev, N.A., Kovaleva, E.G., Radoutskiy, V.Yu.: Crowdsourcing is a modern way of solving socially significant problems. Bull. BSTU Named V. G. Shukhov 2, 206–208 (2016) Boldyreva, T.V., Boldyrev, M.D.: The use of fundraising in the activities of a non-profit organization. Actual Probl. Econ. Manag. 1(1), 5–10 (2014) Chayanov, A.V.: Selected works. Moskovskiy rabochiy, Moscow, Russia (1989) Egorov, V.G.: The place and role of cooperation in a market economy (theoretical analysis). Dissertation of Doctor of Economic Sciences, Moscow, Russia (2014) Egorov, V.G., Shtol, M.V., Inshakov, A.A.: Agricultural cooperation: theoretical issues, regional aspect. Regional Econ. Manag.: Electron. Sci. J. 3(55), 5501. (2018). https://eee-region.ru/ article/5501/ Figurovskaya, N.K., Pirumova, N.M. (eds.): Cooperation: Pages of history. Institute of Economics, RAS, Moscow, Russia (1991) Israelyan, E.: Charity and volunteering abroad. J. Civ. Self-Educ. “Civ. Dialogue” 2(6), 83–84 (2009) Kabanov, V.V.: Peasant community and cooperation of Russia of the twentieth century. IRH RAS, Moscow, Russia (1997) Karpunina, A.V.: Fundraisers and their motivation (on the example of state institutions of social services for the population of the Omsk region). Region: Econ. Sociol. 3(95),174–188 (2017a) Karpunina, A.V.: Fundraising activities of social service institutions. Sotsialnoye obsluzhivaniye, Moscow, Russia (2017b) Kelly, K.: Effective Fundraising Management. Erlbaum, Hillsdale (1998) Khananashvili, N.: Intersectoral interactions. Desk book. Fund “NAN”, Moscow (2000) Kopnina, O.O.: Social partnership as a technology for solving the problems of modern society. In: Starovoitova, L.I. (ed.) Collection of Articles on the Results of the Annual Scientific Readings of the Faculty of Social Work, Pedagogy and Juvenology “Actual problems of the Theory and Practice of Social Work and Social Education”. RSSU, Moscow (2011a) Kopnina, O.O.: Technology for organizing volunteer initiatives. In: Starovoitova, L.I., Kozlovskaya, S.N. (eds.) Actual Problems of the Theory and Practice of Social Work. RSSU, Moscow (2011b) Kopnina, O.O.: Third sector and volunteering. In: Starovoitova, L.I., Demidova, T.E. (eds.) Actual Problems of the Theory and Practice of Social Work. RSSU, Moscow (2011c) Kosov, M.E., Akhmadeev, R.G., Osipov, V.S., Kharakoz, Yu.K., Smotritskaya, I.I.: Socio-economic planning of the economy. Indian J. Sci. Technol. 9(36), 102–108 (2016) Kropotkin, P.A.: Ethics. The origin and development of morality (1991). https://avtonom.org/old/ lib/theory/kropotkin/ethics.html Kudrinskaya, L.A., Karpunina, A.V.: Social fundraising. OmSTU, Omsk (2018) Mosyakov, I.V., Mosyakov, V.E.: Manifestations of the collective mind in nature and society. Almanac Mode. Sci. Educ. 2(104), 91–95 (2016) Mushtey, N.A.: Participative interaction and social stigmergy as processes of social self-organization in modern society. Izvestiya Saratov Univ. Ser.: Philos. Psychol. Pedagogy 18(3), 270–274 (2018)

Modern Cooperation and Integration Processes …

381

Petty, W., Smith, A., Ricardo, D., Keynes, J., Friedman, M.: Classics of Economic Thought. Eksmo-Press, Moscow (2000) Sargeant, A., Shang, J.: Fundraising Principles and Practice. Wiley Imprint, San Francisco (2010) Sizikova, V.V., Anikeeva, O.A.: Social partnership in the formation of an active life position of persons with disabilities. In: Zamaraeva, Z.P., Grigoryeva, M.I. (eds.) Proceedings from VIII International Scientific and Practical Conference: Social Security and Human Protection in the New Social Reality. Modern scientific approaches and forms of Social Practice in Social Work with People with Disabilities, pp. 255–260. PSU, Perm (2016) Sobolev, A.V.: Major schools of European cooperation: A review of cooperative ideas (19th – first half of the 20th centuries). Moscow University of Consumer Cooperation, Moscow (2004) Tugan-Baranovsky, M.I.: Social foundations of cooperation. Printing House of the Kushneryov and Co Partnership, Moscow (1916) Zamaraeva, Z.P.: Resource-potential approach in the system of social protection of the population. Perm, Russia (2009) Zaslavskaya, T.I.: On the subject-activity aspect of the transformation process. In: Zaslavskaya, T.I. (ed.) Who is seeking to lead Russia and where? Actors of macro-, meso- and micro-levels of the modern transformation process, pp. 3–15. MVSHSEN, Moscow, Russia (2001)

Features of Phased Implementation of the Economic and Social Development of Regional Systems of Consumer Cooperation Arthur A. Maksaev , Ekaterina P. Bagryantseva , Valentina Yu. Dianova , Natalia V. Yatsevich , and Alexander V. Tkach

Abstract The relevance and novelty of the topic is argued by the great state significance of using the potential of consumer cooperation in the system of ensuring food security in the country under the conditions of sanctions and embargo. The novelty of the study is determined by the fact that the need to use small forms of management in the system of consumer cooperation is further argued. This will stimulate the creation of a certain competitive environment among agricultural producers. The purpose of the work is to identify and characterize the features of the phased implementation of the concept of economic and social development of the consumer cooperation system in the context of sanctions and embargo. Materials and research methods. General scientific research methods, as well as research by Russian scientists in the field of development of consumer cooperation, cooperative entrepreneurship and food security of the country, formed the methodological basis of the study. Work result. The authors believe that one of the ways to use the existing potential for expanding the food market is to more actively and fully use the available resources and forms of cooperation. A more active activity of cooperative entrepreneurship in organizing the procurement and processing of agricultural products and raw materials is proposed. A. A. Maksaev
V. Yu. Dianova
A. V. Tkach (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. A. Maksaev e-mail: [email protected] V. Yu. Dianova e-mail: [email protected] E. P. Bagryantseva
N. V. Yatsevich Belarusian Trade and Economics University of Consumer Cooperatives, Gomel, Belarus e-mail: [email protected] N. V. Yatsevich e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_40

383

384

A. A. Maksaev et al.










Keywords Consumer societies Consumer cooperation Market infrastructure Food supply Cooperative entrepreneurship Purchasing and marketing cooperatives Procurement offices Procuring places Trade Billet Purchase prices Sales channels Storage facilities Domestic market































1 Introduction The current economic crisis, exacerbated by sanctions, has convincingly shown a high degree of dependence of the Russian economy on external factors. For most regions of the country, the decline in real incomes and the decline in consumption and retail sales have become the most acute economic problems. As a result of the Russian government’s response to the prohibition of sanctions, new opportunities have opened up for the import of agricultural products to domestic agricultural producers and consumer cooperation organizations. These opportunities are stimulating the growth of domestic food production. The purpose of this work is to identify and reveal the features of the phased implementation of the economic and social development concept of the consumer cooperation system in the context of sanctions and embargo. It is necessary to identify the place and role of consumer cooperation, consumer societies, and unions in the system of forming resources for the domestic food market and providing the population with food.

2 Materials and Methods It should be noted that under the conditions of sanctions and embargoes, cooperative consumer society enterprises of the Russian Federation Centrosoyuz are successfully operating. So, from 2014 to 2018, in the Republic of Tatarstan, the number of consumer companies increased from 36 to 51, or 40%; the number of urban consumer societies increased by 25%. The number of limited liability companies created on the basis of consumer cooperation with 100% of the authorized capital of consumer cooperation increased by 18.8%. At the same time, it must be emphasized that the number of the administrative apparatus was reduced from 595 to 296 people, or by more than half (Table 1). In the Republic of Tatarstan, limited liability companies established on the basis of consumer cooperation operate. In particular, there are 19 limited liability companies with 100% authorized capital of consumer cooperation and 20 limited liability companies with registered capital of consumer cooperation less than 51%. They attract the attention of customers choosing stores with the best service, which helps to improve the financial and economic situation of cooperative organizations. In 2018, in the Union of Consumer Societies of the Republic of Tatarstan, the total volume of activities amounted to 25,501 million rubles, or 1.6 times the level of 2014. The share of retail turnover in the total volume of activities amounted to

Features of Phased Implementation of the Economic and Social Development …

385

Table 1 The dynamics of the organizational structure of consumer cooperation of the Republic of Tatarstan Name

Years 2014

2015

2016

2017

2018

2018% to 2014

The number of shareholders, 58.8 55.8 56.3 44.0 37.2 63.3 thousand Consumer societies (without district 36 36 36 39 51 141.7 and city), units City consumer societies 4 4 4 5 5 125 School and student consumer 1 1 1 1 1 100 societies, units District consumer societies 14 14 13 13 12 85.7 Total consumer societies 55 55 54 58 69 125.5 District and county consumer unions 2 2 3 1 1 50 Limited liability companies created on the basis of consumer cooperation With 100% authorized capital of 16 19 16 19 19 118.8 consumer cooperation With an authorized capital of 27 27 23 20 20 74.1 consumer cooperation less than 51% Management department 595 490 446 390 296 49.7 Source compiled by the authors based on the materials of the Centrosoyuz of Russia (Centrosoyuz of the Russian Federation, n.d.)

61.0%. At the same time, from 2014 to 2018, retail trade turnover increased from 7,601.7 to 10,917.0 million rubles, or by 43.6%. In practice, there was an annual increase to the previous year in comparable prices of total activity and retail turnover. For the period under review, the share of sales of products of own production in the retail turnover increased from 15.8 to 29.5%, or by 13.7 percentage points. The share of retail trade in consumer cooperation in the turnover of the territory increased almost 2 times. It should be noted that from 2014 to 2018, in the Republic of Tatarstan, the retail trade turnover of consumer cooperatives in rural areas increased from 5,928 to 9,061 million rubles or more than 1.5 times. Moreover, compared with the previous year, growth was observed annually in comparable prices. Compared to the previous year, the share of retail sales in rural areas increased annually. And in 2018, it amounted to 83.0%, that is, it was 5 percentage points higher than in 2014. In the republic, for the period under review, cooperative markets did not stop working (Table 2). Employees of the administration of the consumer cooperation of the republic of various legal forms provide organizational assistance to members of the union. Also, they provide informational, methodological, and advisory support on legal, financial, economic, and other issues. The Union of Consumer Societies of the Republic of Tatarstan carries out entrepreneurial activity, the production of goods and services not prohibited by law, and meeting the objectives of the union. It also acquires and sells agricultural products and raw materials and participates in economic companies that generate income and profit.

386

A. A. Maksaev et al.

Table 2 Dynamics of economic activity of consumer cooperation in the Republic of Tatarstan Name

Years 2014

2015

2016

Total activity, mln rubles 15,932 18,030 20,679 In comparable prices to 102.1 99.7 108.8 the previous year, % Retail turnover, million 7,602 8,835 9,392 rubles In % of total activity 47.7 49.0 45.4 In comparable prices to 102.3 102.0 100.9 the previous year, in % The share of sales of 15.8 17.0 17.3 products of own production in the retail turnover, % The share of retail trade 0.22 1.14 1.17 in consumer cooperation in the turnover of the territory, % Including retail sales in 5,928 8,835 7,701 rural areas, million rubles In % to the previous year 103.0 105.9 102.1 in comparable prices The share of turnover in 78.0 81.0 82.0 rural areas in the entire turnover, % Markets, total 5 5 5 Current markets 3 3 3 Markets rented 2 2 2 Source compiled by the authors based on the materials of Federation (Centrosoyuz of the Russian Federation, n.d.)

2017

2018

2018% to 2014

23,205 102.8

25,501 99.9

160.1 −2.2 p.p.

10,306

10,917

143.6

44.4 107.1

61.0 103.4

13.3 p.p. 1.1 p.p.

19.0

29.5

13.7 p.p.

1.22

1,19

0.97 p.p.

8,503

9,061

152.9

107.8

104.1

1.1 p.p.

82.5

83.0

5 p.p.

5 5 3 3 2 2 the Centrosoyuz of

100 100 100 the Russian

In accordance with the charter, the sources of the property formation of the Union of Consumer Societies of the Republic of Tatarstan in monetary and other forms are the contributions of members of the union (including introductory, regular, one-time, or targeted). And also, income derived from the business activities of the Union, the organizations created by it, and their branches, representative offices, and other sources form the property of the Union of Consumer Societies of the Republic of Tatarstan. In carrying out its activities, the Union of Consumer Societies of the Republic of Tatarstan forms the following funds: unit fund, indivisible fund, consumer cooperation development fund, and social support fund for workers and retirees. The targeted activity of the Republican Union of Consumer Societies of the Republic of Tatarstan allowed the increase of the wholesale trade turnover from 218 to 377 million rubles, or 1.7 times from 2014 to 2018. Moreover,

Features of Phased Implementation of the Economic and Social Development …

387

growth was observed annually in relation to the previous year. At the same time, the share of wholesale turnover to retail trade increased (Table 3). At the same time, it should be noted that the high level of competition from retail chains exposed a number of problems in the activity of consumer cooperation in the republic. These include the severe deterioration of equipment and fixed assets. In addition, consumer cooperation does not always have the opportunity to obtain loans for the purchase of processing and refrigeration equipment or to transport in the framework of the state program for the development of the agro-industrial complex. In this situation, consumer societies have to pay a lot of attention to the search for growth opportunities in the system in the direction of increasing the efficiency of operations in the current difficult conditions. The following factors contribute to improving the efficiency of consumer cooperation in the Republic of Tatarstan: increasing the production of competitive agricultural products, maintaining a high level of quality and freshness, and increasing the cooperative market share in hard-to-reach settlements. Also, the following factors increase the efficiency of consumer cooperation in the republic: improving technologies, purchasing additional low-cost equipment in order to expand the range, and increasing the volume of manufactured products as well as their pre-packing and modern, safe packaging. Food trade prevails in the total volume of activity of consumer societies in the Republic of Tatarstan. So, from 2014 to 2018, in the dynamics of specialized activities of consumer cooperation, the volume of sales of food products increased from 6,575 to 9,388 million rubles, or 42.8%. Moreover, sales volumes increased every year. The share of food products in retail trade is 86.0%, while the share of non-food products remains only 14.0%. In the Republic of Tatarstan, compared with the previous year, for the study period, the absolute indicators of food trade turnover increased annually. The noted tendency was also characteristic of wholesale trade turnover in the total volume of activity. In the republic, the share of food products increased with a corresponding reduction in the proportion of non-food products (Table 4).

Table 3 The dynamics of the development of wholesale trade in consumer cooperation in the Republic of Tatarstan Indicators

Years 2014

2015

2016

Wholesale turnover, million 218 282 324 rubles In % of total activity 1.37 1.56 1.56 In % to the previous year in 127.0 113.7 108.8 comparable prices Wholesale turnover as % of 2.9 3.2 3.4 retail turnover Source compiled by the authors based on the materials of Federation (Centrosoyuz of the Russian Federation, n.d.)

2017

2018

2018% to 2014

365

377

172.9

1.57 110.2

1.48 100.7

1.1 p.p. −26.3 p.p.

3.5

3.5

0.6 p.p.

the Centrosoyuz of the Russian

388

A. A. Maksaev et al.

Table 4 Dynamics of specialized activities of consumer cooperation in the Republic of Tatarstan Indicators

Years 2014

2015

2016

2017

2018

Groceries, million rubles 6575 7597.9 8077 8876 9388 In % to the previous year in 105.4 101.1 100.9 107.3 103.3 comparable prices In % to retail turnover 86.5 86.0 86.0 86.1 86.0 Non-food products, million 1026 1236.9 1315 1430 1528 rubles In % to the previous year in 86.3 105.7 100.9 106.2 104.4 comparable prices In % eo retail turnover 13.5 14.0 14.0 13.9 14.0 Source compiled by the authors based on the materials of the Centrosoyuz of Federation (Centrosoyuz of the Russian Federation, n.d.)

2018% to 2014 142.8 −2.1 p.p. −0.5 p.p. 148.9 18.1 p.p. 0.5 p.p. the Russian

Consumer cooperation of the Union of Consumer Societies of the Republic of Tatarstan occupies a significant share in the Volga Federal District. Notable in the cooperation of the republic is the development of wholesale trade in recent years. During the ongoing economic reforms, a significant part of the material base of wholesale trade was withdrawn from the system and restructured. Currently, the question of the need to modernize the wholesale link of consumer cooperation is most acute. For successful functioning in conditions of high competition in the market, in the system of consumer cooperation, large, wholesale, highly mechanized and automated enterprises of the republican format, the Republican Union of Consumer Societies are envisaged to have. In the provision of agricultural enterprises in Tatarstan with agricultural products, a special role is given to the procurement system. In the current conditions, the revitalization of the structures for the harvesting, processing, and storage of agricultural products in district consumer societies is the most effective organizational structure for the formation of a system of harvesting agricultural products in the Republic of Tatarstan. Today, the procurement industry of the Union of Consumer Societies of the Republic of Tatarstan includes the following: 418 stores and pick-up points, 96 specialized pick-up points, 10 dryers of medicinal raw materials, 24 vegetable/ potato/fruit storages, 19 refrigerators, 15 cattle trucks, 11 points for slaughtering cattle, 19 milk tankers, 53 milk reception points, and 25 milk coolers (Table 5). The availability of material and technical base in the field of procurement allows us to ensure the annual procurement of agricultural products, their production, and their being sold to the consumer. Implementation can be carried out through the cooperative retail network and through catering enterprises owned by consumer cooperatives. Integrated work in this segment of activity allowed the consumer cooperatives of the republic to more rapidly develop catering and procurement activities. Also, the consumer cooperatives of the republic were able to carry out a

Features of Phased Implementation of the Economic and Social Development …

389

Table 5 The dynamics of the development of the material and technical base of harvesting of agricultural products and raw materials in consumer societies of the Republic of Tatarstan Indicators

Years 2014

2015

2016

2017

2018

Stores—pick-up points 318 318 318 318 418 Specialized pick-up points 117 86 86 82 96 Dryers of medicinal raw 18 12 10 10 10 materials Vegetable-potato-fruit 15 15 15 15 24 storages Refrigerators 16 16 16 16 19 Cattle trucks 16 14 14 15 15 Points for slaughtering cattle 15 11 11 11 11 Milk tankers 23 21 21 19 19 Milk reception points 106 78 65 53 53 Milk coolers 25 25 25 25 25 Source compiled by the authors based on the materials of the Centrosoyuz Federation (Centrosoyuz of the Russian Federation, n.d.)

2018% to 2014 131.4 82.1 55.6 160 118.8 93.8 73.3 82.6 50 100 of the Russian

qualitative transformation into consumer cooperation, characterized by the integration of wholesale and retail trade, the improvement of the cooperative trading network, and the strengthening of the position of the cooperative wholesale and retail trading network.

3 Research Results Consumer cooperation of the Republic of Tatarstan is a unique multidisciplinary system. It is represented in all administrative regions of the republic, including remote and sparsely populated settlements with up to 100 inhabitants, carries out its activities in the interests of rural residents, and supplies them with essential goods. Consumer societies of the Republic of Tatarstan carry out production and procurement of raw materials and agricultural products in personal farmsteads and provide services to the population. Recently, in consumer cooperation, some recovery has been noticeable in agricultural food production. Own production and processing bases are developing. Retail trade, including public catering enterprises, provides more than half of the total volume of cooperative organizations in the republic. Due to the reduction in the rural population and a decrease in its purchasing power, cooperative store employees have to find new methods of work and increase their attention to customer requests. They have to add variety to the range of goods and services sold. From 2014 to 2018, in the consumer cooperation of the Republic of Tatarstan, the volume of purchases of agricultural products increased from 5,005 to 9,567 million

390

A. A. Maksaev et al.

rubles, or 1.9 times. Moreover, compared with the previous period, purchases increased every year. Over the period under review, purchases of the following goods increased: meat (almost 2 times), milk (by 9.7%), potatoes (2 times), vegetables (1.8 times), fruits (by 19.4%), and medicinal and technical raw materials (by 34.5%) (Table 6). In the process of research, factors were established that restrain the pace of development of certain areas of consumer cooperation in the republic. The revealed strengths and weaknesses of the consumer cooperation system, as well as the existing threats and opportunities for the development of its organizations, are presented in the form of a SWOT analysis (Fig. 1).

Table 6 Dynamics of procurement activities of consumer cooperatives in the Republic of Tatarstan Indicators

Years 2014

2015

2016

The volume of 5,005 5,506 7,180 purchases of agricultural products and raw materials, million rubles In % to the previous 98.4 96.5 123.7 year in comparable prices Meat purchases, t 10,704 13,542 14,958 In % to the previous 101.4 126.5 110.5 year Milk purchases, t 144,060 134,895 14,094 In % to the previous 108.5 93.6 110.5 year Potato purchases, t 6,854 7,283 13,180 In % to the previous 85.1 106.3 181.0 year Purchase of 4,538 4,574 7,825 vegetables, t In % to the previous 101.1 100.8 171.1 year Fruit purchases, t 2,015 2,035 2,374 In % to the previous 100.0 101.0 116.7 year Procurement of 391 395 398 pharmaceutical raw materials, t In % to the previous 85.6 101.0 100.8 year Source compiled by the authors based on the materials Federation (Centrosoyuz of the Russian Federation, n.d.)

2017

2018

2018% to 2014

8,283

9,567

191.1

112.7

130.1

31.7 p.p.

15,378 102.8

20,918 136.0

195.4 34.6 p.p.

153,772 103.1

158,047 102.8

109.7 −5.7 p.p.

13,573 103.0

13,781 101.5

2 times 16.4 p.p.

7,951

8,048

177.3

101.6

101.2

0.2 p.p.

2,392 100.8

2,406 100.6

119.4 0.6 p.p.

399

526

134.5

100.3

131.8

46.2 p.p.

of the Centrosoyuz of the Russian

Features of Phased Implementation of the Economic and Social Development …

INTERNAL ENVIRONMENT

EXTERNAL ENVIRONMENT

Strengths Legal support of activities; Availability of material and technical base and labor resources for diversified activity; Proximity to sources of raw materials and products; Availability of workshops for processing agricultural products; Automation of retail facilities; Guaranteed consumption of manufactured products by the population of the region; Socially oriented nature of activity; Organizational unity and the availability of cooperative values; Public confidence; System stability; Diversified nature of activity; The ability to attract funds from shareholders and the public to replenish their own working capital.

Opportunities

Weaknesses Legal imperfection of federal and regional legislation on consumer cooperation; High depreciation of fixed assets; Weak material base of wholesale trade; Lack of innovation; The lack of highly qualified specialists; High energy prices, utility tariffs, transportation; Lack of a single sales system, inefficient logistics and outdated forms of packaging for manufactured products; Low quality of public services; Underdeveloped industrial and social infrastructure; Low wages and lack of motivation to work; Low income and purchasing power of the rural population; Lack of support for consumer cooperation from government agencies.

391

Opportunity to expand market share and increase the volume of procurement; of agricultural products and raw materials; The possibility of organizing new crafts; The possibility of expanding the product range and selling products through its own distribution network; The presence of population demand for quality products produced by consumer cooperative organizations; The ability to provide a flexible work schedule and introduce progressive forms of public services; Benefits provided by the state and local governments.

Threats

Reducing the number of shareholders; Low growth rates; Increased competition from retail chains and private businesses; Low rates of industrial production growth; Insufficient government support for consumer cooperation; Lack of financial resources for investments and current activities; High credit rates; Not optimal tax systems; Adverse demographic changes; High tax rate; Not well-functioning pricing system.

Fig. 1 SWOT analysis of the state of consumer cooperation

392

A. A. Maksaev et al.

4 Discussion of Results The following groups are classified as internal adverse factors in the development of consumer cooperation: management, financial, commercial, informational, and human resources. Moreover, if the administration of any region refuses to cooperate with consumer cooperative organizations, then there is no such positive factor as the benefits provided to cooperatives. The main opportunities for the development of consumer cooperation are its powerful competitive cooperative organizations and the selection of effective professional staff. When developing a strategy for consumer cooperation organizations, attention should be paid mainly to the implementation of strengths when it is impossible to eliminate the identified threats by existing competitors. This will ensure the country’s food security under economic sanctions. The traditional activity of consumer cooperation is the purchase of agricultural products and raw materials for the functioning of other industries. This makes it possible to create a closed cycle, for example, billets—processing—sales. It also makes it possible to provide cooperative production departments and enterprises with high-quality raw materials to process and sell. Analysis of the procurement activities of consumer societies of the Republic of Tatarstan shows a fairly high level of organization of this work. In recent years, consumer societies have built workshops for the processing of purchased products, acquired technological and refrigeration equipment. They also developed the assortment and introduced semi-finished products that meet the needs of the population, are affordable, and take into account national preferences. The following events are held: tastings, professional competitions, and exchange of experience. The products of consumer societies were exhibited at national exhibitions and other competitions, where they received numerous awards. Thanks to this approach, products under the brands of consumer cooperation have become recognizable and in demand, and they are popular among the rural population as environmentally friendly products made from local natural raw materials.

5 Conclusion Thus, during the study period, the following occurred in the system of consumer cooperation of the Republic of Tatarstan. Production of semi-finished products has increased significantly; the production of soft drinks, pasta, and whole milk products increased. The range of food products produced by consumer cooperation organizations has expanded. The production of canned and sausage products, bakery and confectionery products, semi-finished meat products, and the processing of fruits and vegetables is carried out. For the future, the following areas are the main areas of activity of the Union of Consumer Societies of the Republic of Tatarstan: updating and modernization of

Features of Phased Implementation of the Economic and Social Development …

393

the material and technical bases of consumer cooperation organizations in the fields of production, procurement, storage, processing, and sale of agricultural products; the expansion of activities. The development of new, scientifically based methods for monitoring, the analysis of, and the rational regulation of agricultural products’ procurement, including the audit of economic activities of enterprises, are the main activities of the Union of Consumer Societies of the Republic of Tatarstan. Important aspects of anti-crisis marketing are competent work with the sales and service personnel of consumer society enterprises and the adaptation of the management accounting system to the modern needs of consumer societies. The modernization of the training system for consumer cooperation in the country may be an important direction in the revival of the consumer cooperation system. Thus, in the context of economic sanctions and embargo, the system of consumer cooperation may receive an additional opportunity for its revival. Acknowledgements This work was supported by the Russian Foundation for Basic Research grant, project No. 17-02-00182—OГH “Institutional model of innovative development of the consumer cooperation system”.

References Babakaev, S.V., Kaurova, O.V., Larionova, A.A., Volkov, D.V., Vinogradova, M.V., Leonova, V. P.: The study of criteria of the consumer choice of financial services in Russia. Mod. J. Lang. Teach. Methods 8(6), 252–261 (2018) Centrosoyuz of the Russian Federation: The main indicators of socio-economic activity of consumer cooperation in the Russian Federation for 2014–2018. Centrosoyuz of the Russian Federation, Moscow (n.d.) Gordeev, A.V., Suglobov, A.E.: Problems of regulation of the food market. Econ. Agric. Russia 8, 3–4 (1999) Kaurova, O., Maloletko, A., Yumanova, O.: Ways to counter retrival of “shadow income” from businesses with fixed assets in hospitality. Middle East J. Sci. Res. 15(5), 757–762 (2013). https://doi.org/10.5829/idosi.mejsr.2013.15.5.11404 Kivarina, M.V., Morozova, N.I.: The role of public-private partnership in the formation of innovative economy. Manag. Econ. Syst.: Electron. Sci. J. 4, 28–33 (2011) Maloletko, A.N., Andryushchenko, I.G., Kaurova, O.V., Mityushina, E.A., Shatskii, A.A.: Current employment patterns in the labor market of the Eurasian economic union. Rev. Espacios 38(49), 19–21 (2017) Maloletko, A.N., Kaurova, O.V., Volkov, D.V.: Formation of bounded consumers’ rationality based on micro-segmentation. Eur. Res. Stud. J. 21(4), 754–762 (2018) Maloletko, A., Kaurova, O., Erokhin, S., Matraeva, L., Bakumenko, L.: Comparative analysis of approaches to providing information regarding actuarial activities of pension funds in various countries. Int. J. Econ. Perspect. 10(2), 241–251 (2016) Matraeva, L., Kaurova, O., Maloletko, A., Erokhin, S.: Prospects and problems of adaptation of foreign experience of participation of pension funds in infrastructure and social investment projects in the Russian economy. Man India 97(21), 15–28 (2017) Matraeva, L., Kaurova, O., Vasiutina, E., Erokhin, S.: A dynamic model in the labor market: reasons of imbalances at the transition stage of the economy. Eur. Res. Stud. J. 21(3), 206–217 (2018)

394

A. A. Maksaev et al.

Morzova, N.I.: Prospects of private sector participation in solving social and economic problems at the state and municipal levels. Mod. Econ.: Probl. Solut. 9(45), 21–29 (2013) Sergi, B.S., Popkova, E.G., Bogoviz, A.V., Ragulina, Y.V.: The agro-industrial complex: tendencies, scenarios, and regulation. In: Sergi (ed.) Modeling Economic Growth in Contemporary Russia, pp. 233–247. Emerald Publishing Limited, London (2019). https:// doi.org/10.1108/978-1-78973-265-820191009 Suglobov, A.E., Lyalina, S.Y.: Methodological approaches to understanding of essence of innovative activity in modern conditions. Vestnik Moscow Univ. MIA Russia 7, 202–206 (2012) Suglobov, A.E., Boboshko, B.I., Ladnun, I.A.: Status and problems of adaptation of international standards of audit in Russia. Int. Acc. 2(134), 20–31 (2010) Vinogradova, M.V., Maloletko, A.N., Kulyamina, O.S., Kaurova, O.V., Larionova, A.A.: Digital technology in the field of educational services. Manag. Educ.: Probl. Perspect. 6(2s), 281–287 (2016)

The Ideas of Cooperation in Ancient Indian Philosophy (on the Example of Kautilya’s Arthashastra) Vadim V. Ostanin , Konstantin V. Konovalov , Sergey P. Krasnikov , Marina V. Shabanova , and Tatyana V. Platova Abstract This paper focuses on the study of the ideas of cooperation and economics in the philosophical thought of ancient India. Based on the historical and comparative method, the Western and Eastern understanding of the terms “economy”, “household”, and “cooperation” is revealed. The close connection of economic science with philosophical axiology is shown. In this regard, fragments from the treatise “Arthashastra” of Kautilya (370-283 BC) were first translated into Russian. Based on the involved materials, the paper concludes that the requirement to follow the rules of the business manager’s code of ethics is relevant. Keywords Cooperation


Economics
Economy
Indian philosophy

1 Introduction The call “to sort out the names” is attributed to many thinkers of antiquity: Protagoras in Ancient Greece, Confucius in Ancient China, and Patanjali in Ancient India. Economic science is no exception. The clarity of the content of concepts used V. V. Ostanin Altai State Agricultural University, Barnaul, Russia e-mail: [email protected] V. V. Ostanin Altai State University, Barnaul, Russia K. V. Konovalov (&)
S. P. Krasnikov
M. V. Shabanova
T. V. Platova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] S. P. Krasnikov e-mail: [email protected] M. V. Shabanova e-mail: [email protected] T. V. Platova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_41

395

396

V. V. Ostanin et al.

in it depends not only on the precise formation of the terminology tools of the discipline but also on their correct use in economic practice. In the context of this research, we will first turn to two fundamental terms: “household” and “economy”, which have similar, but, at the same time, different meanings. The study is supposed to demonstrate that the ratio of these concepts has different historical and territorial logic. If, in the Western world, they were traditionally opposed, although endowed with different meanings, then in the Eastern world and, in particular, Ancient India, both categories were taken in the indissoluble unity of their close semantic interaction, which was determined by the unique role of philosophy in ancient Indian society. The primary source of the science of management in ancient India will be the famous Arthashastra by Kautilya.

2 Materials and Methods The terms “household” and “economy” are very similar in meaning and are often used as synonyms, but, still, they have quite different contents. The concept of the economy (from Greek, oikos—“a house, abode, dwelling” and nomos—anything assigned, a usage: “custom, law, ordinance”) was used by the ancient Greek thinker and politician Xenophon, who used it in the name and the content of a separate work (Liddell et al. 1940; Reisberg et al. 2007). Xenophon was a famous disciple of the great Socrates, losing the lead only to Plato. The work was called “Oikonomikos” (430–356 BC), and it defines the subject of the economy as follows: “But what do we mean by ‘house’? Do we mean the mere building, or do we include in it all a man’s possessions? Yes, said Critobulus, in my opinion, everything that a man possesses, all the world over, is part of his house” (Xenophon 1876). From this definition, and especially its translation, one can already see how closely the terms “economy” and “household” touch each other in meaning. Aristotle (384–322 BC) made a significant contribution to the development of the subject of economics. In his famous essay “Politics” (and partly “Nikomakh’s Ethics”), he clearly distinguishes between two different branches of human activity: 1. Economics—management based on the principles of care, cooperation, and humanism; 2. Chrematistics (from Greek xpematistike—enrichment, xremata—money): the activities carried out exclusively for personal gain. Aristotle makes the distinction between economics and chrematistics in the following passage of the treatise: “Thus, it is clear that household management attends more to men than to the acquisition of inanimate things, and to human excellence more than to the

The Ideas of Cooperation in Ancient Indian Philosophy …

397

excellence of property which we call wealth, and to the virtue of freemen more than to the virtue of slaves” (Aristotle, 1984, p. 20). In Philosophy of Economy, Sergei Bulgakov, a prominent Russian thinker who investigated the philosophical foundations of managing the economy, separated the meaning of “household” and “economy”: “A. Smith distinguished the sympathetic (altruistic) side of man from the selfish (economic). He subjected the first to a separate study in The Theory of Moral Sentiments and the second in The Wealth of Nations. His successors completely forgot about this division (which is also very controversial) and, with the help of Bentham, turned the methodological premise of Wealth of Nations into a general doctrine of man” (Bulgakov 2009, pp. 344–345). In what is perhaps his most famous work, Non-Evening Light: Contemplation and Speculation, in the chapter “The Economy and Theurgy”, Bulgakov says, even more confidently: “A person feels in the world only as an economic entity (economic man), for whom the economy is pure commercialism, and the economic instinct, or egoism, is the basis of life … An economy based on egoism inevitably suffers from disharmony and struggle, personal and group (‘class’) … Economic egoism is a spontaneous force that needs to be regulated not only externally but also internally, spiritually, and ascetically … the economy should not become self-sufficient, being a goal for itself, as economism wants it: enrichment for enrichment” (Bulgakov 1994, p. 309). It is evident that Bulgakov clearly distinguishes between “household” in the positive sense of this concept and “economy” (economic egoism). In the real sense of the word, the “householder” is a person focused on cooperation, taking care of people involved in the production in which he is engaged, and of reproducing the means of this production (land, resources, etc.). On the contrary, economic man is a person who makes enrichment his goal, for which “all means are equally good”. Here, it seems appropriate to recall one of the capacious maxims of the famous English writer J. R. R. Tolkien: “To own is too burdensome …. Trees, grasses, water, and animals belong to themselves. And Tom …—The master. A master in forests and waters, in meadows and hills, a master who lives here”. Bulgakov, in a completely different way than Aristotle, understands the concepts of the terms “household” and “economy”. For him, the concept of “household” is closer to the Aristotelian “economy”, and the concept of “economy” is reminiscent of how “chrematistics” is understood in the writings of Stagirite.

3 Results and Discussion Thus, after the historical review of the relationship between the meanings of the terms “household” and “economy”, several preliminary conclusions can be made. Firstly, these concepts are often changed with each other by the meanings that various thinkers give them. Thus, the “economy” of Aristotle is the “household” of

398

V. V. Ostanin et al.

S. N. Bulgakov, and, on the contrary, Bulgakov’s “economy” actually coincides in content with the Aristotelian “chrematistics”. Secondly, even though these categories were sometimes endowed with different meanings, their fundamental opposition to each other in most cases remained unchanged. Sometimes the positive content of the concept of “economy” was opposed to “chrematistics”, and sometimes, on the contrary, the negative content of this term (actually equated with chrematistics) was opposed to the concept of “household”. Therefore, such a relationship between “household” and “economy” can be called dialectical, opposing. In our opinion, the category of the economy in the sense as it was understood in the famous work of the ancient Indian thinker Kautilya in Arthashastra (The Science of Benefit), on the contrary, carries a synthetic meaning. There, unlike the Western tradition, the tendencies of “household” and “economy” are not opposed, but rather, complement each other. The reason for this is the unique role of philosophy, its definition, and place in relation to the science of economy. The ancient Indian treatise Arthashastra by the scientist Kautilya (other names: Chanakya or Vishnugupta), seriously affecting the problems of management, dates more or less definitely to IV–III centuries BC. According to tradition, it is believed that it was specially created as an instruction for governing the country for Chandragupta Maurya I, the famous monarch of ancient India (340–297, who reigned in 322–298 BC). Thus, Aristotle and Kautilya were contemporaries. The first English translation of Arthashastra was done in 1915 by the Indian scholar R. Shamashastri (Kautilya 1915). In domestic science, Arthashastra was translated and studied by V. I. Kalyanov, A. A. Vigasin, and A. M. Impostors. In this study, we will translate the passages of Arthashastra that interest us from Sanskrit. The strong connection of philosophy and economy is proclaimed from the very first lines of the famous treatise. Kautilya places philosophy and economy on the normative list, which consists of four disciplines that must be studied for the ancient aria: ānvīkṣikī trayī vārttā daṇḍanītiśceti vidyāḥ … catasra eva vidyā iti kauṭilyaḥ / tābhir dharmārthau yad vidyāt, tad vidyānāṁ vidyātvam /

“The sciences are as follows: philosophy (anvikshiki), the trinity of the Vedas (trays), the doctrine of the economy (wartta), and the science of public administration (danda-filaments) … According to Kautilya, there are certainly four sciences. Dharma and Artha, that which must be known through them, is that which is the learning of all sciences” (Kautilya 1915; Kautilya 1993; Kautilya 2009). The categories of dharma and artha are enduring for most Indians; they are still actively used in language, everyday life, and professional production. Their vocabulary meaning is as follows: “artha… purpose … reason, motive … advantage … benefit, gain … thing, object … wealth; money … business … desire, pursuit … need …” (Kochergina 1987, p. 70).

The Ideas of Cooperation in Ancient Indian Philosophy …

399

“dharma… the condition (mental) … morality, moralizing … religious instruction … conscience … virtue … justice … duty, obligation … law …” (Kochergina 1987, p. 300). From the given meanings, we see how different in content the categories of dharma and artha are. Dharma establishes the ethical principles of the individual and, therefore, it seems possible to indicate that in terms of meaning, it directly interfaces with the category of “household” in Bulgakov’s sense. The aggregate dharma establishes the principles of interaction and cooperation. On the contrary, artha is anti-cooperative; it only determines the tendency to economic prosperity, which is what concerns, first of all, the so-called economic man and chrematistics. Philosophy, as the first of the sciences and which teaches the good principles and values of life (dharma), is clearly given the palm among other disciplines. The “Arthashastra” gives one of the first (if not the first) clear definition of philosophy in the context of ancient Indian culture. In its form, it can be called an essential definition: pradīpaḥ sarva-vidyānām upāyaḥ sarva-karmaṇām / āśrayaḥ sarva-dharmāṇāṁ śaśvad ānvīkṣikī matā //

“Philosophy is that which has always been considered the lamp of all sciences, the method of all work, the refuge of all dharmas” (Kautilya 1915; Kautilya 1993; Kautilya 2009). Why is philosophy (anvikshiki) a “lamp of all sciences, etc.”, and, in particular, for the economy (wartta)? This is so because it is a philosophy that value-orientates all other disciplines and shows their significance in terms of achieving universal human good (dharma). The strong connection between philosophy and the science of economics allows us to bring under the last strong ethical foundation and not to turn it into simply a science of enrichment. The definition of the science of economics itself seems analytical in its precise nature, for it is defined through a sequential listing of the components. It is as follows: kṛṣi-pāśupālye vaṇijyā ca vārttā dhānya-paśu-hiraṇya-kupya-viṣṭi-pradānādaupakārikī / tayā svapakṣaṁ parapakṣaṁ ca vaśīkaroti kośa-daṇḍābhyām /.

“A household is a concern for land and livestock, something that provides grain, livestock, gold, metals, and labor. Through it, with the help of treasures and punishment, they control the supporters and the opposition” (Kautilya 1915; Kautilya 1993; Kautilya 2009). Outwardly, in this definition, there is nothing but artha. The “household” in itself is focused exclusively on profit; it is pure chrematistics in the Aristotelian sense. The method of balancing “treasures and punishment” is the familiar principle of “carrot and stick”. However, it is worth emphasizing once again that the connection between the economy and philosophy, which sets the highest values of life

400

V. V. Ostanin et al.

(dharma), allows us to speak of the ancient Indian “management” already in the Bulgakov understanding of this term. Moreover, it is no coincidence that, in the very first words of the above quotation, it is written, “a concern for land and livestock”. We find a very similar phrase in the so-called Hindu Bible, Bhagavadgita: kṛṣi-go-rakṣya-vāṇijyaṁ vaiṣya-karma svabhāva-jam, meaning, “the activities of a farmer inherent in him by nature: caring for the land, protecting cows, trade”. Such is the real farmer; he lives only with immediate benefits, but he also cares about the harmonious use of resources and their qualitative and quantitative reproduction and takes care of the prosperity of future generations of owners. This is the so-called horizontal cooperation in its historical aspect, which N. G. Chernyshevsky called the partnership of workers. Based on the preceding, it seems quite logical that after the definition and careful analysis of each of the four sciences, Kautilya emphasizes that success in each of them, and, in particular, in the economy, predetermines the so-called “victory over six enemies”. vidyā-vinaya-hetur indriya-jayaḥ kāma-krodha-lobha-māna-mada-harṣa-tyāgāt kāryaḥ / … tad-viruddha-vṛttir avaśyendriyaś cātur-anto ‘pi rājā sadyo vinaśyati

“The reason for defeating feelings is knowing and following the code of good behavior. It must be achieved by renouncing lust, anger, greed, conceit, intoxication, and hedonism… The king, whose life contradicts this, does not control feelings, even if his kingdom extends to the four ends of the world, quickly dies” (Kautilya 1915; Kautilya 1993; Kautilya, 2009; Ganapati Sastri 1924). Further, Kautilya gives numerous examples of the devastating deviations from similar behavior that have occurred among many kings of antiquity, and each of the six internal enemies of the person has two full illustrations, which was not done so often in ancient Indian edifying literature. Undoubtedly, this points to the extreme importance of the topic.

4 Conclusion Thus, the need to follow the code of ethics for the “manager” cannot be overestimated. It seems that this is exactly what S. N. Bulgakov called “internal spiritual and ascetic regulation” of the economy. Thus, the Arthashastra has repeatedly emphasized the urgent need for the existence of economic morality and following the moral principles of economic activity. Summing up, it is worth emphasizing once again that the history of the coexistence of the categories of “household” and “economy” seems to be very substantial. In the Western economic tradition, the model of their interaction can be called dialectical, because in its context, no matter what different meanings the concepts of “household” and “economy” are endowed with, they are invariably opposed. On the contrary, in the Eastern economic structure, the above categories

The Ideas of Cooperation in Ancient Indian Philosophy …

401

are combined in a kind of cooperative synthesis, which has support, both in the moral code of conduct of an individual and in the aspiration of each individual for economic prosperity.

References Aristotle: Politics. In: Dovatur, A.I. (ed.) Mysl, Moscow (1984) Bulgakov, S.N.: Business philosophy. In: Platonov, O. (ed.). Institute of Russian Civilization, Moscow (2009) Bulgakov, S.N.: Non-evening light: contemplation and speculation. Republic Moscow, Russia (1994) Ganapati Sastri, T. (ed.): The Arthashastra of Kautalya with the commentary, Trivandrum, India (1924) Kautilya: Arthashastra. In: Shamasastry, R. (Transl.). Government Press, Bangalore (1915) Kautilya: Arthashastra or science of politics. In: Kalyanov, V.I. (Transl.). USSR Academy of Sciences, Moscow (1993) Kautilya: Arthashastra. In: Samozvantsev, A.M. (Transl.). Institute of Oriental Studies of RAS, Moscow (2009) Kochergina, V.A.: Sanskrit-Russian dictionary. In: Kalyanov, V.I. (ed.) 2 edn. USSR: the Russian language, Moscow (1987) Liddell, H.G., Scott, R., Jones, H.S., McKenzie, R.: A Greek and English Lexicon. Clarendon Press, Oxford (1940) Raizberg, B.A., Lozovsky, LSh, Starodubtseva, E.V.: Modern Economic Dictionary. INFRA-M, Moscow (2007) Xenophon: The economist of Xenophon. In: Wedderburn, A.D.O., Collingwood, W.G. (Transl.). Ellis and White, London (1876)

Retrospective of the Formation and Development of Consumer Cooperation in Russia Edward A. Arustamov , Dmitry I. Valigursky , Artur A. Maksaev , Valentina V. Bronnikova , and Dmitry K. Chirkov Abstract The article attempts to analyze the stages of the formation and development of the cooperative movement in Russia. The cooperative movement in Russia is one of the essential sectors of the economy in which the most important activities are carried out to meet the needs of the rural population. Consumer cooperation in Russia has almost two centuries of history. During this period of its diversified activity, both positive and negative trends are clearly visible. However, despite this, consumer cooperation has maintained its identity, regardless of political and economic changes in the country. At present, consumer cooperation in Russia is a diversified economic organization integrated into a market economy, which does not exclude its fulfillment of a significant amount of social functions.










Keywords Consumer cooperation Consumer society Union of cooperatives Member of the consumer cooperative Shareholder Diversified activity Social mission Consumer cooperatives property Organizational and mass work
















E. A. Arustamov (&)
D. I. Valigursky
A. A. Maksaev
V. V. Bronnikova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] D. I. Valigursky e-mail: [email protected] A. A. Maksaev e-mail: [email protected] V. V. Bronnikova e-mail: [email protected] D. K. Chirkov Higher School of Business, Management and Law, Russian State University of Tourism and Service, Cherkizovo, Moscow Region, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_42

403

404

E. A. Arustamov et al.

1 Introduction Currently, in the cooperative sector of the Russian economy, consumer cooperation plays a very significant role. It has a rich history dating back almost two centuries. During this significant historical period, consumer cooperation has become a diversified economic system that combines the performance of certain social functions in its activities. The importance of these functions to the Russian people is difficult to overestimate. In addition, the history of the cooperative movement in our country clearly reflects a number of positive results in its organization and effective management. Thus, a wealth of experience, traditions, and culture—and the identity of the cooperative movement—have been accumulated. All this should be put into practice in modern economic conditions. At the same time, it must be borne in mind that fierce market competition leaves virtually no room for a humane attitude toward people, including a concern for working people and their aspirations. In this regard, consumer cooperation as a socially oriented system that relies on traditional cooperative values solves many of the challenges of servicing permanent rural residents of the country. Therefore, the use of the historical experience of domestic consumer cooperation and development in a number of the most important developmental areas is becoming very significant. These areas of development are able to find wide application in the modern cooperative movement in Russia, to increase the effectiveness of its management. The goal of this scientific article is to solve these problems.

2 Research Results 2.1

The Historical Aspect of the Development of Consumer Cooperation in Russia

Among a number of historical stages in the development of the cooperative movement in our country, the three most important ones should be highlighted. 1. At the first stage, the historical period from the 1830s to 1917, the cooperative movement began to form and develop under the influence of deepening contradictions between labor and capital, between the social nature of production and the private form of attributing its results. These contradictions escalated after the abolition of serfdom in Russia. Moreover, we can state that at the beginning of this historical period, the cooperative movement in our country was spontaneous and sporadic. Only by the beginning of the twentieth century did it turn into an organized socioeconomic structure. 2. The next stage of consumer cooperation was inspired by the revolutionary transformations that arose in Russia after 1917. However, despite the creation of

Retrospective of the Formation and Development …

405

the foundations of socialist management, consumer cooperation was able to preserve the former cooperative values. At the same time, in the future, due to increased centralization, command, and administrative foundations for managing the country’s economy, there was an actual nationalization of consumer cooperation. It began to lose its traditions and identity and became more and more integrated into the planned economy. This stage lasted until the end of the 1980s. 3. The modern stage began in the ’90s and continues to the present. This period was and is marked by consumer cooperation’s “search” for its place and role in the formation and development conditions of market relations in the Russian economy. During this period, many processes in the cooperative movement were often controversial, and they occurred by trial and error. It was at this time that consumer cooperation lost a significant part of its property complex and suffered significant personnel losses. In some years, even the question about the very existence of consumer cooperation in market conditions arose. However, the system not only moved from a survival strategy toward development but also acquired new features that allowed it to integrate into the market while preserving all the best that had been developed in previous years. Moreover, regarding market-relations conditions, consumer cooperation in Russia most urgently needs to apply the best of its historical development experience. In this regard, we will examine in more detail the historical aspects of the cooperative movement in our country. So, if the first consumer society in Russia arose in 1864, then the mass development of the cooperative movement began in 1895. For the period until 1917, 23,500 cooperatives arose in the country, and the number of shareholders in them was about 7 million people. At the same time, the peculiarity of creating consumer societies in this period was the initiative from above, coming, as a rule, from the management of enterprises and officials of various ranks. As a result, this led to the fact that, in cooperatives, they saw primarily the source of profit without significant labor costs. The growth of the revolutionary movement in Russia at the end of the nineteenth century negatively affected the cooperative movement, giving it a political coloring. In addition, the discussion on the role of consumer cooperation in the socioeconomic life of the country intensified in society. Then, the following three main approaches took shape: consumer cooperation as a charitable organization, political structure, or commercial enterprise. In the period from 1880 to 1890, consumer cooperation became a truly popular mass organization; workers and peasants increasingly became its shareholders. There are prototypes of modern governing bodies of cooperatives, namely the board and meeting of commissioners. Since 1890, the first unions of cooperatives began to form in consumer cooperatives. However, a truly rapid rise in the cooperative movement in Russia occurred between 1905 and 1917. At this time, the charters of cooperative organizations were finally formed; the organizational structure of consumer cooperation

406

E. A. Arustamov et al.

was developed; basic cooperative principles were formulated. The increase in the number of shareholders was justified by the receipt of real preferences by them in collective farming and in the collective form of obtaining benefits and preferences from membership in cooperatives. During this period, consumer cooperatives began to be built on the basis of economic management principles, which provided for the organization of cooperatives on the initiative from below, and not from above, as it was in previous years. In addition, the unions of consumer cooperatives ceased to exclusively perform command functions and became real helpers for the cooperatives that comprised them. Thus, it became economically viable for consumer cooperatives to join the unions, which were built not only according to territorial principles but also to industry principles. The solution of topical issues of the development of consumer cooperation in the country also began to be democratic. It was built on the basis of collective discussion during congressional meetings. Moreover, cooperative congresses actually became the new governing bodies of the cooperative movement in Russia. For example, the first All-Russian Cooperative Congress, held in 1908, secured the transition of domestic cooperatives to traditional principles, which were still the basis of the Rochdel (Great Britain) cooperatives. As you know, they were the pioneers of the global cooperative movement. Thus, Russian consumer cooperation was actually included in this movement. Summing up the activities of consumer cooperation in Russia for the period up to 1917, we can draw the following conclusions: • Consumer cooperation in pre-revolutionary times played a very significant role in the socio-economic life of then-Russia; • After many decades of serfdom and, essentially, slavery, when all the results of the labor of serfs were privately appropriated by the landlords, consumer cooperation promoted the development of collectivism. Also, consumer cooperation contributed to the formation of the social character of economic activity as well as the emergence of signs of worker equality and their responsibility for the final result of their work; • During pre-revolutionary years, the cooperative movement made it possible to bring workers closer to the means of labor, which ultimately led to the formation of a collective form of assignment of labor results and a more even distribution among the members of cooperatives; • Guided by the objective laws of the market, justified by the classics of economic science of that time (Samuelson, Paul, Friedman Milton) (Samuelson and Nordhaus 2008; Samuelson and Nordhaus 2009; Friedman 2006; Friedman and Friedman 2007), the spirit of collective entrepreneurship has developed in cooperative societies of consumer cooperation in Russia. Also, there was a development of the initiative, a variety of areas of activity aimed at strengthening the position of cooperation in the product market and improving the welfare of shareholders;

Retrospective of the Formation and Development …

407

• However, the revolutionary events in the country practically stopped all the positive processes inherent in the cooperative movement in Russia at the beginning of the 20th century; • The ideas of the entrepreneurial activity of cooperators and the existence of cooperative property were not only ideologically denied but also ostracized and publicly condemned; • Voluntary seizure of property of cooperatives, its subsequent socialization, and repression against the leaders of the cooperative movement and representatives of science caused irreparable harm to consumer cooperatives that had formed by then; • The subsequent nationalization of the objects of a cooperative economy led to a substitution of concepts about true cooperative values, which bureaucratized, corrupted, and ultimately destroyed the cooperative movement in the country. Separate relapses of the negative process have not yet been eliminated. After 1917, there were fundamental changes in the activities of consumer cooperation, which affected its organizational, economic, and managerial foundations. By 1917, it was already a fairly powerful economic system, consisting of 25,000 cooperatives, uniting more than 10 million shareholders. In March 1917, the interim government passed a new cooperative law called the Regulation on Cooperative Partnerships and Unions. It should be recognized that this was one of the best laws on cooperation in the world, the main provisions of which are very relevant and can be adapted in modern practice. However, after the revolution of 1917 in the first years of Soviet power, a controversy arose about the future role of consumer cooperation and its place in the new management system being created. Several approaches were formed, among which two areas should be highlighted. According to the first of them, it was necessary to carry out a complete nationalization of consumer cooperation and to put its activities under full state control. The second concept provided for its independent development. In 1918, a certain compromise in these conceptual approaches was found in the preparation and adoption of the decree on Consumer Cooperative Organizations. According to this decree, consumer cooperation as a whole retained organizational independence. but it was forced to assume government obligations for all types of her activities (in the field of procurement, processing of products, their sale, etc.). The decree “On Consumer Communities” completely crossed out independence in the management of a cooperative economy, and de facto, cooperative democracy has been preserved. In Soviet Russia, consumer cooperatives flourished during the New Economic Policy. The new economic policy in the country has significantly weakened state control over the work of cooperative organizations. Voluntary membership in cooperatives has been restored; the population got back rights to create new consumer cooperatives. In addition, consumer societies and their unions have again gained independent rights in carrying out economic activities and performing other functions (social, cultural, educational, etc.).

408

E. A. Arustamov et al.

We will summarize the main results of consumer cooperation during the NEP, which, in our opinion, are as follows: • Socioeconomic and political reasons contributed to the introduction of the NEP in the country, which replaced the fierce policy of military communism; • The multistructure nature of the Russian economy and entrepreneurial activity during the NEP period not only reanimated the former cooperative way of managing the economy, but also led to its development and mass distribution; • The deepening of the contradictions between town and country, inherent in the policy of war communism, was transformed into mutually beneficial trade under the influence of the cooperative movement during the NEP. Subsequently, this mutually beneficial exchange was called the “bow of the city and village;” • Consumer cooperation has taken over the full range of functions for the purchase, processing, and sale of agricultural products in cities. Thus, it contributed to the wide development of small-scale agricultural production; • Thus, in our opinion, the NEP period was the best time for the development of cooperative entrepreneurship within the framework of the socialist system of that period. At this time, the traditions of mutually beneficial cooperation between citizens and villagers were revived. Consumer cooperation actively contributed to this and, in fact, played a crucial connecting role; • Contradictions within the socioeconomic development of the city and the village still have not been completely eliminated. In this regard, the positive experience of consumer cooperation during the NEP period is very relevant. Indeed, at present, the contradictions in the social and economic development of cities and rural areas in Russia are becoming especially acute. This adversely affects the distribution of productive forces, economic relations, demography, and the standard of living of rural residents.

3 Discussion During the NEP period, the organizational structure of consumer cooperation almost formed. It existed almost until 1991. The organizational structure of consumer cooperatives provided for the general meeting and management of consumer cooperatives and their unions, the activities of the councils of cooperative organizations, and audit commissions. The year 1924 was marked by the adoption of the new Charter of consumer cooperation, which legally secured its place and role in the structure of the young Soviet state. In the text of the Charter, the functions of cooperatives and their unions were delimited. Also, the organizational structure of cooperative farm management was decentralized on the basis of providing individual consumer societies with independence in decision-making. At the same time, the period of decentralization in managing the cooperative economy in the country and the independence of the primary links of consumer

Retrospective of the Formation and Development …

409

cooperation in Soviet Russia did not last long. With the onset of 1926, the concept of strengthening centralization in the organization of consumer cooperation by the Centrosoyuz begins to be implemented in practice. In 1928, the Centrosoyuz formed a full five-year action plan for all unions of consumer cooperation in the regions. In 1930, the Centrosoyuz adopted a course on the complete reconstruction of consumer cooperation in the country as the basis of its activities. The main focus of this course was to strengthen industrial enterprises and trading systems by creating large industry associations in all regional consumer cooperation unions under the leadership of unified management bodies (the Management Board, the Council, and the Revision Commission). In organizing the management structure of a cooperative economy, the Centrosoyuz has become increasingly consistent with the structure of the Supreme Soviet of the National Economy (SSNE). Thus, in those years, the activities of the Centrosoyuz took place in full accordance with state policy aimed at collectivization and industrialization of the country. But, on the other hand, the course toward the enlargement of cooperative enterprises followed, in fact, separating shareholders from participation in the management of cooperatives. Practice has shown that this did not improve their retail and consumer services.

4 Conclusion As the historical experience of consumer cooperation in our country shows, it had both positive and negative sides, which took place against the background of historical events of certain periods. However, even in very problematic periods of historical development, consumer cooperation has not lost its integrity and identity. Also, it has been preserved as an economic system with its inherent proximity to collective agricultural enterprises and, most importantly, to individual subsidiary farms of rural settlements and small towns. The next stage of consumer cooperation was inspired by the revolutionary transformations that arose in Russia after 1917. However, despite the creation of the foundations of socialist management, consumer cooperation was able to preserve the former cooperative values. Due to increased centralization of the command and administrative foundations for managing the country’s economy, there was an actual nationalization of consumer cooperation. It began to lose its traditions and identity and became more and more integrated into the planned economy. This stage lasted until the end of the 1980s of the twentieth century. The modern stage began in the 1990s and continues to the present. This period was marked by consumer cooperation’s “search” for its place and role in the conditions of formation and development of market relations in the Russian economy. During this period, many processes in the cooperative movement were often controversial and occurred by trial and error.

410

E. A. Arustamov et al.

It was at this time that consumer cooperation lost a significant part of its property complex and suffered personnel losses. In some years, even the question of the existence of consumer cooperatives in market conditions surfaced. However, the system not only moved from a survival strategy to development but also acquired new features that allowed it to integrate into the market while preserving all the best that has been developed in previous years. In market relations, however, consumer cooperation in Russia most urgently needs to utilize the best of the historical experience of its development. Acknowledgements The authors are grateful to the Board of the Central Union of the Russian Federation and the library staff of the Russian University of Cooperation for historical materials about the formation and development of consumer cooperation in the Russian Federation.

References Friedman, M.: Capitalism and Freedom. Novoye izdatelstvo, Moscow (2006) Friedman, M., Friedman, R.: Free to Choose: A Personal Statement. Novoye izdatelstvo, Moscow (2007) Samuelson, P.A., Nordhaus, W.D.: Microeconomics. Williams, Moscow (2008) Samuelson, P.A., Nordhaus, W.D.: Macroeconomics. Williams, Moscow, Russia (2009)

Integration and Cooperation in the National Economy Lyudmila I. Tomashevskaya , Guzel A. Musina , Elena A. Hunafina , Tatiana V. Georgiadi , and Ekaterina V. Zhilina

Abstract The purpose of the research is to determine the possibility of forming a synergistic effect from the interaction of integration processes (including vertical integration) and cooperation (including horizontal cooperation) in Russia. During the study, the historical, logical, and causal approaches were used, as well as general scientific methods of economic analysis. The study of the structure and level of cooperatives development in different regions of Russia, of new forms of cooperation aimed at implementing environmental programs, made it possible to judge that the expansion of the cooperative movement, firstly, is necessary, and secondly, meets the Sustainable Development Goals. Also, this makes it possible to combine the economic, environmental, and social components of the development of Russian society. All this makes it necessary to expand the vertical integration of production cooperatives operating in the first stage of the technological process, and consumer cooperatives operating in the subsequent stages of the technological chain. The most significant effect of synergies in this direction is achievable in the agricultural sector. Since, nowadays, the number of cooperatives in agriculture is small, for example, in comparison with the countries of the European Union, the activation of the cooperative movement will bring diverse and relatively high dividends. These include an increase in the level of employment and the income of the population, the provision of several social guarantees, an increase in the quality of life, better health, and food security of the country. L. I. Tomashevskaya
G. A. Musina (&)
E. A. Hunafina
T. V. Georgiadi
E. V. Zhilina Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] L. I. Tomashevskaya e-mail: [email protected] E. A. Hunafina e-mail: [email protected] T. V. Georgiadi e-mail: [email protected] E. V. Zhilina e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_43

411

412

L. I. Tomashevskaya et al.










Keywords Integration Cooperation Synergism Sustainable development goals Production and consumer agricultural cooperatives




1 Introduction Integration and cooperation are interconnected and interpenetrating while also being different in form. The history of the implementation of these processes dates back many centuries because people in difficult socio-economic conditions are more inclined towards collectivism and unification (which facilitates survival) than to individualism and egoism (which are acceptable only in conditions that are favorable and comfortable for life). Cooperation in any form, as a rule, gives rise to a synergistic effect, since a team that functions as a holistic system acquires additional properties that are not inherent in the totality of its elements. The emergence of new, additional properties brings cooperatives closer to achieving the declared sustainable-development goals (SDGs). This makes it necessary to expand and deepen integration and cooperation processes in Russia, both vertically and horizontally. These processes should cover various spheres and branches of social production in the country and not exclude international integration.

2 Materials and Methods During the research, the materials of the International Cooperative Alliance, the European Research Institute on Cooperative and Social Enterprises (Euricse), the Central Union of the Russian Federation, and the Ministry of Agriculture of the Republic of Bashkortostan were used, in addition to the author’s materials. The study of the synergies of integration and cooperation was based on historical, logical, and causal methodological approaches, as well as on such general scientific methods of economic analysis as induction, deduction, and the method of comparative statics.

3 Results Integration is a concept that broadly means the unity of diverse parts. The term comes from the Latin “integration” (restoration, replenishment), formed, in turn, from “integer” (complete, integral, unbroken). In this sense, the term “aggregation” can be used as a synonym for the word “integration”. One should distinguish between integration as a process and integration as a result of a particular process.

Integration and Cooperation in the National Economy

413

Integration as a process means combining different components and elements into a single whole. Integration processes can take place within existing, already established systems, which rise to a higher level of organization and structure due to the intensification of the relationships between the elements of the system. Integration as the result of a process is, as a rule, understood as the result of the integration process, that is, a state where all parts function smoothly and orderly. There are philosophical, cultural, social, economic, and some other interpretations of the concept of integration. However, it is essential to emphasize that all of them can be characterized as interdependent and interpenetrating. When analyzing integration, it is essential to distinguish between the levels and scales of the systems in question. A similar approach should be taken concerning economic integration. Thus, the list of economic systems in ascending order according to their level and scale can look this way: households, entrepreneurs, industries, industrial complexes, regions, economies of various states, and the world economy. The modern economic dictionary defines economic integration as “the union of economic entities, the deepening of their interaction, and the development of relations between them. Economic integration takes place both at the level of national economies of entire countries, and between enterprises, firms, companies, and corporations. Economic integration is manifested both in expanding and deepening production and technological ties, sharing resources, pooling capital, and creating favorable conditions for each other to carry out economic activities and remove mutual barriers” (Reisberg and Lozovsky 1999). Companies integrate vertically and horizontally. Vertical integration is a combination of several stages of production in one firm, at best—from zero to the final stage—or a combination of cooperation between firms, providing production at various stages of the technological process. Horizontal cooperation provides for the joint participation in the production process of enterprises manufacturing similar products using identical technologies operating at the same stage of production. We can say that horizontal integration is the cooperation of various industries or enterprises within the industry in order to minimize the costs and maximize the effect. That is, horizontal integration is a combination (cooperation) of firms operating at the same technological stage of production or in one economic sector. Vertical integration is a combination (cooperation) of firms operating at successive technological stages or in various industries. At the same time, cooperation is a specific economic category that has unique characteristics. Cooperation (lat. cooperatio) has been deeply studied as an economical category by well-known Russian economists Chayanov and Tugan-Baranovsky. Describing their role in the formation of the theory of cooperation, Bychenkov writes: “M. I. Tugan-Baranovsky saw in cooperation such an economic enterprise of several, voluntarily connected persons, whose purpose is not to receive the greatest profit on the spent capital, but to increase, using the general management of the economy, the labor income of its members, or to reduce the expenses of these members on their consumer needs. Cooperation, in his opinion, combines egoism with altruism,

414

L. I. Tomashevskaya et al.

educates a person who can defend personal interests with a willingness to abandon them in the name of general interest. In cooperative farming, capital is a servant, not a master, noted A. V. Chayanov. The most important thing in cooperation is the transfer of attention from the interests of capital to the interests of farms that have joined the union, creating a cooperative enterprise” (Bychenkov 2001). It is important to emphasize that cooperation in psychology refers to the unification of the efforts of several entities that perform various functions to achieve specific synergistic results. In the economic sense, cooperation is a form of association of entities to carry out productive activities. In the legislation, “cooperation” is used to refer to various cooperatives in certain areas of social production, for example, cooperation in agriculture, consumer cooperatives, and commercial and housing construction cooperatives. Thus, we can assume the synergy of the processes of cooperation and integration, in general, and vertical integration, in particular, will lead to the formation of a synergistic effect, which is most likely and especially important in agriculture. One of the arguments in favor of this statement is that in the agricultural market, many small producers confront several large firms subject to a demand for agricultural products. These are intermediary firms buying up products, representatives of food manufacturing companies, or enterprises that process agricultural products. The functioning of many producers of agricultural products within the oligopolistic market structure is fraught with serious difficulties associated with the nature of competition. In such a situation, the union of producers in cooperatives will allow them to counter oligopolies more effectively. At the next stage, the cooperation of enterprises engaged in production at different stages of the technological chain of food production (which, in essence, is a process of vertical integration) will result in lower production costs and shorten the storage and transportation of products. This will improve the quality of products, which will lead to an increase in demand for it and, consequently, will increase the profits of manufacturers. The cooperation of agricultural enterprises at one stage of the technological process (first stage), and then at the various stages of the technological process following each other (second stage), can be called horizontal and vertical cooperation by analogy with the distinction between such concepts as horizontal and vertical integration. In connection with all of the above, the solution of the indicated problem is very relevant, leading to the solution of related problems and stimulating the further development of agriculture through the expansion of agricultural cooperation. An argument in favor of the relevance of the implementation of such a line of action is the need to form a socially oriented economy in Russia, on the one hand, and, on the other hand, to implement an import substitution program to ensure the country’s food security.

Integration and Cooperation in the National Economy

415

4 Discussion V. A. Kanakina believes that “The activities of cooperatives producing agricultural products, developing purchases of agricultural products and raw materials, expanding the production of food products, and also expanding their trade can contribute to solving the food problem” (Kanakina 2014). “Following the methodology of the system approach, systems are distinguished from the external environment by their missions and goals. Also, an important feature of the system is the presence of an internal organization, the interaction of its primary and other links at various levels of management. Cooperatives, in their essence, express the social orientation of various types of the cooperative movement and form their social base through their practical activities. Their activity in the current conditions of a market economic system cannot be successful without unification with each other, the formation of vertical and horizontal alliances of various levels. The unification of cooperatives in unions offers them opportunities that they do not have individually” (Kanakina 2014). The formulated task of the cooperatives correlates with the Sustainable Development Goals, which, in 2015, replaced the Millennium Development Goals, combining the three paradigms—economic, social, and environmental. In order to achieve the Sustainable Development Goals (SDGs), participating countries should develop their strategies and programs independently for the development of the cooperative movement, focusing on the SDGs. Gianluca Salvatori, Secretary-General of the European Research Institute for Cooperative and Social Enterprises (Euricse), said at the 7th annual World Cooperative Monitor: “Cooperative organizations and actors in the social economy are becoming an increasingly important link for bringing institutions, civil society, and business closer together. To solve social problems, we need to continue to build cooperation through the framework and tools for sustainable development” (“The 7th annual World Cooperative Monitor is now available” 2018). The Annual Report on the Cooperative Economy provides a picture of the scope and strength of the global cooperative movement. The 2018 World Cooperative Monitor has collected data for 2575 cooperative organizations. It has been established that 300 leading cooperative organizations of the world work in various sectors: 35% in agriculture, 32% in insurance, 19% in wholesale and retail trade, 8% in financial and banking services, 2% in industry and the provision of utilities, 2% in education, social security, and healthcare, and 2% provide other services. The total turnover is more than two trillion US dollars (World Cooperative Monitor 2018). The global cooperative movement occupies an essential place in the global economy in general and in the economy of individual countries in particular, especially in the European Union, where there are numerous small farms. The need to compete with large enterprises in agriculture explains the formation of cooperatives by producers in the EU. It is also the basis for the emergence of all world cooperatives.

416

L. I. Tomashevskaya et al.

In Russia, however, the situation is different: large enterprises formed the basis of agricultural and other types of production. Because of this, the cooperative movement in Russia has not yet spread significantly. However, at the present stage, new forms of cooperative unions have arisen. These are the so-called eco-settlements, which are ideological forms of management. The concept behind them is entirely consistent with the SDGs. According to one of their co-founders, E. Vorobyova, the eco-settlements receive many benefits for their work with cooperatives, including tax benefits. Vorobyova claims: “Cooperatives and eco-settlements… complement and reinforce each other precisely at a time when it is difficult for even such commercial structures as agricultural holdings to survive, let alone individual private farms” (Dashkovsky 2019). However, even in such a situation, ideology is more important than profits and productivity. Vorobyova emphasizes: “This system of long-term and smart farming not only restores the soil, pulls water to the roots of plants, and gives breathtaking yields of environmentally friendly plants, but also allows one to enjoy cooperation with plants and animals and makes people humane, constructive, and wisely managing” (Dashkovsky 2019). In Russia, agricultural production cooperatives (APC) and agricultural consumer cooperatives (ACC) operate, which include agricultural credit cooperatives. Agricultural consumer cooperatives are similar to European cooperatives. It is a classic variant of cooperation since small private enterprises are united in their framework. The other group of cooperatives—agricultural production cooperatives —was formed based on Soviet collective farms. In this regard, the cooperative movement during the period of systemic transformations in Russia focused on the organization of production cooperatives. Subsequently, the vector changed toward more active development of consumer cooperatives, whose functions are very diverse: processing, storage, and marketing of products, purchase of feed and seeds, lending to members of the cooperative, and several others. The intensification of the creation and expansion of the scope of consumer cooperatives occurred from 2006 to 2007, after the implementation of the national project “Development of the agro-industrial complex.” However, unfortunately, some of them subsequently ceased to exist. Kurakin and Gusakov (2018), in the journal Agrotechnics and Technology, using data from the Ministry of Agriculture, characterized the structure of agricultural cooperation in Russia, the dynamics of its development, and the rating of regions by the number of cooperatives. Data on the number of cooperatives in agriculture in Russia are given in Table 1 (Kurakin and Gusakov 2018). At the beginning of 2017, the structure of consumer cooperation was described by Kurakin and Gusakov as follows: “According to the data, as of the beginning of 2017, 18% (1032 units) of cooperatives were processing; 17% (985 units)—sales; 13% (813 units)—serving; 7% (425 units)—supply; 24% (1381 units)—credit and 21% (1203 units)—other” (Kurakin and Gusakov 2018).

Integration and Cooperation in the National Economy

417

Table 1 The dynamics of the development of agricultural cooperation in Russia for the period from 2012 to 2016, units Indicators Agricultural Production Cooperatives (APC) Agricultural Consumer Cooperatives (ACC) Operating ACC Source (Kurakin and Gusakov 2018)

Years 2012

2013

2014

2015

2017

10,319 7,314 4,514

9,076 6,820 4,027

8,151 6,429 3,795

8,313 6,293 3,491

8,405 5,839 3,750

It should be noted that in different regions of Russia, there are different numbers of cooperatives, which is determined by the attitude of regional authorities toward this issue. The rating of various regions of Russia by the criterion of the number of functioning agricultural consumer cooperatives, compiled by Kurakin and Gusakov based on the data of the Ministry of Agriculture as of January 1, 2017, is presented in Table 2 (Kurakin and Gusakov 2018). The analysis of the data given in Table 2 allows us to conclude that, in 2017, the most successful regional program for the development of agricultural cooperation is the program adopted in the Lipetsk region. It has maintained the leading position to date. Nowadays, it implements the Cooperation Development Program, including a set of measures for the development of ACC until 2020. In 2019, the Competence Center (CC) in the field of agricultural cooperation, was created (the OBU “Competence Center of the AIC of the Lipetsk Region”).

Table 2 The rating of Russian regions by the number of cooperatives, as of January 01, 2017 The subject of the Russian Federation Lipetsk region Penza region Republic of Sakha (Yakutia) Tyumen region Volgograd region Transbaikal region Krasnoyarsk region Irkutsk region Krasnodar region Republic of Mordovia Khanty-Mansi Autonomous Okrug Chukotka Autonomous Okrug Ryazan region Source (Kurakin and Gusakov

Operating ACC, units

Total ACC, units

The proportion of working ACC, %

711 559 159

846 720 373

84 78 43

112 104 74 73 64 63 55 2

148 140 96 81 152 124 146 2

76 74 77 90 42 51 38 100

2

2

100

1 2018)

25

4

418

L. I. Tomashevskaya et al.

The program of the Central Committee defines assistance in organizing the marketing of agricultural cooperative products, the provision of information, consulting and methodological services, assistance in the creation and development of agricultural cooperatives, and organizational support (“SME Corporation held . . .” 2019).

5 Conclusion Thus, the above indicates that the union of production and consumer cooperatives, in essence, means the cooperation of enterprises operating at various stages of the technological chain, and are an example of vertical cooperation (or vertical integration), which, in modern conditions prevailing in Russia’s agricultural sector, will surely contribute to improving the economic and social efficiency of cooperatives. For achieving short-term economic goals and the SDGs, it seems advisable to intensify activities aimed at implementing programs that ensure the development of synergies between production and consumer cooperatives in agriculture. Acknowledgements The authors want to express their gratitude to the Deputy Minister of the Ministry of Agriculture of the Republic of Bashkortostan for the opportunity to freely use scientific and practical information on the development of the cooperative movement in Russia, the Chairman of the Council of the Central Union of the Russian Federation, and the Chairman of the Council of the Bashpotrebsoyuz for assistance in the development of the scientific research in the field of cooperative movement.

References Bychenkov, V.M.: New philosophical encyclopedia. Mysl, Moscow (2001) Dashkovsky, I.: Cooperation on paper. Why are there no cooperatives of European sizes in Russia? Agrotechnics and technology, 14 May 2019. https://www.agroinvestor.ru/regions/article/ 31727-kooperatsiya-na-bumage/ Gazeta.ru: SME corporation held a training seminar for agricultural producers in Lipetsk (2019). https://www.gazeta.ru/business/news/2019/06/18/n_13107655.shtml Kanakina, V.A.: Development of cooperation in Russia. Molodoy Uchenyy, p. 21 (2014). https:// moluch.ru/archive/80/14539/ Kurakin, A., Gusakov, T.: Agricultural cooperation in Russia and abroad. Agrotechnics and technology, 25 January 2018. https://www.agroinvestor.ru/opinion/article/29287selskokhozyaystvennaya-kooperatsiya-v-rossii/ Reisberg, B.A., Lozovsky, E.B.: Contemporary Economics Dictionary. INFRA-M, Moscow (1999) Salvatori, D.: The 7th annual world cooperative monitor is now available (2018). http://monitor. coop/en World Cooperative Monitor: Exploring the cooperative economy (2018). https://monitor.coop/ sites/default/files/publication-files/wcm-2018en-1276015391.pdf

Consumer Cooperation in the Socio-Economic Infrastructure of Rural Areas Alsu R. Nabiyeva

Abstract The relevance and novelty of the topic is argued by the great state significance of using the potential of consumer cooperation in the socio-economic infrastructure of rural areas and the formation of food resources in the context of sanctions and embargoes. The novelty of the study is determined by the fact that the need to use the potential of consumer cooperation in the procurement of agricultural products in households, in improving the efficiency of small forms of farming is further argued. Harnessing the potential of consumer cooperation stimulates the creation of a competitive environment among agricultural producers. The article defines the role and place of consumer cooperation in ensuring food security, the organization of agricultural procurement, procurement activities of consumer societies.








Keywords Consumer cooperation Socio-economic infrastructure Food security Peasant (farmer) households Households Consumer cooperatives Vertical cooperation Consumer societies Product Sales Competition Agricultural products Product sales channels
























1 Introduction The concept of economic and social development of consumer cooperation of the Central Union of Russia envisages the expansion of the participation of consumer societies in solving the problems of socioeconomic development of rural territories and their participation in solving problems of food security. Also, this concept involves the expansion of the participation of consumer societies in the organization of procurement activities in the field of harvesting of agricultural products in personal subsidiary and private farms, as well as among individual entrepreneurs of A. R. Nabiyeva (&) Kazan Cooperative Institute (Branch) of the Russian University of Cooperation, Kazan, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_44

419

420

A. R. Nabiyeva

small agricultural businesses. At the same time, participation in the procurement of agricultural products involves participation in the subsequent processing of purchased products and supplies to the reserve food fund to ensure the food security of the country. In order to effectively implement the concept, it is necessary to improve the current legislation on the relations of consumer cooperation enterprises, consumer societies, and unions with government bodies. The purpose of the work is to identify and characterize the features of the participation of consumer cooperation in the development of the socioeconomic infrastructure of rural areas. Also, the goal is to identify and characterize the participation of cooperative organizations, consumer societies, and unions of the Centrosoyuz of the Russian Federation in the formation of the country’s food resources and the implementation of the concept of consumer cooperation in raising the level of the rural population.

2 Materials and Methods The methodological basis of the study was general scientific methods, as well as the works of Russian scientists studying the activities of consumer cooperatives in the rural territory, and the system of formation of food resources in solving the country’s food security problems.

3 Results In the process of researching various areas of consumer cooperation in the rural territory and in the system of solving food security problems, the specifics of the functioning of consumer societies of the Centrosoyuz of the Russian Federation are disclosed. Mechanisms for improving the procurement of agricultural products in households and peasant (farmer) households are proposed. Suggestions for more efficient use of the potential of cooperative organizations, available resources, and forms of cooperation in expanding the food market have been developed. Also, proposals for enhancing cooperative entrepreneurship in organizing the procurement and processing of agricultural products and raw materials have been developed.

4 Discussion The economic development of consumer cooperation provides for the strengthening of the ties of consumer cooperation organizations with agricultural producers, especially with peasant (farmer) households. In the concept of economic

Consumer Cooperation in the Socio-Economic Infrastructure …

421

development of consumer cooperatives, the main concept of the socioeconomic activities of cooperatives, consumer societies, and unions in the development of rural infrastructure is formulated. The concept determines the promising work of consumer cooperation of the Centrosoyuz of the Russian Federation in the rural territory to create favorable conditions for the sale of agricultural products produced by households and peasant (farmer) enterprises. The existing potential of consumer societies and unions can greatly increase the degree of service to agricultural producers, especially small forms of management, in the direction of organizing procurement activities and trade in products. In particular, this can be ensured through the development of public catering. Also, consumer societies and unions potentially can popularize the benefits and values of cooperative forms and principles. Regarding the prospective development of the procurement and processing sphere of activity of cooperative organizations in the country, there is solid potential for agricultural products produced by households, individual entrepreneurs, and peasant (farmer) enterprises. Thus, households produce about 23 million tons of potatoes, more than 2.1 million tons of cattle and poultry for slaughter in slaughter weight, over 13.1 million tons of milk, and 8.5 billion eggs per year. From 1992 to 2017, household vegetable production increased from 5.5 to 10.3 million tons (almost double), and the production of fruits and berries increased from 2.0 to 2.1 million tons, or by 5% (Table 1).

Table 1 The trend of production and cultivation of the main items of agricultural products in personal subsidiary farms of Russia (million tons) Name

Years 1992 2000

2005

Potatoes 29.9 26.9 25.0 Vegetables 5.5 8.1 8.4 Fruits and berries 2.0 2.3 1.9 Cattle and 2.9 2.5 2.6 poultry for slaughter (in slaughter weight) Milk 14.8 16.4 16.1 Eggs, billion pcs 11.2 9.8 9.5 Wool (in physical 57 23 27 weight), thousand tons Source: Edited by the author according to

2010

2013

2014

2015

2016

2017

2017 in % to 1992

17.8 8.7 1.8 2.6

24.8 10.2 2.3 2.3

25.3 10.8 2.3 2.2

26.1 10.8 2.2 2.2

24.2 10.8 2.5 2.1

22.8 10.3 2.1 2.1

76.2 187.3 105.0 72.4

16.0 9.0 29

14.7 8.7 27

14.5 9.0 28

14.1 8.8 27

13.5 8.6 26

13.1 8.5 27

88.5 75.9 47.4

the Ministry of Agriculture of Russia

422

A. R. Nabiyeva

Consumer cooperation occupies an important place in the infrastructure of the country’s national economy. Since the country’s appearance on the economic field, cooperation in Russia has always had an economic focus on the formation of food resources to ensure food security and participation in the development of the domestic food market. In the Russian national economy, from the moment of its inception, cooperation has been perceived and formed as an institution for the development of a community in the field of economic production and socioeconomic consumption. Special forms of economic relations were formed in the economy of cooperative associations. These economic relations coordinated and accumulated the partners of production into a single whole to achieve the final result of economic activity. The first cooperative formations in the economic infrastructure of Russia were presented in the form of various areas of activity and the specialization of cooperatives. These were such cooperatives as production as well as cooperatives in the service sector, including consumer and credit, supply and trade, construction, housing, and others. As the process of cooperation developed, new cooperatives with certain specializations arose. In accordance with the social division of labor and the demands of practice, new types of cooperative partnerships arose. Cooperative forms and principles of cooperation, which found support in labor collectives, increasingly penetrated production processes. In rural areas, agricultural cooperatives are widespread. Their main goal was the production of agricultural products and other types of food products. Material and technical resources were used more efficiently in cooperatives. In some large agricultural production cooperatives, artels specializing in the production of certain types of agricultural products, carrying out its processing and sale, organized. In the field of consumer cooperation, savings and loan partnerships were organized, and credit banks and associations were created in many regions of Russia. In turn, public funds appeared in the system of credit cooperatives, which contributed to the economic development of cooperation partners. In Russia, the development of the cooperative movement is most actively observed after the peasant reform of 1861. In a number of communities, production partnerships were organized that, through their activities, updated and improved the economic situation of the peasantry. In relation to modern conditions of Russia, consumer cooperation can be very popular and provide significant assistance in organizing the marketing of agricultural products produced by peasant (farmer) enterprises. An analysis of the development of peasant (farmer) farms in Russia shows that from 1992 to 2017, they multiplied the production of crop and livestock production. For example, cereal crops expanded, grain production increased by more than 17.7 times, and the volume of sugar beet cultivation increased by 11.8 times. Vegetable production in the open field increased 67.9 times, and production of marketable potatoes increased 8.2 times, milk production increased 9.6 times, livestock and poultry production for slaughter increased 3.8 times, egg production increased 19.4 times, and wool production increased 15.0 times (Table 2).

Consumer Cooperation in the Socio-Economic Infrastructure …

423

Table 2 The trend of growing the main types of agricultural products by peasant (farmer) enterprises* in Russia (thousand tons) Name

Grain (in weight after refinement)

1992

Years 2000

2005

2010

2013

2014

2015

2016

2017

2017 to 1992, times

2,232

5,513

14,272

13,339

22,749

26,600

27,517

33,388

39,425

17.7

Sugar beet

512

690

2,232

2,419

3,892

3,454

4,147

6,018

6,032

11.8

Sunflower seeds **

180

567

1,772

1,413

2,870

2,491

2,717

3,400

3,299

18.0

Potatoes

307

375

802

1,175

2,052

2,365

2,895

2,654

2,510

8.2

Vegetables

78

263

781

1,388

2,094

2,101

2,427

2,379

5,296

Cattle and poultry for slaughter (in slaughter weight)

56

80

119

210

236

263

279

290

301

Milk

248

568

981

1,484

1,804

1,918

2,035

2,195

2,391

Eggs, million pcs

24

141

260

303

300

321

369

444

465

Wool (in physical weight)

1.4

2.2

9.6

14

18

19

19

21

21

67.9 3.8

9.6 19.4 15

* Including individual entrepreneurs ** From 2013, measured in weight after refinement Source: compiled by the author according to Rosstat

In Russia, cooperation was often perceived as an economic form of restructuring society. Cooperative ideology carried a moral orientation, a desire to achieve social justice in economic relations. N. V. Vereshchagin is one of the first organizers of cooperatives in Russia. He organized a cooperative dairy farm in the country. Other followers of the cooperative movement, S. F. Luginin and V. F. Luginin, were pioneers in the preparation of the charter of a credit partnership of peasants in 1865. Financial support was needed to expand cooperative activities. The consequence of this was the creation in Russia of a cooperative bank called the Moskovskiy Bank in 1912. Positive indicators of cooperatives have attracted the attention of various segments of the population in society. The economic role of cooperation was affirmed by the experience of various cooperatives and loan and savings banks, shaped by and in practice showing the effective results of cooperatives. At the beginning of the twentieth century, in Russia, consumer cooperation developed and strengthened, reaching one of the leading places in the national economic and social life of the state. In those years, at the disposal of consumer cooperation, there was significant property at that time, both inside Russia and abroad. Consumer cooperation has

424

A. R. Nabiyeva

retained its very significant role in the economic life of the country both after the revolution of 1917 and during the NEP, fulfilling responsible functions to ensure food security of the country. In 1918–1919, state authorities instructed organizational forms of consumer cooperation to purchase food products, form state food resources, and distribute food products among the Russian population. According to the decision of the government of the country, since 1935, the activities of consumer cooperatives were transferred to rural territory. In addition to the procurement of agricultural products for state needs, consumer cooperation was instructed to equip the socioeconomic infrastructure of the countryside at the expense of their own profit. In addition, the government provided financial cooperation in the form of loans to consumer cooperatives. In practice, consumer cooperation functioned as part of the structure of the national economy, while maintaining a cooperative form in the country’s economic system. Currently, consumer cooperation is guided in its activities by the provisions of the Law of the Russian Federation entitled “On Consumer Cooperation in the Russian Federation” of June 13, 1997 (Russian Federation 1997) and April 28, 2000 (Russian Federation 2000). Decision of the Government of the Russian Federation of January 7, 1999 No. 24, “On Enhancing the Role of Consumer Cooperation in Providing the Population with Food,” recorded the main directions of its activities. The Government of the Russian Federation orders state, federal, and regional authorities to support consumer societies and unions of constituent entities of Russia, including in the form of preferential tariffs for thermal and electric energy at the level of agricultural organizations. The government also prescribes granting them preferential loans for the procurement of agricultural products and raw materials (Government of the Russian Federation 1999). The area of activity of consumer cooperation in Russia is almost the entire territory of the country (about 17.1 million square kilometers). At the beginning of 2018, 21,946 municipalities, 1,758 municipal districts, 588 state districts, 19 inner-city districts, 267 cities of federal significance, 1,538 urban settlements, and 17,773 villages functioned in Russia. The number of residents of the country that received the services of consumer cooperation organizations reached 31.5 million people; 25.6 million people, or 81.0% of them, lived in rural areas (Table 3). At the beginning of 2019, in the country’s consumer cooperation system, there were 1,470,000 members of joint venture partners, and 2,197 cooperative consumer societies (including 551 in municipal areas) were functioning. Ninety-nine consumer societies operated in cities. In addition, there were 106 district consumer cooperation unions in the country. To a large extent, organizations and enterprises of consumer cooperation focused on the formation of food resources and the supply of food to the population. They developed the retail trade in food products, purchased agricultural products, developed a network of catering facilities, provided industrial processing of agricultural raw materials, and produced semi-finished and

Consumer Cooperation in the Socio-Economic Infrastructure …

425

Table 3 The dynamics of the population in Russia, million people Year

Total

Including rural population

Share of rural population, %

1990 147.7 38.9 26.4 1995 148.5 40.1 27.0 2000 146.9 39.5 26.9 2005 143.8 38.6 26.9 2010* 142.8 37.8 26.4 2015 146.3 38.0 26.0 2016 146.5 37.9 25.9 2017 146.8 37.8 25.7 2018 146.9 37.6 25.6 2018 +, − by 1990 −0.8 −1.3 −0,8 p.p.** 2018 in % to 1990 99.5 96.7 −0.8 p.p. * According to the All-Russian Population Census. ** Percentage points Source: Compiled by the author based on Rosstat materials

other products. From 2014 to 2018, the share of purchases of agricultural products in the total volume of consumer cooperation increased by 1.9% points, from 9.9 million to 11.8 million. The share of catering also increased from 6.3% to 6.5%, or by 0.2% points, and the share of industrial production also increased from 8.6% to 10.0%, or by 1.4% points. In trade, the share of food products increased from 75.7% to 77.75%, or 2% points. The population increased the share of expenditures on food products while reducing the acquisition of industrial goods and services (Table 4). Table 4 Dynamics of the structure of the turnover of the Centrosoyuz of consumer societies of Russia, % Indicators

Years 2014

2015

2016

2017

2018

Specific weight in the total volume of work, % Retail 65.6 63.9 63.8 68.8 61.0 Purchases of agricultural 9.9 10.1 10.7 11.3 11.8 products Catering 6.3 6.2 6.2 6.4 6.5 Industrial products 8.6 9.4 9.7 9.7 10.0 Share in the turnover of trading activities, % Foodstuffs 75.7 76.7 77.6 77.7 77.7 Non-grocery goods 24.3 23.3 22.4 22.3 22.3 Source: Compiled by the author based on materials from the Centrosoyuz of

2018 +, − by 2014 −4.6 p.p. 1.9 p.p. 0.2 p.p. 1.4 p.p. 2.0 p.p. −2.0 p.p. Russia

426

A. R. Nabiyeva

A significant portion of food products is supplied to consumers through a cooperative retail network. In the system of consumer cooperation of the Centrosoyuz of Russia, there are 31,070 retail enterprises, including 29,563 stores; 23,983 or 81.1% of them operate in rural areas. In 2018, procurement organizations of consumer cooperation of the Centrosoyuz of the Russian Federation purchased 24,713 million rubles of agricultural products and raw materials from the population. In 2018, consumer cooperation organizations of the Centrosoyuz of Russia purchased 60.8 thousand tons of meat products, 217.3 thousand tons of milk, 46.6 thousand tons of potatoes, 49.8 thousand tons of vegetables, and 26.8 thousand tons of fruits (Table 5). The main suppliers of agricultural products for harvesting offices and other forms of harvesting agricultural products and raw materials are, as a rule, personal subsidiary and peasant (farm) enterprises. They produce agricultural products and need a reliable distribution channel. It should be noted that cooperative enterprises and organizations of consumer societies and unions not only purchase agricultural products but also provide various kinds of services to agricultural producers. They provide the following services: household, educational, sanatorium, production, tailoring and repair of clothes, shoes and others. Consumer cooperation of the Central Union of Russia organizes new jobs in rural areas, thereby increasing the employment of rural residents. At the beginning of 2019, 114,950 people worked in the consumer cooperation organization of the Centrosoyuz of Russia, including 49,983 (43.5%) who worked in trade, 15,050 (13.1%) in catering, 629 (0.5%) in procurement, 17,013 (14.8%) in industry, and 525 (0.5%) worked in domestic services. There are 3,810 enterprises in the Centrosoyuz of Russia, including processing plant structures and modules. In particular, 3,654 workshops specialize in the production of food products, 1,331 bake bread and bakery products, 95 produce sausages, 41 produce canned goods, and 837 produce confectionery. In recent years, workshops for the production and processing of soft drinks, milk, dairy products, animal and vegetable oil, pasta, and convenience foods have been successfully operating in a number of consumer society unions. In recent years, the material and technical bases of a number of constituent entities of the Russian Table 5 Trends in the size of harvesting of agricultural products and raw materials by consumer societies of the Centrosoyuz of Russia, thousand tons Name

Years 2014

2018 in % to 2014 2015

Meat 69.5 64.7 Milk 251.2 221.9 Potatoes 64.1 52.6 Vegetables 70.2 57.8 Fruit 44.5 39.1 Source: Edited by the author according

2016

2017

62.3 58.3 219.8 225.1 51.3 52.7 53.6 52.5 31.3 28.8 to the Centrosoyuz of

2018 60.8 217.3 46.6 49.8 26.8 Russia

87.5 86.5 72.7 70.9 60.2

Consumer Cooperation in the Socio-Economic Infrastructure …

427

Table 6 Trend in the number of food production workshops in the Centrosoyuz of Russia, units Indicators

Years 2014

2018 in % to 2014 2015

2016

2017

2018

Total workshops 4,482 5,248 4,724 4,439 3,810 85.0 Including bakery 1,641 1,806 1,648 1,579 1,331 81.1 Sausage 173 165 131 124 95 54.9 Canning 54 53 42 36 41 75.9 Confectionery 876 1,178 1,063 973 837 95.5 Milk processing 24 26 25 25 13 54.2 Making pasta 117 102 88 77 56 47.9 Semi-finished 610 1,035 942 908 742 121.6 products Including dumplings 235 385 386 382 324 137.9 Source: Compiled by the author based on materials from the Centrosoyuz of Russia

Federation have been strengthened. So, from 2014 to 2018, the number of workshops for the production of food products made from agricultural raw materials purchased from the population increased significantly. For example, the number of workshops for the production of semi-finished products increased from 610 to 742, or by one fifth, including the number of workshops for the production of dumplings, which increased from 235 to 324 or almost 38% (Table 6). Consumer cooperation organizations and enterprises produce and supply to consumers with a wide assortment of various kinds of food and industrial goods, including more than 100 items through their own retail distribution network. Foods such as various varieties of bakery products, made from natural products without various additives, sausages, and confectionery are in high demand among the population. Canned plant and animal origin and drinks of own production do not lie Table 7 The trend in the volume of food production in the consumer cooperation system of Russia, thousand tons Name

Years 2014

2015

2016

Bread and bakery products 384 349 330 Sausages 7.5 5.2 4.6 Confectionery 32.8 29.9 28.2 Canned, millions of 22.4 24.6 23.6 standard cans Soft drinks, mln dl 5.4 5.1 4.8 Source: Edited by the author according to the materials of

2017

2018

2018 in % to 2014

306 3.7 26.6 25.9

284.4 3.6 24.5 21.3

74.1 48.0 74.7 95.1

4.1 4.1 75.9 the Centrosoyuz of Russia

428

A. R. Nabiyeva

on the shelves of cooperative stores. Cooperative organizations supply residents of cities and villages with wild products, including wild mushrooms, berries, and nuts. In 2018, in consumer cooperation, 284.4 thousand tons of bread and bakery products, 3.6 thousand tons of sausages, 24.5 thousand tons of confectionery products, more than 21.3 million standard cans of canned food of plant and animal origin, and more was produced and delivered through a cooperative distribution network to the public (Table 7).

5 Conclusion Consideration of consumer cooperation of the Centrosoyuz of Russia from the point of view of its place and role in ensuring food security shows that it has significant potential. Using the potential will increase the purchase of agricultural products in small forms of farming in the agricultural sector, thereby increasing the marketability of agricultural products of small producers. At the same time, ensuring a reliable sales channel for products will help increase production volumes, increase rural employment, and reduce unemployment. During the period of the mass harvesting of surplus agricultural products from the population, the procurement organizations of consumer societies in municipalities can attract a significant number of residents of the territories for seasonal work. Growth in agricultural product purchases will make it possible to fully load the capacities available in cooperatives for salting vegetables, processing agricultural products, and storing those products. With the onset of a more favorable period in the market, agricultural products can be sold through their own cooperative trading network not only in rural settlements but also at weekend fairs in cities and industrial centers. One of the directions of involving the rural population in labor activity is its use in the seasonal period when harvesting wild plants and pharmaceuticals. Consumer societies and unions fulfill an important socioeconomic mission in the infrastructure of the country’s national economy. The country’s consumer cooperation system, led by the Central Union of Russia, makes a significant contribution to the formation of food reserves, ensuring their procurement, processing, and sale to the consumer through their own widely developed trading cooperative network. Along with this, consumer cooperation provides a reliable channel for the oncoming movement of food and industrial goods between the city and the village. Consumer cooperation plays an invaluable role in the development and improvement of the socioeconomic infrastructure of the village, helping to improve the quality of life of the rural population and reviving the Russian village.

Consumer Cooperation in the Socio-Economic Infrastructure …

429

References Government of the Russian Federation: Decree of the government of the Russian Federation “On increasing the role of consumer cooperation in providing the population with food” (7 January 1999 No. 24), Moscow, Russia (1999) Russian Federation: The law of the Russian Federation “on consumer cooperation (consumer societies, their unions) in the Russian Federation” (11 July 1997 No. 97-FZ), Moscow, Russia (1997) Russian Federation: Federal law “on amendments and additions to the law of the Russian Federation” “On consumer cooperation (consumer societies, their unions) in the Russian Federation” (28 April 2000 N 54-FZ), Moscow, Russia (2000)

Cooperation as a Sociocultural Factor in the Development of Rural Territories: A Conceptual Model Adigam A. Barlybaev , Inna A. Sitnova , Ildar M. Rahmatullin , Venera T. Saitbatalova , and Azamat A. Barlybaev

Abstract Nowadays, cooperation in rural areas, in some regions in the Republic of Bashkortostan, has received a specific impetus for development due to state support. The effect of this support would be more complex and massive if we approach the cooperative movement not only as an economic but also as a sociocultural phenomenon. Such an approach to its development was laid down by the founders of the theory of cooperation. There is an urgent need to develop it concerning modern realities. The paper focuses on two aspects of this problem. The first aspect lies in need to rely on the socio-cultural characteristics of the area and the socio-cultural expectations of the local population. Otherwise, cooperative undertakings will not be accepted and supported by the population, and may even cause opposition from their groups. Another aspect is the role of the cooperative movement in the formation of a new socio-cultural environment favorable for the economic development of rural territories. The study is aimed at developing a conceptual framework for studying the aspects of cooperation mentioned above, which could further serve as a methodological basis for empirical research in this area based on local materials, as well as for developing practical recommendations on increasing the mass, social, cultural and economic effects of the cooperative movement for rural development terrain.

A. A. Barlybaev (&)
I. A. Sitnova
I. M. Rahmatullin
V. T. Saitbatalova Sibay Institute (Branch) of Bashkir State University, Sibay, Russia e-mail: [email protected] I. A. Sitnova e-mail: [email protected] I. M. Rahmatullin e-mail: [email protected] V. T. Saitbatalova e-mail: [email protected] A. A. Barlybaev Institute for Strategic Studies of the Republic of Bashkortostan, Ufa, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_45

431

432

Keywords Rural areas environment

A. A. Barlybaev et al.


Cooperation
Interests
Institutions
Sociocultural

1 Introduction Currently, the problem of degradation of rural territories has become extremely relevant, and its solution is one of the priority tasks of the current stage of development of the state. The socioeconomic problems of rural areas are caused by a whole range of factors and conditions. Regarding essential factors that form negative trends in the socioeconomic development of rural areas, we can name, in particular, the processes of isolation, atomization, and fragmentation. These elements are steadily developing in territorial communities and are accompanied by an ever-increasing prevalence of private selfish interests over shared interests. Local rural communities are subject to an ongoing process of segmentation according to the type of economic activity, social status, economic status, and other features. Respectively, there is a growing variety of individual and group interests. The differentiation of the population is deepening in terms of welfare, type and form of employment, level of economic independence, and type of economic behavior. All of these factors actualize the problem of studying the interaction of socio-cultural and economic aspects of rural development. The mass involvement of the local population in general activities for everyone’s benefit is primarily due to the gradual and purposeful revival and strengthening of local communities. Here, we take into account modern realities, creative motivations among people, solidary relations, self-organization, and self-government. An analysis of the challenges of creating a cooperative rural economy should be approached, in our opinion, in the context of these great and systemic changes in territorial communities and the behavior of rural residents.

2 Materials and Methods Nowadays, with the unprecedented decline of the authority of economic science in the world, there is increasing interest in interdisciplinary research that assumes the economy is integrated into social and spiritual life. Understanding the causes of many fundamental economic problems, as well as how to solve them, requires understanding them as manifestations of social and cultural processes and contradictions that have arisen through the development of society and specific communities. The study of economic phenomena in this context has a long tradition. The German historical school made the most significant contribution to its development (Hildebrand 1860; Schmoller 2012; Weber 1990), as well as traditional institutionalists (Veblen 2003; Commons 1934; Mitchell 1969; Polanyi 2010).

Cooperation as a Sociocultural Factor in the Development …

433

Representatives of the historical school interpreted the national economy not as a sum of individuals, but as a whole whose parts are in constant interaction with each other. Accordingly, the life of such a whole is governed by special laws that differ from the laws that govern the life of individual subjects. In such a paradigm, man is a cultural being oriented towards social values, and economic science is not “the natural doctrine of human egoism,” but “moral science” (Hildebrand 1860). The interpretation of economic entities not as rational optimizers, but as those following the rules of behavior and social norms acquired in society, meant examining economic activity as growing from historically developed social, cultural, and political conditions. People act in society, and their motivation, preferences, and behavior in the economic sphere are culturally determined phenomena. Moreover, as many prominent representatives of the old institutionalism claimed, this relationship is mutual. Thus, Mitchell wrote: “Economic activity is always significant in the formation of all possible habits of thinking and action that together create a culture” (Mitchell 1969). Representatives of the doctrines alternative to utilitarianism saw the main task of economic science not in forecasting and prediction, but in understanding the function and development of the economic system as an integral part of society as a whole. At the same time, they denied the mechanistic approach to economics as an equilibrium system and presented the economy as an evolving system subject to the principle of “cumulative causality,” where economic development is the result of the interaction of various factors that reinforce each other. In general, the views of Russian scholars have traditionally been distinguished by a deeper understanding of the conditionality of economic processes by historical, social, cultural, and moral factors and conditions. Storch, the first academician among Russian economists, in his famous “Course of Political Economy” (1815), analyzed immaterial capital along with material capital, proving their perfect similarity and equal importance from the standpoint of achieving the well-being of people. By stale capital or “civilization,” Storch understood “internal goods (values),” or “all intangible products of nature and human labor,” which have utility and form the moral property of a man. He divided internal goods into primary and secondary. He ranked the primary abilities of people and everything that serves directly for their development: health, education, culture, customs, tastes, morality, and religion. In other words, this is human capital, which plays a significant role in increasing the country’s wealth. Secondary goods are not directly related to human abilities, but they are necessary for the preservation and development of the latter; without them, the very existence of primary goods is impossible. Secondary benefits include the leisure of people and safety in society (Pavlov 1997). After the victory of marginalism in economic theory, the sociocultural environment as a factor in economic development has practically disappeared from the studies of economists and only from the end of the twentieth century. We observe their growing interest in the study of this problem. To a large extent, this interest was generated mostly by unsuccessful attempts to solve the most acute social and economic problems of Third World countries, and then of the former socialist

434

A. A. Barlybaev et al.

countries, based on ideas about the economy and well-being of people arising from the neoclassical theoretical system. In recent years, several works by foreign authors review the existing research in the field of interaction between the economy and the socio-cultural environment, which greatly facilitates our task of analyzing the current state of research in this area and generalizing the results. Among the most important and valuable books are Culture in Economic Science: History, Methodological Reasoning, and the Areas of Practical Application in the Present and Culture Matters. All approaches to the study of the interaction of the sociocultural environment and the economy can be divided into three main groups. The first group of researchers preserves a neoclassical economic model of behavior, and sociocultural factors are considered as exogenous concerning the economic system. In this case, they can only have a positive (productive values and norms) or negative (unproductive values and norms) impact on the economy, changing preferences, creating restrictions, and conditioning habits, ideas, and traditions. This approach, dating back to Weber, is inherent, in particular, to representatives of the new institutional economy (Coase 1993; North 1997; Williamson 1996). The second approach is characterized by the integration of sociocultural factors and the economy into a single whole—a common system. This desire comes from two opposing positions. The first position, anthropological, includes economics in the sociocultural system—considering the human world as a system of meanings that permeate all its components and defines them as components of a single historical type of society. The economic behavior of people is governed by fundamental social values and norms that extend their influence to all aspects of public life (Polanyi 2010; Zaslavskaya 2003; Kirdina 2004; Kleiner 2004; Bessonova 1997; Bowles 1993; Hodgson 2003). Contrarily, the second position, economic imperialism, seeks to explain noneconomic phenomena based on the principle of rationality and alternative analysis. It is believed the principles and methods of neoclassical economic theory are of universal importance, and political, social, and cultural phenomena, as well as changes in them, should be evaluated regarding rationality. Our study is aimed at deepening the understanding of this fundamental phenomenon in the experience of studying cooperation development.

3 Results The current socioeconomic state of the predominant part of rural Russia poses severe risks of national importance since the growing process of depopulation and the desolation of vast territories leads to the loss of control over them. The existing approach to the formation of territorial economic complexes focusing on the seizure of natural rents and surplus-value fundamentally contradicts the goals of a balanced and integrated development of the area. The main goal of economic development should be the well-being and comfort of the people, who have a whole variety of

Cooperation as a Sociocultural Factor in the Development …

435

reasonable needs and interests. All available local resources, first of all, should serve as the foundation for the social and economic development of the territory and local communities and the growth of the population welfare. The whole set of factors determining the development of the local economic complex and the countryside as a whole can be grouped into five main areas that are closely interconnected and complement each other. The first factor is the level of knowledge and technology used in the local economy. First of all, we are talking about agriculture and related industries and spheres, various trades, and crafts. The situation here is ambiguous and even controversial. Thus, the mass introduction of the Internet and the latest information technologies into the lives of the villagers opens up vast opportunities for their self-education and the intensification of the information-exchange process for diversification of the rural economy. Market and state support of entrepreneurship, including farming and cooperation, expand access to innovation, modern production, organizational technology, and other technologies. However, on the other hand, we are witnessing a gap in the processes of the intergenerational transfer of experience, knowledge, skills in housekeeping, and ensuring continuity in trades and crafts. This gap catastrophically increases due to the growing share of rural households that do not carry out family production activities, the outflow of youths from rural areas to cities and industrial regions, the rejection of the current Soviet era, and the positive practice in many respects of combining school education with production training. Broadly, the essence of this problem lies in the growing imbalance between explicit and implicit knowledge, which was first investigated by M. Polanyi. He substantiated the existence of the “implicit” component of knowledge, which is not officially recorded in writing, in speech, etc. but is embodied in the personality itself and is inseparable from the person. These are his beliefs, values, skills, dexterity, mastery—all that cannot be wholly conveyed to another using words and cannot be taught only through oral and written texts (explicitly). All this is inseparable from the person’s personality, which can be mastered by other persons during personal contact, long-term joint activity, and intensive communication processes (implicitly) (Polanyi 1998). Ethical standards, cultural values, professional excellence, a conscientious attitude to work, and professional duties can be formed and developed only within the framework of a specific community, closely related by common or interdependent interests and goals, located in a single communication space and constituting certain integrity. If we apply this idea to the problems under study, we can recognize that rural cooperation is precisely called to act, in our opinion, as one of the communities making it possible to direct the evolution of local sociocultural processes in a positive direction. An essential factor in the development of the local economy is a complex of specific territorial conditions and factors in a complex relationship with each other. Any territory has various, partly exclusive, resources and unique products produced only in this area, as well as favorable climatic, social, and other conditions for the mass production of specific products or services that comprise its competitive

436

A. A. Barlybaev et al.

advantages, which are the basis of social and economic prosperity and the well-being of the population. People in the village who are still competent in specific sectors or activities are sufficiently motivated in all respects—economic, social, and personal—to realize their entrepreneurial, creative, and labor potential to the fullest. However, the degradation of the human and industrial potential in many territories and the declining availability of public goods is accompanied by a slowdown in the dissemination of positive experiences, practical knowledge, and effective technologies. This also limits the revival, recreation, and development of various industries, folk trades, and crafts. Cooperative forms of management can play a catalytic role in reformatting this situation in order to radically change the vector of local and regional economic policies of the state. The next factor of territorial development, interests, encourages people to take action, assess the effectiveness of their activities, and ensure the sustainability of economic ties and relations. Interests are a multilevel phenomenon. At the superficial level, interests are benefits that can either be derived independently or gained through entering into economic relations structured by a combination of formal and informal institutions. These formalized or instrumental interests create a “carrot and stick” mechanism, that is, economic sanctions and incentives that are integral to the functioning and development of any economic system. However, apart from incentives and sanctions, that is, instrumental interests, one should also single out primary interests, or goals, which are the vector of economic activity of subjects that is determined by cultural values rooted in their consciousness, thinking, behavior, ethical norms, mental and psychological constructions, and habits. This deep level of interest is the result of a system of upbringing and training, opinions, and beliefs that have developed in the individual during long-term socialization and communication activities in a particular social environment. It is essential to give people the creative energy of positive internal motivation, based not so much on rational egoism but on ideas, beliefs, duty, dedication to the profession, etc. This implies the consolidation of local society around a leader or group of leaders who are ready and able to take on the representation of the fundamental interests of this integrity, which is designed to integrate actions into a single process of “creative evolution.” The fourth factor that determines the development of the local economic complex is the economic and social institutions that shape its internal and external institutional environment. The dynamism and quality of territorial development are determined, first of all, by the extent to which people in their places of residence get an opportunity for creative work that allows the full realization of their talents and abilities and also the continuous improvement of their living conditions and economic and labor activities. In other words, it requires the formation of an institutional mechanism for consolidation and cooperation at the local level, which, according to Commons, can be called “collective action in control, liberation, and expansion of individual action.”

Cooperation as a Sociocultural Factor in the Development …

437

Under the existing institutional system, horizontal (network) ties are suppressed by vertical (administrative, or hierarchical) ties, centralized resource distribution dominates, and monopolism and corruption are developed. As a result, long-term creative strategies for the development of territories due to the effective use of local resources, potential, and opportunities were replaced mainly by short-term incentives of a distributive nature: the desire to increase subventions, subsidies, preferences, privileges, etc. The formation of a cooperative system of economic relations between all participants in economic processes in rural areas—the population, entrepreneurs (farmers), local authorities, etc.—and state structures involves significant changes in the economic, legal, and social status of the latter, their role functions (political, economic, administrative), and the management system. On the other hand, the kinds of implicit values and norms that formal institutional structures rely on and how much they harmonize with the informal social order that has historically developed and is rooted in the life of the community determines the nature and depth of their impact on the economy (Barlybaev 2003; Barlybaev et al. 2009). Hoping for a quick, substantial change in the informal institutional environment by changing formal norms or applying the methods of coercion, administration, and pressure because of the “dependence on historical trajectory” effect is not worth it. The behavior of subjects of economic relations is determined by their place in the local hierarchy, local (clan, corporate) interests, culture, and beliefs. Therefore, the sociocultural environment of any territory cannot be represented as a monolithic unity; it consists of various coexisting local cultures or subcultures. It is not uncommon for countercultures to appear when the carriers of a particular subculture are opposed to the carriers of the culture that dominates the community and seek, in one way or another, to reject its dominant role and leadership status.

4 Discussion The interpretation of cooperation as a sociocultural phenomenon involves the consideration of its essence at two levels. The first level is superficial; that is, these are formal norms and rules that structure and regulate joint economic activities in rural areas. The second one is basic, that is, rooted in the consciousness, thinking, and behavior of the villagers, their cultural values, ethical standards, and mental and psychological constructions of solidarity. Ignoring the base, that is, sociocultural, the level of the essence of cooperation determines the inadequacy of the interpretation of its content and leads to converted ideas about the goals of the formation and development of the cooperative movement in the country. This is indicated, in particular, by negative and common in practice aspects, such as the underestimation of the role of common interests, local communities, and initiatives in modernizing the economic complex of local rural territories; the act of ignoring fundamental cultural values and ethical standards that

438

A. A. Barlybaev et al.

have a decisive influence on the motives of human behavior; and the exclusion from the target settings of cooperation of such systemic qualities that are important for productive joint activity, such as cohesion, cooperation, debt, mutual network responsibility and support, and trust relations. It is essential to take several measures to create a sociocultural environment and a holistic mechanism for the development of the local economy, contributing to its technological and institutional modernization based on a systematic, balanced, consistent, and purposeful implementation of the basic interests of society, the state, territorial communities, and their population. They include: (1) comprehensive support and assistance from the state of those projects aimed at the formation and development in rural areas, along with cooperatives and networks of self-governing non-governmental organizations: partnerships, non-profit organizations, associations, etc.; it is important that under the increasing influence of horizontal connections, corporate values, and implicit knowledge, conditions are created for a more transparent and complete awareness and the institutionalization of fundamental individual and collective interests; it is also important to uphold them at all levels of the institutional space; (2) the reorganization of the system of state management of rural development with a shift in the focus of its activities from administrative and supervisory functions to informational, advisory, and functional ones; (3) the development of financing socially significant projects and infrastructure projects at the local level on an equal footing; this can be implemented through the Fund for Supporting Collective Initiatives of Citizens and Similar Structures; (4) reformatting state support for the rural economy in order to direct the vast majority of budget financing to the development of small forms of economic activity carried out by the local population and their cooperation.

5 Conclusion As the historical experience of Russia and foreign countries shows, cooperation has always played an invaluable role in the progressive transformation of rural areas. However, cooperation as a formal structure and formal institution cannot be an effective factor in positive changes if it does not form positive fundamental values, social norms, and trust in relations in rural communities. With weakness and immaturity of the primary social regulators, including economic relations of a sociocultural nature, it is rarely possible to reach compromises—a consensus in coordinating the multidirectional and conflicting interests of rural residents and participants in cooperation. Ignoring the interests of each other and the community as a whole ultimately turns into a gross suppression of the interests of the majority by the minority, which leads to the fact that cooperation cannot implement creative

Cooperation as a Sociocultural Factor in the Development …

439

strategies, so it incurs high costs and losses. The most crucial factor guaranteeing the long-term viability and effectiveness of cooperation is the constant growth of human, cultural, and social capital of rural territories. Otherwise, a rollback to the starting lines is possible, as has happened more than once in Russian history. Acknowledgements The study was supported by the Russian Foundation for Basic Research and the Government of the Republic of Bashkortostan (project No. 19-410-020019, Sociocultural factors of economic development of territories).

References Begelsdayke, S., Maseland, R.: Culture in Economic Science: History, Methodological Considerations, and Areas of Practical Application in Modern Times. Publishing House of the Gaidar Institute, Moscow (2016) Bessonova, O.E.: The Institutions of Distributing Economy in Russia: A Retrospective Analysis. Institute of Economics and Industrial Engineering SB RAS, Novosibirsk (1997) Bowles, S.: The Moral Economy: Why Good Incentives do not Replace Good Citizens. Publishing House of the Gaidar Institute, Moscow (1993) Weber, M.: Selected Works. Progress, Moscow (1990) Veblen, T.: The Theory of the Leisure Class: An Economic Study of Institutions. Progress, Moscow (2003) Hildebrand, B.: Political Economy of the Present and the Future. Librocom, St. Petersburg (1860) Zaslavskaya, T.I.: Societal Transformation of Russian Society: Activity-Structural Concept. Delo, Moscow (2003) Kirdina, S.G.: X- and Y-Economics: Institutional Analysis. Nauka, Moscow (2004) Kleiner, G.B.: The Evolution of Institutional Systems. Nauka, Moscow (2004) Coase, R.: Firm, Market, and Law. Delo LTD, Moscow (1993) Harrison, L., Huntington, S. (eds.): Culture Matters: How Values Shape Human Progress. In: Zakharov, A. (transl.). Moscow School of Political Studies, Moscow (2002) North, D.: Institutions, Institutional Changes, and the Functioning of the Economy. Fund of the Economic Book “Beginnings”, Moscow, Russia (1997) North, D.: Institutional change: a framework for analysis. Voprosy Ekonomiki 3, 6–17 (1997) Pavlov, V.A.: Academician A. Storch: a name that has been hushed up for eighty years. Vestnik Rossijskoj Akademii Nauk 67(5), 433–445 (1997) Polanyi, K.: Selected Works. Territory of the future, Moscow (2010) Polanyi, M.: Personal Knowledge. On the Way to Post-Critical Philosophy. BGK named after I. A. Baudouin de Courtenay, Blagoveshchensk (1998) Hodgson, J.: Economic Theory and Institutions. Delo, Moscow (2003) Schmoller, G.: Justice in the National Economy. Division of Labor. Libricom, Moscow (2012) Barlybaev, A.A.: Farm Enterprises in Russia: Socioeconomic Nature and Types. Stud. Russ. Econ. Develop. 14(3), 263–268 (2003) Barlybaev, A.A., Aidarbakov, F.F., Rakhmatullin, I.M.: Development of agricultural territories during the Post-Soviet period: Institutional aspect. Stud. Russ. Econ. Develop. 20(5), 529–536 (2009) Commons, J.R.: Institutional Economics. Macmillan, New York (1934) Mitchell, W.: Types of Economic Theory: From Mercantilism to Institutionalism. Kelley, New York (1969) Williamson, O.E.: Economic organization: The case for candor. Acad. Manag. Rev. 21(1), 48–57 (1994). https://doi.org/10.5465/amr.1996.9602161564

Russian Cooperation Movement After the Collapse of the USSR: Problems and Perspectives Anton M. Tuzin, Marina V. Danilina , Leonid N. Romanchenko , Oxana V. Konovalova , and Stanislav I. Buslaev

Abstract The main purpose of this article is to consider the causes of the collapse of the late Soviet cooperative system with the collapse of the USSR and its prospects at the present stage. Having survived the crisis stage in the era of initial capital accumulation of the 1990s, Russian cooperation now has a number of successes in the field of agriculture. However, it is obvious that without solving numerous common problems of doing business in the country, including relieving in some cases profitable cooperative enterprises from appropriating a narrow circle of corrupt individuals, it will be very difficult to achieve a stable and confident growth of the cooperative movement in the country.










Keyword Cooperative movement Cooperation Legal framework Government policy Consumer cooperation




A. M. Tuzin (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] M. V. Danilina Russian Economic University, Moscow, Russia e-mail: [email protected] M. V. Danilina
L. N. Romanchenko
O. V. Konovalova
S. I. Buslaev Finance University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] O. V. Konovalova e-mail: [email protected] S. I. Buslaev e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_46

441

442

A. M. Tuzin et al.

1 Introduction Many modern economists believe that the basis of the modern economy is not only the production of more and more material goods and resources but also a kind of stimulating economic practice. In this regard, the Civil Code of the Russian Federation provides the special status for a consumer cooperative as an intermediate form, i.e., a non-profit organization having certain characteristics of a commercial one. At the same time, it is the interests of cooperative members that should prevail over its material side for profit. In fact, a cooperative is a new form and even a general paradigm of economic development as a way to extract not profit but benefits for everyone. Despite the fact that at first glance, it seems utopian in real capitalism. Moreover, in the countries of Europe, with the long traditions of capitalist relations, cooperatives not only do not interfere with the commercial sector, but coexist, forming a kind of alternative economic reality. In particular, in Germany, the creation of world-class national banks, business, and service cooperatives played a huge role in the development of the economy. Currently, more than 1,000 cooperative banks operate in the country serving 30 million customers. These banks helped private banks survive the crisis. In a broad economic sense, the cooperative movement is a way of organizing social production through the exchange of activities and products of this activity. The cooperative movement experienced a real “renaissance” in the late USSR in the late 1980s. On May 26, 1988, the Supreme Council approved Law N 8998-XI “On Cooperation in the USSR.” However, not having time to rely on, the cooperative sector was under severe pressure. Expanding the scope of freedom, the state immediately began to win back. In March 1988, even before the law was passed, the government introduced a strict tax on personal incomes of cooperators (30% in the range from 500 to 700 rubles per month, 70% from 1,000 to 1,500, 90% for all over 1,500 rubles). Boris Gostev, Minister of Finance, openly explained the reason, “There is nothing to produce speculators,” “the stratum of the rich will lead to social stratification.” As a result, since December 1988, several decrees prohibiting the creation of cooperatives in certain types of activities were issued. By the beginning of 1989, 77.5 thousand cooperatives were registered. A year later, 193 thousand cooperatives were registered with the number of employed 4.9 million people operating in all twenty sectors of the economy. Most of them were either “directorial” cooperatives that parasitized at state-owned enterprises or were engaged in reselling and cashing out money.

Russian Cooperation Movement After the Collapse of the USSR …

443

2 Materials and Methods The content analysis method was used as the leading method. Content analysis is a method of qualitatively quantitative analysis of the content of documents in order to identify or measure various facts and trends reflected in these documents. A feature of content analysis is that it studies documents in their social context. The purpose of this article is to examine the causes of the collapse of the late Soviet cooperative system along with the collapse of the USSR and the beginning of the era of “initial capital accumulation” in the 1990s. Also, the goal is to consider the development prospects of this era at the present stage.

3 Results In our country, which less than three decades ago returned to the path of capitalism after a 70–year break, a kind of “cult” of money still prevails among the heads of a large part of the population engaged in business activity. This fact is reflected in the almost complete absence of production as well as consumer cooperatives in large cities. However, in the provinces and even in large industrial regions (Tatarstan, Bashkiria, Chuvashia and a number of others), where the local elite of immigrants from the village prevails, cooperatives are given due understanding. Cooperatives help not only to maintain relatively profitable production in the “outback” but also to preserve handicrafts, the economy of the “primary sector.” This does not upset the balance and does not cause depletion of local ecosystems. In this regard, consumer cooperation has several objective advantages. Consumer cooperation helps to overcome social tensions in access to food and other essential resources of the poor, generates demand, production and sales. Most importantly, consumer cooperation is the most interesting example of a “participatory economics.” “Participatory economics” is an economic system that is based on co-financing and participation of organization members in ownership, management, and income. It is obvious that the Government of the Russian Federation should outline practical steps to search for areas where production cooperation would be able to occupy its worthy niche in the field of economics. In this regard, Gaidar, the main ideologist of the formation of Russian capitalism of the “dashing 90s”, acting Prime Minister of the Russian Federation in 1992, noted the following. “The initial accumulation of capital” occurred just in the wake of the cooperative movement in the USSR in the late 80s during the work of the governments of Nikolai Ryzhkov and Valentin Pavlov. They argue that the culture of “easy money” arose precisely with them. On the one hand, this culture led to the collapse of the Soviet monetary system. On the other hand, it turned out to be a powerful incentive for the emergence of a new class of entrepreneurs.

444

A. M. Tuzin et al.

The cooperatives could not fully find their niche in the era of late socialism. As of 1990, “80% of all cooperatives operated with state-owned enterprises, rented 60% of their fixed assets from them and acquired 2/3 of the consumed raw materials. 70% of cooperative products were sold to state enterprises” (Kanakina 2014). Thus, they actually turned into “feeders” for the layer of industrial bureaucracy, the so-called “red directors” and their close associates. According to the modern Russian researcher Valentina Kanakina, the following can be attributed to the reasons for curtailing the broad cooperative movement of the late 80s with the advent of Yeltsin and the collapse of the USSR: • Deformation of the new cooperation. The share of real cooperatives was small, mainly the private enterprises used the cooperative form; • There were contradictions between cooperatives and the population. They became competitors in the acquisition of many types of goods, which contributed to the deficit. The contradictions were also aggravated by the fact that workers in cooperatives had high earnings, and the population was accustomed to the equal distribution of incomes; • During the development of cooperation, the deformation of market mechanisms began to take place, since emerging market relations did not imply state regulation. The state began to restrain the market influence of cooperation on the public sector by introducing restrictions and raising taxes (Kanakina 2014). In addition, the forms of a market economy represented by individual private enterprises, joint-stock companies, in fact, overshadowed themselves and involuntarily replaced cooperation as a form of economic activity. Additional difficulties in the new era of the “free Russian capitalism” included any lack of a new regulatory framework for cooperative activities. To a large extent, this called into question the conduct of cooperative activities in the new post-Soviet Russia. In the 1990s, along with the lack of a legal framework, the development of Russian cooperation hindered the general crisis state of the domestic economy of that period. Given the sharp increase in inflation and the catastrophic impoverishment of the majority of the population, the demand for the products of even agricultural cooperatives has fallen sharply, not to mention production cooperatives. As a result, there was a general drop in profitability and interest in cooperative activities among economic entities themselves. First of all, this happened with the newly emerged class of small and medium individual entrepreneurs. A mass exit of shareholders from cooperative enterprises began, since a considerable part of the leaders were actually stealing the latter, appropriating the lion’s share of the cooperative’s total income under one pretext or another. Only on January 1, 1995, in accordance with the new Civil Code of the Russian Federation, consumer and production cooperatives were recognized as equal economic entities along with state and private enterprises. In 1997, the adoption of the Law “On Consumer Cooperation (Consumer Societies, Their Unions) in the Russian Federation” completed the legal framework for the activities of the

Russian Cooperation Movement After the Collapse of the USSR …

445

cooperative movement in the new post-communist Russia. It carried the social orientation of the cooperative movement as an ideological basis. By the end of the 20th century, the consumer cooperation system in Russia was represented by “more than 140 thousand enterprises engaged in trade, catering, procurement, services and other activities. Over 450 thousand people worked in its organizations” (Teplova 2005). They were united in 3,350 consumer societies and over 300 consumer unions. In the early 2010s, “the development of entrepreneurship contributed to the emergence of new types of cooperation, such as outsourcing, subcontracting, franchising, strategic alliances, consortia” (Kanakina 2014). They were used as forms of cooperation between mature, fully formed and, at the same time, fundamentally new participants in the Russian market. However, in fact, this process testified to the fact that cooperation in Russia still does not have the character of an independent niche, completely alternative to the state and private spheres of activity of economic entities. But cooperation is only a way of interaction in the first two areas. The desire of the current cabinet of D. Medvedev to stimulate cooperation precisely in the framework of agriculture also seems quite logical and justified. The collective form of management is a very promising form of management. It is not based on “voluntary-compulsory” driving of collective farms/state farms into the Soviet system, but the individual benefit of the shareholder. The collective form of management is also promising because in the 1990s, many former members of collective farms/state farms with the collapse of the USSR received large land shares from the general fund of the former agricultural enterprise. And they could not or did not want to engage in the development of land shares independently. In this regard, the modern experience of the Chernozem region, the traditional Russian granary, is indicative. So, as of 2017, in the Lipetsk region, “895 agricultural consumer cooperatives, including 570 supply and marketing and processing, 325 credit cooperatives were operating. Almost 53 thousand personal subsidiary farms became members of credit cooperatives. At the same time, even the problem of lending is solved using the cooperation mechanism. According to the regional government, the loan portfolio of cooperatives in the region (it is formed at the expense of personal savings of citizens by 51%) increased 1.5 times this year. And it amounted to 449 million rubles. 1,800 personal savings agreements worth 125.3 million rubles were concluded. This is twice as much as a year ago. Over the past three and a half years, the rural population has entrusted 230 million rubles of own funds to cooperatives. The volume of loans granted by credit cooperatives for the development of personal subsidiary plots increased to 270 million rubles and increased 1.6 times over the year” (Falyakhov 2017). Moreover, three years ago, the situation in the field of consumer cooperation in Russia as a whole was not so prosperous. According to the “Izvestiya” newspaper, in 2015, regional consumer cooperatives massively left the Central Union of Consumer Societies. They motivated their actions by the absence of benefits and supply contracts with constant monitoring and the need to pay membership fees (Nenasheva 2015).

446

A. M. Tuzin et al.

4 Discussion It is obvious that only a tough and extremely clear state policy will be able to contribute to the active development of Russian cooperation in all the diversity of its forms in the 21st century. Having survived the crisis stage in the era of the initial accumulation of capital of the 1990s, Russian cooperation now has a number of successes in the field of agriculture. However, it is obvious that without solving the numerous common problems of doing business in the country, it will be very difficult to achieve a stable and confident growth in the cooperative movement. One of these problems is the deliverance of profitable cooperative enterprises from their appropriation by a narrow circle of corrupt individuals in some cases. The so-called “horizontal” ties in the conduct of a cooperative business are also important. With such ties, participants in one or several jointly integrated cooperatives will distribute among themselves the entire business chain (from production to marketing of finished products). Robert Owen was the founder of cooperative philosophy. He proposed cooperation as an alternative to capitalist ownership. Subsequently, the ideas of cooperation received practical implementation as a new form of economic activity, including in the form of credit cooperation. Friedrich Wilhelm Raiffeisen and Herman Schulze-Delich became the founders of credit cooperation. Coming from Europe, the ideas of credit cooperation were widely implemented in the Russian Empire. But after the revolution and the collapse of the NEP, credit cooperation was completely discontinued, with the exception of mutual assistance cash registers at trade union organizations.

5 Conclusion The global cooperative movement unites more than 1 billion shareholders. In developed countries, cooperation forms an independent and significant sector of the economy. This sector serves to reduce the negative social consequences of social stratification, largely stimulated by the course of world economic globalization. It seems that in Russia, in the sphere of small and medium production, one could find a quite worthy niche for cooperation, along with the primary sector of the economy. However, in this sector, the growing influence of financial and industrial groups associated with the oligarchs is already felt at the level of average production. Moreover, it should be understood that the state is the most important “oligarch” in Russian realities. It artificially restricts free enterprise on a cooperative basis to the very narrow framework of the primary sector of the economy, or to the narrow opportunities for realizing truly broad cooperative activities in production. Obviously, in a situation where the private manufacturing sector of Russia is largely “crushed” by the state. It is the state stimulation of cooperation, including at the level of federal legislation, that would be extremely necessary.

Russian Cooperation Movement After the Collapse of the USSR …

447

In this regard, the authors of this study seem to need the following. The state must create a clear and rigid register of areas of economic activity, as well as subjects of the Federation, in which the stimulation of cooperative activities would be extremely effective. Incentives based on new incentive legislation at both the federal and local levels would also be effective.

References Falyakhov, R.: Putin is fighting the harvest: Putin held a meeting on agricultural cooperation in Voronezh. Gazeta.Ru (2017). https://www.gazeta.ru/business/2017/10/13/10934264.shtml Kanakina, V.A.: Development of cooperation in Russia. Young Sci. 21, 322–326 (2014). https:// moluch.ru/archive/80/14539/ Nenasheva, I.: The president is asked to revive consumer cooperation. “Izvestiya” (2015). https:// iz.ru/news/588560 Teplova, L. E.: Consumer cooperation during the Soviet period (1917–1990). In: Teplova, L.E. (ed.), Economic Theory (2005). Infra-M, Moscow. https://textbooks.studio/ekonomicheskayateoriya-uchebnik/potrebitelskaya-kooperatsiya-period-sovetskoy.html

Foreign Economic Risks in the Conditions of the Eurasian Economic Union Marina S. Arabian , Roman V. Danilov , Dmitriy S. Usov , Irina V. Minchenckova , and Svetlana G. Tretyakova

Abstract The creation of the Eurasian Economic Union (EAEU) is the result of many years of efforts and hard work of experts, scholars, government, public, and business circles from the post-Soviet countries. Even though the project is based on rich traditions of historical and other ties, as well as significant experience in cooperation in the economic, social, and humanitarian spheres, there are a sufficient number of reasons and factors that restrain and slow down the expansion and development of the EAEU. This paper analyzes some of the main problems and risks that accompany the formation and functioning of a new integration association in contemporary conditions.










Keywords Eurasian Economic Union EAEU Economic integration Post-Soviet space Common economic space CES Mutual trade Sanctions TC EAEU Risks Challenges International business Foreign economic activity Export Import Counterparty Legislation Foreign economic operations Foreign economic contract Foreign economic transaction International business




















































M. S. Arabian (&)
I. V. Minchenckova
S. G. Tretyakova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] I. V. Minchenckova e-mail: [email protected] S. G. Tretyakova e-mail: [email protected] R. V. Danilov
D. S. Usov Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] D. S. Usov e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_47

449

450

M. S. Arabian et al.

1 Introduction Risk is a factor inherent in almost all areas of activity. This paper considers the risks that foreign economic activity (FEA) and, in particular, international trade are exposed to. Commercial activity on the foreign market is associated with risks that pose a threat to the various financial and property interests of participants in foreign economic activity. In current conditions, entrepreneurs decide on the conclusion and implementation of a foreign economic transaction, provided that, on the one hand, it will be effective, and, on the other hand, it will be safe (Arabyan and Popova 2014; Arabyan and Popova 2015; Golovtsova 2016). As a result, risk problems in business are among the important ones. Thus, before taking concrete steps, one must first identify, analyze, and evaluate possible risks and eliminate or minimize them to acceptable limits.

2 Analyzing Foreign Economic Risks It should be noted that the list of risks in foreign economic activity is extensive, and totals include about one and a half hundred types of risks. At the same time, all types of risks are closely interconnected, that is, changing each specific type of risk automatically leads to a change in many others, which, in turn, complicates the analysis and systematization of risks (Cross-border Research Association, EPFL & HEC UNIL 2011; Listopad 2012, 2015). Also, it is challenging to classify external commercial risks since they are diverse. In current conditions, new objective challenges are added to the traditional risks associated with force majeure, and their relevance is very high. Due to the difficult geopolitical situation in the world, political problems, and natural changes, several risks are growing, including those associated with international business. Another danger to a business that should be considered is the increasing cyber-attacks and theft of various types of information. These new problems also cover almost all subjects of foreign economic activity, namely, exporters and importers, product manufacturers, machinery and equipment, carriers, forwarding, and insurance companies, banks, customs representatives, authorized economic operators, various inspection services, etc. However, there are well-established approaches to the classification of risks in foreign economic activity, which makes it easier to systematize recommendations for minimizing such risks for participants in foreign economic activity. Therefore, they highlight the risks associated with the main provisions of the foreign economic contract, which are based on its material and non-essential conditions (Lobova et al. 2019; Ragulina et al. 2020): • the risks related directly to the product that is the object of a foreign economic transaction, its quality, and quantity; • the risks associated with the basic conditions of delivery and transportation of goods;

Foreign Economic Risks in the Conditions …

451

• the risks of contractual terms of payment (monetary and financial terms); • the risks caused by errors and inaccuracies made in the formulation of the article “Price and Total Cost”; • the risks resulting from inaccuracies in the conditions of acceptance, packaging, labeling, etc.; • the risks associated with the impact of force majeure; • the risks arising from the termination of the contract, liability for noncompliance, and violation of conditions; • the risks associated with additional terms of the commercial agreement (sanctions and complaints, quality guarantees, etc.). All transactions between counterparties from different countries, in contrast to domestic transactions, are exposed to specific risks. First of all, this fact is predetermined by the features of the external environment concerning each specific resident of the corresponding state. Second, it is directly related to trade and tax laws, financial mechanisms, cultural differences, and traditions on the territory of a foreign counterparty. It can be stated that the conduct of the foreign economic activity, in the full sense, is accompanied by both internal and external risks associated with international economic relations. For Russia, which is actively involved in the process of regional integration within the framework of the EAEU, while remaining an essential participant in the global economic system with steadily increasing conditions, the risks in this area are very relevant. It is impossible to succeed without taking into account risks when implementing international commercial activities within the EAEU. In modern reality, the expansion and deepening of regional economic integration is an objective and relevant process (see, for instance, Chebotareva 2006). Globalization and ever-increasing competition all over the world determine steady trends in the emergence and expansion of regional associations, and the Eurasian space is no exception in this situation. Nineteen years ago, the Treaty on the Establishment of the Eurasian Economic Community was signed; in 2010, the Customs Union was created, and two years later, Belarus, Kazakhstan, and Russia created the Common Economic Space (CES). The Treaty on the Eurasian Economic Union (EAEU), which entered into force in early 2015, marked the official establishment of a new international, regional economic integration organization. This has become a major historical event not only in the post-Soviet space but throughout the world. The creation of the EAEU represents a transition of the former republics of the Soviet Union and independent states to an entirely new level of interaction, within which the freedom of movement of goods, services, capital, and labor is realized and accompanied by a single coordinated policy in key sectors of the economy (Tkachenko and Sharykina 2016; Tolstuhina 2017). The new association involves integration on regional economic grounds. It performs several functions, including comprehensive modernization, cooperation, and increased competitiveness of member economies while creating conditions for stable development and growth of the living standards of the EAEU population.

452

M. S. Arabian et al.

The EAEU members are the Russian Federation, the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, and the Kyrgyz Republic. Experts believe that other states, not only the post-Soviet countries, can also join the new integration association. On the one hand, this is due to the growing interest in creating free trade zones and, in turn, a significant increase in trade volumes and a decrease in currency risks against the backdrop of the abandonment of dollar payments in favor of national currencies. On the other hand, as the work of the Eurasian Economic Union becomes more active, many of its problems and imperfections become apparent, which generates other, no less significant risks (Ivanova 2015). To solve such problems, it is necessary, first of all, to unify the various spheres of legislation and create completely identical regulatory systems, particularly in the field of foreign economic relations. Moreover, although from January 1, 2018, the unified EAEU Customs Code came into force, this does not mean that all problems, even in the field of tariff and non-tariff regulation, were removed. It is also urgent to unify tax and currency or financial legislation. Also, one cannot but note one more severe discrepancy: An integral part of state regulation of the economy is state regulation of foreign economic activity, one of the most important elements of which, in turn, is customs and tariff regulation. It turns out that the component becomes unified throughout the EAEU, and the state regulation of foreign economic activity in each member state is its own. Many norms of integration association, in essence, have become a framework. It can be stated with confidence that only a change in national legislation will give them a real opportunity to start working at full strength and, at the same time, reduce the likelihood of risks. Reduced oil prices, transnational exchange manipulations, the introduction and expansion of sanctions by Western countries against Russia, and other reasons have greatly influenced the decrease in trade and the decrease in mutual trade profitability of the five EAEU member countries, which is a single market with more than 180 million consumers. Initially, Armenia, Belarus, Kazakhstan, and Kyrgyzstan were seriously afraid of the spread of anti-Russian sanctions on them as members of the Eurasian integration bloc. Subsequently, it was determined that only the Russian Federation was involved in the conflict with the West. Nevertheless, the current situation creates new economic risks in the relationships between the EAEU countries. There is a need for Russian businesses to expand into EAEU partner states, primarily to attract investments through them to bypass Western sanctions. However, our neighbors are trying to derive their economic benefits from the conflicts between Russia and the West, and this may entail the risks of violation or improper fulfillment of contract terms. Such risks associated with the reliability of the transaction partner can be minimized. It is necessary to make appropriate requests to chambers of commerce and banks engaged in foreign exchange transactions immediately, at the initial stage. This, to a large extent, will help to avoid further financial and property losses. We can request appropriate recommendations from a foreign counterparty, check its creditworthiness, and also collect information about prospective partners using various directories, information analysis systems, and so on. It is also necessary to carefully prepare for the upcoming negotiations in order to avoid various kinds of misunderstandings and disagreements.

Foreign Economic Risks in the Conditions …

453

Similar to the above, the risks of termination of foreign economic transactions from the initiation of partners from the EAEU, liability for noncompliance, and violation of the terms of the contract are aggravated due to the fast pace of the movement and development of the Eurasian Union, against the background of not only economic difficulties, but also the described problems in foreign policy. Different economic levels of member countries can be considered as another factor that somewhat restrains the development of the EAEU. We must not forget that the process is most effective when the states are of approximately the same level of development and have common integrated borders. In our case, the economy of the Russian Federation objectively outweighs it. Although each participating state can block any decision (equality is established by the Eurasian Economic Commission), the multilevel degree of economic development remains a factor slowing down Eurasian integration. This gives rise to risks associated with the quality of objects of foreign trade transactions and risks associated with the quality of services that accompany the execution of foreign trade contracts — services for transporting goods over long distances. In a chain way, this increases the risks of damage, loss, and theft of goods. The minimization of the risks that the buyer-importer of goods will not receive the goods of decent quality prescribed in the foreign economic contract is achieved through the requirement of the exporter’s certificate or act on inspection of the goods, which is issued by independent inspection companies. The services of pre-shipment inspection can also be used. The minimization of the so-called “transport” risks implies a competent approach to the exercise by exporters and importers of their rights and obligations to transport companies. It is also necessary to carefully check the correctness of the wording and presentation of the transport terms of the contract. One of the most critical factors in the effectiveness of a foreign economic transaction is the correct choice of primary delivery conditions (it is recommended to use Incoterms 2010). It is also necessary to accurately read the terms of the contract of carriage or the transport terms of the contract and determine the sufficient amount of insurance coverage for various unforeseen circumstances (Sarkisova 2016; Shukhno 2017). In the course of the transaction, exporters may face the risk of non-payment or late payment, as well as fraud. There is also a risk of such a situation when a partner, who at first seemed conscientious, after receiving the goods, suddenly tries to avoid payment. The exporter is not always able to check the creditworthiness of importing buyers. In this case, the problem, in order to avoid the risk of non-payment, can be solved through the use of various guarantees, particularly documentary letters of credit, bank guarantees, standby letters of credit, partial advance payment, 100% prepayment, risk insurance under a foreign economic contract, etc. Alternatively, one can also contact the International Chamber of Commerce (ICC) Office for the Suppression of Economic Crimes (preferably with membership in the ICC). Differences in the level of economic development of the EAEU member countries also explain the desire of individual countries to tighten measures to protect domestic production and the national market. This desire was manifested in the process of signing the new customs code–the EAEU TC when the Belarus and

454

M. S. Arabian et al.

Kyrgyzstan dragged on its discussion and ratification. Periodically, trade disputes erupt between the participants. All this happens in the context of declining budget revenues of the EAEU member states when all governments take a more robust position in the negotiations. This represents another compassionate challenge for Eurasian integration. After all, it is evident that each state protects national interests. In particular, the interests of Russia, first of all, are aimed at integration in the industrial sphere, and Kazakhstan, giving priority to trade integration, is trying to maintain barriers for protecting its producers. It is noteworthy that many experts give cautious assessments regarding issues of the EAEU development shortly, noting the remaining significant trade barriers. We should also note the influence of factors of deglobalization and new regionalization, as a global trend, the global crisis of integration processes, the attempt of states and associations to protect their markets, the attempts to slow down the development of the Eurasian Economic Union in the field of regulation and restriction of trade processes. Under these conditions, considerable attention of participants in foreign economic activity should be focused on the risks that arise when moving transaction objects across the customs border: risks of product certification and customs declaration, risks associated with tax features in different EAEU countries, and risks of transaction cost increase. The next problem, which hinders the deepening and expansion of integration within the EAEU, is directly related to the low level of political consensus between the elites of some potential members of the association (for example, Uzbekistan and Tajikistan). One cannot ignore the attempts of some current members of the Eurasian Union to achieve unilateral privileges and benefits. This can subsequently lead to very unfavorable precedents, given the prospects for the likely expansion of the EAEU. Another problem is based on the membership of the countries participating in the WTO. For example, Kazakhstan’s accession to this organization was not adequately coordinated with the EAEU, which, in turn, led to problems with the inconsistency of customs tariffs. There are also unresolved territorial claims between current and potential participants in the Eurasian Economic Union—in particular, the border problem of Kyrgyzstan and Tajikistan. China also put forward territorial claims against Tajikistan. Under these conditions, special attention should be paid to political risks, which can be manifested both through the risks of force majeure circumstances (military operations, strikes, civil unrest, a change of power) and through risks associated with the difficulty or inability of residents of a country participating in the EAEU to fulfill contractual obligations appropriately. In this situation, the terms of force majeure circumstances, correctly formulated in the contract, will come to the rescue. As a result, the parties may be fully or partially released from the fulfillment of obligations under the transaction, as well as taken into account for differences in currency control, tax, and customs systems, technical and product standards, cultural and business differences, and others.

Foreign Economic Risks in the Conditions …

455

Regardless of its nature, most risks have financial implications. The foreign economic activity requires special attention, especially if we take into account that the projects implemented in it often have a severe scale. The globalization of international business indicates that various political and economic events in countries and regions of the world have a significant impact on the activation of the processes of expansion and the deepening of the complex risks in the activities of international business. One should also note the increased turbulence in the functioning and development of the global economy, which, in turn, reflecting on risks in international business, stimulates their significance and uncertainty (Valdai International Discussion Club 2017). For Russia, such trends are compounded by several problems associated with its membership in the EAEU. Their deep awareness is necessary, which will be the determining condition for the optimal choice of directions for exit from the critical state. It is the negative trends in international trade, as well as world politics, that will test the strength of the new integration association in the post-Soviet space. However, we must admit that despite all the difficulties, the Eurasian Economic Union is currently turning into a new pole of attraction not only in the former USSR but also far beyond its borders. Currently, foreign economic activity in the EAEU space is subject to a significant number of risks, which, as a consequence, affects both the activities of a particular company and the economic potential of the participating countries. In this paper, the emphasis was placed on the risks associated with the main provisions of the foreign economic contract: the subject and object of the contract, quantity and quality, transport and basic terms of delivery, price and total cost of the contract, terms of payment, delivery and acceptance of goods, penalties and complaints, packaging and marking, force majeure, arbitration, liability for breach of contractual obligations, and other additional conditions. In order to reduce the negative impact, it is necessary to create a system of accounting and risk assessment, which, in turn, will make it possible to manage them, both on a company and statewide basis.

References Arabyan, M.S., Popova, E.V.: The international sale contract and the peculiarities of using its conditions in determining the customs value of goods. Customs Aff. 1, 3–6 (2014) Arabyan, M.S., Popova, E.V.: The optimization of the monetary and financial conditions of a foreign trade contract concerning the placement of goods under the customs procedure for release for domestic consumption. Customs Aff. 3, 19–22 (2015) Chebotareva, E.D.: Minimization of foreign trade risks in conditions of instability of the global monetary and financial system. Russ. Econ. Online Mag. 3, 32–38 (2006) Cross-border Research Association, EPFL & HEC UNIL: Customs risk management (CRiM): A Survey of 24 WCO Member Administrations. Lausanne, Switzerland (2011) Eurasian Economic Commission: Official website (n.d.). http://www.eurasiancommission.org/ Federal Customs Service: Official website (n.d.). http://www.customs.ru/

456

M. S. Arabian et al.

Golovtsova, I.G.: Modern methods for ensuring the competitiveness of the economies of the EAEU countries. Soc. Polit. Econ. Law 3, 66–68 (2016). https://cyberleninka.ru/article/n/ sovremennye-metody-obespecheniya-konkurentosposobnosti-ekonomik-stran-evraziyskogoekonomicheskogo-soyuza Ivanova, E.M.: Eurasian integration: from CIS to EAEU. Russ. Foreign Econ. Bull. 6, 112–119 (2015) Listopad, E.E.: Separate reflection in the accounting of the moment of transition of risks and economic benefits for foreign economic activity. Russ. Foreign Econ. Bull. 12, 27–32 (2012) Listopad, E.E.: A system of accounting for the risks inherent in external economic operations. Russ. Econ. Online Mag. 2, 81–88 (2015) Lobova, S.V., Alekseev, A.N., Bogoviz, A.V., Ragulina, J.V.: Wireless future of the agrarian market as a basis of food security provision. Stud. Comput. Intell. 826, 975–981 (2019) Ragulina, J.V., Bogoviz, A.V., Lobova, S.V., Alekseev, A.N., Pyatanova, V.I.: Strategy of increasing the global competitiveness of Russia’s economy and Russia’s becoming a new growth vector of the global economy. In: Lecture Notes in Networks and Systems 73, 203–210 (2020) Sarkisova, E.A.: Risks to Trade. Risk Management: A Practical Guide. Dashkov and C*, Moscow (2016) Shukhno, S.S.: Two years to the Eurasian Economic union: main achievements and development prospects. Russ. Foreign Econ. Bull. 6, 3–14 (2017) The report of the Valdai International Discussion Club. (2017). https://ru.valdaiclub.com Tkachenko, I.Yu., Sharykina, I.V.: Problems of integration in the post-Soviet space in the EAEU format. Russ. Foreign Econ. Bull. 10, 34–49 (2016) Tolstuhina, A.: EAEU by 2025: Development prospects (2017). https://interaffairs.ru/news/show/ 18300 World Customs Organization: Risk Management Guide. Brussels, Belgium (2003)

Development of Regional Transport Infrastructure and its Financial Mechanisms in Russia Pavel V. Gorlachev , Irina A. Kunakovskaya , Svetlana N. Habahu , Alexandra Yu. Artyushkova , and Natalya N. Gribok Abstract The paper focuses on the position of Russia, according to the International Competitiveness Rating, developed by the World Economic Forum. The concept of transport support is described as an essential element of the economic and material basis of any state. It is shown that the Russian transport system in its current form has a severe inhibitory effect on several sectors of the economy that are promising for the country. The paper substantiates the idea that in order to fulfill the strategic objectives of the development of Russia, it is necessary to significantly increase the priority of the transport system in terms of financing. The mechanisms of state co-financing of regional transport infrastructure are discussed.




Keywords Regional transport infrastructure Capital intensity of the transport industry Residual financing of infrastructure projects Strategy 2018–2024 Target scenario for financing the development of regional transport










P. V. Gorlachev
I. A. Kunakovskaya
S. N. Habahu
A. Yu.Artyushkova Krasnodar Cooperative Institute (Branch) of the Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected] I. A. Kunakovskaya e-mail: [email protected] S. N. Habahu e-mail: [email protected] A. Yu.Artyushkova e-mail: [email protected] N. N. Gribok (&) Krasnodar Branch of the Financial University under the Government of the Russian Federation, Krasnodar, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_48

457

458

P. V. Gorlachev et al.

1 Introduction In recent decades, global technological trends in the industry have significantly strengthened the role of transport in the socio-economic development of countries and regions. Transport support is an essential element of the economic and material basis of a subject of any level. Historically, the development of transport infrastructure has been a catalyst for progress. At the present development stage of the regional economy, transport support is one of its most important segments. The transport industry contributes to the normal functioning of the regional economies to increase the efficiency of production activities, provides the opportunity to distribute production forces competently, and stimulates the development of many industries. The presence of a large number of various transport flows in the region requires the mandatory presence of developed transport infrastructure, which, due to the use of modern technologies and financing, allows thoroughly ensuring the development of the regional economy.

2 Materials and Methods The transport infrastructure is aimed at meeting the needs of the population of a particular region and the economy as a whole for transportation; reliable domestic and inter-regional commodity exchange following the requirements of national economic and environmental safety; the systematic development of land, air, and waterways; regional transport security; and mobilization readiness for cases of emergency. The construction of the transport infrastructure of the regions is based on the following principles: – transport services should be equally accessible to all categories of the population; – municipalities should take the responsibility of organizing regular routes; – the region should assume the responsibility of providing regular transport services; – public law should monitor the compliance with the requirements for the implementation of transport services. Local authorities provide transport services to the population at the municipal level, and regional executive authorities provide it at the subject level. The population should be informed about the types and nature of the provided transportation services. Informing the public about the provision of transport services is based on the following principles: – the information must be reliable; – the information should be clearly stated;

Development of Regional Transport Infrastructure …

459

– the information should be complete; – the information should be placed conveniently and accessibly for the population; – the information should be promptly updated. Over the past 20 years, the financing of transport infrastructure in Russia has been seen as an item of unavoidable government spending that does not provide a quick economic result and does not increase public satisfaction. The highest capital intensity among all types of infrastructures, the complexity of regulation, and the ambiguity of development goals led to the fact that transport infrastructure occupied low positions in the hierarchy of political priorities in the country. As a result, the underinvestment and technological backwardness of the transport complex in most regions has worsened. According to the International Competitiveness Rating, developed by the World Economic Forum, Russia is in 64th place out of 144 countries rated by the quality of transport infrastructure, while the worst position of the Russian Federation is in the quality of roads, placing it at the 123rd position. The density of the road network, adjusted for population density using the Engel coefficient is significantly lower than all the BRICS countries. Even in the European part of Russia, this figure is lower than the ranks of India, Brazil, and South Africa. The share of highways (1a and 1b) in the total length of roads does not exceed 1% or 5 thousand km. In Russia, there are no high-speed rail lines. The network of airports and aerodromes is extremely rare, which negatively affects flight safety. One can argue about the methods of compiling international ratings and their reliability, but the fact that Russia is among the cluster of developing countries in terms of the quality of its transport infrastructure is visible to both the public and the business sector. As noted by InfraOne analysts in the infrastructure development index (presented on the website www.vedomosti.ru), there is not a single region in Russia whose infrastructure could be considered as fully developed. They estimate the necessary additional investments in 2019 amount to 2.6 trillion rubles. Mostly, 27 regions with already developed infrastructure need money. InfraOne analysts say that all industries across the country are underinvested. The most developed transport infrastructure can be seen in Moscow (index 8.25 out of 10), the Moscow region (6.95), and St. Petersburg (6.85). These regions have a more developed network of roads and railways, as well as air transport infrastructure. However, the gap between the leaders and the rest of the regions is vast. The average value of the transport index in the country is 3.24, while in 71 of the 85 regions, the indicator is within 2.5–3.5 (Zhundrikov et al. 2018). It is worth noting that some aspects of the development of transport infrastructure in the regions of Russia deserve extremely positive assessments. The indicator is in the range of 2.5–3.5. In some niches, Russia is among the world’s leaders. Such niches include the icebreaker fleet, which has no analogs in the world; a unique system for organizing freight traffic on railways; the highest punctuality of intercity passenger communication, both by train and by plane. Russia is one of the

460

P. V. Gorlachev et al.

few countries in the world in which all segments of transport engineering are represented, which gives an additional multiplier effect on the development of transport infrastructure. In some segments, primarily in railway engineering, Russia maintains a significant position in foreign markets. However, in many other aspects, Russia’s transport system acts as a constraint on the development of the economy and human capital. The existing model for the development of regional transport infrastructure is focused on satisfying the transport demand of the primary sectors of the economy. It involves the financing of infrastructure projects on a residual basis and developing on backward technological grounds. For example, without the development of transport infrastructure (mostly by road and rail), the mass development of low-rise housing construction and new production zones is impossible. The unacceptably low density and quality of transport infrastructure both within Russian cities and in suburban areas are some of the key barriers to urban development, a source of environmental problems, and social dissatisfaction. Thus, the modern transport system of most Russian regions has a serious inhibitory effect on several promising sectors of the economy. Most importantly, it is one of the key obstacles to improving the quality of the life and social satisfaction of citizens. The development of the transport system is one of the priorities of the Strategy 2018–2024. Most of the activities that are expected to lead to significant changes in the transportation infrastructure of the country’s regions are capital intensive. In Russia, there is considerable potential for increasing private investment in transport infrastructure. However, the lack of state co-financing is one of the key barriers. Over the past ten years, there has been a steady trend toward lower spending on regional transport infrastructure. The most significant drop was experienced by all types of transport infrastructure, except for federal roads, which were actively brought into a normative condition and reconstructed. The transportation costs of the constituent entities of the Russian Federation have maintained at a stable level thanks to the rapidly growing costs of Moscow. In terms of public transport costs, Moscow occupies about 70% of all regional budget expenditures. Such an overconcentration is another factor determining the need to implement a large-scale program for the renewal of public transport in other Russian cities. The most significant reduction in budget financing was experienced by rail and air transport, which also requires adjustment. In order to fulfill the strategic objectives of Russia’s development, it is necessary to significantly increase the priority of the transport system in terms of financing. The Strategy 2018–2024 dictates the need for a sharp increase in budget investments in transport from 2.2% to 3% of GDP in 2024, as part of the overall budget maneuver (Fig. 1). The average duration of the “infrastructure boom” in different countries is 10–15 years. Historical experience shows that during this period, states that built an effective system of financing and project management radically upgraded their infrastructure and transferred it to new technological foundations. Russia has a chance to significantly increase the transport accessibility of the country’s regions and the satisfaction of the population and businesses with its work

Development of Regional Transport Infrastructure …

461

on the transport infrastructure over the next ten years, from 2020 to 2030. In the period from 2030 to 2035, it is possible to reduce transport costs as a percentage of GDP while stabilizing the absolute values of budget expenditures. Transport projects, as noted above, are the most capital-intensive among other types of regional infrastructure and rarely demonstrate economic efficiency. They also have a limited ability to attract private capital. Often, potential investors are faced with a situation where evaluating the effectiveness of a project shows only a partial return on investment and, as a result, a significant need for government support at the stage of creating a transport infrastructure or during its commercial operation. The state, for its part, cannot instantly finance this kind of project in the required amount due to existing budgetary constraints. Figure 2 shows the composition of investments in the development of transport infrastructure in regions of the country by funding sources. The multiplication of budget investments occurs to a greater extent after 2024 when the off-budget investments gradually replace the budget ones. Various forms of budget financing exist within the framework of state support for the implementation of infrastructure projects, including direct subsidies, tax benefits, minimum guaranteed income for a private partner, concession fees, etc. All of them are focused on reducing the one-time burden on the budget due to the redistribution of allocated funds over time. These restrictions create objective difficulties in the structuring of transport projects since they necessitate raising a significant amount of commercial debt at the stage of project implementation. This often leads to the inability of the project to cope with emerging financial obligations for servicing attracted financing, and, as a result, results in a weak economic component and low investment attractiveness. It creates a vicious circle: the state has limited resources for budget co-financing of projects, and the available market

Fig. 1 Target scenarios to finance transport development Source (Freight Exchange “TRANS. RU” 2018)

462

P. V. Gorlachev et al.

Fig. 2 The structure of investments in the development of the transport system of the regions of Russia Source (Center for Strategic Research 2018)

opportunities do not allow a balanced structure of such projects due to the lack of effective measures of government support. In this regard, the creation of additional tools that would multiply government spending in this area is required. The most common mechanism in world practice is infrastructure funds. The state policy in the field of infrastructure financing is turning towards such tools even now. The conceptual directions for development are contained in the Action Plan (roadmap) for the development of public-private partnership tools approved by the Government of the Russian Federation on March 05, 2018 (Ministry of Economic Development of the Russian Federation, Ministry of Economic Development of the Russian Federation: The action plan (“road map”) for the development of public-private partnership tools. Ministry of Economic Development of the Russian Federation, Moscow 2018). Investments in fixed assets had a positive effect on the formation of gross fixed capital only during periods of economic growth while the efficiency of investments in fixed assets had high volatility during the crisis. The development of the economies of various countries was characterized by the use of factors facilitating the investment process in the construction of infrastructure as an instrument of structural variation in the formation of fixed capital. Conditions that impede the effective transformation of liquid capital into elements of real infrastructure capital are being formed to stimulate the investment process in the real sector of the economy (Lavrinenko et al. 2018; Gordeev 2018).

Development of Regional Transport Infrastructure …

463

3 Results Currently, another promising option for state support for infrastructure projects is the “infrastructure mortgage” mechanism proposed by the Ministry of Economic Development of the Russian Federation. The mechanism is based on the provision of state support to infrastructure projects through the established Infrastructure Development Fund. Currently, a specific mechanism for the work of this fund is being determined. The general logic of its functioning will consist of attracting funds from the financial market to state-guaranteed financial instruments and providing capital grants for infrastructure projects. The use of the proposed mechanism will allow the state to create the necessary infrastructure in installments, to effectively allocate budget funds and multiply them, and to plan for a more extended period than a three-year budget permits (Fadeev et al. 2018). An infrastructure mortgage assumes a qualitatively different approach to the use of a budgetary resource. However, at the same time, it requires a qualitative analysis and an elaboration of the proposed projects. The use of infrastructure mortgages is optimal for classes of projects that have significant direct and indirect economic effects but do not allow for recouping capital costs from operating revenues (Adamchuk 2018; Zadvorny 2005; Budrina 2002). For projects with a high commercial payback (for example, seaports or railway lines that ensure the export of raw materials), it is possible to use the mechanisms of the classic public-private partnership. The following trends characterize the Russian PPP market: – The lack of high-quality structured projects ready for financing, a relatively small market size, and its high costs (including the examination of each project and its risks); – High dependence on the level of risk and profitability of projects on the capabilities of individual regional budgets (transactions with recourse to regional budgets) or tariff restrictions (for example, in the housing and utilities sector). – A narrow circle of private-market participants with the necessary competencies (investors, financing organizations, contractors and operators). In the Russian market, there is an imbalance between the sources of funding available in the market and those required in terms of urgency. Infrastructure projects mostly have a horizon of more than 10 years, while the available funding has a period of 3–5 years. There is a significant imbalance between the structure of funding tools available to commercial banks (linked to the critical rate of the Central Bank of the Russian Federation) and the rates of funds placement. The problem is the mismatch between the terms of affordable funding of banks (1– 3 years) and the required loan terms of infrastructure projects (10–20 years). The functioning of the collateral mechanism under PPP projects is still uncertain.

464

P. V. Gorlachev et al.

4 Discussion The priority tasks that need to be addressed the further development of the market for public-private partnership projects include: – Minimization of risks of investors and creditors associated with the use of certain types of payment mechanisms in projects (availability fees and minimum guaranteed income). – The increase in the level of protection of investors’ rights by introducing changes to existing protection mechanisms (pledge, compensation upon termination of the agreement, “special circumstances,” participation “on the side of the private partner”). – The possibility of concluding a PPP/concession agreement with several regions at the same time. It is necessary to optimize direct and indirect user payments for the financing of transport infrastructure from extrabudgetary sources and future budget revenues. First of all, it is necessary to improve the mechanisms for paying for the use of infrastructure facilities. These mechanisms may vary by mode of transport but must obey a single economic logic. The key questions regarding these sources of funding are as follows: – What part of the costs of maintaining and upgrading the infrastructure should be provided by transport payments directly or indirectly charged from individuals and legal entities for the use of transport infrastructure (through fares, infrastructure fees, tariffs, excise taxes on fuel, etc.)? – What are the principles of the distribution of the load on users between different types of transport payments? – What are the acceptable formats and limitations of cross-subsidization: geographical (the population and business of more economically developed and high-density territories subsidize the maintenance and modernization of the transport infrastructure of low-density and less developed territories) and sectoral (transportation of some types of cargo subsidizes the transportation of others)? It is impossible to get answers to these questions from the current practice of financing the maintenance and modernization of the existing transport infrastructure. Currently, the share of user payments to all expenses for the maintenance and modernization of infrastructure is significantly lower than in most developed countries. However, this proportion should be changed carefully, adequately assessing sufficient demand while avoiding a decrease in population mobility and freight traffic. The transition to a customer-oriented model for the development of regional transport suggests that the system of user transport payments will be based on “contractual” principles: a socially and economically acceptable level of payments “in exchange” for specific parameters of the quality of transport infrastructure services. The contract principle should be based on a flexible system of

Development of Regional Transport Infrastructure …

465

transport accessibility of regions and quality standards for the provision of transport services. Without government obligations to improving the quality of transport services, any increase in payments is impractical. For each additional ruble received from users, a specific action plan should be formulated to improve the quality of transport services and achieve target satisfaction indicators. Also, a change in the fare system should allow people with low incomes to use the newly created, high-quality transport infrastructure and new rolling stock.

5 Conclusion Summing up, we can conclude that a promising model for financing regional transport infrastructure should focus on creating conditions that would enhance its investment attractiveness and serve as the basis for the socio-economic development of the region.

References Adamchuk, O.: There are no regions with the most developed infrastructure in Russia (2018). https://www.vedomosti.ru/economics/articles/2018/08/01/777166-rossii-regionovmaksimalno-infrastrukturoi Budrina, E.V.: The Problems of the Formation and Management of the Regional Transport Services Market. St. Petersburg State University of Engineering and Economics, St. Petersburg (2002) Fadeev, M., Dmitriev, M., Stepanov, P., Smirnov, I., Lavrinenko, P., Morozov, A., Schulz, D., Idrisov, G., Kosoy, V., Romashina, A., Eliseev, M., Serdyukov, A., Brusyanin, E., Makutsky, N., Denisov, D.: Integrated transport system (2018). https://lib.traffic-ing.ru/handle/123456789/ 64 Freight Exchange “TRANS.RU”: The budgetary maneuver will increase transport financing to 3% of GDP by 2024 (2018). https://trans.ru/news/byudzhetnyj-manevr-pozvolit-k-2024-goduuvelichit-finansirovanie-transporta-do-3-vvp Gordeev, V.: The World Bank has lowered its forecast for economic growth in Russia and in the world (2018). https://www.rbc.ru/economics/09/01/2019/5c353d059a7947dfebf839cd/ Lavrinenko, N.A., Monakhova, N.A., Stepchenko, T.S.: The formation and assessment of regional investment policy. Sustain. Develop. Econ. 1(33), 145–156 (2018) Ministry of Economic Development of the Russian Federation: The action plan (“road map”) for the development of public-private partnership tools. Ministry of Economic Development of the Russian Federation, Moscow (2018) Zadvorny, Yu.V.: The formation of integrated transport infrastructure in the region. (Dissertation of Candidate of Economics). Russian Academy of Public Administration under the President of the Russian Federation, Moscow (2005) Zhundrikov, A., Galaktionova, A., Yakunina, E., Dordzhieva, D.: Russian infrastructure: Development index (2018). https://infraone.ru/analitika/Index_razvitiia_infrastruktury_ Rossii_InfraONE_Research.pdf

Frontier Technology: Theory and Applications in Cooperative Economics

The Impact of Artificial Intelligence on Retraining Andrei V. Novichkov, Tatiana A. Puzynya , Tatiana V. Grishina , Svetlana D. Fursova , and Natalia V. Buley

Abstract The relevance of this study is due to the problems of organizational and economic support for the professional retraining of citizens in the conditions of the development of artificial intelligence. This process is accompanied by a change in the structural and institutional restructuring of the labor market, the emergence of virtual business entities, increased life expectancy and the need to increase the quality of life of the population. The development of artificial intelligence leads to many positive effects for the economy, in particular, reducing the complexity of work, saving labor resources and their costs, increasing the productivity of the people employed in the economy. At the same time, the development of artificial intelligence leads to a deformation of the existing employment structure, the need to develop and implement retraining programs for citizens in the conditions of the development of artificial intelligence. The above circumstances require a rethinking of the professional components of the labor market in the context of the prospects for its development, including retraining of citizens in the development of artificial intelligence.







Keywords Labor market Artificial intelligence Continuing education programs Retraining of personnel Digital economy







A. V. Novichkov
T. A. Puzynya (&)
T. V. Grishina
S. D. Fursova Academy of Labor and Social Relations, Moscow, Russia e-mail: [email protected] A. V. Novichkov e-mail: [email protected] T. V. Grishina e-mail: [email protected] S. D. Fursova e-mail: [email protected] N. V. Buley Russian State Social University, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_49

469

470

A. V. Novichkov et al.

1 Introduction With the development of the Internet, artificial intelligence (AI) appeared as a computer program and/or robot. The model of adapting AI to the external environment is called adaptive behavior, which is actively developing. The growing research studies allowed us to draw the following conclusions on the development of artificial intelligence around the world: • One education does not guarantee, even in the conditions of continuous professional development, stable work in the profession, the rate of emergence of new professions in the labor market is at least 1 to 3 professions annually, workers today need to master several professions and several foreign languages; • In general, unemployment is expected to increase to 30% in world practice under the conditions of using robotics and in Russia at the level of 15–20%; • There is no legislation on the regulation of remuneration and the procedure for the payment of unemployment benefits in the context of the use of artificial intelligence (Ranger 2018). In September 2018, Recruit Holdings, a group of companies specializing in the provision of integrated services in the field of human resources, began to develop an AI system that helps prevent personnel leaks. Today, the AI system is present in test mode in China and Japan, the operation of the AI system includes the collection and analysis of data on the organization’s personnel, the study of the personal qualities of employees, the assessment of each employee’s personal contribution to the organization’s activities. In the future, the organization successfully uses the collection of these data when analyzing the information of employees who have laid off. This analysis allows the organization’s management to receive information in advance about the dismissal of staff, reasons for their departure and eliminate complaints and discontent whenever possible, increase staff motivation and reduce staff turnover (Abdrakhmanova et al. 2018; Bogoviz 2020; Ragulina et al. 2019). Another positive example of the implementation of the AI system in organizations is the Recruit Holdings Recruit Sumai branch, where the AI system conducts a personal assessment of employees, determines the directions of their retraining, assesses personal growth and determines a program for retraining each employee, taking into account personal characteristics, experience, and knowledge. It is expected that due to labor reforms in Japan, the demand for such an AI system for personnel work in the country will grow. According to the forecasts of the Nomura Research Institute, by 2024 the market for such solutions will reach 172.2 billion yen ($1.55 billion). The AI system implies the collection, analysis, and processing of the results obtained when making optimal decisions based on previous experience and a rational analysis of external influences. An AI system for personnel work is a systematic way of filtering out unnecessary information and remembering the most necessary, leading to increasing efficiency in an entire organization (Kupriyanovskiy et al. 2016; Maymina and Puzynya 2017; Maymina et al. 2018; Pereira Romero 2017).

The Impact of Artificial Intelligence on Retraining

471

The AI retraining system is based on the following principles: (1) periodic repetitions for an intuitive grasp of the main idea; (2) the inclusion of associative thinking to increase mental work; (3) the process of filtering out unnecessary information, highlighting the main idea; (4) properly drawn up daily routine.

2 Materials and Methods The tasks of the AI system in retraining personnel: • Developing programs taking into account the individual characteristics of students; • Providing students with the opportunity to build an individual learning plan; • Encouraging students’ independent activities in the process of advanced training; • Providing electronic content, its variability, and the construction of individual trajectories for the development of the program by students; • Expanding the geography of educational organizations, including obtaining educational services of a foreign educational organization without leaving for this country; • Improving the quality of training by ensuring the transparency of procedures for evaluating the results of mastering retraining programs; • The transfer in electronic form of the experience and intellectual capital of teachers; • Involving students in the construction of a system of continuing education programs; • Active use of Internet resources to optimize the development of continuing education programs; • Creating comfortable conditions for students in the process of their retraining. It follows that the main advantages of the AI system for retraining of personnel will be: • A free online access to programs. Thus, a student is engaged in almost anywhere, on the job, can be at a considerable distance from the tuner, including in different cities and countries. • The flexibility of teaching the program. Students choose the duration of their studies, fully adapting the entire learning process to their capabilities and needs. Educational materials are accessed at any time of the day. • Improving the economic efficiency of educational services by reducing the cost of organizing continuing education programs. • An individual approach to training, which implies attracting people to training, regardless of material security, health features. • Manufacturability – training using modern software and hardware allows one to make visual information vibrant and dynamic.

472

A. V. Novichkov et al.

The AI system includes EBS resources, specialized electronic (computer) programs, Internet resources, slide lectures, glossary training, electronic testing, test training, pre-examination testing, electronic exams, logic diagrams, interactive training, webinars, online lectures, virtual laboratories, and ip-help (Butenko et al. 2017). Among the main requirements for moderators and tuners are the following: • Kindness and warmth, a combination of impartiality with the ability to empathize; • Indulgence, understanding of students’ goals; • Encouraging each student to try to understand the topic under discussion; • Excluding misinterpretations of the statements made by other students; a moderator should aloud summarize what they said and clarify whether their idea is correctly expressed. • Encouragement to participate in conversations, welcoming friendly communication between participants in the educational process. • Manifestation of the flexibility in the event that during the discussion topics and moments distracting from the original plan. • A good reaction, which implies that a moderator is quite sensitive, has a high intellectual and emotional level. An example of the practical implementation of an AI system when taking advanced training courses in Russia can be the multi-educational investment project “New Quality of Life” (MIP-NKZH), consisting of: • The multi-educational system “Olympus,” which includes the identification, selection, formation, and training of teams of professional managers; • The educational system “Region,” which includes the participation of citizens in the development of leadership strategies for the economic development of the territory of their residence and region, the creation of mechanisms for their implementation aimed at increasing the income of each citizen and gross product; • The “Live in prosperity” educational system, which includes the participation of citizens in the development of a personal development strategy, the development by citizens of team and organizational leadership strategies for professional growth, career growth and income growth, realizing the personal strategies of each participant (Sakharova 2017).

3 Results The foreign staff retraining programs are comprehensive (Callaway 2012). A number of American companies pay special attention to career management programs for managers; these programs are usually focused on five years and include:

The Impact of Artificial Intelligence on Retraining

473

• A specific and detailed accounting of potentially vacant leadership positions; • A flexible system of payment and bonus for work results and career prospects; • Drawing up an individual career development plan for each leader, specialist, and employee, consisting of a reserve for nomination, taking into account the capabilities of the company and the employee’s business qualities. In programs, foreign companies implement horizontal movements of managers from one unit to another, as well as from one branch to another, located in another city but belonging to this company. Rotation is the main method of training managers of a wide profile. Every year, the US companies spend one third of their budget on retraining and staff development in thousands of universities on various training profiles. Also, the American companies are trying to pay special attention to moral incentives, targeting staff to be interested in work and support initiative workers who are prone to constant search and experimentation. Initiative employees are given significant autonomy and the opportunity to gain public recognition. The American Management Association (American Management Association) holds annually over 2,000 seminars and courses, which train up to 100 thousand managers of grassroots and middle management personnel. The Association was established in 1923. In its staff of 900 people and 500 people are involved in courses, seminars, conferences. The Association unites 140 thousand individual and collective members dealing with issues of improving management and their practical application.1 The Japanese companies dismiss workers when they reach retirement age (60 years). However, if an employee remains in the company, then he starts his career from the beginning, substantially losing wages. Remuneration in Japan depends on the financial result of the company and the role of the employee in achieving this financial result, the length of service of the employee in this organization and the total length of service, and accordingly on the position held. Carrying out vocational training on the job, the majority of large Japanese companies, along with the use of their own training centers and specialists, also resort to the help of specialized non-governmental organizations such as the Japan Center for Labor Productivity, Japan Association for Production Efficiency, Japan Center for Economic Research, etc. Intra-company training in Japan, having just graduated from high school, is to prepare intellectual multidisciplinary work on the basis of standards established by the state. Managers and skilled workers trained on the basis of this system are used as managers and small working circles, and they act as a liaison between engineering and technical personnel and workers. The existence of such skilled workers plays a large role in enhancing and transferring technical skills in Japanese industry.

474

A. V. Novichkov et al.

The Finnish companies consider continuing education as a dialogue between the state and private companies, identifying relevant professions and priority areas for training/retraining of personnel. In general, financing of retraining programs is based on the principles: 50–60% are the companies themselves, 20–30% are financed by the state, and 10–20% are from international sources. The Finns study all their lives and, even after graduating from a university, do not stop attending various courses. Therefore, Finland is one of the most popular countries among adults who want to receive additional education. In addition to language and business courses, one can find a training program on any topic in Finland, from cutting and sewing to photography and playing exotic musical instruments. The attractiveness of Finland is that such courses are inexpensive. Unique educational institutions – public schools (kansalaisopisto) – accept people who have long left school and student age to study. An unemployed person can get a new profession, and one who has a job can get the missing knowledge for the profession to increase their competitiveness in the labor market. All universities that widely implement continuing education programs in Finland form special education centers (Further Education). It offers great opportunities for additional professional and open university education. In Russia, as a rule, the problems of advanced training and retraining of personnel are either the responsibility of the companies themselves or of the state. The educational process of retraining itself can be either traditional or remotely. In Russia, the most popular retraining courses.

4 Discussion In matters of advanced training and retraining of personnel, the human factor plays a special role. Holding open classes and trainings with the invitation of famous people allows us to rally and coordinate staff, increase customer loyalty and the effectiveness of interaction with trainers, and increase the prestige of the organization itself. The invitation of specialists to training courses allows the shortest way to gain practical knowledge, and the information of a specialist in his work is always complete, detailed, and relevant. Since experts have already proven their ability to act perfectly in all kinds of economic and social situations. The invitation of famous people to continuing education courses and retraining of personnel indicates a high culture of the organization, management attentiveness to market trends (Maymina and Puzynya 2018).

The Impact of Artificial Intelligence on Retraining

475

5 Conclusion Combining the results of research, we can assume that the situation will develop in several directions. The main tasks of the AI system will be implemented during the personnel retraining. The AI-system for retraining personnel will be based on the: periodic repetition for intuitively capturing the main idea, the inclusion of associative thinking to increase mental work, the process of filtering out unnecessary information, highlighting the main idea, competently drawn up daily routine. This approach will allow to determine the personal capabilities of the organization’s employees, to find out their hidden reserves, to timely conduct career guidance work among the staff, to develop an individual motivation program for each employee of the organization. In addition, this will allow for personnel shifts in order to increase the efficiency of the entire organization. The advanced training program using the AI system will include the selection of relevant topics for the students, the definition of specific private practical tasks and principles of program development, the definition and selection of scientific knowledge and best practices, on the basis of which practical tasks are defined. Other important blocks include structuring the knowledge included in the content of the program, assessing the conformity of program elements to each other and the introduction of the necessary correction, defining tasks for the AI system during retraining of personnel, selecting AI system resources, etc. We believe that the main tasks of quality retraining of personnel should include the following: (1) the reduction of unemployment in the context of the introduction of artificial intelligence products and services; (2) the formation of social and labor relations and social partnership in digital technology; (3) training workers in new professions in order to adapt to changing working conditions in the age of the digital economy.

References Abdrakhmanova, G.I., Vishnevsky, K.O., Volkova, G.L., Gokhberg, L.M.: Indicators of the Digital Economy: 2018: Statistical Compilation. HSE, Moscow (2018) Bogoviz, A.V., Shvakov, E.E., Tretyakova, O.G., Zakharov, M.Y., Abramov, A.N.: Globalization of education in the conditions of formation of the global knowledge economy: Regularities and tendencies. In: Lecture Notes in Networks and Systems, vol. 73, pp. 993–1000 (2020) Butenko, V., Polunin, К., Kotov, I., Sycheva, E., Stepanenko, A., Zanina, E., Lomp, S., Rudenko, V., Topolskaya, E.: Russia 2025: From personnel totalent, 25 November 2017. http://imagesrc. bcg.com/Images/Russia-Skills_Outline_v1.8_preview_tcm27–177753.pdf Callaway, S.K.: Innovation in higher education: how public universities demonstrate innovative course delivery options. Innov. J. Public Sect. Innov. J. 17(2), 2–18 (2012) Kupriyanovskiy, V.P., Sinyagov, S.A., Lipatov, S.I., Namiot, D.E., Vorobiev, A.O.: Digital economy—a “smart way to work”. Int. J. Open Inf. Tech. 4(2), 26–33 (2016)

476

A. V. Novichkov et al.

Maymina, E.V., Puzynya, T.A.: Peculiarities and trends of digital economy development. Bull. Belgorod Univ. Coop. Econ. Law 6(67), 37–45 (2017) Maymina, E., Puzynya, T., Egozaryan, V.: Digital economy in education: Perspectives and development perspectives. Revista ESPACIOS 39(38), 30 (2018) Pereira, A.C., Romero, F.A.: Review of the meanings and the implications of the Industry 4.0 concept. Procedia Manuf. 13, 1206–1214 (2017) Ragulina, J.V., Alekseev, A.N., Bogoviz, A.V., Lobova, S.V.: Automatization of the labor resources market in the age of the internet of things: conceptual substantiation and risk management. Stud. Comput. Intell. 826, 909–915 (2019) Ranger, S.: Gartner: digital transformation – in the focus of the municipal organizations (2018). https://www.itweek.ru/idea/article/detail.php?ID Sakharova, E.: The school of equal opportunities: How digital technologies will change Russian education within next 10 years Reference date 03 January 2018 (2017). https://russian.rt.com/ russia/article/459474-obrazovanie-shkola-novye-tehnologiigosudarstvo-tsifrovaya-ekonomik

Digital Innovation in Traditional Services of Credit Cooperative Larisa V. Popova , Tatiana V. Daeva , Tatiana A. Dugina , Victor A. Melikhov , and Tatiana A. Chekrygina

Abstract The purpose of the study is to propose the direction of digital innovation in loan-savings services of credit cooperatives. The study applied general methodological scientific principles, as well as a systems approach to assessing the current state of traditional financial services of credit cooperatives in the context of digital innovation. The noted features of savings and borrowing activities make it possible to separate credit cooperation into an independent segment of the credit and financial system, which is a traditional socio-economic institution. In contemporary credit cooperatives, management processes and external interaction with the state and counterparties, communications with shareholders, etc. are automated. The authors argue that the main operational activity (borrowing and savings operations) must be not only automated but also digitalized. Digitalization involves optimizing activities through the use of innovative digital technologies in terms of eliminating intermediary links in the verification, processing, and transmission of information, eliminating data duplication, that is, optimizing the entire complex of management processes. The authors highlight the prerequisites for the introduction of digital technologies, such as the willingness of shareholders to accept digital innovations, expansion of financial needs related to digitalization of the financial sector, etc. The novelty of the study consists in the development of digital innovations in the field of borrowing and savings services of credit cooperatives. The proposed directions for the development of credit cooperation will allow to integrate into the digital environment of modern society and to maintain a cooperative identity and competitiveness among high-tech banking and other financial organizations. Keyword Credit cooperation Financial services


Digital economy
Innovation
Finance
Credit


L. V. Popova (&)
T. V. Daeva
T. A. Dugina
V. A. Melikhov
T. A. Chekrygina Volgograd State Agricultural University, Volgograd, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_50

477

478

L. V. Popova et al.

1 Introduction Credit cooperatives, uniting into systems, have both a vertical and horizontal hierarchical structure. Due to the properties of systematic nature, associations are susceptible to innovations that can be introduced on a large scale, rather than pointwise in a separate cooperative. Credit cooperation has deep historical roots. It is an area where traditional economic and social communications are built, based on the values of modern civilization: mutual assistance, solidarity, assistance, etc. Social transformations and a change in economic patterns have slightly affected credit cooperation, changing only the external details and not affecting the basic principles of the cooperative movement. It can be argued that credit cooperation is a traditional area of human economic life. In recent years, there has been a tendency to increase the influence of scientific and technological progress, not only in professional environments but also in everyday life. The influence is expressed in the accelerated penetration into various areas of innovation based on information and communication technologies. Credit cooperation, in many aspects, does not lag behind the general trends, using automation of internal management processes, external interaction with the state and counterparties, communications with shareholders, etc. However, the main operational activities (borrowing and savings operations) remain traditional. There are several reasons for this. First, the basis of such operations is trust between members of a cooperative, based on established traditions. Second, the mega-regulator of the financial market limits the qualitative expansion of microfinance operations. Third, to create the institutional elements of a digital innovation process (digital services, digital platforms, etc.), a resource base is required. Russian credit cooperatives have not accumulated this base throughout an active revival since the 1990s. In this paper, we will examine how digital innovations can affect the borrowing and savings activities of credit cooperatives and what digital technologies can be applied in this area.

2 Materials and Methods Certain aspects of the digital innovation of the Russian economy and its various fields were developed by a number of scholars (Anikina et al. 2016), (Babkin et al. 2018), (Burkaltseva et al. 2017a,b), (Popova et al. 2015), (Sazonovet al. 2016), (Truel and Volkov2015), (Volkov and Orlovab 2017), and others. The issues of theory and methodology of credit cooperation and its role in regional and national economies in modern economics were discussed in the works of Russian and foreign experts (Antonova et al. 2018), (Banerjee and Besley 1994), (Huseynov et al. 2018), (Karimi 2012), (McKillop et al. 2003), (Nemchenko et al. 2016), (Vorobyov et al. 2018), (Wossen et al. 2017), and others.

Digital Innovation in Traditional Services of Credit Cooperative

479

Nevertheless, unified approaches to the innovation of borrowing and savings operations of credit cooperatives through the introduction of digital technologies in modern specialized literature are not presented. The purpose of the study is to propose the direction of digital innovation of loan-savings services of credit cooperatives. The study applied general methodological scientific principles (the unity of theory and practice, objectivity, complexity), as well as a systematic approach to assessing the holistic picture of the current state of traditional financial services of credit cooperatives in the context of digital innovation (Balashova et al. 2015).

3 Results 3.1

Prerequisites for Digital Innovation in Credit Cooperation

Credit cooperation in modern Russia is focused on the small commodity sector – small business, owners of peasant and private farms, urban and rural populations, as well as various forms of consumer cooperatives. Credit cooperation in Russia and abroad has two branches: cooperation of citizens and agricultural cooperation, which are not required to be separately allocated for this study. Credit cooperation will be considered as a set of credit cooperatives of various types, taking into account their single economic essence, aimed at meeting the financial needs of its members. In Russia, historically, agricultural credit cooperatives occupied the credit sector of small forms of agribusiness and the rural population, which was freed up during the years of market reforms (the 1990s) (Dugina et al. 2015). It is difficult for rural territories that do not have large creditworthy enterprises to attract financial resources for socio-economic development, resulting in imbalances in territorial development (Volkov 2015). Citizen credit cooperatives also occupy their niche for servicing small businesses and a part of the population that does not meet the requirements of the banking sector for collateral and creditworthiness. These circumstances predetermined the active development of credit cooperation in Russia. The prerequisites for digital innovation of credit cooperatives are the following: • The leading group of service consumers is made up of individuals who have digital skills, sufficient digital literacy for this; • The needs of the shareholders, despite the commonality of their economic interests in the cooperative, are personified and cannot be fully met through standardized services and approaches to their provision; • Unlike large economic forms, individuals and small businesses are more flexible and susceptible to digital technological innovation; • Shareholders of credit cooperatives have personal (including mobile) access points to communication networks, which leads to simplicity and flexibility in building relations with the cooperative;

480

L. V. Popova et al.

• Private shareholders do not require large material costs for the implementation of digital innovations offered by the cooperative; • Credit cooperatives play a rather important role in the financial system (satisfying the need for financial services of their members, that other financial institutions cannot satisfy) and the social life of local rural societies remote from large financial centers (systemic effects are manifested as a result of a decrease in the level of shadow and usurious capital, promoting increased transparency, and the formation of a credit history among micro borrowers, increasing the financial literacy of the population and the development of other institutes based on citizens’ communities (Korobeynikova et al. 2017); • Credit cooperatives have both a vertical and horizontal hierarchical structure, uniting into systems. Due to the systematic properties, associations are susceptible to innovations that can be introduced on a large scale, rather than pointwise in a separate cooperative.

3.2

Features of Traditional Savings and Borrowed Services

The list of operations of credit cooperatives is limited by law based on the purpose of their creation—the organization of mutual lending to shareholders based on the accumulation of their financial resources. In the Russian Federation, legislation defines the following list of possible activities for agricultural credit consumer cooperatives: • Passive operations are limited to accumulating unit, membership, target, and other contributions of cooperative members, attracting savings of cooperative members in the form of loans and attracting loans from credit and other organizations—including loans from cooperatives of the next level; • Active operations are limited to issuing loans to members of the cooperative in cash, issuing loans to credit cooperatives of the next level, and placing temporarily free funds of the mutual financial assistance fund on bank deposits and in government securities; • Non-financial operations are limited to consulting and other services to members of a cooperative that do not contradict the law and are consistent with the objectives of the cooperative. These operations are classified as entrepreneurial activities. A similar list of possible financial and non-financial activities is provided for credit cooperatives of citizens: • Passive operations, which involve raising funds from cooperative credit shareholders in the form of memberships and other contributions as well as on the terms of a loan agreement (from legal entities) or transfer of personal savings (from individuals); funds of cooperatives of the second level and loans and

Digital Innovation in Traditional Services of Credit Cooperative

481

credits from legal entities that are not its members (for example, banks and other financial organizations); • Active operations include the issuance of loans to members of a credit cooperative (including consumer ones) or a second-level cooperative; the placement of funds in state and municipal securities; the insurance of property risks and liability to shareholders on loans or savings raised from them; • In the field of financial intermediation, other types of activities aimed at meeting the needs of shareholders except for trade and production activities. The above operations in credit cooperatives are automated, i.e., the accounting, control, and analysis systems are computerized; information is stored and transmitted on electronic media. In our opinion, the difference between automation and digitalization is that during automation, traditional processes are translated into electronic form without optimizing their organization without changing accounting and financial technology and legal support. Digitalization involves optimizing activities through the use of innovative digital technologies in terms of eliminating intermediary links in the verification, processing and transmission of information, and eliminating data duplication; that is, optimizing the entire complex of management processes. In this sense, the operations of modern credit cooperatives are automated, but not digitalized.

4 Discussion The introduction of digital innovations in the activities of credit cooperatives (along with the prerequisites) has limitations associated with the objective features of the status and legal form. In particular, this is a non-commercial nature of the activity, membership restrictions, requirements of a market regulator, etc. These objective and unavoidable limitations will be taken into account when formulating the authors’ recommendations. We offer credit cooperatives and their associations with the implementation of the following digital services. 1. The creation of cooperative digital shareholder service platforms. It is advisable to organize savings and borrowing activities based on digital platforms embedded in the overall ecosystem of the digital society and the digital financial ecosystem. Some credit cooperatives, due to the limited scope of activities, cannot develop and maintain complex and expensive platform models. We believe that cooperative credit associations can only develop digital platforms that reflect the specifics of the core business. Cooperation with the FinTech Association affiliated with the Bank of Russia (which is the regulator of Russia’s microfinance market) is possible. With the help of this organization, pilot projects of platforms can be tested to work out regulatory aspects. General system elements that perform common representative functions can test pilot programs

482

L. V. Popova et al.

and introduce digital platform innovations to individual credit cooperatives. For example, we can propose the development of a savings and loan platform for managing the activities of a cooperative. 2. The development of digital borrowing and savings services for shareholders. Based on platform solutions that take into account the profile activities of credit cooperatives, the development of digital services is proposed. Services should be developed for each type of financial service involving main and non-core activities. The development of digital services is a large task for a single cooperative; therefore, it is advisable that this development is carried out by associations of cooperatives. For example, one can propose the development of digital services for managing personal funds of shareholders (mutual savings, savings, loans, collateral transactions, payments, etc.) similarly to banking mobile applications. 3. The use of blockchain technology. Due to the limited operations and the circle of involved persons, it is proposed to carry out operations based on distributed ledger technologies (blockchain). Blockchain, being a closed and secure technology for data transfer and storage, in its essence, corresponds to the nature of cooperative credit operations, limited by the environment of shareholders. Therefore, the use of blockchain for cooperative operations with the funds of shareholders can increase the efficiency, transparency, and safety of funds. The creation of own secure chains of verification and transmission of information will reduce the costs of the cooperative and its shareholders in verifying the information about the pledge, the costs of confirming the reliability of other information. The value of the blockchain for credit cooperation lies in the fact that the principle of transparency is ensured when a reasonable combination of data protection and data openness is required (Melikhov 2018). 4. Opening shareholder service interfaces. The idea of open interfaces to ensure equal access to customer service is actively discussed in the banking environment, and conditions are created for implementing this area. Concerning the environment of credit cooperation, we consider it possible to open customer service interfaces in two stages. At the first stage, if there are compatible digital platforms and services, it is possible to test the technology within the framework of a credit cooperation system (agricultural, civil) at the local level of a region, district, etc. with the transfer of technology to the state level of the cooperative system. Such practice will make it possible to satisfy the needs of shareholders in obtaining the services of a cooperative system more fully. At the second stage, the interfaces can be open to external, non-cooperative contractors. Thus, the credit cooperative will be able to expand its operational capabilities to attract financing, place funds of shareholders, provide non-financial services to shareholders, and so on. At the same time, a credit cooperative, as an agent, can use the open interfaces of banks and other non-banking organizations, which services are needed by shareholders (subject to legal requirements) (Burkaltseva et al. 2017a, b).

Digital Innovation in Traditional Services of Credit Cooperative

483

5. Using third-party digital technologies in the activities of a credit cooperative. In credit cooperation, as a rule, simplified (often informal) procedures for determining creditworthiness are applied, the principle of mutual trust has become widespread, minimum collateral requirements have been introduced for borrowers (assets that do not represent collateral value for a bank are accepted). The disadvantages of informal methods of assessing creditworthiness are compensated by the possibilities of social pressure on problem borrowers from society, which is especially evident in limited rural areas (Popova 2016). Nevertheless, credit cooperatives are essentially credit organizations, which determines their similarity with banks in terms of technical aspects of credit and financial activities. Credit cooperatives, as the participants in the financial market, can use digital products tested for banking practices in relation to shareholders and third-party counterparties: smart contracts, digital letters of credit, digital mortgages, as well as digital banking credit assessment methods adapted to the specifics of credit cooperation.

5 Conclusion The noted features of saving and borrowing activities make it possible to separate credit cooperation into an independent segment of the credit and financial system, which is a traditional socio-economic institution. Credit cooperation uses the automation of management processes, external interaction with the state and counterparties, communications with shareholders, and so on. The main operational activities (borrowing and savings operations) remain traditional. The paper highlights the prerequisites for the introduction of digital technologies, considers how digital innovations can affect the borrowing and savings activities of credit cooperatives, and which digital technologies can be applied in this area. The development of the following digital services was offered to credit cooperatives: the creation of own cooperative digital platforms for servicing shareholders; the development of digital services of borrowing and savings services to shareholders; the use of blockchain technology; opening shareholder service interfaces; the use of third-party digital technologies in the activities of a credit cooperative. The proposed directions for the development of credit cooperation will allow it to integrate into the digital environment of modern society while maintaining a cooperative identity and competitiveness among high-tech banking and other financial organizations.

484

L. V. Popova et al.

References Anikina, I.D., Gukova, A.V., Golodova, A.A., Chekalkina, A.A.: Methodological aspects of prioritization of financial tools for the stimulation of innovative activities. Euro. Res. Stud. J. 19 (2), 100–112 (2016) Antonova, M.V., Shekhovtsov, V.V., Chistnikova, I.V., Antonov, A.Y.: Development of credit cooperation in the region (Belgorod, Russia). Espacios 39, 11 (2018) Babkin, A.V., Burkaltseva, D.D., Betskov, A.V., Kilyaskhanov, H., Tyulin, A.S., Kurianova, I.V.: Automation digitalization blockchain: Trends and implementation problems. Int. J. Eng. Technol. (UAE) 7, 254–260 (2018) Balashova, N.N., Šilerová, E., Melikhov, V.A.: Developing the methodology to form integrated reporting of agroholdings in the Russian Federation. Agris on-line Papers Econ. Inf. 4, 19–29 (2015) Banerjee, A.V., Besley, T.: Thy neighbor’s keeper: the design of a credit cooperative with a theory and a test. Quart. J. Econ. 2(109), 491–515 (1994) Burkaltseva, D.D., Boychenko, O.V., Sivash, O.S., Mazur, N.M., Zotova, S.A., Novikov, A.V.: The Construction of the digital organizational, social, and economic production mechanism in the agro-industry. Eur. Res. Stud. J. 4B(XX), 350–365 (2017a) Burkaltseva, D.D., Sivash, O.S., Boychenko, O.V., Savchenko, L.V., Bugaeva, T.N., Zotova, S. A.: Realization of investment processes in the agricultural sector of the digital economy. Eur. Res. Stud. J. 4B(XX), 366–379 (2017b) Dugina, T.A., Likholetov, E.A., Nemchenko, A.V., Belyakov, A.V., Likholetov, A.A.: The regional aspect of rural sector support. Biosci., Biotechnol. Res. Asia 1(12), 549–555 (2015) Huseynov, M.C., Hasanova, M.H., Mammadov, N.N.: World experience and the theoretical bases of government support in the creation and development of cooperatives in Azerbaijan. Black Sea Sci. J. Acad. Res. 5(43), 27–35 (2018) Karimi, S.M.: The role of credit cooperatives in rural development case study, Mazandaran province. Iran. Adv. Environ. Biol. 7(6), 1960–1968 (2012) Korobeynikova, O.M., Korobeynikov, D.A., Popova, L.V., Savina, O.V., Kamilova, R.S.: The current state of the payment infrastructure and development of payment systems in Russia and the Volgograd region. Espacios 38(62), 11 (2017) McKillop, D.G., Briscoe, R., McCarthy, O., Ward, M., Ferguson, C.: Irish credit unions: Exploring the gender mix. Voluntas: Int. J. Voluntary Nonprofit Organ. 14(3), 339–358 (2003) Melikhov, V.A.: Aspects of the methodology for the formation of integrated reporting of agribusiness entities based on the XBRL format and block-technology. J. Int. Sci. Res. 1–2, 33–39 (2018) Nemchenko, A.V., Dugina, T.A., Likholetov, E.A., Malofeev, A.V., Likholetov, A.A.: Conditions for developing sustainable growth in the region’s agricultural industry. Int. J. Econ. Financ. Issues 6(2), 207–211 (2016) Popova, L., Korobeynikov, D., Korobeynikova, O., Popova, S., Dugina, T.: Cluster policy in the agrarian sphere in the implementation of the concept of economic growth. Eur. Res. Stud. J. 18 (3), 31–40 (2015) Popova, L.V., Korobeynikov, D.A., Korobeynikova, O.M., Panov, A.A.: External sanctions as motivation to develop clusters infrastructure in agricultural branches. J. Appl. Econ. Sci. XI(6 (44)), 1034–1044 (2016) Sazonov, S.P., Ezangina, I.A., Vaysbeyn, K.D., Gorshkova, N.V., Makarova, E.A.: Alternative sources of business development: mezzanine financing. Sci. Pap. Univ. Pardubice. Ser. D Fac. Econ. Adm. 23(37), 143–155 (2016) Truel, J.L., Volkov, S.K.: Implementing a successful cluster policy: the French experience. Revista Galega de Economia 24(1), 111–120 (2015) Volkov, S.K.: The social and economic disproportion of development of Russian territories. Reg. Sect. Econ. Stud. 15(2), 137–144 (2015)

Digital Innovation in Traditional Services of Credit Cooperative

485

Volkov, S.K., Orlova, B.O.: The system of state support agricultural entrepreneurship both facts increase the activity of entities in the industry. Revista Galega de Economia 26(1), 83–88 (2017) Vorobyov, Y., Burkaltseva, D.D., Kovalyova, I.N., Borsch, L.M., Gerasimova, S.V.: Sustainable development of the regional economy: Indicators, analysis, systematization. J. Adv. Res. Law Econ. 9(2), 729–739 (2018) Wossen, T., Abdoulaye, T., Olanrewaju, A., Alene, A., Haile, M.G., Feleke, S., Manyong, V.: Impacts of extension access and cooperative membership on technology adoption and household welfare. J. Rural Stud. 54, 223–233 (2017)

Prospects for the Development of the Software Industry Market for the Cooperative Sector of the Economy Pavel V. Zhesterov , Maria A. Volkova , Svetlana Yu. Starodumova , and Lubov B. Sitdikova Abstract The study aims to analyze the current state of the Russian software market and determine the prospects for its development. The analysis of the successful experience of economically developed countries showed that support for software development is an integral part of national security and the strategy of socio-economic development. It is noted that the focus of digital development on the needs of the consumer market is a necessary factor in the development of the economy. Despite government stimulation of innovation, the domestic Russian software market is underdeveloped. The lack of targeted state financing and industry development programs, the uncertainty of the legal regime of the computer program as an object of the exclusive right are the reasons for the underdevelopment of the software market. During the study, methods of analysis, mental modeling, and comparative legal method were used. Based on the results of the study, a set of measures was proposed: obtaining a patent for computer programs, establishing a “technical criterion” as one of the conditions for patenting; changes in tax legislation, setting quotas for entrepreneurs to use Russian software. The stimulation by the state of the creation of computer programs used by subjects of consumer cooperation will be a factor in the development of both the digital industry market and the cooperative economy, including in the field of electronic commerce.










Keywords Software Computer program Digital economy Consumer cooperation Software industry Intellectual property Know-how Patenting













P. V. Zhesterov
M. A. Volkova
S. Yu. Starodumova (&)
L. B. Sitdikova Russian State Social University (RSSU), Moscow, Russia e-mail: [email protected] P. V. Zhesterov e-mail: [email protected] M. A. Volkova e-mail: [email protected] L. B. Sitdikova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_51

487

488

P. V. Zhesterov et al.

1 Introduction After several years of strenuous wanderings in search of a national idea, Russia, together with a new leader, found a development vector – there appeared a task to create an innovative economy. It did not matter how legitimate this leader was; it was important that with his appearance as the head of the state, a rapid stream of fresh technological trends at the state level was initiated, as well as several important legislative changes that may have just been the beginning. In his speech at the plenary meeting of the St. Petersburg International Economic Forum on June 18, 2010, Russian President D. A. Medvedev proclaimed: “Over the coming decades–these are our plans–Russia should become a country where the well-being and high quality of life of citizens are ensured not so much from raw materials sources but intellectual resources: an innovative economy that creates unique knowledge, exporting the latest technology, exporting products of innovation” (Malakhov and Fazletdinova 2010). It should be noted that federal and regional authorities have actively begun to carry out activities aimed at stimulating and developing innovative activities, involving young people in the business environment. According to experts, Skolkovo, as a model of an “innovative state” with unprecedented benefits and a special investment climate, can serve as the first step toward the practical implementation of a policy that would stimulate the innovative development of Russia. One priority area is to increase the export of computer technology abroad (Pogulyaev 2010). Meanwhile, the professional community notes several problems in the industry. First, according to RUSSOFT, no more than ten companies in Russia specializing in writing software have annual turnovers of more than $100 million. Second, in Russia, this industry is aimed mainly at exporting products, while, for the most part, only imported software is used in the domestic market. Russian programmers presented their “Route Map for the Development of the Russian Software Industry,” which implies an increase in software exports to $15 billion by 2020, an increase in the level of import substitution to 60%, and an increase in the software industry’s share in the country’s GDP to 5% (now 1.5%) (Russoft 2010). To achieve such indicators, RUSSOFT proposes, in particular, to initiate large-scale projects aimed at creating software solutions for strategic industries, to create a fund for programs developed by state order, and to restore the expertise system of the RAS for large projects (Russoft 2010). We see the disadvantage of this approach in underestimating the needs of the cooperative sector of the economy. It is necessary that the developed programs provide not only the global needs of the state but also be implemented at every level of the economy, including in the market for the sale of food products, which is attended by consumer societies and unions. This “point” approach will increase the demand for software products, which, in turn, will lead to the development of the software market.

Prospects for the Development of the Software Industry ...

489

The integration of the Russian Federation into the global software industry is widely discussed in the scientific literature. Several authors (Zakhartsev et al. 2017; Khabibulin and Somik 2018; Sitdikova and Starodumova 2019; Altukhov et al. 2019; Lutsker 2010; Tazetdinova 2018) note that the creation of Russian developments (computer programs) will ensure information security of the state. Therefore, in the process of implementing the program for the development of the digital economy of Russia, the measures ensuring the necessary level of digital sovereignty must be dependable.

2 Materials and Methods The methodological basis of the study was made by such general scientific methods as the analysis method, which made it possible to study the current state of the Russian software production market and identify the complex problems existing in it. The use of the comparative-legal method is the basis for the study of foreign, international, and Russian legislation. It was revealed that European legislation, in contrast to US laws, has common features with the Civil Code of Russia. This method of mental modeling allowed us to suggest that the development of their own software market also stimulates the expansion of the legal services market, such as the development of draft contracts for the purchase of software products, legal advice about the use of software, and the representation of companies in law enforcement agencies and courts in disputes related to using a licensed computer product.

3 Results A comparison between Russian, European, and American legislation allows us to conclude that in countries where the process of registering rights to computer programs is formalized (a patent is issued), the protection of the rights of software developers is carried out more effectively. This is facilitated by the fact that when granting a patent, the criterion of “technical effect” is checked. That is, the requirement must contain a technical element and meet the inventive step criterion. Just as the state provides the necessary number of jobs for its citizens and legislatures regulate the percentage of Russian citizens and foreign workers, it is necessary to take the legislative initiative to mandate that at least 60% of software in enterprises be developed by Russian companies. In this case, special attention should be paid to the development of programs to meet the needs of the consumer cooperation market.

490

P. V. Zhesterov et al.

4 Discussion As noted by A. G. Khabibulin and K. V. Somik, “Our country has the necessary potential to ensure digital sovereignty, as well as state sovereignty in general, and create a promising domestic digital platform for the economy. However, this requires solving the problem of registration, commercialization, and protection of intellectual property generated in the process of the digital transformation of the economy” (Khabibulin and Somik 2018). To solve this problem, a group of researchers, including M. S. Lavrentieva and M. M. Turkin, proposes to divide strategic actions into two areas: organizational measures and measures to change the legislative framework and mechanisms for regulating economic activity (Lavrentieva and Turkin 2018). Over the past few years, Russia has actively funded state programs for the creation and development of professional competencies. The events to participate in the WorldSkills Championship of Professional Excellence are being held. In November 2019, the VI National Championship of cross-cutting workers in high-tech industries will be held (WorldSkills Hi-Tech). This competition focuses on competencies such as information modeling technologies and digital production, allowing us to identify specialists who can create software products needed in the government and strategic areas of the economy. However, an analysis of the declared competencies allows us to note that they mainly relate to the ability to use an already developed software product rather than to create a new one (Union “Young Professionals” (Worldskills Russia) 2019). According to Art. 1261 of the Civil Code of the Russian Federation, computer programs are not subject to patents and are protected by copyright, similar to works of literature and art. In order to protect their rights more effectively, software developers patent an algorithm that is implemented by the computer program. This algorithm is displayed in the patent application in the form of a method, provided that the described method does not represent a description of only the sequence of specific mathematical operations. As L. Tezetdinova notes, “Given that the restriction on the grant of patent protection to computer programs applies only to programs as such (Clause 5, Article 1350 of the Civil Code of the Russian Federation), it is worth noting that software in the Russian Federation can be patented in combination with a hardware component” (2018). This situation, as noted by the researchers, leads to the fact that “copyright protects the objective form in which the computer program is expressed, but it does not create an author’s monopoly, since it does not limit the independent creation of the same program to other persons, in contrast to patent protection of inventions (Revinsky 2017). A. G. Khabibulin and V. G. Somik note the possibility of obtaining rights to technological principles, formulas, algorithms, and calculations—which are part of the software—as know-how, but in this case, the level of protection of rights is even lower (Khabibulin and Somik 2018). Registration and protection of intellectual property, which the Civil Code refers to know-how, is carried out following Federal Law No. 98-FZ “On Commercial Secrets” and Article 183 of the Criminal Code of

Prospects for the Development of the Software Industry ...

491

the Russian Federation “Illegal receipt and disclosure of information constituting commercial, tax or banking secrets”. For countries of the European Union, the European Patent Convention is in force, which—like the Civil Code of the Russian Federation—expressly excludes the provision of patent protection for computer programs as such (Article 52). To obtain a patent, in this case, a technical device controlled by this software is required. The patentability of software is recognized in the United States, provided that it is not just a scientific principle or an abstract theorem. In other words, a mathematical algorithm that already exists in nature cannot be patented, but its practical application in specific circumstances can be considered as an invention. The widespread expansion of modern means of communication and an increase in the number of concluded purchase and sale transactions via the Internet leads to the appearance in the laws of the states of the rules governing relations in the field of electronic commerce (Burova et al. 2018). Thus, paragraph 3 of Art. 1286 of the Civil Code of the Russian Federation regulates the conclusion of licensing agreements on granting the right to use a computer program by concluding an accession agreement with each user by the copyright holder. The terms of such an agreement are set forth on the purchased copy of such a program or the packaging of this copy. The beginning of the use of such a program by the user signifies his consent to conclude a contract. The development of computer technology invariably affects not only the development of legislation but also the issue of enhancing computer security and information protection (Sitdikova and Starodumova 2019). Among the already emerging trends, there is a mandatory prescribing in the contract between partners of the conditions for data transmission via electronic, necessarily secure communication channels, and the presence of licensed counterparty software, including anti-virus. According to M. S. Dashyan, this trend will only intensify. As the author notes, in this regard, illegal software use by legal entities will come to naught. It is predicted that such a process as software auditing will gain immense popularity. It is a software inventory, license analysis. Based on its results, an opinion on all the software installed in the company will be provided, optimal licensing schemes will be selected, and consultations will be given on the legal risks of using unlicensed software (Dashyan 2009). Even now, in large Russian organizations, in addition to the standard financial audit, an inventory of existing licenses is carried out, then compared with accounting documents and other documents confirming the legality of the software. Now the total and residual value of software licenses is included in the cost of intangible assets of an enterprise. In this regard, the process of developing procedures, regulations, and instructions for the acquisition, storage, installation, accounting, use, and decommissioning of software in an enterprise is of particular importance. The development of regulations for the standardization of jobs will gain immense popularity. This procedure is the definition of a standard set of software for jobs of different categories of employees. Also, a strategy will be developed for the behavior of company employees in the workplace when law enforcement authorities check for licenses for the used programs (Dashyan 2009).

492

P. V. Zhesterov et al.

When analyzing these trends, we can see that in the next few years, software business optimization, virtualization of business processes, and, after them, licensing optimization will be of great importance. Following a survey conducted by the information resource Tadviser.ru (Svetlakov 2010), to date, the share of domestic software used by Russian companies is no more than 26%. Such a low percentage is due to the underdevelopment of marketing and pricing policies, the ill-conceived and undeveloped mechanism for making a profit from Russian developers. Russia, as a country, is just beginning to comprehend the mechanisms of competitive market relations and gradually starting to introduce capitalistic literacy courses in programs, and needs to promote the development of the domestic software industry by law. M. S. Dashyan notes that the vast majority of Russian developers of software programs, in their activities, are focused on foreign markets (Dashyan 2009). There are several reasons for this. First, in such countries as Canada, the USA, and Germany, which are the main buyers of Russian software, there is a deficient level of illegal software usage. Accordingly, the more companies and individuals buy a license to use the program, the higher the company’s profit. A. G. Svetlakov argues that changing the mentality of the Russian consumer and defeating the propensity to consume unlicensed software can be toughened by punishment for this type of offense (Svetlakov 2010). It is also proposed to oblige Internet providers to disclose information about users who “upload” and “download” unlicensed software and other objects protected by copyright. It is assumed that, in this regard, the PC user will lose the feeling of anonymity and impunity and increase the degree of responsibility for their actions. Also, there has been a favorable trend of government support for Russian software developers to develop programs for reporting via the Internet. Legislative measures to consolidate and strengthen this trend may contribute to a more intensive distribution of domestic software development in our country and attract foreign investment in the development of the domestic software, which is likely to entail increased competition, increased quality of the software product, and lower prices. The closing link in this chain should be the formation of Russians’ habits of using licensed computer products because of their availability, quality, and safety (Starodumova et al. 2018).

5 Conclusion From the analysis of the current market situation, we can conclude that in our country, practically no domestic software developments are used. Many software products are imported to Russia, when, at the same time, the best domestic developments (and developers) are bought up by Western companies. If we turn to the experience of other BRIC countries, Russia stands out by the complete lack of state support for established channels for promoting Russian information technologies.

Prospects for the Development of the Software Industry ...

493

The alleged changes in the legislative framework described above to protect exclusive rights to the software are aimed not only at stimulating the market of software manufacturers. This, in turn, may lead to the emergence of new legal services. In addition to those already mentioned, Russian companies will demand such services as the development of draft contracts (license, purchase, sale, etc.) for the purchase of software products, legal advice in the use of software, legal support, representing the interests of companies in law enforcement and dispute courts in connection with the use of a licensed computer product. We propose the creation of centers of competence in key areas of programming as organizational measures to bring competitive specialists to the market. Another measure proposes the gradual introduction of Russian computer software developments in key areas of the economy in order to replace imported products. Particular attention should be paid to the creation of Russian software products for the small business sector, especially consumer cooperation. This will reduce the cost of royalties and save the funds received by the development company in the Russian economy. Also, the development of Russian software products can increase their targeting by determining the actual needs of the market for digital development.

References Altukhov, A.I., Bogoviz, A.V., Kuznetsov, I.M.: Creation of an information system–a necessary condition of rational organization of agricultural production. Adv. Intell. Syst. Comput. 726, 800–809 (2019) Burova, I.L., Lavrentieva, M.S., Lenkovskaya, R.R., Malcev, V.A., Kuleshov, G.N.: Legal Regulation of E-commerce. Int. J. Eng. Technol. 7(315), 222–225 (2018) Dashyan, M.S.: Intellectual Property in the Business. Eksmo, Moscow (2009) Khabibulin, A.G., Somik, K.V.: The problem of protection and development of intellectual property in the context of digitalization of the economy. Jurisprudence: History and Modernity, 9 (2018) Lavrentieva, M.S., Turkin, M.M.: Issues of state protection of intellectual property. Union Criminologists 2, 79–80 (2018) Lutsker, A.P.: Copyright in Digital and Media. Kudits Press, Moscow (2010) Malakhov, A., Fazletdinova, D.: Government software. Kommersant, 159 (2010) Pogulyaev, V.V.: Intellectual Property Law in the Russian Federation. Justicinform, Moscow (2010) Revinsky, O.V.: Industrial Property Law. Yuservitum, Moscow (2017) Russoft: The development of the software industry in Russia. Route map dated 28 May 2010, version 4.6. Kommersant, 159, 30 (2010). https://russoft.org/analytics/kontseptsiya/ Sitdikova, L.B., Starodumova, S.J.: Cloud Technology Services in the Information Security. Int. J. Innov. Tech. Explor. Eng. 8(8), 3209–3211 (2019) Starodumova, S.J., Volkova, M.A., Neznamova, A.A., Kuleshov, G.N., Lenkovskaya, R.R.: The problems of responsibility for violation of legislation regulating information security on the internet. Revista Espacios 39(45), 25 (2018) Svetlakov, A.G. (ed.): Intellectual Property in Russia and the EU: Legal Issues. Walters Clover, Moscow (2010)

494

P. V. Zhesterov et al.

Tazetdinova, L.D.: About software patenting (comparative analysis of the Russian Federation and Western countries). Matt. Russ. Int. Law 8(9A), 362 (2018) Union Young Professionals (Worldskills Russia): The order “On approval of the list of competencies, chief experts, and deputy chief experts on competencies of the VI National Championship of cross-cutting occupations of high-tech industries according to the WorldSkills (WorldSkills Hi-Tech) methodology in 2019 (2019). https://worldskills.ru/ assets/docs//12030/12.07.2019-1.pdf Zakhartsev, S.I., Klimenko, O.A., Mirzoev, A.K., Salnikov, M.V., Tretyakov, I.L.: The sovereignty of the Russian Federation: Modern threats and ensuring military security. World Polit. Sociol. 1, 120–139 (2017)

Cooperative Organizations and Digital Technologies Alexander V. Sobolev , Galina Yu. Myasnikova , Alexander B. Krym , Vera A. Drobisheva , and Lidia V. Andreeva

Abstract Modern cooperative organizations are increasingly encouraged to take measures related to the mastery of advanced technologies that create a new economic paradigm. How cooperative organizations interact with innovation in the emerging collaborative economy is extremely important in the context of digital transitions in cooperative organizations. The present study is devoted to clarifying the issues of how cooperative organizations perceive modern transformations associated with digital technology. The analysis reveals both opportunities and benefits for cooperative organizations with respect to joint economy and digital innovations. The transition of cooperative organizations to digital society encompasses the following double dimension: (1) collective organizational changes implemented and managed by a parent organization, and (2) systemic organizational changes affecting the cooperative organization itself. Cooperative Europe has demonstrated through its experience the ability of cooperative organizations to take into account the causes and factors that weaken the inertia of cooperative organizations in the field of digital innovation. And cooperative organizations can increase collective preparedness for change among their members. Cooperative organizations raise awareness among members with the concept of a digital knowledge platform. Digital innovations enable cooperative organizations to create psychological readiness for change within their traditional institutional boundaries and beyond. A. V. Sobolev (&)
G. Yu. Myasnikova
A. B. Krym
V. A. Drobisheva
L. V. Andreeva Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] G. Yu. Myasnikova e-mail: [email protected] A. B. Krym e-mail: [email protected] V. A. Drobisheva e-mail: [email protected] L. V. Andreeva e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_52

495

496

Keywords Digital innovation

A. V. Sobolev et al.


Platform cooperatives

1 Introduction The cooperatives participating in business set the creation of values, which are achieved subject to certain principles, for their members as their main goal. Thanks to the principles of mutual assistance, identity, democracy and solidarity, cooperative business models are able to create certain potential, including the potential to stimulate socioeconomic innovation. However, there is still no convincing research on whether these innovations bring benefits to the members of cooperatives or not. Nowadays, there is an increasing appearance of platform cooperatives, which are a digital form of cooperatives. In fact, their existence maximizes the value of their participants, not profit, as is customary in traditional business. This means that the creation of values both at the level of individual members, at the level of organization, and even society, is possible. Cooperative platforms can also be seen as innovations per se. Despite the fact that the cooperative platforms have gained popularity and have grown quantitatively in recent years, they have not yet been investigated properly. For example, it is not clear what the value of socioeconomic innovation means from the point of view of members of a cooperative. Therefore, we need to understand how cooperatives perceive the value of these innovations. There is a constantly growing body of research on challenges and prospects of innovative development, digital technology, new management approaches (Sutherland and Jarrahi 2018; Bogoviz et al. 2019; Bogoviz et al. 2018; Sutherland and Jarrahi 2018; Somers et al. 2018; Nuruzzaman et al. 2019; Bogoviz et al. 2019). A number of studies have shown how cooperative organizations stimulate innovation (Harter and Krone 2001; Berkowitz 2018) and develop an economic support infrastructure that allows their members to solve collective problems (Audebrand and Barros 2018). Nevertheless, the specific features of digital projects in cooperative enterprices remain insufficiently studied in this field of research. On the other hand, the literature on digital innovation has demonstrated how organizations embark on digital change (Shahrasbi and Pare 2014) and assimilate digital platforms (Purvis et al. 2001). It was also shown how digital technologies affect innovation, in particular, by providing processes of open innovation involving systems of decentralized entities (Yoo et al. 2012). For cooperative organizations, regardless of the political and strategic importance of understanding the opportunities and limitations for their members in the field of digital transformation, the following is important. Their claims to the growth and development of the cooperative movement may be relevant in the context of a collective transition to a digital society. Preliminary research seems to be enough to develop a basic understanding and start a research program on this topic. Our study addressed the following question: “What are the main drivers and barriers to the transition of cooperative organizations to digital society?” The study

Cooperative Organizations and Digital Technologies

497

aims to understand how cooperative organizations are involved in the digital transformation process. A review of the literature and its analysis shows that to support the cooperative movement in managing digital transition, cooperative organizations can play an important role in the following two areas: promoting digital innovation and promoting organizational change in information systems. The use of the digital transition entails significant and disruptive organizational changes “requiring a review of key assumptions, interpretations, knowledge, language, actions and practices at the individual and collective levels” (Gioia et al. 2012). One of the ways in which cooperatives can solve socioeconomic problems is through collectively organizing through superior organized structures (Ahrne and Brunsson 2005). These structures are organizations whose members are other organizations, primarily cooperatives, then secondary cooperatives or other cooperative associations follow. Depending on their statutory goals, cooperative organizations come together and operate at local, national, regional or international levels. Their main activity is mainly cultural in nature, and includes actions in the fields of education, information exchange, research, setting standards, public relations, lobbying and civic activism (Spillman 2018). An analysis of the literature leads the authors to formulate the following theoretical propositions: Firstly, higher-level cooperative organizations can realize the problem of transitioning to digital society as a sphere of cultural activity, activation of education, and training functions. The purpose of which is to stimulate collective innovation as a way to solve problems faced by members of cooperative organizations. In this regard, the attributes of higher-level organizations allow them to propose multilateral governance structures conducive to sustainable innovation processes. Secondly, in the face of increased external competition, they can create adequate support structures aimed at empowering their members; however, their actions are limited by the inertia mechanism created by the higher-level organizations themselves. In the digital field, the supporting structure that allows higher-level cooperative organizations to strengthen their cultural functions can take the form of a digital knowledge platform. However, during such a digital transition, cooperative associations may, on the one hand, encounter internal mechanisms of inertia. On the other hand, they may face broader mechanisms of organizational change and the adoption of digital technology. In the end, cooperative organizations developing knowledge platforms can foster digital innovation characterized by generativity. The term refers to innovations in digital technology, characterized by “a common ability to make seamless changes due to a large, diverse and inconsistent audience” (Yoo et al. 2012). For digital technologies that support innovation, generativity implies inherent flexibility. Thus, the digital transition of cooperative organizations encompasses the following duality: collective organizational changes implemented and managed by a parent organization and systemic organizational changes affecting the cooperative organization itself.

498

A. V. Sobolev et al.

2 Materials and Methods Currently, the International Cooperative Alliance (ICA) is developing a decentralized digital open-source solution, namely the “Cooperative Knowledge Base” (CKB). The purpose of this “knowledge base” (in essence, a knowledge platform) is to improve cooperation between ICA members, cooperative development entities, and youth. It can be used to determine the direction of sustainable innovation, allowing cooperative organizations to carry out a wider range of collective actions, not only with their members but also with external stakeholders. It is likely that such a development vector will entail certain structural transformations that will influence the identity problem of cooperative organizations. Therefore, it would be useful to have literature on the transformation of cooperative organizations and their identity in the context of identifying potential digital transformations (Harter and Krone 2001; Berkowitz 2018; Audebrand and Barros 2018). The conceptual analysis in this study is aimed precisely at this. It tries to determine how cooperative organizations perceive the problems of digital transition and how a digital transition affects cooperative organizations (Shahrasbi and Pare 2014; Purvis et al. 2001; König et al. 2012; Cousin and Martelloni 2017). This study intends to contribute to thinking about the future of cooperative organizations in the transition to the digital age. At the same time, we use the data of the digital innovation project CoopStarter, which originally was coordinated by Cooperatives Europe. The study currently is being implemented under the Global Cooperative Entrepreneurs (GCE) program, which is being developed as part of an agreement between the International Cooperative Alliance (ICA) and the European Commission (EC), called # coops4dev (Cousin 2017; Audebrand and Barros 2018; Como et al. 2016). The only organization that officially participates in both programs, as a CoopStarter leader and a GCE member, is Cooperatives Europe. Cooperatives Europe is a cross-sectoral European cooperative association with 84 affiliates from 33 countries. It includes European-industry cooperative associations, national and regional cooperative associations, and primary cooperatives (https:// coopseurope.coop/about-us).

3 Results Members of European cooperative organizations do not disagree about the need to solve digital problems. A statement by the UK Secretary General of Cooperatives sounds convincing when he raises the question of survival, saying that cooperatives will have to explore new ways of innovation if they want to remain competitive. Cooperatives will have to constantly update their model, promote their values and principles, and play a leading role in the changing socioeconomic development (Como et al. 2016).

Cooperative Organizations and Digital Technologies

499

In this case, differences in approaches are detected. Some members are actively studying the digital potential of cooperatives using different approaches (in the United Kingdom, France, Belgium, and Austria). Others cautiously approach the topic, paying attention to the opposite of the principles of ICA and online platforms (Italy), or the structural difficulties of switching to the digital market (Netherlands). Eastern European cooperatives (Poland, Czech Republic) referred to the lack of public willingness to use online services on a collective basis. Therefore, the researchers recommended, “raising awareness of the models and functions of a joint economy and understanding the reasons and basic structural conditions for its success” (Como et al. 2016; Cousin and Martelloni 2017; Cooperatives Europe 2016). The need for cooperative organizations to coordinate digital tasks in a coordinated way has resonated in cooperative Europe, which issued a decree that includes the following tasks: (a) Develop advocacy for a shared vision of a collaborative economy; (b) Conduct outreach activities; (c) Stimulate transnational operational projects aimed at supporting cooperative organizations in their digital activities (Como et al. 2016; Cousin and Martelloni 2017; Cooperatives Europe 2016). In 2017, the work “Cooperative vision of a collaborative economy” was published (Cousin and Martelloni 2017). It noted that a collaborative economy “creates economic and social opportunities” while creating numerous problems for cooperatives and, more broadly, for social justice. Cooperatives Europe emphasizes the need for the cooperative movement to “actively invest in a collaborative economy,” while realizing its own limitations and “seeking to eliminate them” (Cooperatives Europe 2016). Such a vision encourages favorable rules to protect the cooperative model and support its development in the digital age. European cooperatives turn to European politicians, recommending the development of a cooperative economy based on cooperation. Thus, a contribution to the establishment of common guidelines for members of cooperatives in Europe is made. A “cooperative vision of a collaborative economy” fosters shared knowledge through a case study demonstrating cooperative innovations in the digital field. In particular, when considering common terminology related to a collaborative economy, the term “collaborative economy” is proposed to refer to a wide and diverse group of practices and innovative models. In these practices and models, digital technologies are used to facilitate collaboration and exchange between a community of colleagues, and to maximize the use of underutilized resources. The value of the joint economy models is that they allow combined exchanges between colleagues that are carried out between members of the community and turning them into system-based value creation processes that are managed by the community and benefit the community (Cousin and Martelloni 2017). Recognizing the challenges faced by younger generations, cooperatives have begun to work more closely with youth organizations, offering relevant expertise and communication channels. It is important that meetings between cooperatives and youth organizations lead to innovation through the transfer of knowledge, i.e., cooperatives should act as training networks. A multi-stakeholder approach would be an integral part of the overall digital innovation process.

500

A. V. Sobolev et al.

However, the collective inertia towards digital challenges is quite strong, and this hinders or limits the ability of cooperatives to work in this area. It is difficult for cooperatives to integrate cooperative principles into digital tools being developed, and cooperatives are structurally unprepared for digital transformation. The intergenerational gap, cultural unreadiness, and complicated administrative and lengthy decision-making processes affect this case. Structural and psychological unpreparedness for digital changes is manifested in the stagnation of members of cooperative organizations. As part of the development of the knowledge base, European cooperatives intend to overcome existing difficulties with access to organizational knowledge distributed among member organizations. European cooperatives intend to expand their own opportunities for creating collective knowledge by stimulating and automating shared resources between their members (Cooperatives Europe 2017). In this regard, through CoopStarter and GCE, cooperative higher-level organizations need to promote inter-organizational knowledge sharing as a lever to create organizational knowledge tailored to the needs of its members. The CoopStarter project includes the following three meta-organizational actions aimed at promoting the adoption of a knowledge base among its participants: introducing useful knowledge into the platform, linking them to a common methodology and creating the conditions for easier integration into existing tools (Cooperatives Europe 2017).

4 Discussion European cooperatives offered an understanding of digitalization and used their existing learning network to translate political ideas into concrete collective actions. Also, training networks of cooperative organizations to stimulate innovation among members, taking into account their own needs, were used. These innovations satisfy both the collective needs of the members of a cooperative organization and the needs of the cooperative organization itself. However, the ability of cooperative organizations to pursue digital innovation may be limited by the inertial forces of their members, both in terms of low structural readiness and low psychological readiness. Cooperative Europe has demonstrated through its experience the ability of cooperative organizations to take into account the causes and factors that weaken the inertia of cooperative organizations in the field of digital innovation and to increase the collective willingness to change among its members. Cooperative organizations raise awareness among members with the concept of a digital knowledge platform. Digital innovations enable cooperative organizations to create psychological readiness for change within their traditional institutional boundaries and beyond.

Cooperative Organizations and Digital Technologies

501

5 Conclusion The rapid development of digital technologies affects all sectors of the economy, and the emergence of cooperative platforms has a particularly strong impact on the cooperative movement. Cooperative enterprises, being democratic economic organizations, have difficulties with digital platforms that can connect distributed groups of people and allow the exchange of resources in a cheap and efficient way (Como et al. 2016). The answers to the questions posed by this study are important in two respects. First, improving knowledge of the behavior of cooperative organizations in response to digital change complements the conceptual framework of organizational change. Cooperative organizations can be key players in organizing collective responses to environmental uncertainties. An analysis of their contributions to facilitating the collective potential of cooperative enterprises in the transition to a digital economy can improve scientists’ understanding of the dynamics of enterprise digitalization. Secondly, providing enhanced knowledge about the digital change processes of cooperative organizations will contribute to the management of socio-economic processes by cooperative organizations. Managers and entrepreneurs involved in cooperative activities can gain an understanding of inter-organizational dynamics and inertia, which will lead to better forecasting of digitalization processes.

References Ahrne, G., Brunsson, N.: Organizations and meta-organizations. Scand. J. Manage. 21(4), 429– 449 (2005). https://doi.org/10.1016/j.scaman.2005.09.005 Audebrand, L.K., Barros, M.: All equal in death? Fighting inequality in the contemporary funeral industry. Organ. Stud. 39(9), 1323–1343 (2018). https://doi.org/10.1177/0170840617736934 Berkowitz, H.: Meta-organizing firms’ capabilities for sustainable innovation: a conceptual framework. J. Clean. Prod. 175, 420–430 (2018). https://doi.org/10.1016/j.jclepro.2017.12.028 Bogoviz, A.V., Semenova, E.I., Alekseev, A.N.: New challenges for regional economy at the modern stage. Adv. Intell. Syst. Comput. 622, 574–580 (2018) Bogoviz, A.V., Lobova, S.V., Ragulina, J.V.: The cost and value of human capital in the modern digital economy. In: Lecture Notes in Networks and Systems, vol. 57, pp. 1224–1230 (2019) Bogoviz, A.V., Ragulina, J.V., Barcho, M.K.: Influence of innovations on regional socio-economic development. In: Lecture Notes in Networks and Systems, vol. 57, pp. 1200-1207 (2019) Como, E., Mathis, A., Tognetti, M., Rapisardi, A.: Cooperative platforms in a european landscape: an exploratory study. In: ISIRC Conference, Glasgow, vol. 35, September 2016. https:// coopseurope.coop/sites/default/files/Updated_Paper_Cooperatives%20Collab%20Economy. pdf Cooperatives Europe: “CoopStarter 2.0” Erasmus+ Application Form (undisclosed), 29 March 2017 Cooperatives Europe: Working Group on collaborative economy: Meeting outcomes (undisclosed), 29 November 2016

502

A. V. Sobolev et al.

Cousin, L.: CoopStarter 2.0. European index of resources for cooperative mentors and ambassadors (2017). http://starter.coop/content/uploads/2018/12/CS2_IO1_Final-report_VF141218.pdf Cousin, L., Martelloni, L.: A cooperative vision for the collaborative economy: shaping a people-centered and democratic collaborative economy (2017). https://coopseurope.coop/sites/ default/files/Cooperative%20Vision%20for%20Collaborative%20economy_CoopsEurope.pdf Gioia, D.A., Nag, R., Corley, K.G.: Visionary ambiguity and strategic change: the virtue of vagueness in launching major organizational change. J. Manage. Inq. 21(4), 364–375 (2012). https://doi.org/10.1177/1056492612447229 Harter, L., Krone, K.: The boundary-spanning role of a cooperative support organization: managing the paradox of stability and change in non-traditional organizations. J. Appl. Commun. Res. 29(3), 248–277 (2001). https://doi.org/10.1080/00909880128111 König, A., Schulte, M., Enders, A.: Inertia in response to non-paradigmatic change: the case of meta-organizations. Res. Policy 41(8), 1325–1343 (2012). https://doi.org/10.1016/j.respol. 2012.03.006 Nuruzzaman, N., Singh, D., Pattnaik, C.: Competing to be innovative: Foreign competition and imitative innovation of emerging economy firms. Int. Bus. Rev. 28(5), 101490 (2019) Purvis, R.L., Sambamurthy, V., Zmud, R.W.: The assimilation of knowledge platforms in organizations: an empirical investigation. Organ. Sci. 12(2), 117–135 (2001). https://doi.org/ 10.1287/orsc.12.2.117.10115 Shahrasbi, N., Pare, G.: Rethinking the concept of organizational readiness: What can is researchers learn from the change management field? In: 20th Americas Conference on Information Systems (AMCIS), Savannah, GA (2014). https://doi.org/10.13140/rg.2.1.3470. 8564 Sobolev, A.V.: Cooperation as the form of economic activities. Fundam. Appl. Res. Coop. Sector Econ. 1, 15–23 (2018) Somers, L., Dewit, I., Baelus, C.: Understanding product-service systems in a sharing economy context – a literature review. Proc. CIRP 73, 173–178 (2018) Spillman, L.: Meta-organization matters. J. Manage. Inq. 27(1), 16–20 (2018). https://doi.org/10. 1177/1056492616688856 Sutherland, W., Jarrahi, M.H.: The sharing economy and digital platforms: a review and research agenda. Int. J. Inf. Manage. 43, 328–341 (2018) Yoo, Y., Boland, R.J., Lyytinen, K., Majchrzak, A.: Organizing for innovation in the digitized world. Organ. Sci. 23(5), 1398–1408 (2012). https://doi.org/10.1287/orsc.1120.0771

Cost Optimization for Data Storage Using Cloud Technologies Vladimir I. Meikshan , Natalia B. Teslya , Evgeniya E. Istratova , Irina D. Koldunova , and Albina V. Ikonnikova

Abstract The scientific substantiation of the importance and effectiveness of the use of cloud technologies in the development of consumer cooperation is considered. Linear programming methods are used to select the optimal data storage scheme for several cloud service providers. These methods are used for various technical and economic parameters of the package of services provided (maximum storage capacity, cost of allocated resources). Microsoft Excel in combination with the add-on “Solution Search” is selected as a software tool for performing numerical calculations. The presented model can also be used for any cost conditions, as well as for different areas of application of cloud services.










Keywords Consumer cooperation Cloud technologies Cloud service Cloud storage Cloud provider Provider Mathematical model of cost optimization Line programming













V. I. Meikshan Siberian State University of Telecommunications and Information Sciences, Novosibirsk, Russia e-mail: [email protected] N. B. Teslya (&)
E. E. Istratova
I. D. Koldunova Siberian University of Consumer Cooperation, Novosibirsk, Russia e-mail: [email protected] E. E. Istratova e-mail: [email protected] I. D. Koldunova e-mail: [email protected] A. V. Ikonnikova Novosibirsk State University of Architecture and Civil Engineering (Sibstrin), Novosibirsk, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_53

503

504

V. I. Meikshan et al.

1 Introduction According to analytical studies (TAdviser 2018) for 2018, the Russian cloud services market grew by 31%. The largest suppliers of cloud services for the corporate sphere are such well-known companies as Amazon, Google, Microsoft, and others. In Russia, the products of the leaders of the “cloud” market are most in-demand in the field of Internet services, telecommunications, retail, in the transport and logistics sector, and—despite strict regulation—in the banking sector. The high potential for using digital technologies, including cloud solutions, is typical for the activities of Russian consumer cooperation. It is a socially-oriented ecosystem with an extremely branched structure. Currently, consumer societies and their unions are represented in 71 regions of Russia (Bogoviz et al. 2019). Cloud computing is the foundation of the concept of sharing information technology and resources. Usually, the problems of remote storage and processing large amounts of data are solved using cloud storage without the acquisition and maintenance of expensive equipment and software licenses. At the same time, cloud storage providers do not always offer a transparent scheme for calculating the cost of services, and instead provide so-called “packages” at a set price (tariff). When faced with packaged solutions, the consumer often does not have the ability to accurately assess the cost of using cloud computing. To calculate the total cost of storing data with a cloud provider, one needs to consider many factors, such as the amount of data to store, incoming and outgoing traffic, and the number of requests for Application Programming Interface (API). Also, one needs to consider the cost of backup, archiving, using a network of servers to deliver content, etc. There are many cloud pricing schemes that providers offer. For example, most often, the cost of storing data (on an hourly basis or per month) and outgoing traffic (downloading data) form the basis of the tariff. At the same time, an increase in storage leads to an increase in tariffs. Therefore, if one needs to store large amounts of data from cloud providers, the task of minimizing the cost of cloud storage must be solved. The storage and exchange of large amounts of information are relevant for consumer cooperation, especially in the interaction of the Centrosoyuz, the main coordinating body, with regional consumer unions. In Russia, they are widespread (from Murmansk to Kamchatka). Based on this concept, we will consider the mathematical model and the numerical results of its implementation for cost optimization when storing data using cloud services. One approach to solving the problem under consideration was proposed earlier in the study (Negru et al. 2014). This approach is proposed to create a cyberinfrastructure that provides data storage and integration for the state water monitoring system.

Cost Optimization for Data Storage Using Cloud Technologies

505

2 Materials and Methods We will establish relevant factors and conditions for creating a mathematical model of cost optimization. It is assumed that a finite set of N heterogeneous data sources is given, and the expected amount of data from the i-th source (i = 1; N) is vi. Incoming data is planned to accumulate in the cloud storage of several providers. From the set of M cloud service providers, each j-th provider (j = 1; M) can provide a data warehouse worth Cj per unit of data with a maximum storage volume not exceeding Vj. The cost of transferring a unit of data from the i-th source (i = 1; N) to the storage for the j-th provider (j = 1; M) is estimated as aij. The problem is to find the optimal distribution {xij: i = 1; N; j = 1; M}, where xij is the amount of data that belong to the i-th source and will be placed in the storage of the j-th provider. To solve the problem, we use the linear programming method. It is widely used to solve management problems that are associated with optimization, minimizing costs, and obtaining savings. The total cost of costs (S) includes storage costs (S1) and data transmission costs (S2): S ¼ S1 þ S2 ¼

XN XM

x C j¼1 ij j

i¼1

þ

XN XM i¼1

x j¼1 ij

/ij

ð1Þ

From here, the following mathematical formulation of the optimization problem follows: S¼

XN XM i¼1

j¼1

ðCj þ /ij Þxij ! min:

ð2Þ

We will define a number of additional restrictions: 1) The amount of data from the i-th source hosted by the j-th provider cannot be negative, i.e. xi j  0 ði ¼ 1; N; j ¼ 1; MÞ;

ð3Þ

2) All data that is generated by the i-th source must be stored in full, i.e. XM

x j¼1 ij

¼ vi ði ¼ 1; NÞ;

ð4Þ

3) The total amount of data that can be placed with the j-th provider should not exceed the capacity of its storage, i.e. XN

x i¼1 ij

 Vj ðj ¼ 1; MÞ

ð5Þ

506

V. I. Meikshan et al.

3 Results The MS Excel office application using the “Solution Search” add-in was selected as the software for implementing the cost optimization model. We believe that information intended for cloud storage is generated in three regional centers (data sources located in different regions of Russia): center A, center B, and center C. As a unit of information, we will use a data block DataBlock (DB), which can have a well-defined physical volume in gigabytes (terabytes). For example, data volumes for cloud storage are distributed between sources as follows: center A—300 DB, center B—500 DB, center C—200 DB. The data transfer costs will vary significantly from different providers to selected centers located in different regions of the country. Therefore, we will establish a constant and equal storage cost for all cloud storage providers for settlements, which will be equal to one conventional monetary unit (cu) per data block. For the purpose of presenting a methodological approach, the cost of transferring data per unit from different providers is taken arbitrarily (Table 1). Similar information is provided by service providers. A possible solution to the problem of choosing cloud service providers for data storage without cost optimization is presented in Table 2. Moreover, the conditions specified by the mathematical model are satisfied. Thus, the maximum amount of data storage does not exceed the maximum amount of cloud storage at the suppliers. To optimize costs in MS Excel, we use the “Solution Search” function for a linear task by the simplex method. The simplex method is used to iteratively solve a system of equations in the field of feasible solutions until the objective function reaches the optimal value. We go with the condition for minimizing the objective function (total cost of cloud storage). We set the following restrictions defined in the mathematical cost model: non-negative values of data volumes, preservation of data volumes in full, and no excess allowed in the data volume of the storage capacity of the cloud service provider. Per the result of the solution, the volumes of stored data will be automatically distributed among cloud storage providers in accordance with the restrictions, as presented in Table 3. Table 1 Cost of data transmission from various providers for regional centers Center

Data volume, DB

Cost of transferring a unit of data from suppliers, cu per DB Amazon Google Microsoft Rackspase HP

A Б B

300 500 200

17 12 14

7 9 8

11 16 9

15 12 7

14 12 15

Cost Optimization for Data Storage Using Cloud Technologies

507

Table 2 Distribution of data from regional centers between suppliers and costing without optimization

To confirm the performance of the implementation of the mathematical model in MS Excel, we will perform cost optimization while increasing the cost of data transfer. To do this, we will increase the cost of data transfer for four of the five storage providers. We will leave unchanged the cost of data transfer for the storage with the largest volume (470 DB) (Table 4).

4 Discussion The results show that without optimization, the cost of cloud services can be quite high. So, with this approach, according to the calculations in Table 2, the total cost of storing and transmitting data from the cloud storage will be 15,220 CU. The application of the simplex method to minimize the total cost of the cloud services of the providers in Table 3 showed that, compared with the first option in Table 2, financial costs were saved to the tune of almost 27%. At the same time, the value of the total cost of cloud storage as a result of optimization was 11,116 CU.

508

V. I. Meikshan et al.

Table 3 The result of optimizing the costs of using cloud services with minimizing the desired function

After providers doubled the cost of data transfer, redistribution of data across suppliers’ warehouses was observed (Table 4). As expected, the largest amount of data was transferred to the provider whose data transfer cost had not changed. Due to the use of the method, the total value of the cost after distribution was 16,864 CU. That is, in comparison with the second option (Table 3), costs increased by 52%, with a 100% increase in tariffs for most providers. At the same time, we note that in the case of data storage at increased tariffs in the initial distribution (as in Table 2), the cost of cloud services will be 19,405 CU. This will increase the cost of cloud services by 75%. Thus, the results obtained indicate that the cost optimization model under the adopted restrictions is formed correctly. Therefore, to solve the problem of minimizing the costs of cloud storage, it is advisable to use the linear programming method, especially in the presence of many variables (data centers, cloud providers).

Cost Optimization for Data Storage Using Cloud Technologies

509

Table 4 Cost optimization after increasing the cost of data transfer from cloud providers

5 Conclusion The scope and capabilities of cloud technology are very large. Storage and data exchange using cloud services is relevant for corporate clients. And cloud technologies are even more necessary for structurally branched organizations and their governing body, including the Centrosoyuz, which coordinates the work of consumer societies and unions in Russia. The benefits of cloud technology must be fully applied for consumer cooperation since the volume of the information data covering various economic and social spheres (trade, education, science, healthcare, etc.) is very large, and the centers for the formation of this data are located throughout Russia. When using cloud services for data storage, it is necessary not only to competently choose reliable providers but also to calculate the cost of using their services. It is necessary to determine storage volumes, suppliers, and cloud storage tariffs. The effectiveness of the model is especially evident when choosing several providers with different tariffs and in the presence of many data generation centers. Using the proposed model will allow you to easily optimize the cost of using cloud storage using a common office application.

510

V. I. Meikshan et al.

References Bogoviz, A.V., Alekseev, A.N., Ragulina, J.V.: Budget limitations in the process of formation of the digital economy. In: Lecture Notes in Networks and Systems, vol. 57, pp. 578–585 (2019) Negru, C., Pop, F., Cristea, V.: Cost optimization for data storage in public clouds: a user perspective. In: Proceedings from IE 2014: The 13th International Conference on Informatics in Economy, Bucharest, Romania (2014). https://www.researchgate.net/publication/ 279525431_COST_OPTIMIZATION_FOR_DATA_STORAGE_IN_PUBLIC_CLOUDS_A_ USER_PERSPECTIVE TAdviser: The most mature cloud service providers in Russia (2018). http://www.tadviser.ru/ index.php/Cтaтья:Иccлeдoвaниe_TAdviser:_Caмыe_зpeлыe_пpoвaйдepы_oблaчныx_ cepвиcoв_в_Poccии

The Use of Neural Networks in Predicting the Economic Performance of Cooperative Organizations Marina V. Gavrilova , Mihail S. Portnov , Alexey V. Rechnov , Vladimir P. Philippov , and Galina N. Egorova

Abstract In the conditions of a modern market economy, the role of long-term perspective forecasting calculations in all areas of activity and at various levels of management is being updated. Forecasting is becoming an integral, fundamental element of the economic development management system. Forecasting makes it more reasonable and resistant to aggressive manifestation of the influence of factors of the business environment. Forecasting is considered as a tool for preliminary control of the implementation of development plans and programs on the scale of a market entity, region and the country’s economy. The role of forecasting is strengthened due to the transition to program-targeted and project management, the need to ensure sustainable balanced development. The cooperative sector is seen as a self-sufficient socio-economic system operating in an active competitive environment. In this case, the co-operative sector needs effective management tools and advanced information technologies, allowing to form the prerequisites for such development. Neural networks are rightly regarded as a promising and effective tool for socio-economic forecasting. Keywords Neural network organizations


Forecasting
Economic indicators
Cooperative

M. V. Gavrilova
M. S. Portnov
A. V. Rechnov
V. P. Philippov
G. N. Egorova (&) Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] M. V. Gavrilova e-mail: [email protected] M. S. Portnov e-mail: [email protected] A. V. Rechnov e-mail: [email protected] V. P. Philippov e-mail: fi[email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_54

511

512

M. V. Gavrilova et al.

1 Introduction Consumer cooperation organizations play an important role in the functioning of the national consumer market, providing it with quality goods and services. Consumer cooperation organizations contribute to ensuring the country’s food security and rural development, thereby contributing to the socioeconomic development of Russia. Meanwhile, the activities of cooperative organizations are fraught with a number of difficulties. These difficulties are caused by both a negative manifestation of environmental factors and the problem of finding effective tools for adapting the potential of the internal environment to prevailing business conditions. One such tool is a system of forecasting and planning. These tools allow you to increase the efficiency of the functioning and the validity of the development of a cooperative organization. Their targeted use can not only have a positive impact on the effectiveness of the organization but also strengthen its position in a competitive environment. However, a study of management practices in regional systems of consumer cooperation allows us to conclude the following. The system of forecasting and long-term and medium-term planning of economic parameters is still not formed. This is determined by the lack of experience in using modeling tools based on an econometric apparatus related to parametric statistics. The main supporting thesis is that parametric statistics are characterized by inaccurate descriptions of complex stochastic and nonlinear dynamical systems. This is due to the impossibility of taking into account the whole variety of factors that determine the existence and development of the socio-economic system. Econometric modeling is traditionally based on linear and non-linear models based on the equilibrium function. These models reflect the process of continuous adaptation among elements of the system but without any correct reservations made simultaneously for many positive feedbacks. When feedback loops are combined, they tend to transform into negative, destabilizing chains, which do not always guarantee the stability of the positive loops of the model. In practice, such models function very sluggishly, which is traditionally explained by “stochastic external worries” and the lack of accuracy in the details of the model. Moreover, such models do not take into account the inherent features of deterministic systems— namely, the butterfly effect, the bifurcation effect, the fractality phenomenon, the elusive cycle, etc.—whereas nonparametric statistics can describe these processes at a qualitatively high level. Artificial neural networks (ANNs) or connectionist (connected) systems (the main topic of nonparametric statistics) are devices that use a variety of elementary conditioned reflexes called synapses. Artificial neural networks are induced by biology because they consist of elements whose functionality is similar to most of the elementary functions of a biological neuron. These elements are organized in a way that may or may not correspond to brain anatomy. Despite such superficial similarities, artificial neural networks are able to demonstrate a variety of properties

The Use of Neural Networks in Predicting the Economic …

513

inherent in the brain. For example, they learn from experience, summarize previous precedents, and project them onto new cases. In addition, artificial neural networks extract the essential properties from incoming information containing redundant data (Cho et al. 2014, Gurney 1997, Nouri 2014, Sutskever 2014). Artificial neural networks are able to change their behavior depending on the external environment. This factor is more than any other responsible for the interest in their practical application in predicting the development of complex socioeconomic systems. After presenting the input signals (possibly together with the required outputs), they self-adjust in order to ensure the desired response. In recent years, many training algorithms with unique strengths and weaknesses have been developed. Despite this, the content issues of the training network and the choice of approaches to how this training should be carried out are still relevant.

2 Materials and Methods Conducted theoretical research allows us to conclude the following. Due to a combination of various environmental factors, one of the most promising methods for predicting the development of complex socio-economic systems is artificial neural networks. Cooperative organizations rightly treat complex socio-economic systems (Huang et al. 2007). If necessary, any of the neurons of the artificial neural network has the ability to adjust the input signal. Data values are transmitted to neurons of the lower level of an artificial neural network based on which neural network prediction is performed. The neural network mechanism is built in the following logic: In accordance with a certain algorithm underlying the work of an artificial neural network, data can be transformed in the process of their movement to the next layer. Neurons located on the so-called top layer of the artificial neural network form the final solution. For the effective practical application of an artificial neural network and the implementation of forecasting tasks and long-term planning, the network must first be trained. A specially created training set is used for training a neural network. This sample knows in advance the correct solution for given input data. Training an artificial neural network consists of selecting the appropriate weighting factors to ensure the greatest accuracy of its subsequent functioning. From a mathematical point of view, an artificial neuron is a mathematical function that has several different inputs and only one output. The artificial neuron circuit is the result of the transformation of a multi-input information flow into a unique output (Fig. 1). Regarding the subject area of forecasting, the solution to forecasting economic indicators of the cooperative organization can be represented as a sequence of the following steps: • Collection of the necessary initial data characterizing the economic activity of consumer cooperation organizations

514

M. V. Gavrilova et al.

Fig. 1 The general scheme of an artificial neuron. Source (Maithili et al. 2012, pp. 831– 836)

• The choice of the most optimal neural network architecture to solve the problem • Development of a software product designed to solve the forecasting problem based on the use of a neural network • Creation and structuring of a training sample in accordance with the requirements of software developed during research • Development of a neural network learning algorithm • Training and forecasting economic indicators based on the created neural network • Practical application of the developed software product for predicting the economic performance of a cooperative organization We will consider in detail the most significant of the above steps. Source data collection The presence of a large amount of source data for training an artificial neural network is an important factor to consider when determining the ability to effectively solve the forecasting problem (Huang et al. 2007). However, as the results of our study show, an important criterion for the effectiveness of the forecasting system is not so much the amount of data, but their origin and adequacy. The forecasting system is based on the use of neural networks. Equally important is the qualitative composition of the data in the training vectors. The bigger the difference in factors taken into account, the deeper clustering can become, up to the receipt of very unexpected, but quite realistic economic forecasts. Over the years, in the course of our analysis of economic indicators of the activities of regional consumer-cooperation organizations in Russia (the sample covered the period 2013–2017), the following was revealed: There are factors to consider when predicting the market share of cooperative organizations in the regional retail turnover or retail turnover of the country as a whole. Also, these factors must be taken into account when predicting the financial result of the main activity as a financial basis for the self-development of cooperative organizations. With the most significant economic factors determining the scope of the

The Use of Neural Networks in Predicting the Economic …

515

cooperative organizations’ activities, is possible to assess the contribution of the consumer cooperation system to the development of the national economy, as the following: • • • • •

Retail turnover (rub.) Retail turnover per 1 person served by consumer cooperatives (rub.) Number of rural population served (people) Number of existing retailers (units) The number of trade workers (people)

It is obvious that the presented economic indicators reflect the resource capabilities of cooperative organizations from the standpoint of the development of core activities, namely retail. Retail trade dominates the structure of a diversified economy. A change or refinement of the forecasting problem entails a change in the composition of indicators that form the inputs to the neural network system. Moreover, we assume that the presence of a different information array can qualitatively complement the process of neural network forecasting and affect its results. A fragment of the training sample used in predicting the economic performance of consumer cooperation organizations is shown in Fig. 2. Choosing the most optimal neural network architecture. The result of forecasting largely depends on the choice of neural network architecture. The choice of neural network architecture for predicting the economic performance of consumer cooperation organizations was carried out on the basis of numerous experiments and the practical experience of researchers. As the results of the study showed, the use of the Hopfield artificial neural network is the most suitable for solving the forecasting problem. The use of the Hopfield artificial neural network allows us to build the most effective system for predicting the parameters of the activities of cooperative organizations (Fig. 3).

Fig. 2 A fragment of the training sample

516

M. V. Gavrilova et al.

Fig. 3 The structure of the neural network for predicting the economic performance of cooperative organizations

Software product development In our opinion, the creation of a software tool based on the developed neural network architecture is most effective for accomplishing the forecasting task posed in the study, since this software tool allows one to take into account the many nuances of the problem. It allows you to take into account the following processes: collecting and processing the necessary data for forecasting purposes, training the neural network, and forecasting the results of economic indicators from cooperative organizations.

3 Results Figure 4 shows the developed software product that implements forecasting tasks for the following two economic parameters of cooperative organizations: the financial result of retail trade and the share of retail turnover in the overall turnover of the territory. Formation and structuring of a training sample Training data must be presented in such a way that the neural network forecasting implementation program can successfully interpret it. It is important to note that not all available source data should be used to train the neural network in the future. Variables corresponding to the forecasting results should be included in the training sample in order to consistently increase the efficiency of the forecasting system. The neural network can be used to predict the economic performance of consumer cooperation organizations. With the results of cluster analysis, we can use a trained neural network to solve the forecasting problem. An important advantage of the neural network forecasting methodology is the possibility of retraining networks in parallel with their practical

The Use of Neural Networks in Predicting the Economic …

517

Fig. 4 An example of application of a software product for forecasting economic indicators of a cooperative organization

use. Having determined the actual result of the studied economic indicators, for which the forecast was formed, we can recalculate the probability of outcomes for the corresponding cluster for the future, or we can continue the training of the neural network. Thus, by gradually increasing the database of economic indicators of cooperative organizations, improving the quality and accuracy of forecasting is ensured. At the same time, the possibility of multilevel neural network forecasting appears. Multilevel forecasting is presented as follows: the lower level is the district cooperative organizations; the middle is the regional cooperative organizations; and the highest is the Central Union of the Russian Federation, the consumer cooperation system as a whole.

4 Discussion Neural network prediction is the ability to recognize deep, often previously unforeseen patterns in data. This opportunity is mainly developed through training the network. The advantage of neural network prediction can turn into its most

518

M. V. Gavrilova et al.

serious drawback (Weng 2012). Being an adaptive system that changes its internal architecture due to incoming input information, the neural network is dependent on the quality of this information and its reliability, completeness, and adequacy. Therefore, compliance with the requirements for the quality and completeness of databases at the entrance to the system remains a debatable issue of neural network forecasting in relation to cooperative organizations. Often, the data is controversial. This is due to the peculiarities of their accounting, caused by the peculiarities of the legal status of entities operating in the system of consumer cooperation. The features include the tendency to fragment business units in order to meet the requirements for small businesses and almost no planning system or developed primary analytics. As a result, the risk of loss in the quality of information data at the entrance of the neuroprediction system will persist, as cooperative organizations are not provided with high-level analysts. These specialists should be able to integrate these organizations into the system and ensure its launch and interpretation of the results. Another characteristic of the neurosystem, namely the organization of its training, causes concern. A properly trained neural network is able to provide the correct response to the input information stream, which does not require its adjustment, and change weights to improve the forecasting result. In our case, the “learning without a teacher” approach is applicable. It is based on clustering and using the statement of the problem of finding patterns.

5 Conclusion The results of the study allow us to conclude that the construction of a system for predicting the economic parameters of the activities of a cooperative organization is possible with the use of artificial neural network tools. Their characteristic features are the ability to identify patterns of development of the indicator where it is not possible, at first glance, and the accumulation of a kind of experience as a result of training. These characteristic features of artificial neural networks enhance the practical value of this forecasting tool. The presented software solution is a visual demonstration of the capabilities of neuroprediction in the conditions of an accessible informational array, the set forecast tasks, and the growing capabilities of neural networks.

The Use of Neural Networks in Predicting the Economic …

519

References Cho, K., Van Merriënboer, B., Gulcehre, C., Bahdanau, D., Bougares, F., Schwenk, H., Bengio, Y.: Learning phrase representations using RNN encoder-decoder for statistical machine translation. In: Proceedings of the 2014 Conference on Empirical Methods in Natural Language Processing (EMNLP), pp. 1724–1734, Doha, Qatar (2014). https://doi.org/10.3115/ v1/D14-1179 Gurney, K.: Neural networks. UCL Press, London (1997) Huang, W., Lai, K.-K., Nakamori, Y., Wang, S., Yu, L.: Neural networks in finance and economics forecasting. Int. J. Inf. Technol. Decis. Mak. 6(1), 113–140 (2007) Maithili, A., Kumari, R.V., Rajamanickam, S.: Neural network towards business forecasting. IOSR J. Eng. 2(4), 831–836 (2012) Nouri, D.: Using deep learning to listen for whales (2014). http://danielnouri.org/notes/2014/01/ 10/using-deep-learning-to-listen-for-whales Sutskever, I., Vinyals, O., Le, Q.V.: Sequence to sequence learning with neural networks. In: Advances in Neural Information Processing Systems, vol. 4 (2014). https://arxiv.org/abs/1409. 3215 Weng, J.: Natural and Artificial Intelligence: Introduction to Computational Brain-Mind. BMI Press, New York (2012)

Advanced Technologies in the Cooperative Sector of the Economy: Historical Aspect Olga A. Bezgina

and Svetlana Y. Vasilieva

Abstract The paper focuses on a retrospective analysis of the historical development of the cooperative movement in Russia to identify some patterns in this process. The authors of the paper concluded that in the entire history of the Russian cooperative movement, it represented the most harmonious form in terms of the interaction between the state, society, and cooperation in the pre-revolutionary period. Under Soviet rule, there was a bias towards increasing state pressure, and cooperation lost some of its uniqueness. At present, on the contrary, the cooperative initiative lacks systemic state support, as well as understanding and acceptance of cooperation and cooperative principles in society. At the same time, historical experience has shown that for cooperation, as a self-developing system, high-tech prolonged educational projects are needed that can unite different cooperative organizations into a cooperative environment. Keywords Cooperation


Economy
State

1 Introduction The historical experience of the development of the domestic cooperative movement shows that it had a significant impact on the course of modernization processes in Russia, solving not only economic but also sociocultural problems. Thinking about the prospects for the development of the cooperative sector of the modern Russian economy and solving its urgent problems, it is necessary to take into account the diverse experience of the historical development of

O. A. Bezgina
S. Y. Vasilieva (&) Togliatti State University, Togliatti, Russia e-mail: [email protected] O. A. Bezgina e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_55

521

522

O. A. Bezgina and S. Y. Vasilieva

cooperation in our country. The purpose of this paper is to analyze the historical experience of the domestic cooperative movement and identify some patterns in its development.

2 Materials and Methods In this work, the authors used the general scientific method and such particular historical methods as comparative-historical and system-structural. These methods helped to reproduce a historically objective picture of the development of the cooperative movement in Russia from its inception to the present. Created in the 1960s, cooperation has covered almost all regions of Russia as a broad socioeconomic movement and has generated many types and forms of cooperative associations (Bezgina 2018). The development of cooperation began with the individual experiences of some of the most innovative people. At the same time, theoretical projects were developed by Russian scholars, public figures, writers, publicists, and practitioners of cooperation. By the end of the second decade of the 20th century, cooperation in Russia involved a rather coherent system that united primary cooperatives into unions. Those, in turn, became unions of unions. At the same time, there was state legal assistance involved in the regulation of this system. Society, after many years of scholarly work and work from public figures who developed the theory of cooperation and propagandizing its capabilities, positively perceived the development of the cooperative movement. Cooperation, being a broad mass movement, solved not only economic problems but also sociocultural problems. Cooperative newspapers and magazines were published in Russia, and cooperative libraries and special educational institutions were opened. As such, advanced technologies in cooperative activities were manifested. The experience gained in the pre-revolutionary period allowed the cooperative movement to help the peasant economy in the country’s regions to survive the destructive processes of the first post-revolutionary years. This was accomplished with lower costs as a means of recovering in the shortest possible time within NEP liberalization conditions. However, during the Soviet period, the functions of cooperation changed dramatically. The decrees of the Council of People’s Commissars (RPC) of the RSFSR of April 10, 1918, “On Consumer Cooperative Organizations” and of May 27, 1918, “On the Reorganization of the People’s Commissariat of Food and Local Food Authorities” practically turned consumer cooperation into a distribution system of the People’s Commissariat of the Republic, as regulated by the organs of Soviet power. By decree of the RPC of the RSFSR (Russian Soviet Federal Socialist Republic) on November 21, 1918, large wholesale and trading enterprises were confiscated as cooperative property. This decree forbade private and commercial cooperative trade, subordinating all its activities to the implementation of proper government orders.

Advanced Technologies in the Cooperative Sector of the Economy …

523

The cooperative bodies were under the control of the Supreme Council of the National Economy (SCNE). Consumer cooperation was charged with supplying the entire population of the country with products and consumer goods. During the civil war, all forms of cooperation were under state control, and their means of production and finances were nationalized. During the NEP period, the state’s cooperative policy, which saw cooperation as a transitional form from capitalism to socialism, was established. V. I. Lenin thought it was possible to transition to socialism through cooperation since it contained the “degree of combination of private interest, private commercial interest; verification and control of its state, the degree of subordination to its public interests, which used to be a stumbling block for many socialists.” On April 7, 1921, the decree “On Consumer Cooperatives” was adopted. Two main tasks were set in it: the consumer cooperation, which left the subordination of the People’s Commissariat for Food, was given the opportunity for independent industrial and economic development and free, voluntary entry of the population into consumer societies. The same decree provided for the creation of consumer societies in each locality, but the condition was maintained under which each citizen (household) was assigned to one of the distribution points providing normalized supply to the population. The development of the cooperative movement in the 1920s was carried out under the leadership of the Soviet authorities and the RPC(b) but still based on a market economy. The principles of a material interest in production and trading activities were used. The government of the country set the task for consumer cooperation—to influence the market and prices, to compete with private traders and private capital. Thanks to the inertia of the movement established in the pre-revolutionary period, the cooperative movement in the 1920s possessed a particular initiative and independence. Since 1928, cooperation has experienced new difficulties and contradictions. The transformation of the entire cooperative system was carried out. The democratic principles of intra-cooperative construction were broken. The state sets prices for the goods of cooperative enterprises. Thus, cooperation has lost its independence and has undergone strict state regulation. Cooperation has become a link in the state-planned economy of the country. As it was before in extreme periods of history, state power turned to cooperation for help. The Great Patriotic War contributed to the strengthening of all forms of cooperation. This was reflected in several resolutions of the Soviet government. During the war years, consumer cooperation played an essential role in providing the country’s population, as well as the Soviet Army, with consumer goods and agricultural products. At that time, cooperative organizations solved such tasks as the manufacture of clothes, shoes, household items, agricultural implements, dishes, and building materials. Cooperation acted as a kind of connecting link between the front and the rear as it carried out military orders. In war conditions, cooperation solved the socioeconomic problems of the country. Cooperation helped mitigate the famine in the postwar period when there was a shortage of essential goods in the country. It also stabilized the prices of the

524

O. A. Bezgina and S. Y. Vasilieva

unorganized market and acted as an intermediary between the city and the village. In the 1950s and 1960s, cooperation carried out its activities under the control of the command and administrative system. In the next decade, there was a loss of cooperative ownership in the system of cooperation. Democratic transformations of the second half of the 1980s forced the state to turn to cooperation again. The Law on Consumer Cooperation in the USSR was adopted in 1988. It allows cooperatives to engage in any activity not prohibited by law. During the country’s transition to a market economy, cooperation was a self-organizing and self-regulatory phenomenon. Cooperatives began to be regulated by the Law of the Russian Federation On Consumer Cooperatives, adopted in 1992. In the existing conditions, Russia can cooperate with foreign enterprises for joint production. Experience in cooperation in foreign countries should be used as well as domestic experience.

3 Results A historical retrospective suggests that the uniqueness of the phenomenon of cooperation lies in the fact that the full realization of cooperative potential is possible only in a market economy. This is most clearly demonstrated by the pre-revolutionary development of cooperation in Russia. With regulation, cooperation has lost its independence and democratic principles. The Soviet cooperative sector was integrated into the administrative planned economy system. Therefore, the effectiveness of cooperation decreased. During early and late industrialization, when the consumer and food industries of Russia were created and developed, as well as during the difficult war years, cooperation contributed to resolving commodity shortages. However, having lost some of its institutional features, it could not fully develop its potential. At the same time, industrial development, the presence of natural wealth, and geographical features left their marks on the activities of cooperation in a particular region.

4 Discussion Since its inception, cooperation has been a mass movement that has the theory, methodology, and principles of democracy, public access, and equal rights for all participants. In Russia, researchers such as M. V. Petrashevsky, A. A. Nikolaev, M. I. Tugan-Baranovsky, V. F. Totomiants, S. N. Prokopovich, and others stood at the origins of a theoretical understanding of the phenomenon of cooperation (Petrashevsky 1998, pp. 133–134; Nikolaev 1919; Tugan-Baranovsky 1989; Totomyants 1908; Prokopovich 1919). In the pre-revolutionary period, cooperation was perceived as one of the means aimed at improving the welfare of its members,

Advanced Technologies in the Cooperative Sector of the Economy …

525

but in the Soviet era, cooperation acquired a different meaning. It contributed to the solution of the socioeconomic and political problems of the state. In the early Soviet period, significant theorists of the cooperative movement such as A. V. Chayanov, S. L. Maslov, N. D. Kondratiev, L. N. Litoshenko, and others continued to work on this issue (Chayanov 2006; Maslov 1928; Kondratiev 1989; Litoshenko 2001). However, their fate turned out to be tragic, since many of them were repressed. Further, cooperative historiography tipped towards the “Leninist cooperative plan,” in the paradigm of which it remained until the end of the 1980s. In the late 1950s, the works where various aspects of the history of domestic cooperation were carefully studied began to appear. This period includes the works of A. P. Korelina, V. V. Kabanova, L. E. Fain, and other historians (Korelin 2009; Kabanov 1997; Fine 1994). The post-Soviet historiography of this topic experienced a zigzag from exaggerating the merits and possibilities of pre-revolutionary cooperation to a gradual decline in interest. At the present stage, theorists of cooperation studying its history come to consider the history of the cooperative movement through a problematic approach. In our opinion, the works of I. N. Konovalov, A. V. Lubkov, V. G. Egorov, and E. V. Dianova are of most significant interest in this aspect (Konovalov 2011; Lubkov 1997; Egorov 2005; Dianova 2015). The conceptualization of Russian cooperation in the consciousness of society and domestic science is not complete. There are several reasons for this. One of them is a narrow view of cooperation only as an economic organization, a misunderstanding of the need to develop the socio-cultural functions of cooperation, and the wide dissemination of cooperative ideas in society. There are points of view about the state’s dominance in the development of the cooperative movement, or the lack of its attention.

5 Conclusion The study of the cooperative experience of Russia is critical not only scientifically but also in practical terms. Negative moments in the activities of cooperatives in the pre-revolutionary period, during the years of Soviet power and the early post-Soviet period, contributed to the appearance of a biased attitude towards cooperation in the public consciousness. A retrospective look at the history of the development of domestic cooperation indicates that throughout history, the state played a significant and sometimes decisive role in its development. Without political will and state support, it is practically impossible to realize all of the cooperation’s potential. However, for the effective construction of a modern innovative cooperative system, a mutually directed movement of both state power structures and the population itself, which is aware of the profitability of participating in cooperation, is necessary. At the same time, society should form an understanding and support for the development of many forms of self-help that have a positive impact on the population. These forces

526

O. A. Bezgina and S. Y. Vasilieva

must be equal. If the balance between them is distorted, the very essence of cooperation is deformed. In the entire history of the existence of the domestic cooperative movement, it had the most harmonious form in terms of the interaction of all three components (the state, society, and cooperation) in the pre-revolutionary period. Under Soviet rule, there was a bias toward increasing state pressure, and cooperation lost some of its uniqueness. At present, on the contrary, the cooperative initiative lacks systemic state support. Historical experience shows that cooperation is a living, self-developing system that, in particular historical conditions, can form its own “advanced technologies” to solve its challenges. Cooperation is not only lending and not only trade; cooperation is the joint creation of the so-called cooperative environment. It is essential that an understanding is formed in society that cooperation is not one person’s business, not a corporation; it is a voluntary association of many people united to improve their lives; it is a lifestyle that the population must understand and accept. Cooperation is advanced technology. The entire history of its development evidences this.

References Bezgina, O.A.: The Volga Cooperative Movement in the Late XIX—Early XX Centuries: The Interaction of Power and Society. Publishing House of Tolyatti State University, Tolyatti (2018) Chayanov, A.V.: The Economic Heritage of A. V. Chayanov. “Tonchu” Publishing House, Moscow (2006) Dianova, E.V.: Cooperation in the socialist thought of Western Europe (first half of the 19th century), Petrozavodsk, Russia (2015) Egorov, V.G.: The cooperative movement in pre-revolutionary Russia: a new look. Hist. Issues 6, 3–18 (2005) Fine, L.E.: Domestic Cooperation: Historical Experience. Ivanovo State University, Ivanovo (1994) Kabanov, V.V.: Peasant Community and Cooperation of Russia of the XX Century. Institute of Russian History, Moscow (1997) Kondratiev, N.D.: Problems of Economic Dynamics. Economics, Moscow (1989) Konovalov, I.N.: Peasant Cooperation of the Volga Region in the Late XIX—Early XX Centuries: The Problem of Transformation at the Regional Level. Saratov State Law Academy, Saratov (2011) Korelin, A.P.: Cooperation and Cooperative Movement in Russia 1860–1917. ROSSPEN, Moscow (2009) Litoshenko, L.N.: Socialization of Land in Russia. Siberian Chronograph, Novosibirsk (2001) Lubkov, A.V.: War, Revolution, Cooperation. Prometey, Moscow (1997)

Advanced Technologies in the Cooperative Sector of the Economy …

527

Maslov, S.L.: The Economic Basis of Agricultural Cooperation, Moscow (1928) Nikolaev, A.A.: Theory and Practice of the Cooperative Movement. Thought, Petrograd (1919) Petrashevsky, M.V.: Owenism. In: Figurovskaya, N.K. (ed.) Cooperation. Pages of History, vol. 1, pp. 133–134. Science, Moscow (1998) Prokopovich, S.N.: Cooperative Partnerships and Their Classification. Printing house of N. Zheludkova, Moscow (1919) Totomyants, V.F.: Consumer Societies: History, Theory, and Practice. Uley, St. Petersburg (1908) Tugan-Baranovsky, M.I.: Social Foundations of Cooperation. Economics, Moscow (1989)

Digital Technologies in Cooperative Enterprises: The Case of Online Cash Registers Tatiana A. Panteleeva , Alexandr I. Boykov, Sergey M. Kuleshov , and Mikhail Y. Bykov

Abstract The paper focuses on identifying factors that impede the implementation of digital technologies in cooperative enterprises, relying on the practice of introducing online cash registers. The relevance of digitalization is most significant for small and medium-sized businesses, which, for the most part, include cooperative enterprises. Being non-profit organizations in their organizational and legal form, cooperative organizations have a commercial component, and that requires them to be highly adaptable to the transformation processes of the external environment. The most obvious example of the risks facing the cooperative sector of the economy is several difficulties that these organizations encountered when switching to using online cash registers. The main problems include personnel risks associated with a lack of highly qualified specialists, low qualifications of employees associated with solving problems of using information and communication technologies; financial risks that restrict the access of small businesses in the cooperative sector to the purchase, maintenance, and implementation of digital technologies in the activities of organizations. Keywords Digital economy


Cooperative sector
Online cash registers
Risks

T. A. Panteleeva (&)
A. I. Boykov
S. M. Kuleshov Institute of World Civilizations, Moscow, Russia e-mail: [email protected] A. I. Boykov e-mail: [email protected] S. M. Kuleshov e-mail: [email protected] M. Y. Bykov Russian University of Transport, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_56

529

530

T. A. Panteleeva et al.

1 Introduction One of the ways to develop the national economy is to build a prosperous digital economy. In connection with this task, there is a need to transform the information system so that it meets the requirements of the digital economy (Amirova et al. 2018). The necessary changes are also inherent in the cooperative sector of the national economy. The relevance of the study is determined by the importance of the implementation of information and communication technologies (ICT) in the activities of cooperative organizations. The introduction of ICT takes place in all areas of business: banking, transport, agro-industrial, and commercial sectors (Noyes and Linder 2015). As a new development model, the digital economy creates the need to modernize technical, technological, and managerial operations (Voronkova et al. 2018). The first challenge faced by the cooperative sector in the implementation of the digital economy is the obligation to switch to online cash registers. This stage proved to be a catalyst for identifying several problems involving both financial and personnel risks of small and medium-sized enterprises.

2 Materials and Methods The paper is based on the study of modern achievements in digitalization, within the framework of making investment and management decisions by the subjects of the corporate sector. This is achieved by using a critical analysis of literary sources and general scientific research methods, including the systems approach, analogy methods, and the abstract logical method.

3 Results Current market conditions determine the introduction of digital technology in the activities of the organization as the basis for its successful development. This phenomenon is especially relevant for small and medium-sized businesses, for which digital transformation is one of the key indicators of integration into the new digital economy of the country and the world. If large corporations can more or less successfully cope with this task in the context of the availability of financial resources and competent personnel, then small and medium-sized enterprises face significant personnel risks when digitalizing their activities. As non-profit organizations, cooperatives have a commercial component in their activities that requires them to be highly adaptable to the transformation processes

Digital Technologies in Cooperative Enterprises …

531

of the external environment. Some of the most illustrative examples of the risks facing the cooperative sector of the economy are several difficulties that these organizations face when switching to using online cash registers. Based on the legislative acts of the Russian Federation, the transition to online cash registers was carried out in three stages. Large and medium-sized businesses were included in the first wave of implementation. At the same time, the transition to online cash registers should have been carried out by the remaining categories of taxpayers. Due to systemic problems associated with the introduction of a new type of cash registers, the implementation was extended until July 1, 2019. Starting from July 1, 2019, the obligation to use online cash registers applies to: • the organizations performing work and providing services directly to the public; • the organizations that pay UTII, regardless of the type of activity; • the entrepreneurs who perform work and provide services, if they have employees; • the entrepreneurs selling purchased goods; • the entrepreneurs selling goods they produced, if they have employees; • the independent entrepreneurs that trade using vending machines; • the organizations and entrepreneurs engaged in non-cash payments with individuals who are not entrepreneurs. An exception is made for educational and sports organizations, various community, recreation, and cultural centers that provide corresponding services to the population, as well as independent entrepreneurs who sell tickets and subscriptions to state or municipal theaters; • the organizations and independent entrepreneurs that accept payments for housing and utilities, including payments for overhaul; • the organizations (except for specialized consumer cooperatives and partnerships of property owners) and independent entrepreneurs that accept payments for housing and utilities, including payments for overhaul made through bank transfer, including remote credit card use; • organizations and independent entrepreneurs when offsetting and returning prepayments and (or) advances; • organizations and independent entrepreneurs when providing loans to pay for goods, works, and services; • organizations and individual entrepreneurs when providing or receiving another counter-provision for goods, works, and services; • organizations and individual entrepreneurs when selling tickets and coupons for travel in vehicle cabins in public transport (it is permissible to have one cash desk per company). The exceptions are areas that are remote from communication networks. In these areas, cash registers can be used offline without connecting to the Internet. Along with the obligation to introduce online cash registers, small businesses are still faced with several problems when making cash settlements using a new type of cash register equipment. Let us dwell on this in more detail.

532

T. A. Panteleeva et al.

The problems in this area can be split into two blocks: the technical unpreparedness of small businesses and personnel problems, including staff training issues regarding the use of online cash registers. It is also worth mentioning that the cost of implementing cash registers exceeded the expected minimum. According to the legislators, this type of equipment was supposed to offer savings over cash registers of the previous generation; in fact, the cost of acquiring and maintaining online cash registers exceeds the indicated minimum. The following examples of cash equipment and software configurations can be distinguished depending on the scale of the business and the type of outlet: 1. Small grocery store. The optimal configuration includes an online cash register, 1 or 2 devices as DreamCase-F, Evotor, ATOL-90F; cash software is not required, it is preinstalled in all types of devices (in ATOL-90F a command-controlled system, in DreamCase-F a system based on Linux, in Evotor a system based on Android). The accounting system in ATOL 90-F checkouts is optional (this device is compatible, for example, with popular accounting solutions from 1C), and integration with branded solutions from the manufacturer is assumed by default for DreamCase-F and Evotor checkouts (but it is possible to connect the checkout to 1C or analogs of this system). 2. Medium-sized store. The optimal configuration includes an online cash register, 2 or 3 computer POS systems (PC, fiscal registrar, and peripherals), cash software installed on a retail solution (for example, Retail365), a goods accounting system from a software manufacturer (for example, Class365), and 1C-based solutions integrated with Retail365 software. 3. Hypermarket The optimal configuration includes an online cash register, five or more POS systems (specialized high-performance cash registers of the “Shtrikh-POS-Atom” type) and a commodity accounting system (for example, 1C or the one based on it (Barcode-M: Cashier v.5)); a cash program is not required as it is delivered with the cash register equipment (for example, ILEXX RTfront 5.0). If we look at technical issues in more detail, the organization faces several problems during the implementation: • The selection of a cash register of a new generation as the market offers many variations; an uninformed businessman is forced either to resort to the help of third parties or to follow the path of least resistance and acquire equipment imposed upon him; • Issues of integrating online cash registers with internal information systems; the most straightforward example can be accounting systems, not to mention ERP systems, etc.;

Digital Technologies in Cooperative Enterprises …

533

• Compatibility with the software of commercial equipment, for example, with acquired machines; and • A stable Internet connection. The issues of integrating online cash registers into the internal information environment, despite the addition of inconvenience to organizations, contribute to the overall digitalization of the business. As a result, the company can move on to the next stage—the transition to electronic document management—which, in turn, will have a positive impact on financial and time costs in the future. The Internet connection should be stable. An exception would be areas remote from communication networks. In these areas, cash registers can be used offline. In case of a temporary lack of Internet connection, for objective technical reasons, the tax authorities will not make claims against the organization. When switching to online cash registers, the user encounters several groups of issues that require regular updating of programs: • cash program must be integrated with the internal accounting system; • it is necessary to fix sales by product, taking into account differentiated discounts and different tax rates; • if different cash register equipment is used, then it is necessary to expand the interaction protocols of the cash program with each cash register; • it is necessary to quickly respond to changes in the protocols for transferring data to the Federal Tax Service; • the receipt template depends on the cash register itself; the ability to customize the receipt according to the wishes of the retailer is limited; • in order to send an electronic copy of the receipt to the buyer, one should test different SMS gateways, provide for the program to enter the address, and send by email; • it is required to integrate the cash desk, the website, the accounting system, and payment aggregators. If technical issues were resolved to one degree or another, then, at the next stage, the cooperative sector is faced with several organizational problems. Staff training seems to be a main issue in this area.

4 Discussion Improving the competitiveness of the enterprise, including in the context of the use of ICT, depends on the development of the employees’ professional and nonprofessional competencies (Sycheva et al. 2019). Therefore, the formation of human capital in the cooperative sector, which is based on socioeconomic relations that determine the theoretical and methodological foundations and principles of formation in modern conditions, is of particular importance (Astrauskaitė and Paškevičius 2018; Lincaru et al. 2018; Goloshchapova et al. 2018; Kuznets 1965).

534

T. A. Panteleeva et al.

Despite officials’ stating that specialized training for operators of online ticket offices is not required, in reality, a significant sector of issues that is determined by the elementary computer literacy of small-enterprise employees has been identified. These issues are becoming especially apparent in the cooperative agricultural sector. In accordance with global urbanization, there are fewer professional personnel in the hinterland; the issue of quality service and the use of online cash registers is becoming most acute in areas remote from agglomerations. Electronic document management for such organizations comes down to the functionality of, as a rule, one or two employees. In these conditions, such organizations have to solve several issues facing large organizations. 1. The quality choice of cash registers is functionally assigned to either the chief accountant or the founder of the organization. Often, these people do not have a sufficient level of knowledge to make the optimal decision, which makes it necessary to obtain new educational competencies. 2. The issue of recruiting qualified personnel (cashiers) in such organizations is also becoming a daunting task. The widespread increase in the age level of personnel potential does not contribute to a wide range of offers on the labor market, which, in turn, reveals the need to develop training programs taking into account the specifics of this personnel composition. 3. Several organizational issues related to obtaining an electronic signature, opening a personal account in the tax inspectorate, and concluding agreements with service centers are assigned to the head of the organization. In this regard, we believe that a particular policy should be implemented to help accumulate educational competencies in these categories of managers.

5 Conclusion The successful implementation of a digital economy program in the Russian Federation is possible only if a specific range of issues arising in the way of the cooperative sector is eliminated. The main issues include personnel risks, manifested in the absence of highly qualified IT specialists or low qualifications of employees associated with solving ICT implementation problems, as well as financial risks that restrict the access of small forms of the cooperative sector to the purchase, maintenance, and implementation of digital technologies in the activities of organizations. In the transition of the cooperative sector to online cash services, a systematic approach is required to ensure high-quality training for personnel working with the new generation of cash registers.

Digital Technologies in Cooperative Enterprises …

535

References Amirova, E.F., Voronkova, O.Yu., Pyurveeva, K.A., Shatalov, M.A., Panteleeva, T.A., Sorokina, O.A.: The functioning of the agro-industrial complex in the conditions of the digital economy. Int. J. Mech. Eng. Technol. 9(13), 586–594 (2018) Astrauskaitė, I., Paškevičius, A.: An analysis of crowdfunded projects: KPI’s to success. Entrep. Sustain. Issues 6(1), 23–34 (2018) Goloshchapova, L.V., Plaskova, N.S., Prodanova, N.A., Yusupova, S.Y., Pozdeeva, S.N.: Analytical review of risks of loss of profits in cargo transportation. Int. J. Mech. Eng. Technol. 9(11), 1897–1902 (2018) Kuznets, S.: Economic Growth and Structure: Selected Essays. Norton, New York (1965) Lincaru, C., Pirciog, S., Grigorescu, A., Tudose, G.: Low-low (LL) high human capital clusters in public administration employment—predictor for digital infrastructure public investment priority. Rom. Case Study Entrep. Sustain. Issues 6(2), 729–753 (2018) Noyes, E., Linder, B.: Developing undergraduate entrepreneurial capacity for social venture creation. J. Entrep. Educ. 18(2), 113–124 (2015) Sycheva, I.N., Chernyshova, O.V., Panteleeva, T.A., Moiseeva, O.A., Chernyavskaya, S.A., Khout, S.Y.: Human capital as a base for regional development: a case study. Int. J. Econ. Bus. Adm. 7(Special Issue 1), 595–606 (2019) Voronkova, O.Y., Zadimidcenko, A.M., Goloshchapova, L.V., Polyakova, A.G., Kamolov, S.G., Akhmetshin, E.M.: Economic and mathematical modeling of regional industrial processes. Eur. Res. Stud. J. 21(4), 268–279 (2018)

Modeling Accounting Information in the Internal Control System of Enterprises Elena V. Ivanova, Vera V. Darinskaya , Lidia V. Andreeva , Nikolay Ya. Golovetsky , and Elvira N. Borisova

Abstract Accounting technologies are subject to constant changes in Russia due to the growing requirements for accounting and an increase in the volume of processed information. As part of the accounting system, internal control also requires new approaches to organizing, conducting, and adapting to changes in accounting information processing. The article emphasizes the central place of the accounting information system in the company’s information environment since most of the economic information is generated as part of accounting. The need for adaptation of accounting technologies following the requirements of a unified information environment is considered. An algorithm for evaluating the effectiveness of the internal control system is proposed.







Keywords Accounting process Business process Internal control system Accounting technology Accounting information systems







E. V. Ivanova (&)
V. V. Darinskaya
L. V. Andreeva
E. N. Borisova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] V. V. Darinskaya e-mail: [email protected] L. V. Andreeva e-mail: [email protected] E. N. Borisova e-mail: [email protected] N. Ya. Golovetsky Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_57

537

538

E. V. Ivanova et al.

1 Introduction The organized information flows of the accounting system for companies make it possible to link simultaneously such processes as planning, accounting, analysis, regulation, and synchronize them in the management process. The accounting system’s organized information flows are applied to companies with diverse operational segments of activity, having a broad, extensive organizational structure, and diverse geographical segments. In general, this system is an information flow describing the entire economic process of a business. Therefore, it serves to make management decisions. A commercial company (including cooperative organizations) is a dynamic structure characterized by intensive growth or stagnation, a variety of business areas, or projects. This feature leads to the need to bring the managerial accounting production facts of the activity, following the characteristics of the management process accepted by the company. As a result, several requirements for the management information system are formed: • The need for modernization and streamlining of information flows for the formation of reliable accounting information; • The need to model accounting processes and exchanges between them to consolidate information; • The need for prompt information on resources, facilities, segments, centers of responsibility, results of activities; • The need for managerial, financial, consolidated reporting in accordance with international standards; • The need for analysis and forecasting tools. The study aims to identify the process features of accounting information in digitalization and the formation of an algorithm for assessing its reliability.

2 Materials and Method In our research, the following general scientific methods were used: information collection and processing, comparison, analogies, generalizations, and logical methods. The works and publications of domestic scientists who have made a significant contribution to the study of the problems of accounting information formation have formed the theoretical basis of the study. Moreover, we used the data obtained from analytical reports, reference materials of analytical agencies, studies of international companies, regulatory legal acts of the Russian Federation, Internet materials.

Modeling Accounting Information in the Internal Control System …

539

3 Research Results In today’s world, the use of accounting software is standard practice. Accounting is considered as a system of registration and processing of information, taking into account the specifics of the influence of the organization’s industry affiliation and the use of new digital technologies. The introduction of modern accounting systems in the activities of the company no longer depends on its size. This is a necessity of modern reality. The introduction of modern accounting systems in the company’s activities contributes not only to effective accounting but also to the further development of the organization. In addition to the intuitive interface, a modern accounting and information system should combine the following elements: extensive analytics, powerful capabilities for creating accounting registers, and reporting forms. The accounting and information system should also combine the ability to integrate information in accordance with international financial reporting standards, with an adequate company management methodology and the concept of managing the software product itself. In Russian business, there are quite a few features that affect accounting. We will give some of them: The first feature is the secrecy of Russian business, i.e., lack of publicity traditions for companies that are not required by law to publish their accounts. Several companies are a non-core application to the largest companies, and sometimes it is difficult to determine the real owner. Sometimes, transactions are motivated not by economic gains and market expediency, but by political reasons. The second important feature is the dynamically changing tax legislation, the introduction of changes in the part of reporting forms in off-budget funds. Furthermore, the peculiarity is the mandatory reporting in accordance with international standards by an increasing number of companies. The third feature of domestic companies is as follows. An objective analysis of business processes is the prerogative of academic science. To promote their business interests in a dynamically changing economic environment, all participants in economic relations need not only promotion tools but also objective management software products. One of the main links of any organization is the accounting system, through which a considerable number of financial flows pass. All accounting information is reflected in the relevant information flows. In a modern company, accounting consists of many frequently repeated operations and the formation of a massive number of various reporting documents. When implementing any automated accounting and management system, the cornerstone is the methodology. The second significant problem is the qualitative analysis of existing business processes, which will allow one to make changes to the existing business structure. The need is explained by the following factors: an increase in the analytical load when entering the primary accounting information, additional links in the sequence of registration and processing of documents, the need for marks on approval or implementation.

540

E. V. Ivanova et al.

And finally, the third stage is the direct integration of new and existing information technologies. In modern conditions of digitalization, when introducing off-the-shelf software products for accounting and management, there is a significant risk of failure. The methodology of each individual organization is different and complicated in different ways. In general terms, the relationship between accounting and management is presented in Fig. 1. The accounting information system in the company’s information environment has a considerable role due to the fact that most of the financial information is generated as part of accounting. The accounting information system includes many regulatory, reference, operational, financial, and other subsystems.

Analysis and control of financial and economic activities

Marketing analysis and CRM

Planning

Investment policy analysis

Production analysis (Calculation)

Budgeting

Financial analysis

RAS and IFRS financial statements

Management accounting

Financial accounting

Tax accounting

Primary accounting

Procurement accounting

Accounting for production operations

Payroll and HR management

Fig. 1 The accounting information scheme of business processes Source Compiled by the authors

Sales accounting

Modeling Accounting Information in the Internal Control System …

541

Determining the place of accounting information in a single information space in the context of the digitalization of the economy is of no small importance. Both internal and external users of accounting information can have different roles and user rights. Roles and user rights include starting from the right to exchange credentials and other information, to the administration of the entire information base for both accounting and internal control. The main external participants in the information environment are the tax authorities, statistical agencies, and extrabudgetary funds. Exchange of information about all accounting processes occurs between them and the organization. The scheme of movement of accounting information in a single information environment is presented in Fig. 2. At present, the market for accounting software is represented by various software products that allow online accounting. Even the recognized leader of the Russian accounting software 1C has developed an online version of its program. For managers of small enterprises that independently keep records, there are such Internet services as “Nebo,” “Moye Delo,” etc. In the digital economy, more companies are gradually changing software from “software + equipment” to cloud technologies, which provide more scope for business models and allow one to process large amounts of information. In 2018, the analytical company KMDA conducted a survey of Russian companies on the topic of digital transformation in Russia (Ryzhkov et al. 2018). The survey showed that a quarter of the companies surveyed are already in the process of digital transformation. One of the important digital transformation areas is the widespread use of data and integration with partners (Izmaylova et al. 2018). These estimates allow us to conclude that it is necessary to adapt the process of forming accounting information following new business requirements. In turn, the transformation of the

Counterparties include the following: manufacturers, buyers, sellers, intermediaries, etc.

The subjects of the information environment for the collection, synthesis, and control of information

Unified accounting and information base in the organization’s management and control system

Credential administrators

Other interested users of the information environment

Fig. 2 The movement of accounting information in a single information environment Source Compiled by the authors

542

E. V. Ivanova et al.

accounting space affects the change in the internal control system. The algorithm and sequence of calculation steps are changing. More opportunities for identifying the company’s internal reserves appear. Simultaneously, the internal control system, as part of the company’s information environment, should be sufficient. Due to the sequence of control procedures, the effectiveness of the company’s risk assessment and management is improved. The following algorithm can represent the procedure for evaluating the effectiveness of the internal control system: 1. The business process is divided into control elements by groups, with a preliminary assessment of the magnitude and complexity of control of these elements; 2. Identification of controls with the highest degree of risk requiring increased attention during control procedures; 3. Determination of criteria of materiality, depending on the complexity of the element (process) being checked; 4. The selection of techniques and methods of internal control used in conducting audits of business segments, elements of business processes, etc. varying degrees of difficulty and with different levels of risk; 5. Analysis of the results of control procedures, with consideration of the methods used to obtain the result; 6. Development of indicators for assessing the effectiveness of the internal control system. Decision at the organization’s management level on the appropriateness of implementing these indicators; 7. Development of a scheme for the interaction of information flows, including information about the elements under control and reflecting the results of control procedures; 8. Monitoring and analysis of the results of evaluating the effectiveness of internal control. Identification of positive or negative dynamics. According to the results, a decision is made to increase or decrease the scope of analytical procedures. Within the internal control system framework, the company should conduct a regular analysis of the risk management system. Like the internal control system, processes within the framework of risk management or risk management should be tested for the effectiveness of the proposed management decisions (Popova et al. 2019). Firstly, it is necessary to identify risks that affect the company’s performance or development strategy. Secondly, it is necessary to distribute the identified risks into groups according to the degree of materiality and the degree of development of quantitative indicators for their assessment. Thirdly, it is necessary to develop risk assessment criteria to determine the probability of a proposed event’s occurrence and determine the degree of effectiveness of decisions to influence the situation. Furthermore, the monitoring of the results of the influence of the adopted management decisions on reducing the level of risk and making adjustments, if necessary, is carried out. The effectiveness of the internal control system can be quantified using the coefficients presented in Table 1.

Modeling Accounting Information in the Internal Control System …

543

Table 1 Indicators reflecting the effectiveness of internal control Indicator

The procedure for calculating the indicator

Loss profit ratio

Indicator characteristic The degree of unused opportunities for the company

Benefit ratio

Internal control costs attributable to the ruble of the acquired gain

The efficiency coefficient reflecting how identified internal reserves are used

The degree of reserves mobilization. How reasonable are the decisions on determining their sizes?

The coefficient reflecting the identified intra organizational losses

Effectiveness of the internal control system to prevent property loss

Tax-loss ratio

Tax error prevention efficiency

Internal control performance coefficient

Effectiveness of internal control on the ruble of costs

Source : (Compiled by the authors).

4 Discussion In the studies of domestic scientists, a unity of view is traced in relation to the dependence of the effectiveness of control procedures on the correct modeling of accounting processes. These scientists deal with the internal control system’s problems and the accounting process, including in the context of the active use of information technology for accounting and management of the company as a whole (Ragulina et al. 2018).

544

E. V. Ivanova et al.

For the effective interaction of internal control and accounting process within the company’s information environment, the following conditions must be met: • Decisions made on the use of cloud or local information accounting systems should not affect the internal control procedure; • The distribution of power and user rights, respectively, should exist between the company’s structural divisions, whose functions include internal control and accounting; • The roles of users in the structures responsible for internal control and accounting in the information environment should be configured for interaction. As a result, a continuous process of continuous improvement, which will be ensured by the interconnection of the internal control system and accounting, will be formed.

5 Conclusion Thus, we can note that the use of modern accounting technologies cannot solve only the problems of financial accounting. To maximize the effect, the interconnection of all information management flows into a single system is necessary. This is possible only with a thorough study of all business processes and modeling them in the information environment. In the digitalization era, company management requires appropriate knowledge and skills from employees of the accounting service, financial, etc., responsible for control and accounting operations.

References Izmaylova, M.A., Adamov, N.A., Brykin, A.V., Siniaev, V.V., Luchitskaya, L.B.: Assessing the state of logistics and ways to improve the logistics management in the corporate sector of the Russian economy. J. Appl. Econ. Sci. 13(2), 414–424 (2018) Ryzhkov, V., Chernov, E., Nefedova, O., Tarasova, V.: Digital transformation in Russia 2018: analytical report based on a survey of Russian companies (2018). https://drive.google.com/file/ d/1k9SpULwBFt_kwGyrw08F0ELI49nipFUw/view Popova, L.I., Demina, I.D., Stepanenko, Y.S., Tran, Q.N., Meshkova, G.V., Afonasova, M.A.: Economic aspects of formation of Financial University under the Government of the Russian Federation regional aspects of sectoral digitalization: problems and prospects. Int. J. Econ. Bus. Adm. 7(2), 176–188 (2019) Ragulina, J.V., Suglobov, A.E., Melnik, M.V.: Transformation of the role of a man in the system of entrepreneurship in the process of digitalization of the Russian economy. Qual. Access Success 19(S2), 171–175 (2018)

A Competency Model in the Field of Information Technology Ekaterina V. Kashtanova , Anastasia S. Lobacheva , Sergey A. Makushkin , and Taridi K. Ridho

Abstract The paper focuses on the approach to building the competency model of a modern IT specialist, a service engineer representing a large integrator in the Russian system in the field of automation of enterprises of a wide model. The research results allow making predictive assessments of the development prospects of the competency model of specialists in the IT-sphere. Such competencies include personal characteristics, the ability of a person to perform certain functions, a set of types of behavior and social roles (orientation to the clients’ interests of the client, ability to work in a group, assertiveness, and original thinking). The proposed competency model allows one to make the process of personnel selection and their assessment more competent and efficient. In turn, such steps will allow IT companies to perform their services at a higher level. Training and development of specialists in various fields have their certain peculiarities. The paper shows that in order to develop a competency model for an IT service engineer, it is proper to use an interview on obtaining behavioral examples and expert analysis of the work performed.




Keywords Competency model IT engineer Competencies IT sphere Motivation








System integrator
Service


E. V. Kashtanova
A. S. Lobacheva (&) State University of Management, Moscow, Russia e-mail: [email protected] E. V. Kashtanova e-mail: [email protected] S. A. Makushkin Department of Personnel Management and Personnel Policy, Russian State Social University, Moscow, Russia e-mail: [email protected] T. K. Ridho Faculty of Economics and Business, State Islamic University “Syarif Hidayatullah”, Jakarta, Indonesia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_58

545

546

E. V. Kashtanova et al.

1 Introduction Recently, employers and HR specialists are paying more attention to the development of personnel competencies in various economic areas. At the same time, everyone understands that, to achieve high results in an organization’s activity and develop the required competencies, it is necessary to create favorable working conditions (Li 1991; Rogach et al. 2016), develop the necessary skills and competencies, promote awareness among employees, take constant care of labor protection and safety precautions, address healthcare concerns, etc. (Danielsson and Bodin 2008; Lemke and Apostolopoulos 2015). The problems of soft and hard skills are discussed in the work of such researchers as M. A. Choshanov, O. L. Chulanova, E. Pavlova, Yu. Portland, O. Sosnitskaya, D. Tataurschikova, V. Shipilov, D. V. Hergert, D. G. Artemyev, and I. Tomacheva. Each researcher includes different elements in the soft skills models. However, there are also repeating components such as communicative qualities, creativity, stress management, time management, and flexibility. Researchers focus on communicative skills, flexibility, creativity, and management skills. Some researchers include stress management, the ability to receive criticism, and self-confidence in their models. However, by far, the most holistic division of soft skills, which would include emotional competence with all its components based on the integration of existing soft skills, was developed by O. L. Chulanova (2017; Ivonina et al. 2018). The competency model is a set of qualities and characteristics that are taken as a standard in assessing the applicant or employee. However, it differs for each post. In order to draw it up, it is enough to highlight 6–10 characteristics inherent in a particular position. In this paper, the authors consider the modern competency model with the example of an IT service engineer of a large Russian system integrator in the enterprise automation field of a comprehensive model, occupying a leading position in the Russian market of HoReCa and retail. After-sales service of IT solutions throughout the Russian Federation is one of the main activities of the company. A properly selected IT service engineer influences the quality of the provided services, the brand, and customer loyalty. When compiling a competency model, it is necessary to correctly formulate requirements, so that they are as complete and understandable as possible for potential applicants. It can reduce the handling of proposals from candidates who do not have the necessary experience, qualifications, or personal qualities, and it can help in preparing a salary overview of the current vacancy for a particular region (GSMA Intelligence). There are many different techniques specifically designed to collect job information (Kashtanova and Lobacheva 2017). The service engineer is an employee of the service group who reports directly to the group leader. The service engineer provides 24-h technical support for restaurants, the list of which is approved by the group leader.

A Competency Model in the Field of Information Technology Table 1 The typology of competencies in management theory according to the method of D. Unterton

Professional Conceptual

Cognitive competencies Operational Functional competencies Source (Yetter 2011)

547 Personal Meta-competencies Social competencies

The competencies that will be used for further development are presented in Table 1. A competency model for a service engineer was developed with the help of an expert survey, observation, and analysis of documents regulating the activities of a specialist (job description, professional standard that defines and consolidates the labor function, actions, skills, knowledge, education, training requirements, and experience). Functional competencies include knowledge of MS Office, the structural diagram and composition of the software and hardware components of computer-cash systems, the structure of the managerial staff of the served restaurant, as well as the ability to repair PCs, to layout local networks and soldering, to connect and repair serviced equipment, and to draw up and fill out service forms (Spencer and Spenser 2005). Cognitive competencies reflect an understanding of the situation, an assessment of the possibilities, and the required amount of knowledge to solve a problem facing a specialist. Social competencies represent the ability of engineers to effectively interact with people around them in a system of interpersonal relationships. Meta-competencies are relatively stable personality traits related to efficient or excellent job performance. Since the main work takes place on the territory of the customer, the engineer must follow the rules of conduct, as well as have a neat and clean appearance when visiting the customer’s facilities (Chulanova 2018).

2 Materials and Methods In order to identify the nature of the views on the competency model of a specialist in the field of IT technologies, the authors comprehensively applied general scientific methods, research, and experimental measures based on methods of comparison and content, visual, and system analyses. Visual and system analyses made it possible to decompose the data on the studied group into parts and reveal the nature of the views of individual employees and managers on the competency model of an IT specialist throughout the study period. The synthesis allowed us to combine them into a single whole. Sociological methods (observation, interviewing, and questioning) were used to identify attitudes towards social phenomena related to the problem of improving the competency model of a specialist in the

548

E. V. Kashtanova et al.

field of IT technologies, taking into account the social status, education, age, and gender differences of the respondents. Statistical methods were used to analyze the data in order to substantiate the conclusions on the emergence and solution of the problem of optimizing the competencies of a specialist in the field of IT technologies. To monitor and evaluate actions during the study, we relied on the employees of relevant qualifications, experts in the field of modeling the competencies of a specialist in the field of IT technologies. Also, this paper uses the Hays study to identify common trends in the labor market.

3 Results Using an expert survey, the following competencies were identified (Table 2). Let us consider the types of competencies, their definitions, levels of manifestation, and possible sources of information. Competencies by level is a model that describes a wide range of works with various requirements for implementation. Behavioral indicators within each competency are highlighted in separate lists (levels). This allows one to present several different competencies under one heading, providing the convenience of practical use of the competency model if it is necessary to cover a wide range of functional roles. The introduction of competency levels allows an adequate assessment of personal competencies without complicating the structure of ideal competency profiles (MarketResearch.com 2016). The analysis of the situation on the labor market made it possible to identify trends that will occur in changing the composition of the set of competencies soon. These changes will primarily affect the IT sphere, as confirmed by the Hays study “Labour Market and Profession of the Future” (Hays 2018). As follows from the above data, both currently and in the future professional success depends on a combination of social competencies and professional skills. Focusing on developing their professional uniqueness, acquiring and honing Table 2 The competency model diagram for the position of IT service engineer Professional Conceptual

Cognitive competencies: analytical thinking, technical/professional expertise, analysis of alternative solutions Operational Functional competencies: working with software products; working with computer-cash systems; the ability to repair them and work with documents Source Developed by the authors

Personal Meta-competencies: diligence, attentiveness, stress resistance, learning ability, sociability Social competencies: interactions within the company, external interactions

A Competency Model in the Field of Information Technology

549

significant knowledge, constantly improving proficiency in technologies that already exist and new ones as they emerge, and knowing foreign languages are competencies that the participants indicated as necessary conditions for building a successful career. In the IT sector, there are changes in the forms of employment. Remote work is becoming more popular among job seekers. The amount of data and information surrounding us, as well as the rapid obsolescence of technology, are bringing about significant changes. With these changes, there is a need for employers to consider new factors when interviewing professionals with relevant projects in their portfolio, rather than merely looking at long-term work experience and education. The IT market right now is a job seeker’s market; candidates often have the opportunity to choose from 4–5 equally attractive offers. For many professionals, the deciding factor in choosing a position is not the financial conditions or the proximity of the company to their house, but the project itself and the skills they might obtain. Based on the analysis of scientific developments and research materials, it is proposed to create a new assessment model, the essence of which is as follows. The authors propose to consider a scale of three levels: 0 – the entry-level. Employees are in the process of developing this competency. They understand its importance and effectively apply it in simple, familiar work situations or in complex, but unstable contexts. +1 – the level of experience. In addition to level 0, the employee has fully mastered this competency. The competency is effectively applied in a wide range of working situations (both familiar and complex, as well as new and non-standard). +2 – the skill level. In addition to level 1, it assumes a particularly high degree of development of the relevant competence. The levels below “0” are not advisable to use in this case, since we do not consider candidates at a level below the initial one. When compiling a model of competencies, the question always arises about what changes are already taking place and which ones are expected in the labor market in this industry. The main change in the IT is a shift in focus when hiring professionals from certain formal selection criteria, such as education, work experience, financial expectations, and purely applied factors, as well as realized, published, high-profile, and working projects.

4 Discussion As for the new professional skills that should soon form the basis for building a new competency model, this, of course, is an understanding of new technologies and the ability to follow them and apply them at work. In terms of personal qualities, the

550

E. V. Kashtanova et al.

chances of making a successful career are higher for dynamic, easily adaptable, proactive, and creative people. These words are heard everywhere nowadays, but in the IT sector, they are relevant and have real meaning. Since information flows are becoming more and more complicated, and people who can work with big data are already in need, in a ten-year perspective, there will be an urgent need for professionals whose responsibility will be to store, format, and protect data, including the protection of the personal information and the people themselves from these technologies. With the development of technology in the coming decades, users of any devices connected to the Internet can be identified not only by scanning fingerprints or the eye retina but also by DNA analysis. Personal data is already leaking on a massive scale and cannot withstand powerful cyber-attacks. All this will, undoubtedly, lead to the development of a digital society, namely, the implementation of the principles of state borders and government control in the digital space.

5 Conclusion In conclusion, it should be noted that the requirements for the competencies of IT specialists will grow rapidly, taking into account the automation of all the processes surrounding us, the increasing role of virtuality as an intermediary between users and the real world, and the emergence of a new social stratification of society due to the digital divide. In such conditions, essential tasks of IT specialists will become: – the fight against organized cybercrime and cyber terrorism, which will imply the transfer of experience from the real world to virtual space; – the development of standards for processing, storage, and visualization of large amounts of data; – the development of biochips and other similar devices that are implanted into the body, ensuring the exchange of information with the environment; – ensuring the necessary level of privacy and protecting users from manipulation by the virtual environment; – legal protection in a virtual environment of both property rights and other issues that arise in the process of communication in a global network. Thus, it is likely that competitive competencies of IT specialists in the next decade will include: customer focus, multilingualism, multiculturalism, artistic skills, intersectoral communication, working with people, and working in conditions of uncertainty.

A Competency Model in the Field of Information Technology

551

References Chulanova, O.L.: Development of soft skills of the leaders in accordance with the targeted competency model. Mater. Athanasian Read. 4(21), 45–55 (2017) Chulanova, O.L.: Challenges and trends in the labor market: synergy and soft skills synergy. Manag. Pers. Intell. Resourc. Russ. 3, 66–72 (2018). https://doi.org/10.12737/article_ 5b509cc15ef214.39898999 Danielsson, C.B., Bodin, L.: Office type in relation to health, well-being, and job satisfaction among employees. Environ. Behav. 40, 636–668 (2008). https://doi.org/10.1177/ 0013916507307459 GSMA Intelligence: Official website. https://www.gsmaintelligence.com/ Hays: Labor Market and Professions of the Future (2018) Ivonina, A.I, Chulanova, O.L., Davletshina, Yu.M.: Modern directions of theoretical and methodological developments in the field of management: the role of soft skills and hard skills in the professional and career development of employees. Online Mag. “Naukovedenie” 9(1) (2018). http://naukovedenie.ru/PDF/90EVN117.pdf Kashtanova, E.V., Lobacheva, A.S.: Assessment of personal effectiveness of employees in the incentive system of the Bank. Pers. Intell. Resource Manag. Russ. 2(29), 50–56 (2017) Lemke, M., Apostolopoulos, Y.: Health and wellness programs for commercial motor-vehicle drivers: organizational assessment and new research directions. Workplace Health Saf. 63(2), 71–80 (2015). https://doi.org/10.1177/2165079915569740 Li, X.J.: Relationship between visual fatigue of students and artificial illumination in the classroom with television. Zhonghua Yu Fang Yi Xue Za Zhi 25(6), 353–355 (1991) MarketResearch.com: Online education in Australia. Industry market research report (2016). https://www.marketresearch.com/IBISWorld-v2487/Online-Education-Australia-Research12471152/ Rogach, O.V., Frolova, E.V., Kirillov, A.V., Bondaletov, V.V., Vinichenko, M.V.: Development of favorable learning environment and labor protection in the context of harmonization of social interaction of educational system objects. IEJME—Math. Educ. 11(7), 2547–2558 (2016) Spencer Jr., L.M., Spenser, S.M.: Competencies at Work. HIPPO, Moscow (2005) Yetter, V.: Effective selection of personnel. The method of the structured interview. Humanitarian Center, Kharkiv (2011). (Edited by E. A. Stolyarchuk, O. A. Shipilova)

The Use of IoT and IIoT for Equipment Testing Roman V. Samoletov , Elena V. Abyzova , Larisa A. Kargin , Sophia L. Lebedeva , and Oksana V. Mednikova

Abstract The Internet of Things (IoT) is a neologism, first used in 1999 by Kevin Ashton, co-founder and director of Auto-ID Center, which applies to all connected devices (except computers and smartphones) on the Internet. Whether it is cars, fitness trackers, refrigerators, light bulbs, or furnishings, everything is connected to the Internet and can collect and share data using individual sensors. In recent years, the IoT has been one of the most popular concepts. The purpose of the paper is to study the impact of the Internet of Things on the development of companies, enterprises, corporations in all sectors of the market when they turn into IT companies with industrial specialization. The concept of the Internet of Things (IoT) is to connect any object to the Internet to make it more independent and intelligent by managing large amounts of information. The Internet of Things includes: measuring instruments, identification tools, communication and transmission tools, platforms for managing data, systems and devices, information analysis software, models of the system response to various situations, decision systems in the field of data transmission security, IT-services and products. The paper discusses RFID technology that allows one to identify, track, and control any objects that are automatically connected using RFID tags. The use of the Internet of Things in the development of enterprises entails the transformation of the production process. A business must change the structure of organization and production, approaches used for the selection and training of personnel, as well as planning methods. R. V. Samoletov Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] E. V. Abyzova
L. A. Kargin
S. L. Lebedeva
O. V. Mednikova (&) Russian University of Transport (MIIT), Moscow, Russia e-mail: [email protected] E. V. Abyzova e-mail: [email protected] L. A. Kargin e-mail: [email protected] S. L. Lebedeva e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_59

553

554

R. V. Samoletov et al.







Keywords Internet of Things RFID technology Industrial Internet of Things RENK VIB-Monitor Mill Visualization tool orange










1 Introduction 1.1

Areas of Use for the Internet of Things (IoT)

The concept of the Internet of Things was formulated by Kevin Ashton in 1999, at a presentation for the Procter & Gamble leadership: “If we had computers that knew everything there was to know about things—using data they gathered without any help from us—we would be able to track and count everything, and greatly reduce waste, loss, and cost. The Internet of Things has the potential to change the world, just as the Internet did. Maybe even more so” (Brief 2016). With these words, Kevin Ashton, the founder of Auto-ID Labs MIT, introduced the term “Internet of Things” in the global technology dictionary. With the application of this neologism, Ashton intended to offer an intelligent system for solving various critical supply chain issues by embedding microchips in products. His goal was to arouse curiosity (and get funds) for the development of modern IoT. According to an international survey (Global IoT Executive Survey) conducted by BI Intelligence, by 2021, there will be about 22.5 billion connected devices (IoT) compared with 6.6 billion in 2016. Development forecasts are changing. Thus, according to Ericsson’s CEO Hans Westburg, in 2010, it was estimated that 50 billion connected devices would be available by 2020, but subsequently, the number was reduced to 28 billion by 2021. Therefore, it is not easy to make predictions when it comes to technology. We can say that, in general, the figures estimated recently are about 20 billion connected devices.

1.2

Industrial Internet of Things (IIoT)

The Industrial Internet of Things (IIoT) is the use of smart sensors and actuators to improve production processes. IIoT, also known as the Industrial Internet or Industry 4.0, leverages the power of intelligent machines and real-time analytics to use data that machines have produced in industrial environments for years. The philosophy behind IIoT is that intelligent machines are not only better than people for collecting and analyzing data in real-time, but they are also better at transmitting important information that can be used to make business decisions faster and more accurately (Abu-Mostafa et al. 2012; Provost and Fawcett n.d.). Connected sensors and actuators enable companies to cope with inefficiencies and problems quickly, and they save time and money when supporting business intelligence (BI). In the manufacturing sector in particular, IIoT has enormous

The Use of IoT and IIoT for Equipment Testing

555

potential for quality control, sustainable and environmentally friendly methods, tracking the supply chain, and overall supply chain efficiency. In an industrial environment, IIoT is the key to such processes as predictive maintenance (PdM), advanced field services, energy management, and asset tracking. In a real deployment of the IIoT smart network, ABB Intelligent Robotics uses connected sensors to monitor the maintenance needs of its robots and to repair them quickly before parts break down. For example, Airbus, a commercial aircraft manufacturer, has launched what it calls the “factory of the future,” their flagship digital production facility, to streamline operations and increase production. Airbus integrated sensors in machine tools and workshops and equipped employees with wearable technology, such as industrial smart glasses, aimed at reducing errors and improving safety at the workplace. Another robotics manufacturer, Fanuc, uses sensors in its robotics along with cloud-based data analytics to predict the inevitable component failure. This allows the plant manager to schedule maintenance at a convenient time, reducing costs and preventing possible downtime. Magna Steyr, an Austrian automobile manufacturer, takes advantage of IIoT to track its assets, including vehicle tools and parts, and to order additional stocks automatically if necessary. The company is also testing “smart packaging,” which is supplemented by Bluetooth to track components in its warehouses.

2 Materials and Methods IIoT is a network of smart devices connected to form systems that track, collect, share, and analyze data. Each IoT industrial ecosystem consists of the following elements: • Intellectual assets that can perceive, transmit, and store information about themselves • Public and/or private data transmission infrastructure • Analytics and applications that generate business information from raw data • Human resources Edge devices and intellectual assets transmit information directly to the data transmission infrastructure, where it is converted, for example, into effective information about the way a particular piece of equipment works. This information can then be used for preventative maintenance, as well as for optimizing business processes. Scientific research was carried out based on the plant manufacturing industrial mills, OAO “Techpribor.” OAO “Techpribor” has set its goal to maintain and expand its technological positions in key areas. Research and development play an increasingly prominent

556

R. V. Samoletov et al.

role in this. Most products from the “Techpribor” assortment have a long life cycle. Therefore, in addition to new developments inside and outside the existing product lines, innovation management is mainly focused on progress that benefits customers. A key aspect of this is to continue offering integrated service packages. The first stage of scientific research was the study of the work of the mill “TRIBOKINETIKA,” according to the provided production documentation. The gearboxes of this mill are classic electric drive solutions for medium and large vertical mills for grinding coal, raw materials, bricks, and minerals (Fig. 1). Fig. 1 The mill “TRIBOKINETIKA” Source (Techpribor, n.d.)

Initially, the sensors for taking readings were attached to the more mobile elements of the mill where possible and when necessary. The information taken from them was recorded into a file for further analysis (Fig. 2).

Fig. 2 Indications from rolling and sliding bearings

Figure 3 shows the problem area of the data matrix in its original form. The problem of this section is determined by the different formats of the time taken by the sensors. Using the open-source data visualization and analysis tool “Orange,” a table for sampling data from rolling and sliding bearings was built. This made it possible to see the area that was displayed incorrectly, and, based on visually presented data, it was necessary to conduct an analysis, make further repairs to this

The Use of IoT and IIoT for Equipment Testing

557

Fig. 3 Data visualization from the problem area of the rolling and sliding bearings

section of the mill, and remove new indicators to bring the matrix into a single format. For analysis and control, the RENK VIB-Monitor system was used. This is an intelligent, sophisticated condition monitoring system for all types of stationary gearboxes or power plants. This system helps to monitor all the main parameters of the drive units and gearboxes, and record additional values of all the main parameters. Together with the intelligent vibration control system, VIB-Monitor, vibration measurements, and analyses are available at the request of the operating personnel of the components of the “TRIBOKINETIKA” mill.

3 Results After taking the parameters using the open-source data visualization and analysis tool “Orange,” a histogram was built. The histogram makes it easy to determine how many times the alarm sensor has been triggered and at what levels (Fig. 3). Figure 4 shows a mill drum with bearing assemblies. We can see how the data acquire a visual component. After loading the data array into the tool for visualization and analysis, we should make a selection according to the necessary parameters. In this case, it is advisable to see how many times the alarm for each part is triggered separately during the operation of the mill. The result was the constructed graph-histograms for each type of node, for each process identifier, and for each part of the mill presented in the set (Fig. 5).

558

R. V. Samoletov et al.

Fig. 4 The graph of the “Drum” node

Fig. 5 Histograms of the “Drum” node operation

Next, a confusion matrix of logistic regression was compiled for each bearing frequency. This algorithm is used to predict the likelihood of a specific event from the values given by a set of features. In order to do this, we introduced a dependent variable that took only one of two values—usually, it is the numbers 0 (the event did not happen) and 1 (the event happened), as well as a set of independent variables (functions). At first, the data set was divided into the “training” (80%) and “test” (20%) sections. The columns “Speed,” “Frequency,” and “Warning Level” were considered as input functions. The target was a label indicating whether the alarm worked. Further, accuracy and F-measure models were evaluated; confusion matrices were also constructed.

The Use of IoT and IIoT for Equipment Testing

559

Thus, it has been proven in practice that one of the main advertised benefits provided to a business by IoT and IIoT is preventative maintenance. This includes organizations that use real-time data generated from IIoT systems to predict equipment failures, for example, before they occur, allowing companies to take action to resolve these problems before the failure of a part or the machine occurs (Richert and Coelho 2013; Siegel 2016).

4 Conclusion The Internet of Things has been one of the most popular concepts in recent years. The number of companies involved in IoT is growing, and some of them are already close to daily contacts: Apple, Google, Amazon, T-Mobile, IBM, FitBit, Microsoft, Garmin, and many others. The paper determines the impact of the Internet of Things on the development of companies, enterprises, and corporations in all sectors of the market when they turn into IT companies with industrial specialization. The Internet of Things includes measuring instruments, identification tools, communication and transmission tools, platforms for managing data, systems and devices, information analysis software, models of the system response to various situations, decision systems in the field of data transmission security, and IT services and products. It has been proven that a common advantage of using IIoT technology is the improved field service. IIoT technologies help field technicians to identify potential problems in customer equipment before they become serious, allowing technicians to troubleshoot before customers are inconvenienced. The paper discusses radio-frequency identification (RFID) technology that allows one to identify, track and control any objects that are automatically connected using RFID tags. The study revealed that RFID technology is universal and can be applied quite widely in various areas of companies, from production to services. The use of the Internet of Things in the development of a company entails the transformation of the production process, a change in the structure of organization and production, approaches to the selection and training of personnel, and planning methods.

References Abu-Mostafa, Ya., Magdon-Ismail, M., Lin, H.-T.: Learning from Data: A Short Course or Die. AMLbook, New York (2012) Brief, A.: History of the Internet of Things. Dataversity. Data Topics (2016). https://www. dataversity.net/brief-history-internet-things/ OAO “Techpribor”: Official website (n.d). http://www.tpribor.ru/aktiv.html Provost, F., Fawcett, T.: Data Science for Business: What You Need to Know About Data Mining and Data-Analytic Thinking. O’Reilly Media, Sebastopol (n.d.)

560

R. V. Samoletov et al.

Richert, W., Coelho, L.P.: Building Machine Learning Systems with Python. Packt, Birmingham (2013) Siegel, E.: Predictive Analytics. Wiley, Hoboken (2016)

The Influence of Artificial Intelligence on Human Activities Mikhail V. Vinichenko , Gundeea S. Narrainen, Alexander V. Melnichuk , and Pheni Chalid

Abstract The article discusses the nature of the impact of artificial intelligence [AI] on human activities in the Moscow region. The authors analyze how artificial intelligence affects social inequality. The degree of human dependence on the introduction of artificial intelligence and the nature of the influence of artificial intelligence on human control are determined. The authors analyze the population’s opinion about artificial intelligence, which interferes with private life and causes some inconvenience. Additionally, the paper reveals the risk of a mental disorder of a person arising from interaction with artificial intelligence. It is proposed to timely identify the risks associated with the implementation of AI and take measures to reduce them. The main advantage of the study is a comprehensive approach to studying the influence of artificial intelligence on human activities. The authors examined the question of the influence of AI on human activity with respect to specified indicators. The results can serve as the basis for further research on the use of AI in the social sphere. The obtained results can be of great support for making managerial decisions to improve the quality of human life when introducing AI. Keywords Artificial intelligence inequality Efficiency Risks








Human activities
Human potential
Social

M. V. Vinichenko (&)
A. V. Melnichuk Russian State Social University, Moscow, Russia e-mail: [email protected] A. V. Melnichuk e-mail: [email protected] G. S. Narrainen University of Mauritius, Moka, Mauritius e-mail: [email protected] P. Chalid Syarif Hidayatullah State Islamic University Jakarta, Jakarta, Indonesia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_60

561

562

M. V. Vinichenko et al.

1 Introduction Human activities are becoming very dynamic in the modern world, actively relying on the latest scientific and technological achievements. More attention is being paid to advanced technologies that make it possible to effectively use human potential (Sochneva et al. 2018). Relying on various technologies (Abassi and Boukhris 2018; Kirillov et al. 2015; Effron and Orth 2014), company management seeks to intensify human activities, increase employee motivation (Vinichenko et al. 2018), their loyalty (Chulanova et al. 2018). Recently, the leadership of advanced states focused on the digital economy (Sukhorukov et al. 2018). In this area, scientists and practitioners are attracted by the capabilities of artificial intelligence [AI] in various fields of human activity. German scholars use AI to create a multi-dimensional model in a machine learning system (Koch and Brockmann 2019). American, Brazilian, Japanese, and Indian researchers offer various solutions in the application of AI in medicine (Lee et al. 2019; O’Sullivan et al. 2019; Kurita et al. 2019; Das et al. 2019). Iraqi and Iranian scholars use AI to predict environmental changes (Alzoubi et al. 2019). Egyptian and French researchers are exploring ways to improve the efficiency of the car control system through the introduction of AI (Kamal and Adouane 2019). Russian scientists are interested in AI capabilities in the service sector (Moskaleva et al. 2018). Indian scholars are considering introducing AI in the activities of civil engineers and geotechnicians (Kumar and Kumar 2019). The Chinese scientist Shi (2019) studied the influence of AI on the labor market of accountants. The ways to study and improve the effectiveness of human potential using AI are currently being studied. An important place is given to the psychological impact of AI on humans (Kalmady et al. 2019; Zhang et al. 2019) and its positive and negative impact on the human condition (Burrell 2019). Psychological aspects in social exchange with the participation of AI are considered (Abubakar et al. 2019). The nature of the interaction of natural and AI is not defined. Ethical issues are also acute (Xu et al. 2019; Neri et al. 2019); the order of replacing natural intelligence with an artificial one is exacerbated (Belciug and Gorunescu 2019). Therefore, it is challenging to create a harmonious model of “natural-artificial intelligence” to improve the quality of life significantly guaranteed, and without risks for a person. Thus, we can draw the following conclusion. Despite the large number of scientific papers on the use of AI, systematic studies allowing to form a complete picture of the impact of AI on human activities have not yet been carried out. The great importance and relevance of the problem and the lack of a comprehensive study made this study necessary.

The Influence of Artificial Intelligence on Human Activities

563

2 Materials and Methods The identification of the influence of artificial intelligence on human activities was organized and carried out in organizations of the Moscow region (Moscow and the Moscow region). During the study, we used sociological methods, including questionnaires using “Google.Forms” online service, content analysis, and methods of statistical analysis. This sociological study was organized and conducted in the Moscow region in May–September 2019. Representatives of organizations in the Moscow region became part of the study group. The general population was 19.7 million people. The sample size is n = 301. The sampling error was 4.75%, with the confidence probability—95%. Representatives of the studied organizations were selected based on quota sampling. Quota features included gender, age, education, and field of activity. Consequently, 68% of women and 32% of men took part in a sociological survey. Of which, 73% of respondents were aged 18–25, 15% of respondents were aged 26–35 years, 5% of respondents were aged 36–45 years, 4% of respondents were aged 46–55 years, and 3% of respondents were older than 56 years. As for education, 44% of respondents had higher education, 42% had incomplete higher education, 11% had a secondary (specialized secondary) education, and 3% had a different education. The main areas of activity are management, personnel management, education, technical specialties, economists, psychologists, sociologists, etc. The purpose of the study is to identify the nature of the effect of AI on human activities. To achieve the set goal, the authors solved the following scientific problems: • to identify the way artificial intelligence affects social inequality; • to determine whether the introduction of AI will make a person dependent on it; • to determine whether the introduction of AI will lead to the loss of human control; • to analyze the population’s opinion about whether AI will interfere in a person’s private life, causing inconvenience; • to identify whether artificial intelligence will lead to human mental disorder.

3 Results We established that more than half of the respondents (56%) think that AI will deepen social inequality (Fig. 1). For low-income groups, the use of AI is problematic for financial reasons, and it also poses a danger in determining their future lives, including job cuts.

564

M. V. Vinichenko et al.

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

40%

20%

16%

agree

partially agree

partly disagree

12%

12%

disagree

difficult to answer

Fig. 1 The answer to the question: “Will AI deepen social inequality?” Source Based on the research conducted by the authors

40%

36%

37%

35% 30% 25% 20%

15%

15%

8%

10%

4%

5% 0% agree

partially agree

partly disagree

disagree

difficult to answer

Fig. 2 The answer to the question: “Will artificial intelligence lead to human dependence on it?” Source Based on the research conducted by the authors

We found that 12% of respondents turned out to be real supporters of AI in the social sphere. They are not afraid of deepening the social inequality provided due to the use of AI. Moreover, 12% of respondents did not decide on their position. The majority of respondents (73%) said that the dependence of humanity on AI imposes risks (Fig. 2).

The Influence of Artificial Intelligence on Human Activities

565

In this case, the nature, scope, and depth of dependence are not determined. A small number of respondents are not afraid of dependence on AI (8%). Even fewer respondents (4%) found it difficult to answer. These figures indicate that the vast majority of respondents use AI in one way or another in their lives and get used to it and its capabilities. At the same time, the understanding that this dependence can be dangerous for a person in various areas of life does not come yet. However, when assessing dependence on AI in the management sphere, respondents were more realistic. More than half of the surveyed participants expressed the opinion that the use of AI will lead to loss of human control (52%) (Fig. 3). It sounds more dangerous for the social environment. A fifth of the respondents are entirely calm in this matter, believing that natural intelligence will maintain a dominant position in control over AI. Almost half of the respondents do not see a danger in the intervention of AI in private life (47%) (Fig. 4). However, 45% are afraid that AI will cause inconvenience in personal lives. At the same time, each respondent sees risks in private life in various areas of activity. Of all the respondents, 56% identified fears that artificial intelligence will lead to human mental disorder (Fig. 5). Simultaneously, some respondents are completely calm for their mental and psychological state, not worrying about the impact of AI on them (16%). In general, the impact of AI on human life and activity is in the respondents’ field of view. On average, 7%–12% of respondents found it difficult to determine their position on the questions asked. The least of all, respondents found it difficult to answer the question whether AI can create a dependence on it (4%).

40%

35%

35% 30% 25% 20%

17%

19%

21%

15% 8%

10% 5% 0% agree

partially agree partly disagree

disagree

difficult to answer

Fig. 3 The answer to the question: “Will the use of artificial intelligence lead to the loss of human control?” Source Based on the research conducted by the authors

566

M. V. Vinichenko et al.

28%

30%

23%

25% 20%

22%

19%

15% 8%

10% 5% 0% agree

partially agree partly disagree

disagree

difficult to answer

Fig. 4 The answer to the question: “Artificial intelligence will interfere in a person’s private life, causing him/her inconvenience?” Source Based on the research conducted by the authors

40%

37%

35% 30% 25% 20%

19%

21% 16%

15% 10%

7%

5% 0% agree

partially agree partly disagree

disagree

difficult to answer

Fig. 5 The answer to the question: “Artificial intelligence will lead to human mental disorder?” Source Based on the research conducted by the authors

4 Discussion The study of the effect of AI on human activities revealed the relationship between social inequality and the use of artificial intelligence. A significant number of respondents directly linked the growth of social inequality with the increased use of AI. Firstly, this is due to the high cost of electronic devices equipped with AI and special computer programs entering the market for goods. This fact significantly reduces the number of users of objects of economic and daily activities for people with limited financial capabilities. In many countries, as in Russia, this is the bulk

The Influence of Artificial Intelligence on Human Activities

567

of the population. This will contribute to the growth of social tension, given the negative transformation of the status of previously respected professions (Ilina et al. 2018). Additionally, the introduction of AI in the production of goods and services will reduce jobs with an expanding range of specialties (Bronnikova et al. 2018) and exacerbate ethnic and social conflicts (Oseev et al. 2018). This will worsen social well-being (Sochneva et al. 2017), further aggravate the situation of the poor, and become a prerequisite for a social explosion. To some extent, these findings are correlated with the study of a group of scholars arguing that the use of AI in human potential requires serious study. Clear technologies for linking the usefulness of AI and the risks of its use for humans have not yet been determined (Ossmy et al. 2019; Zimenkova et al. 2018). The problems are visible in determining the dominant position in the natural and artificial intelligence system, a person’s dependence on artificial intelligence. Indeed, there is a tendency towards the wider introduction of AI in various spheres of life, including education. The curriculum includes AI, which allows students not to study or not to remember the most important laws, fundamentals of mathematics, physics, science, etc. As a result, a person in work and everyday life is increasingly becoming dependent on AI, which seeks to make life easier. Quite often, people use AI in one or another way, which makes them addicted to it. At the same time, the realization that this dependence can be dangerous for a person in various areas of life does not come yet. However, awareness of the dangers posed by AI did not yet arrive. The border beyond which AI cannot be allowed is not defined. Only a small proportion of the respondents are calm about their future in collaboration with AI, not seeing risks. The management sphere occupies a separate place. It also increasingly uses the capabilities of AI. However, the risks associated with the possibility of a sudden disconnection of AI from the control system (local, global) or interception of AI initiatives in making managerial decisions, cybersecurity, are not fully defined. Research by a number of scientists confirms these concerns and the need for close attention to this problem (Xu et al. 2019). The introduction of AI into everyday life and facilitating livelihoods are controversial. On the one hand, it facilitates life; on the other, there is a danger of interference in personal life. The risks that AI will cause inconvenience in personal life are real. First of all, it is connected with the personal data, which can be stored in various databases and be used by various unauthorized structures. Secondly, the use of electronic devices makes it possible to monitor a person’s activities, including personal space, to collect incriminating information, and to engage in undesirable situations. High dynamics of life and changes in society, an increase in the requirements for professional and personal qualities to the employee by the employer, stressful situations, AI interference in personal life negatively affect the human psyche. These factors can lead to a mental disorder. This correlates with many scientific papers (Burrell 2019; Kalmady et al. 2019; Zhang et al. 2019). The capture by AI of an ever-wider audience and socio-economic space leads to serious concerns about the future of the human-artificial intelligence system. To a greater extent, this

568

M. V. Vinichenko et al.

applies to creative, unsustainable natures. Along with this, there is a group of people who calmly and confidently look into the future, clearly defining the auxiliary function of AI in their lives.

5 Conclusion Artificial intelligence is increasingly penetrating in human life. Its influence is ambiguous. During the study, we found that AI directly affects the growth of social inequality, which consists of reduced jobs and the difficulty of access to advanced technologies for people with financial difficulties. AI contributes to the exacerbation of ethno-social conflicts. There is a tendency of a more extensive introduction of AI in various spheres of human life, which leads to an increasingly stable dependence of people on AI. At the same time, many are still not aware of the danger posed by the introduction of AI. It especially becomes relevant in the field of management, where AI can seize the initiative and begin to control natural intelligence. The risks associated with the effect of AI on the human psyche were identified. This can lead to a mental disorder. Additionally, there are fears of unauthorized AI interference in personal life. In general, as shown by the results of the study, AI, penetrating a private life, has a positive effect and contains certain risks that need to be promptly identified and reduced.

References Abassi, L., Boukhris, I.: Imprecise label aggregation approach under belief function theory. Adv. Intell. Syst. Comput. 941, 607–616 (2018) Abubakar, A.M., Behravesh, E., Rezapouraghdam, H., Yildiz, S.B.: Applying artificial intelligence techniques to predict knowledge hiding behavior. Int. J. Inf. Manag. 49, 45–57 (2019) Alzoubi, I., Almaliki, S., Mirzaei, F.: Prediction of environmental indicators in land leveling using artificial intelligence techniques. Chem. Biol. Technol. Agric. 6(4) (2019). https://doi.org/10. 1186/s40538-019-0142-7 Belciug, S., Gorunescu, F.: A brief history of intelligent decision support systems. Intell. Syst. Ref. Libr. 157, 57–70 (2019) Bronnikova, E.M., Kuljamina, O.S., Vinogradova, M.V., Volkov, D.V.: Management of public employment service: Russian and foreign experience. Mod. J. Lang. Teach. Methods 8(10), 616–629 (2018) Burrell, L.: Artificial intelligence brings out the worst and the best in us. MIT Sloan Manag. Rev. 60(2) (2019). https://sloanreview.mit.edu/article/artificial-intelligence-brings-out-the-worstand-the-best-in-us/ Chulanova, O.L., Vinichenko, M.V., Borisenko, N.S., Kaurova, O.V., Ryngach, O.L., Lobacheva, A.S., Demchenko, M.V., et al.: The perfection of personnel estimation during selection to improve the loyalty of new employees in the organizations of the oil and gas complex and the chemical industry of the Khanty-Mansiysk Autonomous District-Ugra. Mod. J. Lang. Teach. Methods 8(10), 519–530 (2018)

The Influence of Artificial Intelligence on Human Activities

569

Das, S., Sanyal, M.K., Datta, D.: Artificial intelligent reliable doctor (AIRDr.): prospect of disease prediction using reliability. Stud. Comput. Intell. 784, 21–42 (2019) Effron, M., Orth, M.: Talent Management—A Short Course. Azbuka Biznesa, Moscow (2014) Ilina, I.Y., Oseev, A.A., Vinichenko, M.V., Kirillov, A.V., Kaurova, O.V., Nakhratova, E.E.: Transformation of the social status of teachers of Russian universities. Mod. J. Lang. Teach. Methods 8(3), 381–392 (2018) Kalmady, S.V., Greiner, R., Agrawal, R., Shivakumar, V., Narayanaswamy, J.C., Brown, M.R.G., Greenshaw, A.J., Dursun, S.M., Venkatasubramanian, G.: Towards artificial intelligence in mental health by improving schizophrenia prediction with multiple brain parcellation ensemble-learning. NPJ Schizophrenia 5(1) (2019) Kamal, E., Adouane, L.: Reliable energy management optimization in consideration of battery deterioration for plug-in intelligent hybrid vehicles. In: Lecture Notes in Electrical Engineering, vol. 495, pp. 150–173 (2019) Kirillov, A.V., Tanatova, D.K., Vinichenko, M.V., Makushkin, S.A.: Theory and practice of time-management in education. Asian Soc. Sci. 11(19), 193–204 (2015) Koch, K.-R., Brockmann, J.M.: Artificial intelligence for determining the systematic effects of laser scanners. GEM—Int. J. Geomath. 10(1) (2019). https://doi.org/10.1007/s13137-0190122-x Kumar, V., Kumar, A.: Studying the behavior of neural models under hybrid and reinforced foundations. Innov. Infrastruct. Solutions 4(1) (2019) Kurita, Y., Kuwahara, T., Hara, K., Mizuno, N., Okuno, N., Matsumoto, S., Obata, M., Koda, H., Tajika, M., Shimizu, Y., Nakajima, A., Kubota, K., Niwa, Y., et al.: Diagnostic ability of artificial intelligence using deep learning analysis of cyst fluid in differentiating malignant from benign pancreatic cystic lesions. Sci. Rep. 9(1) (2019) Lee, C.S, Tyring, A.J., Wu, Y., Xiao, S., Rokem, A.S., Deruyter, N.P., Zhang, Q., Tufail, A., Wang, R.K., Lee, A.Y., et al.: Generating retinal flow maps from structural optical coherence tomography with artificial intelligence. Sci. Rep. 9(1) (2019) Moskaleva, N.B., Zaitseva, N.A., Vinogradova, M.V., Larionova, A.A., Kuljamina, O.S., Dashkova, E.V., Popovich, A.E., et al.: The use of digital technologies to improve the quality of the “social taxi” services. Mod. J. Lang. Teach. Methods 8(5), 38–48 (2018) Neri, E., de Souza, N., Brady, A., Bayarri, A.A., Becker, C.D., Coppola, F., Visser, J.: What the radiologist should know about artificial intelligence—an ESR white paper. Insights Imaging 10 (1) (2019). https://doi.org/10.1186/s13244-019-0738-2 O’Sullivan, S., Heinsen, H., Grinberg, L.T., Chimelli, L., Amaro, E., do Nascimento Saldiva, P.H., Jeanquartier, F., Jean-Quartier, C., da Graça Morais Martin, M., Sajid, M.I., Holzinger, A., et al.: The role of artificial intelligence and machine learning in the harmonization of high-resolution post-mortem MRI (virtopsy) with respect to brain microstructure. Brain Inform. 6(1) (2019). https://doi.org/10.1186/s40708-019-0096-3 Oseev, A.A., Dudueva, F.A., Karácsony, P., Vinichenko, M.V., Makushkin, S.A.: The peculiarity of the ethno-social conflicts in the Russian labor market: comparative analysis of Russia, Great Britain and Germany. Revista Espacios. Especial 39(22), 12 (2018) Ossmy, O., Gilmore, R.O., Adolph, K.E.: AutoViDev: a computer-vision framework to enhance and accelerate research in human development. Adv. Intell. Syst. Comput. 944, 147–156 (2019) Shi, Y.: The impact of artificial intelligence on the accounting industry. Adv. Intell. Syst. Comput. 928, 971–978 (2019) Sochneva, E.N., Bagdasarian, I.S., Belyakova, G.Y., Yamskikh, T.N.: Comparative analysis of social welfare in Russia and foreign countries. In: Karpova, A.Yu., Ardashkin, I.B., de Jong, W.M., Martyushev, N.V. (eds.) International Conference “The European Proceedings of Social & Behavioural Sciences”, pp. 935–941. National Research Tomsk Polytechnic University, Tomsk (2017)

570

M. V. Vinichenko et al.

Sochneva, E.N., Malakhova, A.A., Malimonov, I.V., Zyryanova, I.I., Kravtsov, D.I.: Dependent system of qualifications in Russia as a factor of human capital development. In: SGEM International Multidisciplinary Scientific Conference on Social sciences and Arts, vol. 5, no. 1.4, pp. 587–593 (2018) Sukhorukov, A.I., Shuhong, G., Koryagin, N.D., Eroshkin, S.Y.: Tendencies of information management development in the conditions of the origin of a new ecosystem of the digital economy. In: Eleventh International Conference Management of Large-Scale System Development (MLSD), pp. 1–4, Moscow, Russia (2018) Vinichenko, M.V., Kirillov, A.V., Maloletko, A.N., Frolova, E.V., Vinogradova, M.N.: Motivation of university senior staff in the process of restructuring higher education institutions. Croatian J. Educ. 20(1), 199–232 (2018) Xu, Z., Raymond Choo, K.-K., Dehghantanha, A., Parizi, R., Hammoudeh, M. (eds.): Cybersecurity Intelligence and Analytics, CSIA. Springer, Cham (2019) Zhang, Q., Yu, H., Barbiero, M., Wang, B., Gu, M.: Artificial neural networks enabled by nanophotonics. Light: Sci. Appl. 8(1) (2019) Zimenkova, A.A., Paramonova, T.A., Lobacheva, A.S.: The problem of the introduction of artificial intelligence in HR. In: Materials of the II International Scientific Forum “Step into the Future: Artificial Intelligence and the Digital Economy. Management Revolution: New Digital Economy or New World of Machines”, pp. 292–297. State University of Management, Moscow (2018)

Decision-Making Strategies, Human Resources, and Knowledge Management

Technology to Identify Distortions in Financial Reporting of a Cooperative Elvira N. Borisova , Tatiana V. Bodrova , Irina D. Demina , Gulzira U. Bekniyazova , and Elena V. Zubareva

Abstract As technology develops and organizations become dependent on financial data, the risk of manipulating reporting data increases. Many companies manipulate financial statements to attract more capital from investors, which reduces the reliability of financial statements. Manipulations with reporting data do not bypass such a category of enterprises as cooperatives. Reporting fraud detection technologies are also constantly updated. With the increasing information flows, automation of production processes, technologies allow to trace for distortions in the reporting data. The paper explains those reasons causing reporting data distortions and analyzes a range of methods for their identification. In addition, the authors present a fraud detection process in financial statements of a cooperative. Keywords Financial statements


Cooperative
Income
Costs
Fraud

1 Introduction Cooperative enterprises provide a sustainable development process thanks to their model based on the principles of cooperation. Self-help, democratic responsibility, and community care are at the center of this model. European cooperatives have 83 E. N. Borisova (&)
T. V. Bodrova
G. U. Bekniyazova
E. V. Zubareva Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] T. V. Bodrova e-mail: [email protected] G. U. Bekniyazova e-mail: [email protected] E. V. Zubareva e-mail: [email protected] I. D. Demina Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_61

573

574

E. N. Borisova et al.

affiliates, 176,000 cooperative enterprises from all sectors of the economy, 140 million shareholders, and 4.7 million employees. More than 95% of cooperatives in our network are small and medium enterprises. Hundreds of cooperative enterprises formed in recent years are the result of the redemption by employees of enterprises that closed. These enterprises were transferred or redeemed by their employees and restored in the form of workers’ cooperatives (“Cecop - Cicopa Europe,” n.d.). Financial reporting is the end result of accounting and is the responsibility of the management of a cooperative. Proper internal control helps the accountant determine that the financial statements reliably reflect the financial position and performance of the company. Also, better financial standing leads to the creation of high-performance jobs, as the current research suggests (Bogoviz et al. 2018). Financial reporting fraud is one of the common fraud methods in which company data is deliberately misrepresented to mislead information users and/or create the appearance of a stronger company. According to the 2016 Global Fraud Survey conducted by the Association of Certified Fraud Examiners (ACFE), financial reporting fraud occurs in approximately 10% of professional fraud cases (“ACFE. Association of Certified Fraud Examiners,” n.d.). The modern business environment is highly information oriented. Investors, lenders, and shareholders rely on publicly available information about a company based on financial statements and indicators to predict the risk of its distortion and make informed economic decisions (Sunardi and Nuryatno Amin 2018). With the development of technology and an increase in the volume of operations in companies, accurate and thorough control over the accuracy of information in financial statements becomes difficult. Technologies used to prevent misstatements in reporting are constantly updated. Therefore, today, the need for additional data-mining procedures and tools needed to effectively identify falsified financial statements is more pronounced than ever.

2 Materials and Methods The process of detecting distortions of reported information includes various data sources and processing methods. Reporting analysis remains a popular tactic for preventing and detecting misstatements. In the context of digital technology development, identifying cases of information distortion in companies is vital. As such, high-tech methods that increase an organization’s ability to combat fraud effectively and efficiently have increasingly been used. These include technologies such as digital forensics, robotics, blockchain, and online evidence gathering. The study of ways to identify fraudulent activities in financial reporting was carried out on several bases: the application of general scientific research methods in the framework of statistical analysis, the analysis of the structure and dynamics of reporting data, and the methods of financial analysis. The empirical basis was the financial statements of cooperative organizations in Europe and Russia.

Technology to Identify Distortions in Financial Reporting ...

575

3 Results Inaccurate information in the financial statements may be deliberately or unintentionally reflected in violation of generally accepted accounting principles. The main ways to make intentional false information in the reporting forms are methods such as falsification, manipulation of reporting indicators and supporting documentation or alteration of entries in financial statements. When creating a cooperative, potential shareholder members not only seek to get the highest possible return on their investments but most often expect to receive certain services, purchase goods at more favorable prices and access new markets. Distinctive features of the cooperative come into play from the very beginning. A group of potential members is not looking for any business opportunity to maximize return on investment. Those involved are looking for the best opportunity for the group to own and manage a cooperative enterprise that generates the highest total profit. This profit is aimed at solving a common economic problem. At the same time, the management of the cooperative is undertaken either by its shareholders or by hired managers. It is especially important that cooperative board members show their ability to build trust among shareholders and other interested parties in the organization’s activities. In this regard, one of the forms of reporting distortion will be the incorrect formation of data on the size of the mutual fund and the number of cooperative shareholders and, as a result, inaccurate information on the funds invested in creating the organization. In addition, the responsibility of the cooperative board will be to find the necessary funds to finance activities. In this case, there may be an incorrect formation of indicators of income and expenses of the organization. One of the most common types of misstatement in financial statements is the manipulation of income or receivables. Most small businesses, which often include cooperatives, do not pay attention to the accounting methods that they use. The accounting method affects how income and expenses are reflected in the financial statements and the tax period in which these transactions are reflected. The cash method is the most common accounting method used by cooperatives. Misstatements in the financial statements include recognition of revenue prior to the transaction or its absence in the accounts, as well as accounting for receivables used in conjunction with false reporting of the amount of revenue. This manipulation involves sending goods and services that were not ordered but which buyers were billed for. Fake sales usually involve fake customers. Leaders of cooperatives can manipulate GAAP, IFRS, national accounting methods and standards. The main methods of distortion of the financial statements of the cooperative are presented in Fig. 1.

576

E. N. Borisova et al.

Cooperative assets may be overstated if receivables are not taken into account Exaggeration of assets Do not account for assets that are considered obsolete

Methods of distortion of financial statements

Liabilities can be understated by registering liabilities as equity Inaccurate record of obligations Transfer of liabilities between short and long classifications

Recognition of revenue prior to transaction Overstatement of income Lack of revenue in accounts

Recognition of expenses in the next reporting period Understating expenses Absence of expenses in accounts

Distortion of information about reserves

Improper formation estimated reserves

Fig. 1 The main methods of distortion of the financial statements of the cooperative

4 Discussion In accounting, many cases of fraud are often caused by simple internal control errors. There are many controls that can be implemented to prevent distortions in accounting, from enterprise-level controls to operational controls. Operational controls include the reconciliation of accounts and the segregation of duties. The Pareto principle, also known as the 80/20 rule, can help solve the problem of reporting fraud. The principle, developed by Italian economist Vilfredo Pareto in 1896, states that approximately 80% of the consequences are due to 20% of the reasons.

Technology to Identify Distortions in Financial Reporting ...

577

The 80/20 rule has been successfully applied to a wide range of areas, from fixing software bugs to sports training. In matters of fraud prevention, the Pareto principle can be used to identify key risks of misstatement in accounting and to create an effective and efficient system of internal control. Organizations face very different risks of accounting fraud, as well as different reasons for accounting fraud. Therefore, it is very important that all possible accounting fraud schemes are identified and evaluated before they are analyzed in order to identify the most important ones. In order for the internal control structure to be effective and efficient, it must be highly adapted to the organization and focused on eliminating its own specific risks of accounting fraud. For internal auditors, the Pareto principle means that there is a concentration of sources that should determine the best guidelines for achieving maximum results. They should help prioritize issues and focus on solutions that generate the most revenue. Using this 80/20 principle, one can create a Pareto chart that identifies the most important factors and often presents the most common sources of violations and distortions in reporting. Pareto charts help prevent a common problem that occurs when it is impossible to identify all the causes of the problem you are solving. However, when applying the Pareto principle to determine the manipulation of reporting data, it is necessary to correctly determine which elements have the greatest impact on the organization’s goals and identify the relevant stakeholders. Accordingly, the main areas where distortion may occur should be determined. One of the biggest barriers to fighting fraud is the widespread belief that anti-fraud methods will overly complicate existing processes and increase internal bureaucracy, ultimately slowing down the company with few additional benefits. However, by using a laser-focused approach to create an internal control structure that prevents accounting fraud, the controls can be significantly limited to important ones with the greatest impact. We can identify five ways to prevent distortions in the financial statements of cooperatives: 1. Form strong top management in the organization. Management should be vigilant and work with employees to prevent fraud and abuse; 2. Perform a risk assessment. Identify areas of activity where there is a risk of fraud in the organization, and identify controls and systems that anticipate this risk; 3. Form a system of strict internal control and its procedures, which must be prescribed in detail so that there is no doubt about the correctness of the procedures; 4. Carry out periodic monitoring by which the implementation of control procedures in accordance with the requirements will be monitored; 5. If the distortion and/or abuse of the credentials is found, it must be thoroughly investigated and prosecuted in full. After any investigation of abuses, systems may need to update ways to identify detected distortions.

578

E. N. Borisova et al.

5 Conclusion Cooperatives are important drivers of economic development, as they are people-centered businesses. They give citizens the opportunity to realize their human, social, and economic rights and needs. Technological advances open opportunities for scammers as well as those who are trying to stop them. As new ways to use technology to engage in fraudulent activities are found, anti-fraud specialists must ensure that they also introduce new technologies that are most effective in navigating a growing threat environment. Regardless of motivation, fraud with the financial statements of a cooperative causes problems with its members and potential investors, and financial reporting fraud can lead to serious sanctions by regulatory authorities. Certain technologies are becoming more widespread in combating accounting fraud, including biometrics; blockchain technology, which involves the distribution of accounting records; and the automation of accounting processes, financial reporting, and internal control procedures.

References ACFE: Association of Certified Fraud Examiners (n.d.). https://www.acfe.com/ Bogoviz, A.V., Chistov, I.V., Zakutnev, S.E., Shkodinsky, S.V., Prodchenko, I.A.: Financial incentives for the creation of high-performance jobs. Qual. Access Success 19, 67–70 (2018) Cecop – Cicopa Europe (n.d.). https://cecop.coop/aboutCecop Sunardi, S., Nuryatno Amin, M.: Fraud detection of financial statement by using fraud diamond perspective. Int. J. Dev. Sustain. 7(3), 878–891 (2018)

Internal Control for Ensuring Sustainable Development of a Business Tatyana V. Bodrova , Olga E. Kachkova , Alexander M. Zarubetskiy , Natalia B. Morozova , and Elena V. Zubareva

Abstract The introduction of digital technologies and platform solutions, the storage of accounting information on cloud resources with shared access through a global network inevitably leads to problems in the organization and technology of accounting activities. The paper shows the role of accounting policies in organizing internal tax control for optimizing the tax burden of an enterprise. We used an integrated approach, analysis, synthesis, methods, and procedures for accounting and taxation. Digital information generated in the accounting and analytical system allows us to expand and improve the content of accounting and audit procedures, build risk-oriented accounting and auditing, balance the interests of owners and managers, analyze and predict business processes. The authors provide recommendations for developing and applying internal tax control services as the most effective tool for ensuring the tax security of an enterprise.










Keywords Internal control Internal tax control Tax risks Accounting policy Tax burden optimization




T. V. Bodrova (&)
N. B. Morozova
E. V. Zubareva Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] N. B. Morozova e-mail: [email protected] E. V. Zubareva e-mail: [email protected] O. E. Kachkova Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] A. M. Zarubetskiy Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_62

579

580

T. V. Bodrova et al.

1 Introduction The development of global electronic networks, personal computers, electronic products, and digital technologies has contributed to the development of a new economy. Of all the issues and types of economic development, priority is given to the transition to digital technologies, the primary source of which is information. Legislation in Russia defines the main directions of state policy for the creation, preparation, and development of the digital economy in order to implement the national priorities of the country, which are the ability to compete and participate in the global economic ecosystem. The theoretical and methodological foundations of the digital economy and its strategic role in the formation of the information society in Russia are also determined. The provisions of the national Digital Economy of the Russian Federation program are widely discussed by the scientific community and the public, and the program will contribute to the effectively limitless interaction of businesses, the scientific and educational community, the state, and citizens to ensure sustainable economic growth. Modern management of business processes is inextricably linked with constantly changing requirements for the organization and the conduct of accounting activities. For example, with an increase in the number of documents at times, the need to collect and process huge amounts of information about the financial and economic activities of the enterprise is more crucial. Digitalization in the context of the globalization of economic processes is intensively implemented in accounting and analytical support for business management in information systems for recording, processing, and transmitting information about the facts of the life of an economic entity. It transforms storage media and is fundamentally transformed in the means and technologies of its processing. Modern Russian tax legislation is very voluminous, complex, and constantly modified. The tax policy of the state, on the one hand, limits the possibilities of sustained economic development of economic entities and achieves a stable state due to the seizure of a significant part of their profit. On the other hand, the tax policy regarding the system of tax incentives contributes to solving problems associated with the introduction of innovative technologies and the modernization of fixed assets. Along with the identified problems, this paper raises issues related to disputes between taxpayers and tax authorities. It is noteworthy that in the described area, there is a contradiction of the interests of various parties. Therefore, in practice, one has to find a compromise between the desire to optimize taxation and minimize tax risks (Suglobov et al. 2019). The current problem of the rational organization of internal tax control at enterprises requires the development of recommendations for its improvement and help to ensure the optimal tax burden and tax security of the business entity.

Internal Control for Ensuring Sustainable Development of a Business

581

2 Materials and Methods In Russia, all economic entities are required to conduct an internal control of the facts of economic life. Furthermore, for the companies that are subject to the mandatory audit procedure, there is an obligation to conduct an internal audit of the accounting organization at the enterprise and form accounting reports. An internal control system is a process of checking how an enterprise can achieve its goals from the standpoint of the reliability of financial statements, efficiency, and effectiveness of business activities. Tax risks—highly probable adverse consequences of irrational actions of employees of enterprises and organizations in the field of management of tax liabilities (Shkodinsky et al. 2019). Risk-forming factors include: • changes in tax legislation and law enforcement practice; • unlawful actions (inaction) of tax authorities; • changing the rules for tax reporting in financial statements, etc. Currently, the management of tax costs is a priority for the financial and economic services of any business entity. The financial stability of the enterprise depends on its size. That is why in order to increase tax security and achieve a stable financial condition, enterprises need to organize an internal tax control service competently. In this case, the accounting policy becomes particularly relevant for enterprises as a useful tool for tax optimization by selecting one or more accounting options, rejecting the predefined accounting method with the possibility to use an alternative one. Internal tax control is the main component of tax optimization and is carried out by a special service within an economic entity. Researchers from different branches of knowledge have differing views on which of the characteristics of the accounting policies of the enterprise are most essential. According to Ya. V. Sokolov and M. L. Pyatov, accounting policy is a means of achieving the desired amount of profit by legal means (Sokolov and Pyatov 2007). M. K. Medvedev believes that accounting policy serves as a textual explanation of the statements, clarifying the organization’s methods of accounting and tax payments (Medvedev 2005). According to L. Z. Schneidman, accounting policy is a set of certain principles, foundations, conditions, and rules that make it possible to form and submit financial statements (Schneidman 2007). S. N. Grishkina, S. A. Nikolaeva, and O. V. Rozhnova recognize accounting policy as a document that reflects both various and specific ways of creating information about the financial situation and financial results of company activities (Nikolaeva 2000). M. A. Vakhrushina sees accounting policy as a management accounting mechanism that affects the process of forming the organization’s costs and production costs (Vakhrushina 2007).

582

T. V. Bodrova et al.

From all these examples, it seems that the role of accounting policy is not only to maximize profits and minimize costs since economic entities are initially interested in this through transparency and ease of accounting and reporting necessary for external users. Tax accounting policies should also determine the full range of issues related to the correct calculation and timely payment of tax liabilities to the budget and off-budget funds. With the development of the digital economy, the types of economic entities are changing, and, with them, the organization and technology of accounting activities, which will require the development of accounting policies that take into account the digitalization of the business environment. Moreover, there are several organizational, technical, and methodological aspects that affect the formation of accounting policies. Among the organizational aspects of implementing the accounting policy, we can distinguish the choice of taxation regime, the analysis of the state of accounting and tax accounting, the preparation of the tax calendar, the determination of the tax field, the approval of tax register forms and workflow schedules, and the organization of tax accounting. In Russia, a significant increase in digitalization is noticeable, as a rule, in those companies where the workflow is immeasurable, and the transfer to electronic format, along with the electronic digital signatures of documents, allows for the optimization of production and business processes. Replacing paper workflows with electronic ones can reduce material costs by about 6 or 6.5 times while also reducing the monthly depreciation of fixed assets used to store paper documents and the associated share in the lease payments of the enterprise. However, the process of digitizing accounting activities consists of trial and error, as only in practice can we understand what allows us to solve problems effectively and what should be emphasized in order to get exactly the desired result, and, if necessary, where we need to make adjustments to the budget plan of the economic entity. Fundamentally new digital assets appear in accounting. In the digital economy, data is becoming a new asset, mainly due to its alternative value, that is, as the data is used for new purposes and used to implement new ideas (Karpova 2018). Opinions of scholars on the identification of digital assets are the same. Digital assets are considered to be a certain type of asset since the assets have an intangible, non-material form (Rozhnova 2018), (Odintsova and Ruhra 2018). According to clause 9 of IAS 38 “Intangible Assets,” unlike the Russian Accounting Regulation 14/2007 “Accounting for Intangible Assets,” assets include data—stored on different computers that are completely independent of each other—about market trends and needs, customer bases, relations with customers or suppliers, customer loyalty, market share, and sales rights.

3 Results The digitalization of the accounting and analytical process itself takes place in several stages:

Internal Control for Ensuring Sustainable Development of a Business

583

The first step is the identification of needs and the establishment of the scope and specific area where the technology will be implemented. This stage is one of the most significant since technology costs money, and modern digital technologies, in most cases, are exclusive and created strictly for specific needs. An error in this stage threatens the loss of all the funds invested in the digitalization to change the site or correct the error. The second stage is the integration of decisions and events, which makes it possible to increase the use of standard, open information in order to have operational decision-making at an optimal level. In this stage, the received information is classified into structures, and an algorithm on the optimal way to solve a specific problem is selected. The third stage is direct digitalization. Business analysts and partners are also consulted in order to choose a target direction. As with the other stages, errors lead to dire consequences, since any modern solution requires timely and sometimes urgent implementation and adjustment, taking into account the specifics and characteristics of individual processes. The fourth and final stage in the implementation of digital technologies is the launch of the adaptive process itself, within which the deployment and debugging of new technologies are already occurring in the implementation area. If everything was done correctly (the digital system was precisely selected, the implementation and debugging was professionally performed), the result will occur soon. After the stages of trial testing of work, creating an information base, and training staff to work with digital data, several performance indicators will be achieved and improved. They include: • • • • • •

processes for maintaining information sites; organization of operational enterprise management; timely regulation of financial flows; organization budget management; simplification of the use and application of regulatory and reference documents; the use of business processes that allow the selection of potential new solutions for daily tasks.

In the implementation of automated custom production using innovative virtual and cloud technologies, the product is provided with an optimal ratio of the price to quality. The chain of intermediaries either disappears or is altered into information mediation for the presentation of aggregated services between the manufacturer and the consumer, or intellectual service by creating a communicative and organizational environment. Information itself carries considerable value and significance and is considered to be one of the forms of an intangible asset within the organization. By collecting specific data, we obtain information or knowledge about the subject being studied. Thus, the buyers can become active participants in the production, which they ordered. The selective-address interaction with each consumer is a competitive advantage and a useful tool for business management.

584

T. V. Bodrova et al.

Thanks to end-to-end reporting and constant analysis of production events within a specific order, management becomes more efficient due to the ability to track a particular process and timely adjustments without paperwork. Blockchain technology has served as the basis for cryptocurrency transactions, including the issue of monetary units, transfers, and the storage of their history. Also, in the future, not only digital cryptocurrencies but also ordinary government funds will be possible to transfer via blockchain networks. These operations will be similar to digitally signing a contract; each side in it will cryptographically sign a document of approximate content: I, N, promise that I paid for a consignment of goods X, amount Y, in the currency Z. As a result, such a system can become a global financial or non-financial report with a quick opportunity to verify their reliability, as well as an environment for global information and economic interaction. The technical aspect of implementing accounting policies in the context of digitalization is the use of cloud technology. Cloud-based accounting allows us to create a single information space for employees of remote offices, reduce enterprise costs for the purchase and maintenance of an accounting software product, and ensure reliable data storage. The development of regulation is a methodological aspect of the accounting policies aimed at reducing risks and is addressed in the document, “On the functioning of the internal tax control service.” This document establishes the organizational structure and procedure for the implementation of internal tax control, the interaction of other systems with this service, and the requirements for employees of this system. Having ascertained the role of accounting policies in the organization of internal control in the field of enterprise taxes through organizational, technical, and methodological methods, it becomes possible to solve such crucial tasks as selecting the leading tax optimization vectors that comply with the laws of the Russian Federation and calculating the economic effect.

4 Discussion Even nowadays, such technologies as blockchain can become a great breakthrough point in such accounting methods as the system of data registration. The blockchain is a system of sequences of information blocks continuously arranged according to specific rules, the chains of which are stored as copies on different computers and are utterly independent of each other. Enterprises will be able to create, record, and store transaction records in a single universal register, which is a distributed and interconnected accounting information system. The distortion, falsification, or destruction of information will become almost impossible due to the cryptographic protection of the data distribution system. Such a system is called (unofficially) the “triple account”—the accounting records of the payer and the recipient and public transaction data on the blockchain

Internal Control for Ensuring Sustainable Development of a Business

585

network. The triple accounting system allows us to increase the economic security of the economic entity and form a base of financial, managerial, tax, and non-financial reports; conduct an expert assessment of their reliability; and create a safe environment for global informational, economic interaction. In the digital economy, in the structure of production costs, material costs are continually decreasing, while intangible costs—associated with the use of artificial intelligence, people’s knowledge, ownership of innovative digital technologies, and a strategic set of intellectual property—increase (Rykhtikova et al. 2018). However, there is still no scientifically sound methodology for accounting and valuing such assets in domestic practice; often, they are not even accounting objects. Another methodological problem is the emergence of a new digital financial asset in the form of cryptocurrency, tokens, mining, etc., which are not yet means of payment but can be exchanged. Possibly, perhaps even shortly, they will also become a full-fledged means of payment, and accounting for these assets will require synthesized accounting for foreign currency and intangible assets. Virtual mining enterprises will be able to bid on digital financial assets and be equated with participants in the regulated market, which will have to have a particular regulatory system. The issue of training qualified accounting personnel is acute (Popova et al. 2019). Improving the competence of accounting personnel allows improvement of the organization and technology of accounting activities, since the digital information generated in the accounting and analytical system allows real-time monitoring of the highest possible risks, balancing financial and non-financial indicators, controlling the internal tax control system, and ensuring timely and efficient management solutions. The emergence and possibility of the extensive use of innovative digital technologies in the organization of accounting activities lead to an increase in the flexibility of accounting and control, ensuring high speed and efficiency of accounting activities and expanding the planning and analytical tools for processing large amounts of data. In turn, it can significantly reduce the so-called human factor present in any field, a stumbling block between error and accuracy.

5 Conclusion Digitalization of accounting is an inevitable step in the evolution of accounting systems and information databases since this stage brings the process of managing an economic entity to a qualitatively new level, which is based on a reliable, relevant, and timely information-analytical base, formed in accounting with minimal costs and real-time, which increases the efficiency in making management decisions. At the stage of tax planning, business entities develop accounting policies, decide which model of the organization of internal tax control to choose:

586

T. V. Bodrova et al.

• outsourcing from the position of tax advice; • building its internal tax control service. The benefits of tax control are the following: • • • •

an opportunity to solve the arising problem moments; the analysis and application of favorable conditions in the future; the preparation of the organization for changes in the external environment; the encouragement of tax planning participants to implement their decisions in the future; • the provision of more rational distribution and the use of various kinds of resources of a business entity. The Tax Code of the Russian Federation establishes the following types of sanctions, applied jointly or independently: • the payment of tax arrears; • the payment of a fine as a percentage of tax arrears (from 20 to 40%); • the payment of late interest or late payment interest. In order to eliminate the arising tax risks, it is necessary to include in the internal report a form that discloses the number of economic sanctions for violations of the tax legislation of the Russian Federation, depending on the causes, persons who have violated the legislation on taxes and fees, and measures to eliminate and prevent them in the future. The magnitude of these tax savings will reveal the effectiveness of accounting policies for tax accounting. Special attention should also be paid to the following significant tasks: • the formation and implementation of conditions for effective management of tax resources of an economic entity; • the compliance with tax laws; • ensuring the precise calculation and timely payment of tax payments; • the minimization of tax payments, finding legal ways to reduce them; • the exemption of the company from the need to solve emerging tax problems. Competent accounting policy in the field of taxes reduces the risks at the enterprise and ensures the optimal tax burden of the economic entity.

References Karpova, T.P.: Directions of development of accounting in the digital economy. Izvestiâ Sankt-Peterburgskogo Gosudarstvennogo Èkonomičeskogo Universiteta 3(111), 52–57 (2018) Medvedev, M.Yu.: Accounting Policy: Accounting and Tax, 4th edn. FBK-Press, Moscow (2005) Nikolaeva, S.A.: Accounting Policies of the Organization: Principles of Formation, Content, Practical Recommendations, Audit, 2nd edn. Analitika-Press, Moscow (2000)

Internal Control for Ensuring Sustainable Development of a Business

587

Odintsova, T.M., Ruhra, O.V.: The development of types, objects, and methods of accounting in the digital economy and the information society, Scientific and technical statements of SPbSPU. Economics 11(4), 120–131 (2018). https://doi.org/10.18721/je.11409 Popova, L.I., Demina, I.D., Stepanenko, Y.S., Tran, Q.N., Meshkova, G.V., Afonasova, M.A.: Regional aspects of sectoral digitalization: Problems and prospects. Int. J. Eco. Bus. Adm. 7(2), 176–188 (2019) Rozhnova, O.V.: Harmonization of accounting, auditing, and analysis in a digital economy. Account. Anal. Audit 5(3), 16–23 (2018). https://doi.org/10.26794/2408-9303-2018-5-3-16-23 Rykhtikova, N.A., Anisimov, E.Ya., Evdokimov, SYu., Ivanova, E.V., Lebedeva, O.E.: The improvement of the enterprise financing system in an unstable economical environment. J. Soc. Sci. Res. S3, 298–303 (2018) Schneidman, L.: Ten years of legislative regulation of accounting in Russia: lessons for the future. Accounting 1, 6–11 (2007) Shkodinsky, S.V., Suglobov, A.E., Karpovich, O.G., Titova, O.V., Orlova, E.A.: Tax holidays as an upcoming tool of tax incentive for business renewal. In: Gashenko, I.V., Zima, Y.S., Davidya, A.V. (eds.) Tax System Optimization: Prerequisites, Trends, and Prospects, pp. 67– 74. Springer, Switzerland (2019) Sokolov, Y.V., Pyatov, M.L.: The financial result as the goal of accounting. Accounting 21, 56–59 (2007) Suglobov, A.E., Karpovich, O.G., Kletskova, E.V., Timofeeva, I.Yu., Kolmykova, T.S.: Personal tax management: voluntary initiative or forced measure. In: Gashenko, I.V., Zima, Y.S., Davidya, A.V. (eds.) Tax System Optimization: Prerequisites, Trends, and Prospects, pp. 109– 116. Springer, Switzerland (2019) Vakhrushina, M.A.: Accounting policies for management accounting. Accounting 23, 66–68 (2007)

The Main Advantage of a Cooperative Business Model is the Economic Participation of Shareholders Lydia P. Nagovitsina

and Marina I. Drozdova

Abstract The purpose of the article is to propose a mechanism for preserving Russian consumer cooperation through its development as an association of shareholders. The authors positively evaluate the contemporary state of the Russian consumer cooperation, especially fundamental projects of the Centrosoyuz of the Russian Federation to overcome the systemic crisis. However, the authors note that the main advantage of the cooperative business model, namely the economic participation of shareholders, which provides the cooperative with autonomy, independence, self-sufficiency, security, is not used to achieve this goal. The research critically analyzes a cooperative as an economic entity with the dual nature of cooperation. The initial message of the study suggests the priority of the cooperative as an association of shareholders over the cooperative as an entrepreneurial structure. The definition of shareholder-effective owner is given. The authors propose a set of indicators for calculating the effect and effectiveness of share and membership relations. The mechanism for turning shareholders into effective owners through participation in financial activities as investors and creditors is described. Also, the research analyzes their transformation into effective owners through participation in economic activities as buyers and sellers, as well as in management and control. The authors argue that there is the need to focus efforts at the present stage on the development of a cooperative business model as an association of shareholders.




Keywords Shareholder association Economic participation of shareholders Cooperative payments Effect and effectiveness of participation







L. P. Nagovitsina
M. I. Drozdova (&) Siberian University of Consumer Cooperatives, Novosibirsk, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_63

589

590

L. P. Nagovitsina and M. I. Drozdova

1 Introduction April 14, 2019, the 148th General Meeting of representatives of consumer societies of the Russian Federation was held. At this meeting, “a steady downward trend in the activity and profitability of the consumer cooperation system” was recognized for the first time. And yet, over the past 10 years, optimism and hope for the revival of consumer cooperation first appeared. The following factors contribute to this: the fact of public recognition of the real state of the system as critical in itself, measures already taken to create favorable conditions for the functioning of consumer societies and unions, as well as a set of significant projects. Our hopes are assigned to projects, the implementation of which should change the trajectory of the extinction of cooperative trade and public catering to the trend of their stabilization and dynamic development. One of them is a cooperation project between the Centrosoyuz and X5 Retail Group. We wrote about retail and cooperation in the article “Possibilities of consumer cooperation in the conditions of territorial expansion of retail” (Nagovitsina et al. 2019). During 2018, more than 20 stores of the “COOP—Pyaterochka” new format have already appeared, and their number will increase. The project, which involves the collaboration of a cooperative business with the “Rossiyskiye zheleznyye dorogi” Joint Stock Company, has good prospects. The following projects have become widespread: a cooperative franchise, a multi-service office, and the development of car shops (delivery trade serving the population of remote settlements). The Center for the Development of Digital Services and Social Programs has been created and is already operating in the Centrosoyuz. A digital payment system is being developed and will be implemented. For consumer societies and unions, their organizations, banking services in the Russian financial society adapted. An electronic registry and a cooperative identification system are being created. However, there is a very serious fear that these efforts will not achieve the desired results. This fear is caused by the fact that the programs are aimed at reviving cooperatives as entrepreneurial structures (which is extremely important and necessary in itself). But these programs ignore the other side of cooperations, namely, that they are associations through which shareholders unite to meet their personal needs. Therefore, this article is devoted to the place and role of shareholders, who represent the main advantage of the cooperative business model, even if they are not connected with the cooperative by labor relations.

The Main Advantage of a Cooperative Business Model …

591

2 Materials and Method The authors study Russian regional consumer societies and unions and systematically analyze their financial and economic activities since the 90 s of the last century. Research results were discussed at scientific conferences at all levels The conclusions and recommendations of the article are based on the use of materials from a number of regional consumer unions in Siberia and the Far East. Materials are used for those periods of time when they achieved particularly high results, became the best in the system, and successful among regional market entities. The following methods were used in the study: logical construction, intuitive understanding, generalization of many years of experience in acquainting, and studying the social and economic activities of consumer cooperation organizations.

3 Results The novelty of our approach is the recognition of the priority of the social component of the cooperative. Only the transformation of shareholders into effective owners will provide the cooperative with real autonomy (financial, economic, labour), interested management and control from below (the most effective control). We understand an effective shareholder (an effective owner) as a shareholder with whom a cooperative builds economically mutually beneficial share and membership relations. Such relations suggest that the shareholder’s contribution and the cooperative’s mutual fund as a whole turn into capital, bringing profit to the shareholder. To characterize the demand for a cooperative business model, we calculate the indicators of the effect and efficiency of share and membership relations. The effect of share relations is expressed by the sum of dividends accrued on share capital, and the effect of membership relations is expressed by the sum of all cooperative payments, including dividends. The effectiveness of share relations is determined by dividing the number of dividends by share capital; the effectiveness of membership is determined by dividing the sum of all cooperative payments by share capital. Performance indicators are expressed as a percentage. We offer criteria for assessing the effect and effectiveness of membership in a cooperative. These criteria include the minimum wage and the average interest rate of the bank in the territory. A shareholder will become an effective owner if, at his/ her share contribution in one or more (by the decision of the shareholders) of the minimum wage, he/she will receive an income from the bank. We believe that the work of the Centrosoyuz of the Russian Federation to develop entrepreneurial activity and consumer cooperation is not enough. Cooperation will continue if it develops as an association of effective shareholders

592

L. P. Nagovitsina and M. I. Drozdova

that corresponds to the dual nature of the cooperative: both economic (entrepreneurial essence) and social (association of shareholders). In most cooperatives, shareholders are perceived as entities that, by tradition, should be helped by the profits that workers earn. But the main advantage of the cooperative business model is its autonomy and independence as the economic participation of shareholders is ignored. We put economic meaning into the concept of cooperative autonomy (and this is also a novelty in our approach). Autonomy is protection against the negative impact of the external environment by reducing risk by focusing on internal resources, and, above all, it is the economic participation of shareholders. They are able to ensure the financial, labor, material, and economic independence of the cooperative. However, this cannot be expected from a contemporary shareholder who makes a small share contribution, is practically alienated from cooperative ownership, and, therefore, is indifferent to its losses. Participation in the activities of the cooperative will become economically beneficial not only for the organization but also for the shareholders themselves if one uses certain functions for them. These are functions such as investor, lender, buyer, and especially sellers of own-produced goods, procurement, trade and handicraft activities for trade, catering, processing, and production. The effect of such participation is automatically reflected in the quality of the goods. The environmental safety of goods is ensured because, in obtaining local commodity resources, their primary processing, production, trade, and consumption are geographically combined. Costs of production and circulation are reduced to a minimum; transportation and transaction costs are practically excluded. The increase in share capital and loans to shareholders of a cooperative exempt the consumer society from lending services to banks for current needs. This significantly reduces loan costs in the formation of working capital. And interest for a loan is paid not to the bank, but to the shareholders, among other things, which increases their income, and therefore, their purchasing power and turnover. The main directions of the economic participation of shareholders in the cooperative, making them effective owners, are as follows. Shareholder—Investor. The shareholder will be interested in increasing the share contribution, and consequently, in the formation of share capital, as large as possible in size, if he or she receives decent dividends on the share contribution. The most common drawback of the leaders of consumer societies and unions that we have encountered on this issue is that they do not know that dividends on shares are paid not from profit, but from income. At the end of the fiscal year, the cooperative is required to accrue and pay each shareholder the dividends due to him or her. In individual consumer societies, the effectiveness of mutual relations varies from 10 to 250%. We know an example where membership effectiveness has reached 350%. In some cases, at a general meeting, shareholders may decide not to receive dividends that year. But at the same time, their amount should be reflected in the personal accounts of each shareholder, increasing its share capital and, thus, creating the possibility of receiving dividends for increased share capital next year.

The Main Advantage of a Cooperative Business Model …

593

Where managers understand this and have no problems with working capital, shareholders themselves offer to increase the share contribution. Shareholder—Creditor of His/Her Cooperative. A similar situation with the borrowed funds of shareholders to the cooperative, especially in remote and underpopulated settlements where there are no bank institutions. We are aware of examples where cooperative organizations, only at the expense of this one form of economic participation, covered a significant part of the need for working capital and increased the number of shareholders. They took borrowed funds only from members of the cooperative. We know organizations where they even introduced intrasystem savings books, which were used as means of payment when purchasing goods in cooperative stores. With skillful organization and full confidence in the management, share contributions and borrowed funds of shareholders together can provide the cooperative with financial independence and, consequently, economic security. But for this, we repeat, shareholders must become economic partners of the cooperative and receive material benefits from their participation in financial activities as investors and creditors. In other words, the shareholder must become an effective owner who has something to lose, and therefore, has something to protect. Shareholder-Buyer: A Shareholder is a guaranteed client of cooperative stores, public catering enterprises, pharmacies, and services. At the end of the past (the beginning of the new century), the system of trade discounts and bonuses was quite widely and actively used in cooperative stores. The system of discounts and bonuses was applied to all goods, to products of own production, and to the most significant food products. The discount system was applied for the following specific categories of the population: the entire population, only shareholders, veterans of consumer cooperations, veterans of the Great Patriotic War, and poorly-protected groups of the population. However, at present, cooperative payments in the form of bonuses are not widely applied. Retail began to actively introduce a system of trade discounts, embracing the ideology, principles, and values of the international cooperative movement and using its example and the best experience in socialization and customer focus. The authors wrote about this in detail in their article “Possibilities of consumer cooperation in the territorial expansion of retail” (Nagovitsina et al. 2019). At the end of this article, our credo is formulated, which is as follows: cooperative retail trade should develop not only as a social industry, providing the primary needs of the population for goods, but also as the main sales channel for products of own production, processing, procurement. The recognition by consumer societies and unions of themselves as trading business networks that adhere to the principles and values of the international cooperative movement should be primary. The international cooperative movement is the result of two centuries of best practice in socially responsible business, improving employee motivation, organizing the economic participation of shareholders, introducing a customer-oriented business for the entire population served.

594

L. P. Nagovitsina and M. I. Drozdova

Customer focus remains one of the main factors in enhancing the competitiveness of cooperative trade, but the forms of its manifestation should be different for shareholders and non-shareholders. For members of a cooperative, the bonus system should be introduced, first and foremost, and should be more profitable than for the rest of the population. This will ensure guaranteed consumer flows, increase the ownership of shareholders in cooperative trade, and revive democratic membership control over the quality, assortment and price of purchased and sold goods. Shareholder—Seller. In rural areas, the demand for consumer cooperatives is directly dependent on the extent to which cooperatives help residents in agriculture, fishing, handicrafts, and marketing. Without a procurement sector, the motivation to join a cooperative disappears or decreases, and the threat of bankruptcy or liquidation rises. There are situations in which retail chains aggressively invade traditional areas of consumer cooperation, and the share of retail trade in the total activity falls. In this case, procurement activity can be a strategic driver of socio-economic development, not by itself but as part of a complex of procurement, production, and trade, or territorial cluster. The role of suppliers, including shareholders, in increasing harvest volumes is expanding, as well as the responsibility of managers not only for the modernization of the material and technical base of procurement (pick-up points, offices) but also for working with suppliers and their motivation. For shareholder deliverers (sellers), some time-tested ways of interacting with a cooperative are the most rational, such as: concluding and implementing contracts long before the start of production of agricultural products and raw materials. These agreements include the provision of assistance to shareholder-deliverers (providing elite seeds and feed to young livestock and poultry, plowing fields and gardens, delivering products to the cooperative’s storage or production facilities, setting terms of payment and additional or advance payments, settlement deadlines, etc.). The presence of shareholders with the functions of buyers (regular guaranteed customers of shops, catering enterprises, and services) and sellers-deliverers (agricultural products, handicrafts, and fishing products involved in the formation of commodity resources) increases the economic autonomy of the cooperative and its stability. We connect the development of Russian consumer cooperation as an association with the project of the Centrosoyuz on the identification of cooperatives. Identification options were developed at the Siberian University of Consumer Cooperatives (Itkulov 2009).

4 Conclusion Consumer cooperation in the Russian Federation is in a state of systemic, deep, and protracted crisis. In recent years, the Centrosoyuz of the Russian Federation has taken a number of fundamental legal and organizational measures that can improve

The Main Advantage of a Cooperative Business Model …

595

the economic condition of consumer societies, unions, the system as a whole. However, at the same time, the dual nature of cooperation has not been taken into account; its role in human existence has been forgotten. It is forgotten that with its emergence, the socialization of business began. It is forgotten that its main goal is not to generate income and profit. Revenues and profits are only a means to an end, and a goal is the satisfaction of material and other needs of members. The cooperative association of shareholders is formed for this and only for this. Without understanding and putting into practice the dual nature of the cooperative, no projects will save cooperation in Russia. The entrepreneurial structure will be preserved, which, perhaps by tradition, will be called cooperation, but essentially transformed into a large COOP-Pyaterochka. For the rural population, this is better than the complete disintegration of cooperation into many LLC, CJSC, ANO, and individual enterprises. However, we believe that the system still has sufficient potential for stabilization and development. The cooperative identification project and extensive digitalization program inspire hope. For Russian consumer societies and unions to remain cooperative, it is necessary that they become successful entrepreneurial structures. Here, progress is being observed, but one should also use their second hypothesis, namely social, as an association of effective shareholders. By increasing the number of shareholders, the efficiency of share and membership relations, and, consequently, the motivation for economic participation, the cooperative strengthens its autonomy. Also, the cooperative strengthens its independence, economic security, and creates the advantages of a cooperative business model. A. V. Chayanov bequeathed exactly this in his book The main ideas and forms of organization of peasant cooperation. He wrote: “A cooperative is a part of the economic activity of a particular group of persons organized on a collective basis and is intended to serve the interests of this group and only this group” (Chayanov 1991).

References Chayanov, A.V.: Key Ideas and Forms of Organization of Agricultural cooperation. Nauka, Moscow (1991) Itkulov, S.G.: Cooperative Sector of the Economy. Siberian University of Consumer Cooperatives, Novosibirsk (2009) Nagovitsina, L.P., Drozdova, M.I., Nagovitsin, A.A.: Possibilities of consumer cooperation in the conditions of territorial expansion of retail. Bull. Belgorod Univ. Coop. Econ. Law 3(76), 261– 273 (2019)

The Subjects of Corporate Governance in a Cooperative Svetlana Yu. Starodumova , Lubov B. Sitdikova , Maria A. Volkova , and Alla A. Neznamova

Abstract This paper analyzes the existing corporate governance bodies and entities that can exercise the powers of these bodies in a cooperative. The choice and relevance of the research topic are determined by the revealed inconsistency of corporate norms enshrined in the Civil Code of the Russian Federation with special legislation governing certain types of cooperatives, the lack of an unambiguous answer to the question of the priority of some norms over another. The purpose of the paper is to analyze the subject composition and corporate governance bodies in cooperatives to identify the most optimal ways to improve civil law. In the course of the study, a combination of general and private legal methods of cognition was used, which made it possible to obtain practice-oriented results. During the study, the authors concluded that the norms of general and special legislation governing the management of the cooperative as a corporate legal entity are inconsistent. The authors propose to extend the possibility of concluding a corporate agreement to regulate specific issues of managing a production cooperative. A credit consumer cooperative is particularly highlighted as a relatively new participant in civil law relations. Concerning it, the inconsistency of norms is identified by the authors, which can lead to the increasing inefficiency in a cooperative enterprise.




Keywords Corporation Corporate governance consumer cooperative Management





Production cooperative
Credit

S. Yu. Starodumova (&)
L. B. Sitdikova
M. A. Volkova
A. A. Neznamova Russian State Social University (RSSU), Moscow, Russia e-mail: [email protected] L. B. Sitdikova e-mail: [email protected] A. A. Neznamova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_64

597

598

S. Yu. Starodumova et al.

1 Introduction The prototype of modern corporations in the Soviet period was labor-based cooperatives. In this regard, at present, the labor participation of members of cooperatives should form the basis of the activities of both commercial and non-profit organizations. Unfortunately, the legislation on agricultural cooperation in relation to production (commercial) and consumer (non-commercial) cooperatives is poorly developed and does not interact well with the new provisions of civil legislation on corporate legal entities. There is a lack of agreement between the rules on corporate relations and cooperatives. For the most part, general provisions concerning the management of cooperatives as corporations are not applicable, and members of a cooperative cannot enter into a corporate agreement to determine the general directions of management, which leads to the choice and relevance of the research topic. It is not possible to consider the management features of all types of commercial and non-profit cooperatives within the allotted volume. Therefore, we will focus on correlating the new provisions of the Civil Code of the Russian Federation and special laws on production and credit cooperatives.

2 Materials and Methods The study used a combination of general and private legal methods of cognition, which allowed us to come to practice-oriented results regarding corporate governance issues in cooperatives. The combination of historical-legal and comparative-legal methods allowed us to establish the influence of historical conditions on the development of corporate relations in general and the regulation of cooperation in particular. The formal-legal method made it possible to analyze the legal norms governing the subjects of management in a cooperative, to identify the structure of governing bodies depending on the type of cooperatives, and to justify proposals for improving civil legislation aimed at sustainable economic development. The sociological method made it possible to substantiate conclusions and proposals aimed at consolidating the systematization of corporate legislation.

3 Results It has been established that despite the unification of the norms of civil legislation on legal entities, the extension of the provisions of the Civil Code of the Russian Federation on corporate legal entities to cooperatives is somewhat arbitrary since

The Subjects of Corporate Governance in a Cooperative

599

the legislation that was the legacy of the Soviet period continues to operate. Optimal and effective forms of governance, for example, by concluding a corporate agreement, do not apply to this legal form of business. We believe that it is advisable to legally extend the possibility of concluding a corporate agreement in all legal forms of corporate legal entities for the uniform application of the Civil Code of the Russian Federation. It was revealed that it is necessary to establish the priority of the norms of the Civil Code of the Russian Federation over the Federal Law “On Credit Cooperation” on the competence of the board of a credit cooperative: opening a separate division of the cooperative; the entry into the credit consumer cooperative of new members; election to the position of the sole executive body of the cooperative.

4 Discussion 4.1

General Management Issues in the Cooperative

Currently, the activities of production cooperatives are regulated by various acts of equal legal force. Among them, first of all, we should single out the Civil Code of the Russian Federation (Articles 106.1-106.6) and the Federal Laws “On Production Cooperatives” (1996) and “On Agricultural Cooperation” (1995). The regulation of consumer cooperatives is discussed in Art. 123.2-123.3 of the Civil Code of the Russian Federation and in several federal laws, in particular, “On Consumer Cooperatives (consumer societies, their unions) in the Russian Federation” (1992), “On Housing Savings Cooperatives” (2004), “On Credit Cooperation” (2009), and others. The regulation of consumer cooperatives is discussed in Art. 65.1, 106.1 of the Civil Code of the Russian Federation; production cooperatives are classified as corporate legal entities. According to V. A. Laptev, the powers of the corporation participants are determined by the volume and content of their corporate rights, which can be divided into three groups: management, property, and information (Article 67 of the Civil Code of the Russian Federation; Laptev 2019). Management rights in cooperatives include the following rights: participation in the management of a cooperative (Clause 1, Article 7 of the Federal Law “On Housing Savings Cooperatives”), participation in the general meeting of members of a cooperative (Clause 1, Article 8 of the Federal Law “On Production Cooperatives”). In commercial corporations, the scope of management rights and the way they are implemented are enshrined in local regulations (in the articles of association and other internal acts of the corporation), sometimes referred to as organizational and managerial agreements (in the memorandum of association, corporate agreement,

600

S. Yu. Starodumova et al.

etc.). Unfortunately, the corporate contract is excluded from the management of the cooperative. O. A. Makarova, followed by D. V. Dobrachev, noted that a corporate contract could not be concluded by participants in a production or consumer cooperative, although they are based on membership relations (Makarova 2016; Dobrachev 2018). We believe this situation is not entirely justified, since the personal participation of each member of the cooperative is not always possible for making management decisions, and a preliminary agreement to act in a certain way, according to the corporate agreement, would increase the efficiency of the production cooperative (Sitdikova and Starodumova 2019; Sitdikova et al. 2018). Talking about non-profit corporations, the management rights of their members are usually reflected in the charter and can be further determined by internal documents. Depending on the structure of the bodies, the management rights of its members can be exercised directly (through the general meeting) or indirectly (through authorized bodies, i.e., the supervisory board). According to the general rule secured by Art. 65.3 of the Civil Code of the Russian Federation, a general meeting of members is the highest governing body of the corporation. At the same time, in the indicated article, the legislator made a reservation about another higher body (congress, conference, or other representatives (collegial) body) to be created if the number of the cooperative participants exceeds a hundred (Kharitonova 2015). The number of members of a production cooperative is not limited, but if their number is more than 50, a three-link model of management bodies is formed without fail: the general meeting, the supervisory board, and the executive body (Article 14 of the Federal Law “On Production Cooperatives”). A supervisory board is created in a cooperative in cases where the number of all its members exceeds fifty people, and in an agricultural cooperative – if not less than fifty. The property rights of members of a cooperative include the right to profit from activities (Clause 3, Article 106.3 of the Civil Code of the Russian Federation, Article 12 of the Federal Law “On Production Cooperatives,” Article 36 of the Federal Law “On Agricultural Cooperation”). Particular attention should be paid to information rights, which are conditionally divided into two types of information: – information provided exclusively to participants (members) of the corporation (maybe confidential); – information requiring by virtue of the law of public disclosure (on the Internet or in the media). The last type, for example, include the right of the shareholder to receive information from the cooperative’s bodies on issues of its activities (Clause 1, Article 13 of the Federal Law “On Credit Cooperation”).

The Subjects of Corporate Governance in a Cooperative

601

The specifics of managing a cooperative is that each member has one vote, regardless of the size of the contribution (share). At the same time, as follows from the case law, in determining the validity of the decision of the general meeting, if there are a quorum and the necessary majority of votes, it is taken into account whether the participation of each cooperative member in the meeting and the voting would influence the decision at the general meeting of the cooperative (Sixteenth Arbitration Court of Appeal 2012). Moreover, the arrival of a production cooperative at the end of the year is distributed not only among members of the cooperative but also among the employees if they are involved in the performance of individual labor functions in the cooperative. According to paragraph 3 of Art. 65.3 of the Civil Code of the Russian Federation, in a production cooperative, a sole executive body (director, general director, chairman, etc.) is necessarily created. A board in a cooperative is created if its formation is provided by law or the charter (Clause 1 of Article 106.4 of the Civil Code of the Russian Federation). The mandatory requirement to elect a board in a cooperative depends on the number of members of the cooperative: It must be in production and have more than ten members (Clause 2 of Article 17 of the Federal law “On production cooperatives”); in agricultural production cooperatives, the number of members must be more than twenty-five (Clause 1 of Article 26 of the Federal Law “On Agricultural Cooperation”). In any case, the board is headed by the chairman. An unusual provision of the Civil Code of the Russian Federation concerns granting the powers of the executive body to several persons co-operating or several executive bodies (Paragraph 3 of Clause 1 of Article 53 of the Civil Code of the Russian Federation) which applies to cooperatives but with a specific reservation. In particular, both an individual and a legal entity can act as the sole executive bodies of a corporation (Paragraph 3 of Article 65.3 of the Civil Code of the Russian Federation), but, according to Clause 2 of Article 106.4 of the Civil Code of the Russian Federation, a chairperson can only be a member of a cooperative. In this regard, the implementation of this rule in a production cooperative is possible if the “second” independent sole executive body (for example, an independent director or manager) is involved on the basis of labor relations, for he cannot be a member of a cooperative. V. V. Demyanenko and S. A. Karelina (Demyanenko 2004; Karelina 2011) supported the expedient introduction of professional managers into the cooperative’s management structure. Thus, the general provisions that concern corporate legal entities, and that are enshrined in the Civil Code of the Russian Federation, apply to cooperatives with reservations, unless otherwise stated in special legislation or documents of a legal entity.

602

4.2

S. Yu. Starodumova et al.

Management in a Credit Consumer Cooperative

We would like to pay special attention to management in a credit consumer cooperative, a relatively new business entity. From June 30, 2019, the requirements of Chapter 3 of the basic corporate governance standard of a credit consumer cooperative (Bank of Russia 2017), according to which a member of a credit cooperative (shareholder) must comply with the principle of community of a credit cooperative, will be applied to credit cooperatives established before January 21, 2018. According to V. Y. Gubayuk, credit consumer cooperatives are required to obtain licensing, but this requirement is currently not enforced. The introduction of state regulation would protect the interests of credit consumer cooperative members without prejudice toward the activities of the cooperatives and their development (Gubayuk 2007). The central management bodies of the credit cooperative are the members (shareholders) and the board, which manages the cooperative’s activities between the general meetings of the members. However, their powers are not indisputable, which can create several issues. According to E. V. Shanazarova, it is difficult for cooperatives to achieve a timely resolution of the issues presented by opening a separate division or joining a credit consumer cooperative of the second level. According to Art. 17 of the federal law “On Credit Cooperation,” general cooperative member meetings should address these issues, but these meetings are rarely carried out, which can have costly consequences for the organization. At the same time, the Civil Code of the Russian Federation allows the boards of credit consumer cooperatives to make such decisions, which conflicts with particular legislation (Shanazarova 2019). Also, a contradiction between the norms of the Civil Code of the Russian Federation and the Federal Law “On Credit Cooperation” is encountered regarding the election (the Civil Code of the Russian Federation) or the appointment (Federal Law “On Credit Cooperation”) to the position of the sole executive body of the cooperative. This issue is also of primary importance for the effective management of the cooperative, as it is not clear what norms have priority in regulating these relations.

5 Conclusion The sphere of consumer cooperation remains an important topic in a scientific discussion. The personal participation of members of cooperatives in their activities also determined the specifics of regulating issues of managing these organizations. Unfortunately, the consolidation of cooperatives as corporate legal entities in the civil code did not bring about the unification of corporate governance norms, adding to the great contradiction in the competence of various bodies.

The Subjects of Corporate Governance in a Cooperative

603

In the course of the study, we did not aim to analyze all the available varieties of legal entities created as a cooperative, focusing only on specific issues of the mandatory creation of various governing bodies depending on the type of cooperative.

References Bank of Russia: Basic Standard for Corporate Governance of a Credit Consumer Cooperative (Protocol No. KFNP-44 dated December 14, 2017), Moscow, Russia (2017) Gubayuk, VYu.: Credit consumer cooperatives of citizens: issues of state regulation of activities. Law Polit. 12, 92–98 (2007) Demyanenko, V.V.: Peasant Production Cooperation in Modern Russia: Problems of Formation and Development. Saratov, Russia (2004) Dobrachev, D.V.: Topical Problems of Judicial Practice in the Field of Corporate and Business Law. Infotropic Media, Moscow (2018) Karelina, S.A.: Production cooperative in the structure of a market economy (problems of legal regulation) (lecture in the framework of the training course “Business Law”). Bus Law Appl Bus Law Russ Abroad 3, 54–55 (2011) Laptev, V.A.: Corporate Law: Legal Organization of Corporate Systems. Prospect, Moscow (2019) Makarova, O.A.: New in the civil code of the Russian federation and the laws on business companies: the ratio of imperative and dispositive regulation. Civ. Law 1, 9–12 (2016) Sitdikova, L.B., Starodumova, S.J.: Corporate agreement as a means of providing security in the course of entrepreneurship development. Entrepreneurship Sustain. Iss. 7(1), 324–335 (2019). https://doi.org/doi.org/10.9770/jesi.2019.7.1(24) Sitdikova L., Starodumova S., Volkova, M.: Corporate legal entities in the civil law of the Russian Federation. In: Maloletko, Al., Rupcic, N., Baracskai, Z. (eds.) Economic and Social Development Book of Proceedings, pp. 715–721 (2018) Kharitonova, Y.: Corporate governance in a production cooperative. Civ. Law 4, 15–20 (2015) Shanazarova, E.V.: Collisions of current legislation in the field of credit cooperation. Bank. Law 1, 37–41 (2019). https://doi.org/10.18572/1812-3945-2019-1-35-39 Sixteenth Arbitration Court of Appeal: Decree of October 22, 2012 in case No. A63-8164/2012. Reference legal system “ConsultantPlus.” (2012)

Shareholders of Consumer Cooperation in Russia—Motivation for Participation Elena L. Maslova , Olga Z. Matveeva , Marina V. Kovshova , Viktoria A. Kolenova , and Lyudmila A. Yariz

Abstract The purpose is to analyze the structure of shareholders existing in consumer cooperation and their interests. The work uses materials from a comprehensive survey of shareholders conducted in 1988–1990. Also, the authors review the existing literature in the development of cooperative values, as well as the current data on changes in the number of shareholders, their composition, and current interests. The analysis shows a constant decrease in the number of members of consumer societies, the existence of a problem in enhancing the involvement of various categories of the population, including youth, as member-shareholders. The paper proposes several measures to enhance the participation of shareholders in the activities of a consumer cooperative and to motivate the members of the served population. The authors argue that the issues of motivating membership, maintaining, and developing the interest of shareholders in the activities of consumer cooperation plan are not developed enough scientifically. Keywords Consumer cooperation Motivation Interests





Cooperative values
Shareholder


E. L. Maslova (&)
O. Z. Matveeva
M. V. Kovshova
V. A. Kolenova
L. A. Yariz Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] O. Z. Matveeva e-mail: [email protected] M. V. Kovshova e-mail: [email protected] V. A. Kolenova e-mail: [email protected] L. A. Yariz e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_65

605

606

E. L. Maslova et al.

1 Introduction As a socially-oriented system, consumer cooperation sees its main task in ensuring the material and social interests of shareholders and the poor. The social significance that consumer cooperation has for the entirety of Russian society determines the allocation of social problems. The leadership of the Russian Federation has recently drawn attention to cooperation and its development. After all, it was not in vain that the UN announced that cooperation was an ally of wise rulers; for almost two centuries, under challenging times, it had been raising the economies of countries and reducing the social tension of the population, thereby increasing their well-being and satisfaction. Consumer cooperation was created and still operates on the proven principles and values of the history of its development, experience, and time. Modern consumer cooperation is a diversified socioeconomic system, whose purpose is to satisfy the personal, economic, social, and other needs of its members, as well as to serve economic interests and achieve certain benefits. The current practice of consumer cooperation has confirmed that consumer societies most effectively solve their problems when they have the trust and support of shareholders. In our study, we sought to analyze the history of the issue and the structure and interests of shareholders, suggest ways to increase interest, and enhance participation in consumer cooperation.

2 Materials and Methods The theoretical and methodological bases of the study were the work of domestic and foreign scholars and materials of scientific conferences on issues related to consumer cooperation. Over the course of the study, general scientific methods of cognition were used (i.e., deduction and induction, analysis and synthesis, a system and comparative-historical method, methods of system analysis, factor analysis, methods of expert assessments, and content analysis of the media).

3 Results The subjects of our research were the shareholders of consumer cooperation, their interests, and their motivation for membership. Shareholders make up the social basis of consumer cooperation. Let us analyze their numbers. The change in the number of members of consumer cooperatives from 1991– 2019 is shown in Table 1.

Shareholders of Consumer Cooperation in Russia …

607

Table 1 The number of shareholders in consumer cooperation in Russia, at the beginning of the year 1991

2005

2011

2016

2019

Shareholders, mln. 22.5 7.5 3.4 2.3 1.5 Percentage of adult cooperation 76.8 34.0 23.7 15.8 4.6 Source (Stefanov and Valigursky 2018; Central Union of the Russian Federation 2016)

Statistics show that there has been a steady decrease in the number of members of consumer cooperatives, which has led to their separation from the socioeconomic structures of consumer cooperatives, the weakening of direct interest, and participation in cooperatives. According to the data in Table 1, over the past three decades, consumer cooperation in Russia has not been able to overcome the negative trends regarding the decreasing number of shareholders. The number of newly admitted members no longer compensates for the increased retirement from consumer cooperation for various reasons, which leads to a decrease in the total number of shareholders. It is important to note that consumer cooperation cannot exist if there are no shareholders. Consumer cooperation is created and always acts in the interests of the shareholder. The modern social composition of consumer cooperation is made up of members of the labor collective of a cooperative organization, older and elderly people who entered the consumer society, as a rule, as far back as the Soviet era. If the tendency to reduce the number of shareholders continues in the future, then the threat of degeneration of the consumer cooperative into a production cooperative or another commercial type organization will significantly increase (Valigursky and Melnikov 2017). What is the interest of the shareholder? A shareholder is a citizen and (or) legal entity that has made entry and share contributions and was accepted into the consumer society in the manner prescribed by the charter of the consumer society and its members (Russian Federation 1997). Article 11 of the Law on Consumer Cooperation details the rights of shareholders in a consumer society. The shareholders of the consumer society have the following rights: • to participate in the activities of the consumer society; • to elect and be elected to the governing bodies and control bodies; • to make proposals for improving the performance of the consumer society, eliminating the shortcomings in the work of its bodies; • to receive cooperative payments; • to purchase goods (services) primarily to other citizens in consumer society organizations; • to carry out guaranteed sales of products of personal subsidiary farming and fishing based on contracts;

608

E. L. Maslova et al.

• to use the benefits provided for shareholders by the general meeting of the consumer society; • to hand over agricultural products and raw materials for processing; • to have prior approval to work in a consumer society based on personal qualifications and taking into account the need for workers; • to receive recommendations for training in educational organizations of consumer cooperation. In order to preserve the identity of consumer cooperation, it is required to study the underlying premises and factors of its development in modern conditions thoroughly. In this regard, it should be noted that, in 2016, the Central Union of the Russian Federation developed the Concept for the Development of the Consumer Cooperation System for 2017–2021, where shareholders are allocated to separate provisions. Following the Concept, it was planned to increase the number of shareholders by one million people, or 45.4%, from 2.2 million people in 2016 to 3.2 million people in 2021. However, statistics show a process of the ongoing reduction in the number of shareholders (Table 1). At the end of 2018, Russia had 1.7 million shareholders in 70 regions. According to the materials of the official website of the Central Union, the number of shareholders of consumer cooperatives as of September 13, 2019, is 1.5 million people. In these conditions, special attention is required for the development and practical solution to the problem of increasing the role of shareholders in management and control and their active participation in the further development of the system. The analysis showed that questions of membership motivation, preservation, and development of interest of shareholders in the activities of consumer cooperatives had not been sufficiently developed. There are very few publications on this issue. The socio-demographic structure of shareholders as a factor in membership in consumer cooperatives and the development of its activities has been poorly studied. Similar studies were carried out in the ’80s and ’90s by the Central Institute of the Scientific Organization of Labor, Management, and Rationalization (TSINOTUR). This problem is, to some extent, considered in the works of D. I. Valigursky, the professor of the Russian University of Cooperation. In order to identify the social structure and interest of shareholders of consumer cooperation, Valigursky, as part of the TSINOTUR team from 1988 to 1990, conducted a comprehensive study. The results of the study are reflected in the dissertation “Social Structure and Interests of Shareholders of Consumer Cooperatives,” defended at the Moscow Cooperative Institute of the Central Union in 1991. The object of the study was the shareholders of consumer cooperation, their interests, and forms of participation in the work of consumer societies. In the course of these surveys, sociodemographic characteristics (gender, age, education, etc.) of 5.8 thousand members of consumer cooperation were revealed, of which 1.4 thousand are shareholders, and 560 are members of district

Shareholders of Consumer Cooperation in Russia …

609

cooperative committees, chairpersons, and board members of consumer societies. In 1989, a survey on the state of the social sphere, the planning of social development of consumer cooperation, and relationships with shareholders included 76 Republican and regional consumer unions. Based on the results of the study, the author substantiated several methodological and practical proposals for improving the work of cooperative organizations with its shareholders, as well as for enhancing the motivation of membership in consumer cooperation. Let us dwell on some of them. In our opinion, the essence of the interests of shareholders is a combination of economic and social interests in the process of achieving the best way to receive benefits through participation in an appropriate form of distribution. Thus, shareholders have several economic and social interests. For example, the interests of consumer-shareholders are expressed in ensuring the proper quality of goods, meeting the needs for goods and food products through cooperative trade, and protection against price increases. The interests of shareholder-owners of personal subsidiary farms are expressed in satisfying the needs for ensuring the production and marketing of manufactured products in related services. The interests of the co-owners are possession of the right to own and dispose of the property. The social interests of shareholders are expressed in meeting labor needs, social protection, education, and cultural needs, as well as participation in the management of a cooperative economy. The interests of shareholders identified during the study have not lost their relevance nowadays. As before, the cooperative values and principles are the fundamental prerequisites and factors for the development of the consumer cooperation system, which make it possible to choose economical and social guidelines, determine strategic development goals, and adjust current work. At the same time, the increasing role of such elements of the market mechanism as competitiveness, profit, prices, conjuncture, the formation of a broader economic space on which the market operates, compared with the relatively narrow territorial boundaries of the area of activity of individual cooperative enterprises and organizations, leads to a contradiction with the traditional values of cooperation, with its focus on the comprehensive satisfaction of the needs of its members, trade at relatively low prices, the provision of various economic privileges and services to shareholders. The most significant attention and consistent implementation are required by such cooperative values as “democracy,” “voluntariness and openness of membership,” “solidarity and mutual assistance,” “social responsibility and concern for people and the environment,” and “commitment to our cooperative society.” In the course of the study mentioned above, tendencies in changes in the composition of shareholders associated with changes in the sociodemographic structure of the village—the inhabitants of which mainly form the social base of consumer cooperation—were identified and analyzed. The membership of residents of small cities and settlements located in the zone of activity was also noted. In recent decades, shifts have taken place in the social structure of the rural population—the number of farmers, tenants, and cooperative workers in the

610

E. L. Maslova et al.

production and services sectors has increased. All of this significantly affects the composition of members of consumer societies and indicates a change in the motivation of rural residents to cooperate. An increase in the share of workers and employees, doctors, and rural intelligentsia in the rural population entails a change in the needs of the served population as a whole and an increase in its requirements for consumer cooperation. Village aging—a decrease in the proportion of children and people of working age in the composition of the rural population—has a corresponding effect on the structure of shareholders and their interests. The dynamics of the rural population—its sociodemographic structure, to a certain extent—make it possible to judge possible changes in the composition of members of consumer cooperation and some factors affecting membership motivation and interests. However, these data are not enough to judge the extent and dynamics of these phenomena, nor to give a specific characterization of the ongoing processes. It seems necessary to obtain information by conducting special comprehensive surveys that are addressed directly to the subject of cooperation—shareholders—in conjunction with the processes occurring in the activities of consumer cooperation. The data obtained during the survey at the end of the 1980s made it possible to quantify the presence of the composition of shareholders of social groups characterized by various characteristics, degree of participation in business, and motivation for membership in consumer cooperation. Data were obtained on the structure of shareholders by gender and age characteristics, level of education, and family size. All of these aspects significantly affect the motivation for membership in a consumer society. For example, the percentage of shareholders aged 16 to 30 was 13.6%, while the share of this age category in the rural population was almost two times higher, which indicated that there were absolute reserves for attracting new members of consumer cooperatives from the youth. We agree with E. E. Mikhoparkina that the possibility and necessity of attracting young people to the ranks of shareholders and employees of the cooperative movement system has undeniable potential. “Holding forums, fairs of various kinds, competitions, creating platforms, coworking, training grounds, while maintaining healthy competition between societies attracts a young audience. Energy, ingenuity, new knowledge, and skills of the young generation are a considerable potential for cooperation” (Mikhoparkina 2018). According to the results of the above survey, the structure of shareholders was revealed based on the presence of a personal subsidiary farm and the resulting wide range of interests, especially in the procurement activities of consumer cooperatives. We offer to organize work on the identification of shareholders of owners of personal subsidiary farms in each consumer society, establishing their requests and requirements for the work of the consumer society. This work can serve as a prerequisite for enhancing the motivation for membership of this group of shareholders not only as consumers but also as producers of agricultural products.

Shareholders of Consumer Cooperation in Russia …

611

They also revealed a lack of awareness among shareholders of the rights granted to them (from 49% to 73%). An even smaller number of the surveyed shareholders who know about their rights use them. In order to increase the activity and interest of shareholders in the activities of the consumer society, it is necessary to significantly improve the explanatory work on the rights granted and the procedure for their use, to familiarize them with this when joining a cooperative, and to inform about their changes and expansion. To exercise the right of members of consumer societies to be informed, we propose to create a new share book, for example, in the form of an electronic share book. In the digital age, this can be a personal account of a shareholder. Like a traditional share book, a personal account may include several sections (Fig. 1). The accumulation of information in the personal account of the shareholder allows one to analyze the structure of his purchases and to form a competent assortment of goods and services offered. To increase the interest of shareholders, we offer differentiation of the sizes of mutual contributions for various groups of shareholders: consumer-shareholders, shareholders with financial participation, and shareholders with labor participation. International experience shows that, at the present stage, the creation of own brands is one of the promising directions in strengthening the competitive position of consumer cooperative enterprises and, accordingly, enhancing membership motivation (Maslova and Duborasova 2015). The list of own brands may include dairy products, cereals, pasta, confectionery, poultry, fish/seafood, drinks, chocolate, seasonings, frozen vegetables, and fruits.

4 Discussion We agree with Valigursky and Melnikov (2017) that the active participation of a shareholder in a cooperative’s activity is one of the most valuable assets of a cooperative movement. The realization of the shareholder’s right to participate in the activities of a cooperative requires the formation of its new image. According to D. I. Valigursky, the system of consumer cooperation should form the following social type of shareholder: – – – – –

has a stable benefit from participating in a cooperative; belongs to the middle class; is actively involved in the management of cooperative property; needs self-improvement and self-development; is ready for international cooperation.

Such an image of a shareholder will be in demand by a wide circle of the population. Some authors suggest including an indicator for attracting young cooperators in the system of motivating managers of cooperative organizations, which is approved

Fig. 1 The structure of the share book of a member of a cooperative

Additional information: age, education, need for additional education, personal farm availability, needs for services, etc.

Purchase of goods on preferential terms

Information about borrowed funds

Cooperative payments

Information about participation in management bodies

Information about the share payment

Title page: Information about the shareholder (name, date of joining the cooperative)

612 E. L. Maslova et al.

Shareholders of Consumer Cooperation in Russia …

613

by the council of cooperative organizations, an indicator for attracting young cooperators (Stefanov and Valigursky 2018). Let us note that we are talking about young cooperators. Earlier, we mentioned that the proportion of young people in the adult population and the share of young cooperators are very different, which makes it possible to talk about the available resource for attracting new shareholders. We agree with the authors that issuing a client card to each shareholder provides favorable discounts and conditions for accumulating bonuses and can also increase the motivation for membership in a consumer cooperative (Stefanov and Valigursky 2018).

5 Conclusion The paper analyzes the number and interests of shareholders of consumer cooperation in Russia in historical terms and suggests ways to increase the motivation of Russian residents to membership in a consumer cooperative. The analysis shows a steady decline in the number of members of consumer societies. There are certainly opportunities for increasing the number of shareholders. Based on the results of the study, we propose: • to conduct a special comprehensive survey of shareholders to obtain relevant information; • to organize work to identify shareholders of personal subsidiary plots to establish their requests and requirements for the work of the consumer society; • when joining a cooperative, to acquaint shareholders with the rights granted and the procedure for their use and to inform about their changes and expansion; • to create an electronic share book or a personal account of a shareholder; • to introduce differentiation of shares for different groups of shareholders.

References Central Union of the Russian Federation. The concept of development of the consumer cooperation system for 2017–2021 (2016). https://www.rus.coop Maslova, E.L., Duborasova, T.Yu.: Studying the experience of foreign cooperators in the framework of the business school of the Russian University of Cooperation. Bull. Russ. Univ. Coop. 1(19), 76–81 (2015) Mikhoparkina, E.E.: Problems and potential development of cooperation in the Russian Federation. In: Proceedings from International Scientific-Practical Conference Chayanov Readings. Publisher “Kantsler”, Moscow (2018) Russian Federation. Federal Law “On Consumer Cooperation in the Russian Federation” (July 02, 2013 No. 185-FZ), Moscow, Russia (2013) Stefanov, P.I., Valigursky, D.I.: International Cooperative Alliance: History and Development. Publisher “Kantsler”, Moscow (2015)

614

E. L. Maslova et al.

Valigursky, D.I., Melnikov, V.A.: Strategic directions of the program Consumer Cooperation 2025. In: The Main Directions of Development of Cooperation: Experience, Problems, Prospects, p. 179. Proceedings from the International Scientific-Practical Conference in the Framework of the Annual Chayanov Readings. Publisher “Kantsler” (2017)

Innovative Methods of Mastering Economic Knowledge by Learning a Foreign Language Aleksander V. Kozharinov , Olga A. Kalugina , Natalia V. Ryabchenko , Anastasia A. Kolobkova , and Roman Kralik Abstract The authors analyze innovative methods that can help students of cooperative universities to master economic knowledge through a foreign language. The types of professional activities of specialists in the cooperative sphere, where knowledge of a foreign language is necessary, are identified. The difficulties and their causes that students may encounter when mastering a foreign language in order to use it in their future professional activities are identified. The authors consider the importance of improving professional and communicative competence for students of cooperative universities, which is an integral component of professional growth and improvement, as it serves as an indicator of the manifestation of many professional qualities in the field of the cooperative sector of the economy. The following research methods were used: the analysis of scientific literature on the issues of the pedagogical experiment, pedagogical observation; questioning; student testing; the method of expert assessment; mathematical data processing. The authors concluded that such innovative methods as the portfolio method, case studies, and presentations not only arouse the interest of students and contribute to the development of economic knowledge, but also provide an opportunity to create a motivational environment, a creative learning atmosphere, allowing teachers to solve pedagogical, educational, developmental tasks.

A. V. Kozharinov
O. A. Kalugina (&) Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] A. V. Kozharinov e-mail: [email protected] N. V. Ryabchenko
A. A. Kolobkova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. A. Kolobkova e-mail: [email protected] R. Kralik Constantine the Philosopher University, Nitra, Slovakia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_66

615

616

A. V. Kozharinov et al.




Keywords Innovative methods Cooperative economy Professional and communicative competence


Portfolio
Case study


1 Introduction In September 2009, a new two-tier system of higher education came into effect in Russia: undergraduate and graduate programs aimed at strengthening the position of Russian education in the international arena. This new system provides students of Russian universities with the opportunity to be competitive in the global labor market, which is a decisive factor for graduates to gain career growth. However, a change in this system creates new problems, including compliance with European standards, which primarily requires the manifestation of sociocultural and professional communicative competence (PCC). For students of cooperative universities, PCC consists of integral components of professional growth and improvement, as they serve as indicators of the manifestation of many professional qualities in the cooperative sector of the economy: orientation in the modern economic and sociocultural situation, knowledge of business communication technologies (Vasbieva 2014, 2015; Birova et al. 2016). The real state of the practice of teaching students at a cooperative university shows that the content of education does not meet the requirements for the level of necessary professional and communicative competence of specialists for new intercultural forms of their professional activity. Many graduates of cooperative universities that have a high level of subject knowledge, while communicating with partners, including foreign colleagues, experience difficulties in organizing communication activities in a foreign language, which reduces the competitiveness of a specialist in the modern labor market. There is a need to develop all the necessary learning skills in foreign language classes in order to integrate knowledge with the needs of the student successfully. Even the skills of working with knowledge are mainly formed as the ability to remember and use ready-made knowledge. However, the challenge of teaching tomorrow’s knowledge, which is not yet available, requires new knowledge skills, including international experience (Birova et al. 2016; Borisova et al. 2015; Tamrazova et al. 2017; Vasbieva 2019). As innovations in the teaching of economic disciplines, Baturin (2017), Telegina et al. (2019) suggest using project methods, lectures, conversations, and case studies. This innovative educational activity is an effective form of organization of the educational process, which is aimed both at the individual development of the cognitive interests of students and at improving their creative abilities. The benefits of learning through cases were considered by such scholars as Vetoshkina and Schneider (2011), and Sinagatullin (2013). The case method allows us to apply theories practically and develop data processing skills, priority setting skills, skills in problem analysis and managerial decision making, interpersonal communication, and interaction skills, and provides a realistic approach to the situation; learning takes place through activity and through learning from others.

Innovative Methods of Mastering Economic Knowledge …

617

A popular and effective method for motivating students of a financial and economic university, according to the opinion of domestic and foreign scholars (Paulson et al. 1991; De Fina 1992; Midova 2015; Kolesnikova 2016; Luferov 2017) is the portfolio method, which provides an exciting way to improve language training and different means of systematizing knowledge, including economic knowledge, and helps students think about their goals, learning methods, and achievements.

2 Materials and Methods The formation of the PCC for students of cooperative universities formed the basis of a search-creating experiment aimed at identifying and implementing innovative methods of mastering economic knowledge through a foreign language. The experimental study was conducted based on the Russian University of Cooperation, the “State University of the Ministry of Finance of the Russian Federation,” and the “Financial University under the Government of the Russian Federation.” The object of the experiment was a system of vocational training for students of cooperative universities. The goal is to experimentally test a set of innovative methods for mastering economic knowledge through a foreign language by future specialists in the field of the cooperative sector of the economy, as well as to clarify the conclusions of general provisions. Following the goal, the following tasks of the experiment are determined: • to study and analyze the existing methods of mastering economic knowledge through a foreign language by students of cooperative universities; • to introduce into the university’s educational process complex pedagogical conditions for the development and formation of the PCC of students of cooperative universities through foreign language usage; • to study and analyze the dynamics of indicators of mastering economic knowledge through a foreign language in the course of a stating and formative experiment; • to draw conclusions based on the results of the obtained data. The experiment was based on the hypothesis that the introduction of methods of mastering economic knowledge through a foreign language contributes to the optimal preparation of students of the cooperative university for the gradual formation of the PCC in the conditions of the developed and implemented educational system. The following research methods were used as diagnostic tools: analysis of scientific literature on the issues of the pedagogical experiment, pedagogical observation; questioning; student testing; conversation with students and teachers; mathematical data processing.

618

A. V. Kozharinov et al.

The experiment was conducted for eight years, from 2008 to 2016. The main stages of the experimental were: I. The ascertaining stage (2008–2011): the period of development and preliminary (flight) testing of tasks aimed at diagnosing the initial level of students’ PCC. II. The search-creating stage (2011–2013): the period of development of the experimental work program; questionnaires to determine the priorities of students regarding types of speech activity and the awareness of the importance of a foreign language in their future professional activities; the introduction of innovative methods of mastering economic knowledge through a foreign language and the formation of the PCC of students of cooperative universities using a foreign language in the educational process of the university; monitoring the progress of the experiment using observation, testing, and analysis of the results of students’ activities; III. The control stage (2013–2016): the period of revealing the dynamics of the process of the formation and development of students’ PCC through a foreign language; the systematization and generalization of the results; the publication of materials on the research topic (Kalugina 2014).

3 Results One hundred eighty future specialists from the cooperative sphere (economists, financiers, accountants, managers, and civil servants) took part in the ascertaining experiment. This number includes 50 students of the faculty of International Economic Relations’ financial and accounting faculties, 50 students of the faculty of management of the State University of the Ministry of Finance of the Russian Federation, 50 students of the faculty of the Russian University of Cooperation, and 30 teachers of the Financial University under the government of the Russian Federation. A survey was conducted to develop a course that contributes to the formation of the PCC of cooperative university students through a foreign language. The first question was aimed at identifying the types of professional activity of cooperative specialists in which knowledge of a foreign language is necessary for student understanding. As a result of this study, the following data was obtained (Table 1). According to student responses, the primary types of professional activity in which knowledge of a foreign language is necessary were verbal communication with foreign partners (94.8%); participation in presentations, exhibitions, and conferences abroad (75.0%); and conducting correspondence in a foreign language (68.8%).

Innovative Methods of Mastering Economic Knowledge …

619

Table 1 Types of professional activity requiring knowledge of a foreign language Types of professional activity 1. 2. 3. 4. 5.

To read special literature To translate contracts, reports, and letters To conduct correspondence in a foreign language To work on the Internet To participate in presentations, exhibitions, and conferences abroad 6. To participate in presentations, exhibitions, and conferences in Russia 7. To watch TV shows and videos 8. To listen to the radio 9. To communicate with business partners by phone 10. To communicate with foreign partners verbally 11. Other (indicate what exactly) Source Developed by the authors

Number of people

Percentage indicator

49 59 66 24 72

51 61.5 68.8 25.0 75.0

27

28.1

30 8 60 91 2

31.3 8.3 62.5 94.8 2.1

Table 2 Learning goals of the students Learning goals of the students 1. 2. 3. 4.

To learn the terminology of the specialty To read special literature in a foreign language To translate business documents To communicate with foreign colleagues on professional topics 5. To conduct business correspondence, execute documents, and write papers in a foreign language 6. To speak at conferences and presentations Source Developed by the authors

Number of people

Percentage indicator

67 43 49 84

69.8 44.8 51.0 87.5

60

62.5

45

46.9

In the column “other,” students indicated that attending various events where you can get acquainted with foreigners and making connections were also important. Consequently, the experimental course should be based on tasks that correspond to the interests of students and are aimed at the formation of foreign language competence, which is part of the professional, communicative competence of a student of a cooperative university. The next question posed to students was also aimed at identifying their interests and motives: “What would you like to learn during the course aimed at mastering economic knowledge through a foreign language?” The results are presented in Table 2.

620

A. V. Kozharinov et al.

Table 3 Difficulties in mastering economic knowledge through a foreign language Difficulties and their causes 1.

The lack of teaching aids containing a set of tasks aimed at the development of communicative skills 2. The low level of teaching business communication 3. The insufficient use of multimedia tools by the teacher 4. The lack of control over acquired knowledge 5. Student’s lack of knowledge about the criteria for evaluating written work 6. Unawareness of the student about the criteria for evaluating oral statements 7. Bad relationships between groupmates Source Developed by the authors

Number of people

Percentage indicator

39

40.6

31 21 31 18

32.3 21.9 32.3 18.8

14

14.6

2

2.1

Table 4 Innovative methods of mastering economic knowledge through a foreign language Educational technology 1. 2. 3. 4. 5.

Translation “Case-study” “Brainstorming” Performing exercises (grammar, lexical, phonetic) Written assignments (writing resumes, letters, electronic documentation, annotations) 6. Pair/group work 7. Portfolio 8. Preparation and participation in training conferences, presentations 9. Independent work 10. Reading in order to find the necessary information 11. Performing listening assignments 12. Other (indicate what exactly) Source Developed by the authors

Number of people

Percentage indicator

48 51 35 43 48

50 53.1 36.5 44.8 50.0

47 67 54

49.0 69.8 56.3

18 38 50 0

18.8 39.6 52.1 0

The contingent of subjects was interviewed to identify difficulties that students may encounter in mastering a foreign language for use in future professional activities. The data is presented in Table 3. At the moment, there is a large number of innovative methods that can solve these difficulties. Students were asked to identify the most significant ones (Table 4).

Innovative Methods of Mastering Economic Knowledge …

621

4 Discussion The obtained data confirms it is necessary to purposefully form the PCC of students in their professional and personal development, taking into account students’ awareness of the importance of possessing the integrative personality quality that each person, regardless of their education, must have competence. For students of the cooperative university, professional and communicative competence is of particular importance since it is one of the main qualities they should possess. Therefore, in the formation of the PCC of cooperative university students, it is necessary to pay attention to both the student and the teacher, updating the knowledge of teachers in this direction. The educational goals of students correspond to the types of professional activity where they need to use a foreign language to solve professional problems. This fact confirms the correctness of the results. Students of cooperative universities strive to communicate with foreign colleagues on professional topics (87.5%), learn terminology in their specialty (69.8%), conduct business correspondence, draw up documents, and write papers in a foreign language (62.5%). The main goal of the teacher is to create all necessary conditions, taking into account the difficulties that students may encounter in the educational process, as well as in future professional activities. Students’ opinions coincide with our point of view that there are not enough textbooks containing a set of tasks aimed at developing communicative skills (40.6%). The next problem is the competence of the teacher: the low level of teaching business communication (32.3%) and the lack of control over the knowledge gained (32.3%). In the 21st century, students who are well versed in modern means of communication advocate the introduction of new multimedia technologies in the educational process. The insufficient use of multimedia tools (21.9%) is considered as one of the reasons that impede the formation of professional and communicative competence of a student at a cooperative university. When creating an experimental course aimed at introducing innovative methods of mastering economic knowledge through studying a foreign language, it is necessary to take into account the interests of students: use the portfolio method (69.8%), prepare and participate in training conferences, presentations (56.3%), “case-study” (53.1%), listening assignments (52.1%), translation (50%), written assignments (writing CVs, letters, electronic documentation, annotations) (50%).

5 Conclusion According to the obtained data, the use of innovative methods in vocational training is a guarantee for the training of qualified specialists in the cooperative sector of the economy (Vasbieva 2016). The use of these innovative methods leads to students’ interest in the educational and cognitive activity itself, which, in turn, makes it

622

A. V. Kozharinov et al.

possible to create a motivational environment and a creative learning atmosphere, allowing us also to solve pedagogical, educational, and developmental tasks. In this situation, students play the role of developers and researchers, using a foreign language as an instrument of economic cognition, access to information, interpretation, and organization of economic knowledge. From the obtained results, it can be concluded that such innovative methods as “portfolio,” “presentation,” and “case-study” arouse the most significant interest of students and contribute to increasing professional motivation when forming a PCC of a student of a cooperative university. Acknowledgements The work is performed according to the Program of Development of Federal State-Funded Educational Institution of Higher Education “Financial University under the Government of the Russian Federation” for 2020.

References Baturin, V.Yu.: Innovative teaching methods in teaching economic disciplines. Innovative Technologies in Education. In: Moor, S.M. (ed.) Proceedings from the IV International Scientific and Practical Video Conference. Tyumen Industrial University, Tyumen, Russia (2016) Birova, J., Ocovay, J., Vasbieva, D.G.: The implementation of new teaching technologies during the action research by Experienced language teachers. IEJME Math. Educ. 11(8), 3089–3103 (2016) Borisova, O.V., Vaskieva, D.G., Zhmurenko, L.A., Kalugina, O.A., Klimova, I.I., Kucheryavykh, V.S., Masalimova, A.R., Moiseeva, T.V., Tsaplina, N.N., Shaydullina, A.R., Shirokikh A.Yu., Frolova, V.B., Chernyshkova, N.V.: Innovative Methods and Models of Teaching Bachelor Students in Financial and Economic Profile. VividArt, Moscow (2015) De Fina, A.: Portfolio Assessment: Getting Started. Scholastic, New York (1992) Kalugina, O.A.: Diagnostics of the initial level of proficiency in the professional and communicative competence of students of a financial and economic university. Osov pedagogical readings “Education in the modern world: New time – new solutions”, vol. 1, p. 88–94 (2014) Kolesnikova, A.I.: The language portfolio as a way of organizing students’ independent work when studying a foreign language in a non-linguistic university. Agrarian Bull. Upper Volga 2 (14), 126–132 (2016) Luferov, D.N.: The language portfolio as a technology for organizing the independent work of students studying the discipline “Foreign Language”. Bull. Moscow State Region. Univ. Ser. Pedag. 4, 152–163 (2017) Midova, V.O.: Modern technological tool for teaching a foreign language “language portfolio” in an economic university. In: Modern Problems of the Humanities and Natural Sciences. Materials of the XXV International Scientific-Practical Conference, pp. 264–268. Institute for Strategic Studies, Moscow (2015) Paulson, F., Paulson, P., Meyer, C.: What makes a portfolio a portfolio? Educ. Leadersh. 48, 60– 64 (1991) Sinagatullin, I.M.: English as a global phenomenon and its impact on education. Pedagogy 7, 90– 97 (2013)

Innovative Methods of Mastering Economic Knowledge …

623

Tamrazova, I.G., Tsilenko, L.P., Tsilenko, K.S., Lyubimova, T.D., Sagumyan, E.E., Aslamova, T. V., Bagdasarova, E.V., Volodina, E.V., Volodina, I.V., Klimenko, I.L., Presnukhina, I.A., Shvetsova, E.V., Alenin, I.A., Andrukh, A.O.: Collective monograph. “Ucom” consulting company, Tambov, Russia (2017). http://ucom.ru/doc/mon.2017.02.01.pdf Telegina, N.V., Drovosekov, S.E., Vasbieva, D.G., Zakharova, V.L.: The use of project activity in teaching mathematics. Eurasia J. Math. Sci. Technol. Educ. 15(8), 1738 (2019) Vasbieva, D.G.: A lean approach as a means of achieving communicative competence. XLinguae 7(4), 75–82 (2014) Vasbieva, D.G.: Teaching strategy on learning of English phrasal verbs by economics major students in Russia. XLinguae 8(3), 57–65 (2015) Vasbieva, D.G.: English phrasal verbs potential in developing Russian first-year majors’ foreign communicative competence. XLinguae 9(3), 93–103 (2016) Vasbieva, D.G., Vlasova, V.K., Novikova, E.B.: The efficiency of Teaching English Vocabulary and Grammar on the basis of assignments in IELTS Format. XLinguae 12(2), 99–110 (2019) Vetoshkina, T.A., Schneider, N.V.: Active and Interactive Teaching Methods: A Toolkit. Ural State Mining University, Ekaterinburg (2011)

The Need for Organization of the Internal Control of Risks of Consumer Cooperation Enterprises System Victoria G. Annenkova , Elena G. Zhulina , Olga B. Mizyakina , Nuria N. Shakirova , and Inna V. Кuznetsova Abstract The need for the formation of an internal risk control system for consumer cooperation enterprises is determined by both the dynamism of the external environment and new digital technologies. New digital technologies accelerate the process of managerial decision-making against the background of a large array of environmental information. Consumer cooperation as a whole and its individual business units are multidisciplinary, complex entities. Because of this, not only the multiplicity of risks of consumer cooperation enterprises, but also the complexity of managing them are obvious. In this regard, the organization of an internal risk control system for consumer cooperation enterprises, based on their systematization, monitoring and analysis, is extremely important. External risks are difficult to manage. External risks often appear in the form of newly opening development opportunities that consumer enterprises did not take advantage of due to their specific features. And competitors have made them their competitive advantage. The internal risk control system includes a large arsenal of tools, the use of which will contribute to the efficient use of resources. Rapid response to the dynamics of external risks will increase the sustainability of consumer cooperation enterprises and realize their social mission. V. G. Annenkova Volga Region Cooperative Institute (Branch), of the Russian University of Cooperation, Engels, Russia e-mail: [email protected] E. G. Zhulina (&)
O. B. Mizyakina
N. N. Shakirova Saratov Socio-Economic Institute (Branch) of Plekhanov Russian University of Economics, Saratov, Russia e-mail: [email protected] O. B. Mizyakina e-mail: [email protected] N. N. Shakirova e-mail: [email protected] I. V. Кuznetsova Yuri Gagarin State Technical University of Saratov, Saratov, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_67

625

626

V. G. Annenkova et al.




Keywords Internal control Enterprise risks Digitalization System External risks








Consumer cooperation


1 Introduction As a rule, internal control at the enterprise comes down to conducting an internal audit (Kovalenko 2004; Polskaya 2013; Vasilyeva 2015). Problems arising at consumer cooperation enterprises, associated with the dynamics of factors of the external and internal environment, lead to certain difficulties in the field of strategic management decisions. In this regard, the formation of an internal risk control system for the activities of consumer cooperative enterprises is necessary. Such a system should include the following basic elements: control environment, systematization and risk assessment, internal control procedures, an array of information and communication, and an assessment of the effectiveness of internal control. Since consumer cooperation enterprises, like all participants in entrepreneurship, are open systems, and a large number of environmental factors impact their activities. Environmental factors are macro- and mesoscale factors, as well as systematic factors, i.e., due to the inclusion of the business entity in the system of consumer cooperation. All this gives rise to the complexity and necessity of organizing a system of internal control of external risks in the first place. The purpose of this is to develop integrated management decisions to improve the enterprise’s sustainability and effectiveness.

2 Materials and Methods In the sphere of influence of external (objective) factors of the risk environment of consumer cooperation enterprises, the following negative manifestations are especially acute. 1. The growth of information volumes complicates the decision-making process, in particular due to the imperfection of the cognitive and psychological properties of a person, a high-risk decision-making barrier, and many business development alternatives; 2. Informatization of business processes of enterprises makes them dependent on the constant updating of information systems and technologies, which requires constant investment; 3. The dynamics of consumer tastes lead to changes in market conditions, increased competition in the product market, and the need for constant updating of quality and functional parameters of products. At the same time, the launch of a new product on the market is always accompanied by an increased risk of low demand due to the unfamiliarity of a new product for the consumer;

The Need for Organization of the Internal Control of Risks …

627

4. Over the past five years, real incomes of the population of Russia decreased by 10.8%. According to the Ministry of Economic Development, the growth of real disposable cash incomes of the population will gradually accelerate and will average 2% in 2019–2024. According to the Federal State Statistics Service, in 2018, the average salary was 36,540 rubles after taxes. According to the rating agency, RIA Rating, in 2018, the median salary of a Russian citizen amounted to 26.9 thousand rubles per month. The average, most typical salary of Russians lies in the range of 17–44 thousand rubles per month. Moreover, every fifth worker in Russia receives less than 15 thousand rubles per month. The poverty rate remains above 13%. The poverty rate is projected to average 12% over the next three years. From 2014 to 2018, the proportion of Russians who consider themselves to be middle class fell from 60% to 47%. The results of a survey commissioned by “Sberbank CIB” indicate this. According to the RANEPA, in the Russian Federation, 22% (about 32 million) of Russians live in poverty. Another 35.6% of citizens of the Russian Federation were in the zone of consumer risk (League of Credit Unions 2019, pp. 4–5); 5. Inefficiency of R&D expenses, with their growth. “In the 21st century, with the growth of spending on research and R&D, their effectiveness in different countries remains different. In the United States, with R&D expenditures (the United States ranks 1st in the world, R&D expenditures amount to $ 382.6 billion, or 2.7% of GDP), more than 21% of world scientific production is produced. In Russia, with the growth of R&D expenses (over the past ten years, expenses have increased tenfold, Russia took 8th place in the world), the share of such products is still about 1% in the world market. At the same time, over the past 20 years, the structure of R&D expenditures in Russia has not undergone significant changes; namely, more than ¾ expenses come from the budget and ¼ expenses from the private sector. Whereas abroad, the proportion is inverse. The structure of the research and development sector in the Russian Federation (In 2007: 90% of R&D is in research institutes, 6% of R&D is in enterprises, 4% of R&D is in universities) has changed in favor of universities. Abroad, enterprises have been and remain the main customer of R&D (In the USA, this percentage is 69%; in the EU, this percentage is 64%; in China, this percentage is 62%)” (Intellectual Property Law 2014). In the sphere of influence of internal (subjective) risk factors of the enterprise environment, the following risks can be distinguished. 1. The size of the enterprise, its industry affiliation. In a small enterprise, the ability to withstand risks by introducing innovations in production is much less than that of a large enterprise. As a rule, many consumer cooperative enterprises implement a functioning (or survival) strategy and use their resources inertly enough, without solving the problems of business diversification; 2. The low level of applied equipment and technology, which allows the enterprise not only to generate new intellectual products but also to use them in their own economic activities;

628

V. G. Annenkova et al.

3. Lack of competitive quality characteristics of products and retardation in their updating; 4. Absence or poor use of marketing tools for enterprise development; 5. Inadequate staff qualifications and low interest in the high performance of the enterprise; 6. Information support that does not correspond to modern digital trends; 7. Office of management and organization. For example, this is an unsatisfactory quality of enterprise management. The choice of option and management style is largely determined by the following parameters: the nature and personality of the manager, his/her ability to assess the situation, and the degree of risk. Also, the choice of option and management style is determined by the determination and ability of the manager to make a managerial decision in accordance with the goals of the enterprise, environmental factors, and available resources; 8. Financial resources for development, namely, limited ability to mobilize them from internal sources without prejudice to financing current activities. In addition, financial stability, as a characteristic of creditworthiness, determines the possibility of using borrowed funds for the self-financing of innovative projects. And here, to a greater extent, internal audit and development of a policy for the formation of capital of consumer cooperative enterprises are required (Apsite 2007). Thus, the complex risk of consumer cooperation enterprises is formed under the influence of a number of external and internal factors of economic activity. And the risk situation, as such, always accompanies the activities of the enterprise (Kakovkina 2014, pp. 37–47). It is in a risk situation that an effective system of internal risk control of a consumer cooperative enterprise acquires special importance (Serebryakova 2013).

3 Research Results The effectiveness of the management of the enterprise of consumer cooperation should be carried out, taking into account the impact of the external and internal risk environment. The external and internal risk environment is a set of risks that appear in the form of threats and in the form of unused opportunities but having a similar result, namely, not achieving the goals of the enterprise (Annenkova and Zhulina 2019). The internal risk control system of the enterprise should consist of the following interrelated elements: 1. Development of the goal of organizing an internal risk control system, taking into account the mission, development directions and the specifics of the enterprise’s functioning;

The Need for Organization of the Internal Control of Risks …

629

2. The following are the conceptual, organizational parameters of the internal risk control system: principles, functions, rights, authorities, responsibilities, regulations, and local acts. These acts regulate the order and inclusion of participants in the system’s control and evaluation processes. Here, a clear definition of control objects and subjects is important. Control objects may be risks associated with production resources and the production process itself. Human risks can also be control objects. Human risks include the actions of workers, specialists, and managers of consumer societies—unions that are responsible for the rational and efficient use of production resources; 3. Risk identification and assessment include the following elements: identification of real and potential risks; risk assessment, which involves a risk’s probability of occurrence and degree of negative impact on various parameters of the enterprise; and the development and implementation of systemic (or individual) measures in relation to risk using the appropriate tools of the internal control system; 4. Instruments and procedures for the internal risk control of an enterprise, regulated by internal, local regulatory acts; 5. Information and communication systems for broadcasting information, including a clearly designed mechanism, channels, and vertical and horizontal flows of information. These information flows ensure the transfer of managerial anti-risk decisions and monitor their implementation, feedback, and efficient document management. 6. Monitoring and evaluation of the effectiveness of the internal risk control system of an enterprise. Monitoring and evaluation of effectiveness are carried out in two directions. The first area includes evaluating the effectiveness of the system itself. The second area includes evaluating the effectiveness of anti-risk decisions made based on the implementation of control functions. In general, the effectiveness of the risk control system itself is determined by the degree to which the enterprise goal is achieved. Thus, the system of internal risk control of the enterprise of consumer cooperation can be represented in the form of successive stages of the implementation of the functions of this system (Fig. 1). First of all, the leadership of the consumer society and shareholders should be interested in researching the risks of the enterprise. Undoubtedly, the priority in this is given to management, whose authority is the adoption and implementation of management decisions. Each threat should be analyzed; the probability of a negative event and its degree of influence should be predicted. A competent work plan with each risk should be drawn up. Then, identify methods that will be used to solve problems. We will consider the main problems of research, identification, assessment and risk management in the enterprise of consumer cooperation. Key issues include the following: inconsistency of strategy and business processes; lack of adequate planning; focus on solving problems caused by current risks, instead of those that may arise in the future. Also, the main problems include the incorrect definition of

630

V. G. Annenkova et al.

1. Development of the goal of organizing an internal control system 2. Organizational structure of the internal control system

Feedback

3. Identification and assessment of enterprise risks 4. Instruments and procedures for internal risk control 5. Information and communication system for broadcasting information 6. Monitoring and evaluation of the effectiveness of the internal risk control system

Fig. 1 The system of internal risk control of the enterprise of consumer cooperation

risks; the mismatch between the danger of the threat and the complexity of its assessment; lack of a common point of view among the management, leading to inconsistency in assessing the threat; wrong choice of analysis methods and risk prioritization. Still, the main problems are incomplete identification of possible risks; insufficient experience in managing new types of risks; ineffective or nonexistent risk assessment criteria; a large period of time between identification and decision making to minimize risk. Based on the foregoing, we can conclude that in a market economy, the conduct of economic activity by consumer cooperation enterprises is impossible without the existence of risks. Each company, on its own, determines a set of methods used in the work, and each method leads to certain financial risks. All of these methods require both careful study and the development of methods for timely identification and mitigation of the consequences caused by them. Practice shows that enterprises of consumer cooperation, as a rule, have no internal risk-control system. In this regard, it should be noted that such a system can be organized in one of the following ways: 1. In the form of its own system of internal risk control, the functionality of which is performed by one employee, namely a risk manager, or a specialized unit; 2. Through outsourcing, when the functions of internal risk control are fully or partially transferred to a specialized company or an external specialist in this field; 3. Through using co-sourcing, i.e., along with the existence of a system of internal risk control within the enterprise, in certain situations, external specialists and experts are involved. They are involved in obtaining competent advice and/or developing an anti-crisis program.

The Need for Organization of the Internal Control of Risks …

631

Table 1 Map of the risks of the consumer society (excerpt) Risk

Risk description

Market risks Decrease in sales and purchasing power

Deterioration of the state of the economy, namely: rising inflation, high unemployment, falling real disposable incomes of the population. Decrease in purchasing power of the population Decrease in sales Intensification of competitors in due to changes in the field of diversification of consumer tastes activities and the production of substitute products with competitive advantages Man-made and natural risks Environmental Pollutant emissions safety

Social risks Occurrence of tension among staff Industrial injuries Industrial injuries

Financial risks Interest rate risk

Risk mitigation measures Flexible pricing. The use of various marketing initiatives, such as: special prices for various categories of the population, promotional sessions

Consumer demand marketing research activities Studying the possibilities of producing new types of products and applying new technologies Saving resources, measures to protect the environment, the introduction of recycling of raw materials and non-waste technologies of resources used for production needs

Asset optimization, accompanied by staff reductions, may cause employee discontent

Retraining and transferring laid-off workers to vacant positions formed as a result of diversification of activities

Damage from injuries and diseases of workers of consumer societies received at the workplace

Compliance with legislation on industrial, fire and environmental safety Regular training and certification of employees, industrial control in the field of industrial safety and preventive work in the field of fire safety

Risk of rising interest rates on attracted and attracting borrowed funds

Revision of interest rates in accordance with the terms of loan agreements may be carried out only by agreement of the parties An effective policy for managing the capital structure of a consumer society

632

V. G. Annenkova et al.

The last two options for organizing an internal risk-control system will be effective for large economic entities of the network cooperative business. An effective tool for enterprise risk management, which has received wide practical application, is the development of a risk map (Sukhov 2019). The risk map (of various configurations and details) makes it possible to visualize the whole set of factors that affect the functioning of the enterprise. This has found application in a number of consumer societies. The development of a risk map, with the most objective state of affairs, is carried out on the basis of information and documentation, up to a survey of shareholders, employees of consumer societies, and buyers. Statistical information (in the form of expert reviews, analytical reports, industry studies, macroeconomic forecasts, etc.) is also an information base for risk mapping. For example, we will present the simplest version of a consumer society risk map, in which risks are not only identified and grouped, but their descriptions are given, and mitigation measures are presented (Table 1). The final choice of risks for inclusion in the risk map is up to the risk manager. Thus, the risk map acts as an effective tool for managing the risks of the consumer society. It should be noted that, at present, there are a sufficient number of imported and domestically-produced software products o that solve the problem of automating risk management processes as part of the internal control of the enterprise. For example, the use of Workflow class systems allows one to automate all process operations, as well as collect and catalog the necessary risk information. A software product for enterprise risk analysis, such as RA2 art of risk, is well established. In this software product, the risk management process within the framework of internal control can be customized to the needs of a specific consumer organization. Also, software products such as CRAMM (it implements a comprehensive approach to risk assessment, combining quantitative and qualitative methods of assessment), COBRA—consultative objective and bi-functional risk, buddy system, operational risk builder, risk advisor, and others are well established. This arsenal of software products allows you to automate the process of internal control, analysis, and risk assessment. Such is dine while taking into account the size, specificity, and goals of a particular consumer society. That will allow one to make flexible and effective management decisions.

4 Conclusion Thus, the formation of an internal risk control system for consumer cooperation enterprises is the most active element of their management system. The internal risk control system of enterprises provides an opportunity to timely identify internal and external factors that can affect the sustainability and effectiveness of activities. And it allows you to develop measures to counter them in conditions of economic instability.

The Need for Organization of the Internal Control of Risks …

633

References Annenkova, V.G., Zhulina, E.G.: Digital and entrepreneurial risks of economic security of business in Russia. RISC Resour. Inf. Supply Compet. 1, 93–97 (2019) Apsite, M.A.: Organizational aspects of creating an internal audit service in consumer cooperation. Russ. J. Entrepr. 8(3), 82–85 (2007) Intellectual Property Law: The final document is the recommendations of the participants of the VI International Forum “Innovative Development through the Intellectual Property Market”. Intellect. Prop. Law 3, 8–15 (2014) Kakovkina, T.V.: Internal control system as a means of identifying organization risks. Int. Account. 36(330), 37–47 (2014) Kovalenko, L.A.: Internal control in consumer cooperation organizations (Dissertation of Candidate of Economic Sciences). Novosibirsk, Russia: Siberian University of Consumer Cooperation (2004) League of Credit Unions. Project 1.5 “Strategic plan for the development of credit cooperation in Russia for the period 2019–2022”, Moscow, Russia (2019). http://vkk-journal.ru/wp-content/ uploads/Strategiya-razvitiya-kooperaczii.pdf Polskaya, G.A.: Internal control in consumer cooperation: state and development prospects. Bull. Belgorod Univ. Coop. Econ. Law 1(45), 196–202 (2013) Serebryakova, T.Yu.: On the issue of evaluating the effectiveness of the internal control of a consumer society. Modern Prob. Sci. Educ. 5 (2013). http://science-education.ru/ru/article/ view?id=10720 Sukhov, G.: Risk map: Why is it needed and how to compile? Finance Director (2019). https:// www.fd.ru/articles/157298-zachem-nujna-karta-riskov-kompanii-i-kak-ee-sostavit Vasilyeva, M.B.: Features of the organization of internal control and audit in consumer cooperation. Econ. Soc. 2(15), 944–948 (2015)

Process Approach in the System of Management of Intellectual Property in Consumer Cooperation Enterprises Tatyana T. Myagkova , Sergey V. Istomin , Natalya A. Voronina , Inna V. Кuznetsova , and Eldar I. Ablyazov Abstract Currently, one of the competitive advantages of enterprises and organizations of consumer cooperation are high-quality products, goods, and services. Following the ISO 9000 quality management standards, quality management is a system of interrelated rules, specialists, and measures to improve the efficiency of the business and ensure the legality of the financial and economic activities of enterprises. The key tool for the development of consumer cooperation enterprises is intellectual capital and intellectual assets. The existing standards of the series “Intellectual Property and Innovation” organically include the management of the intellectual property in the quality management system of consumer cooperative enterprises, and determine the focus of management on managing the updating processes of all elements of entrepreneurial activity. Ensuring the effective management of the intellectual assets of enterprises of consumer cooperative should be systematic. A subsystem that, as an element of enterprise management, ensures the achievement of the general goal should be created. Such a subsystem can be an intellectual property management system. Modern digital trends make it possible for consumer cooperation, which has a diversified production infrastructure and the T. T. Myagkova (&) Volga Cooperative Institute (Branch) of the Russian University of Cooperation, Engels, Russia e-mail: [email protected] S. V. Istomin Volga Inter-Regional Branch of All-Russian Research Institute of Labor Economics and Protection of the Ministry of Labor of Russia, Saratov, Russia e-mail: [email protected] N. A. Voronina
I. V. Кuznetsova Yuri Gagarin State Technical University of Saratov, Saratov, Russia e-mail: [email protected] I. V. Кuznetsova e-mail: [email protected] E. I. Ablyazov Saratov Socio-Economic Institute (Branch) of Plekhanov Russian University of Economics, Saratov, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_68

635

636

T. T. Myagkova et al.

optimal combination of activities taking into account territorial specifics, to apply a process approach for the effective management of the intellectual property and the whole diversity of business processes, ensuring sustainable development and the realization of its socially-oriented goals. Keywords Intellectual property management of consumer cooperation Process approach





Quality management
Enterprises

1 Introduction Effective resource management is one of the conditions ensuring the competitiveness of consumer cooperative enterprises, which is characterized by the diversified nature of the activity and the ability to apply intellectual developments and assets comprehensively with maximum results. The management of the intellectual property (IP) can be fully characterized as the management of the competitiveness of consumer cooperative enterprises since it not only forms specific competitive advantages but also flexibly uses them in a market environment. In this regard, the process approach in the intellectual property management system of the enterprise of consumer cooperation is a tool for the formation of competitive advantages. Currently, in the system of consumer cooperation, aspects of intellectual property as a tool for innovative development have not been sufficiently studied, and the application of the process approach to managing the activities of enterprises is fragmented and isolated yet economically and socially justified (Rozdolskaya 2004; Muravyova and Kurochkina 2011; Khusnutdinova 2013). Modern digitalization of the economy, high competition, advantages, and the social orientation of consumer cooperation activities make it extremely relevant to consider the intellectual property management of consumer cooperation enterprises based on the process approach and, on this basis, increase the efficiency of the use of all its resources.

2 Materials and Methods Following the provisions of ASMK.009MU-2012, intellectual property management is a methodology and practice for managing the organization’s resources in terms of property (exclusive) rights in order to ensure the legitimacy of financial and economic activities, increase the efficiency of entrepreneurial activity, and generate profit by adding value to the results of scientific and technical activities, marketable products, services, and customer service (Standardinform 2012). The system of managing intellectual property, like any system, is characterized by its purpose, structure, composition of elements, and the relationships between them (Kharisova 2007, pp. 67–70; Kuznetsov and Sagieva 2008, pp. 9–15; Bastrikova 2009, p. 27; Korchagin 2012; Zhulina et al. 2016, pp. 67–71). The system of managing

Process Approach in the System of Management …

637

intellectual property is understood as the totality of the organizational structure, responsibility, authority, procedures, methods, processes, and resources adopted by the enterprise management as a means for orderly and efficient IP management (Maslenchenkov 2004; Anisimov et al. 2011; Avilova and Strekalova 2012, pp. 271–276; Puchkov 2012; Verba et al. 2013, p. 8). At the same time, the capitalization of business processes using IP appears as an economic benefit obtained as a result of the commercialization of IP objects in the form of an increase in non-current assets and liabilities of the organization as a result of innovative activities (Koval 2010, pp. 32–34), which can be entirely attributed to consumer cooperation enterprises.

3 Results An effective IP management system at a consumer cooperative enterprise will be achieved when, following ISO 9001 (Stndartinform 2008), it includes the following elements. 1. “Intellectual Property Management Policy.” This document defines the goals, objectives, and principles of the intellectual property management of the enterprise, the distribution of rights, powers, and responsibilities. 2. The process architecture is consistent with the Intellectual Property Management Policy. 3. A documentation model with description and rules of business processes. 4. The mechanism for implementing the requirements regulated by the regulatory framework. 5. Trained staff of the organization. This approach to the formation of the IP management system ensures its integration into the quality management system of the enterprise of consumer cooperation.

4 Discussion The goal of IP management is the effective commercialization of the IP, the achievement of high competitiveness, and the implementation of innovative policies based on the use of monopoly rights to the results of intellectual activity (IA) in order to satisfy the current and future needs of consumers of high-quality products. The fundamental goal of IP management in a simplified form consists of the following interconnected components (sub-goals): improving product quality and productivity, cost reduction, increasing competitiveness, customer satisfaction,

638

T. T. Myagkova et al.

profit maximization, compliance with legislation, the realization of innovative potential, etc. The strategic objectives of management of the enterprise IP should be: analysis and systematization of the use of IP objects; the identification of methods and forms of legal protection of IP objects; the analysis and evaluation of IP objects and their ranking by level of significance to achieve the goals of the enterprise; legal protection of IP objects and suppression of violations of exclusive rights; the commercialization of the IP; and the in-house creation of IP by an enterprise, its accumulation, and its multiplication. The principles of IP management in an enterprise are as follows: understanding the role of IP in ensuring the competitiveness of an enterprise; maintaining balance, fair distribution of interests, and rights of subjects of IP law; quality assurance of the enterprise IP; prioritization of the selection of IP objects to increase the competitiveness of the enterprise; the use of internal reserves for the mobilization of IP; the identification of potentially necessary IP objects for the enterprise; continuous provision of information on new results of intellectual activity in the external environment; ensuring the protection of rights to the IP of the enterprise; ensuring the necessary flow of investment in the development and acquisition of IP; audit and control over the use of IP at the enterprise; assessment of the effectiveness of IP management; and the formation and development of a competent, creative team of employees creating, using, and managing enterprise IP. Based on the “Intellectual Property Policy” developed at the enterprise, a document, “The Guide to Intellectual Property,” is being prepared. It summarizes the main provisions governing activities within the framework of IP management: delineation of areas of responsibility, requirements for the IP management service, the description of procedures for ensuring the quality of IP and the effectiveness of its use, the procedure for document management of IP management, a description of the complaints, etc. Within the framework of the IP management system, the enterprise should determine the processes necessary to ensure the effectiveness of the IP management system and its applicability to the entire enterprise. The architecture of the processes of the IP management system can be different, determined by the weight and significance of their contribution to the formation of product quality and the necessary degree of controllability of the system. The international standard ISO 9001:2000 provides four groups of processes related to the quality management system, which can be used for IP management but in the configuration corresponding to the management object: management processes of management; resource provisioning processes; product life cycle processes; and processes of measurement, analysis, and improvement (Table 1). Each of the processes consists of subprocesses, in which certain interrelated managerial influences and feedback are also carried out. In our opinion, it is necessary to include in the given system of IP management processes the following subprocesses: “The Formation of the IP policy,” “The assessment of risks of IP,” “The assessment of the quality of IP,” “The management of conditions for

Process Approach in the System of Management …

639

generating IP,” “The management of inappropriate IP,” and “The improvement of the management system of IP.” Let us consider the subprocess “The Assessment of the IP risks (Fig. 1). The processes of IP management can be divided by input and output parameters (Shulgin 2008, pp. 24–29). In this case, IP management is considered as a single process, consisting of subprocesses of entry and exit to the system. The choice of criteria for the separation of processes is determined by the management of the enterprise and the specifics of its activities. For each process and subprocess at the enterprise, appropriate regulations should be developed. Nevertheless, the considered approaches are universal and can be used for enterprises of any field of activity. In order to implement an effective system for IP management, regulatory documents that describe and regulate the business processes of the enterprise system for IP management are required. It is necessary to develop a system of normative, organizational, accounting, and financial document management of industrial intellectual and scientific-technical activities. This allows records of each IP object to be kept as part of intangible assets with optimal accounting value, and ensuring the protection of intellectual property rights of the enterprise with necessary evidence. The completeness of regulatory documentation is determined by the types of IP objects of the enterprise and the scope of its activities (Zhulina and Ablyazov 2016, pp. 232–234). During monitoring, deviations are determined, and their causes are recorded for further adjustment of regulatory documents of IP management and adjustment of employees. The obtained results are documented in the relevant procedures of the

Table 1 IP Management Processes 1. Management processes Interaction with customers The formation of the IP policy Planning Distribution of responsibility, authority, and exchange of information Management review The assessment of the IP risks The assessment of the IP quality Document Management 3. Product Life Cycle Processes Product life cycle planning Consumer demand processes Design and development Procurement Monitoring and measurement based on digital technology and software products Processes for Using IP Production

2. Resource provision processes HR management Infrastructure management The management of the IP generation conditions The management of the production environment

4. Measurement, analysis, and improvement processes Monitoring and measurement Inappropriate IP Management Data analysis Improving IP Management System: – continuous improvement – corrective actions – preventive actions

640

T. T. Myagkova et al.

IP Risk Assessment Criteria

Criteria 2

Criteria 1

Criteria n

Does not match

Risk 1

Match

Risk 2

Commercial IP risk

Warning actions

Corrective action

Fig. 1 The model of the subprocess “IP Risk Assessmentˮ

IP management system. The more processes are started, the more possible is a complete picture of the implementation of the IP management system by the number of matches and inconsistencies to the desired results. Further, the enterprise determines the need for certification of IP management (IP quality management). It is essential to understand that each employee is the owner and leader of a process or subprocess, especially a manager. The manager, as the owner of the process, measures and evaluates the latter (or their combination) with the following organization of activities to increase the efficiency of the whole process (Robson and Ullah 1997). Therefore, the role of the owner of the process is not only to manage the process or subprocess, but, to a greater extent, to do everything necessary to ensure productivity, efficiency, and adaptability of the whole process and each of its components to new conditions. In this regard, the owner of the process is responsible for its results and the results of the process control.

Process Approach in the System of Management …

641

5 Conclusion The process approach in the intellectual property management system of the consumer cooperation enterprise will significantly reduce the costs associated with the use of intellectual property, strengthen the potential of competitive advantages, and ensure the market stability of the enterprise and its financial results. The key fact is that even with the introduction of only a part of the elements of the process approach, it can significantly increase the effectiveness and efficiency of the management system as a whole and the intellectual property management system of consumer cooperation enterprises in particular.

References Anisimov, Yu.P., Tupikin, V.F., Dudkin, M.N., Gryaznova, T.M.: The Management of the Intellectual Property. Nauchnaya kniga, Voronezh (2011) Avilova, V.V., Strekalova, G.R.: A process approach to corporate intellectual property management. Bull. Kazan Tech. Univ. 15(12), 271–276 (2012) Bastrikova, O.I.: Intellectual property management of an industrial enterprise (Abstract of the Dissertation of Candidate of Economics). Ufa State Aviation Technical University, Ufa, Russia (2009) Kharisova, G.M.: Intellectual property management in the enterprise. Russ. J. Entrepreneurship 8 (6), 67–70 (2007) Khusnutdinova, A.M.: The development of intellectual capital as a factor in increasing the competitiveness of the system of consumer cooperation in the Republic of Tatarstan (Dissertation of Candidate of Economics). Russian University of Cooperation, Moscow, Russia (2013) Korchagin, A.A.: Development of the intellectual property management system of industrial enterprises. (Abstract of the Dissertation of Candidate of Economics). Moscow State University of Economics, Statistics, and Informatics, Moscow, Russia (2012) Koval, L.S.: Intellectual Property – XXI Century. Russian State Institute of Intellectual Property, Moscow (2010) Kuznetsov, V.I.: Intellectual property management in companies. Stat. Econ. 4, 9–15 (2008) Maslenchenkov, Yu.S.: Managing Business Processes of the Corporate Structure. International Moscow School of Finance and Banking, Moscow (2004) Muravyova, K.A., Kurochkina, A.A.: The place of innovation in the system of consumer cooperation: a network approach. St. Petersburg Polytech. Univ. J. Eng. Sci. Tech. 3, 129–132 (2011) Puchkov, N.N.: Intellectual property management of industrial enterprises of the Russian electric power industry (Abstract of Dissertation of Candidate of Economics). Moscow Academy of Entrepreneurship under the Government of Moscow, Moscow, Russia (2012) Robson, M., Ullah, F.: Practical guide to business process reengineering. Audit, UNITI, Moscow, Russia (1997) Rozdolskaya, I.V.: Innovative management of consumer cooperation organizations: Essence, content, basic elements. Cooperative education, Belgorod, Russia (2004) Shulgin, D.B.: Models of business processes in the field of IP. Bus. Manage. Law 2, 24–29 (2008) Standardinform: Quality management systems. Requirements. GOST R ISO 9001-2008, 13 November 2009. Standartinform, Moscow, Russia (2009)

642

T. T. Myagkova et al.

Standardinform: Intellectual property management. Creation (acquisition), recognition, accounting, and use of the intellectual property. Methodical instructions. Public regulations, 1 September 2012. Standardinform, Moscow, Russia (2012) Verba, V., Petrova, I., Guk, V.: The system of intellectual property management as a factor in supporting the development of an industrial enterprise. Intell. Prop. Ind. Prop. 4, 5–12 (2013) Zhulina, E.G., Ablyazov, E.I. (eds.): Theoretical and Practical Aspects of the Development of Scientific Thought in the Modern World. OOO “Omega-Science” (Ufa), Novosibirsk (2016) Zhulina, E.G., Khachatryan, G.A., Degteva, E.V.: The study of intellectual and innovative potential as a competitive advantage of business in the information society. Bus. Strategy 1, 67–71 (2016)

Competitiveness of the Organization of Consumer Cooperation: Effective Management in the Modern Market Sector Konstantin A. Kartashov , Nadezhda A. Ovcharenko , Taisiya N. Sidorenko , Elena V. Smirnova , and Elena E. Udovik Abstract The prevailing modern system of cooperation took a long time to form. And it is predetermined by the historical perspective of the development of the state system and the legislative field, economic potential, social security and social infrastructure. This was reflected in the types and types of cooperation in the countries of the world. The article discusses the role of the cooperation system in the development of the global economy in general and consumer cooperation in Russia in particular. The paper presents the main problems of the Russian system of consumer cooperation. According to the authors, these problems can be eliminated by developing a common strategy for economic growth in order to meet consumer needs, including the social component. The article proposes a system of cooperation of consumer cooperation with society and the state in procurement, production and marketing activities. Subsequently, this determines their competitiveness and will improve the management efficiency of the organization of the cooperative sector. The authors note that these areas involve training the population in hard-to-reach settlements and areas of financial literacy, based on the volunteer movement of practical and educational workers. The proposed activities may contribute to the growth of knowledge in the field of research on social and economic problems of consumer cooperation.







Keywords Cooperative movement Competitiveness Procurement and supply processes Consumer cooperation organization management




K. A. Kartashov (&)
N. A. Ovcharenko
T. N. Sidorenko Krasnodar Cooperative Institute (Branch) of the Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected] N. A. Ovcharenko e-mail: [email protected] T. N. Sidorenko e-mail: [email protected] E. V. Smirnova
E. E. Udovik Kuban State Technological University, Krasnodar, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_69

643

644

K. A. Kartashov et al.

1 Introduction There were significant changes in the social development of the world community at the end of the XVIII century. The policy of capitalism was directed against state support for the poor, working population. It was believed that population decline (disease, hunger, war, abstention from the poor and much more) was a natural course of events—the nature of being. More and more workers, peasants and farmers became hostages of loan capital. This required the identification and transformation of the established infrastructure of relationships and, as a result, the unification of production efforts in the sale of products—the capital. Thus, the cooperative movement and the first system of cooperation were born. There was a change of reference from the capitalist system to the socialist system. In 1775, the first cooperative society was born in Birmingham, England: the building society of Great Britain. In France, workers united; in Germany, savings banks appeared (supply, credit and marketing cooperatives). In the mid-80–90s, there was a significant increase in the number of cooperatives in Germany, Canada and Japan. At the beginning of the XIX century, there was a rapid development of foreign trade and the formation of internal values of the country’s cooperative system. These values are expressed in supporting social strata, improving the living conditions of members of cooperatives. In Tsarist Russia, a system of cooperation appeared during the abolition of serfdom in the late 19th century (1861). In world practice, there are many diverse cooperative types. The following types of cooperatives appeared: consumer cooperative societies and production cooperatives (production cooperatives and production services cooperatives). Also, there were such cooperatives as marketing cooperatives, cooperative farming societies and rural cooperatives, housing cooperatives and credit cooperatives. It should be noted that, in each country, the system of cooperation and the cooperative movement developed in different ways, including the peculiarities of the state system, regulatory and legislative fields and state socioeconomic policies. In the modern world economy, more than 12% of the world’s population carry out their activities in 3 million cooperatives. Almost 10% of the economically active population take part in the cooperation system, and the total turnover of three hundred leading cooperatives is more than $2.1 trillion (Official site of the International Co-operative Alliance, n.d.). This is comparable to the GDP of leading countries, which indicates the role and importance of the cooperative sector in the global economy. The basic principles, directions and conditions for the functioning of cooperation activities are set out in the corporate Charter (Code), according to which the following becomes apparent. A cooperative is a voluntary and open association with democratic control of identical economic entities and strategic positioning of entrepreneurship (Nelson et al. 2016). Moreover, value guidelines are built into the

Competitiveness of the Organization of Consumer Cooperation …

645

business system, the media, and public-private cooperation. Their deterministic direction is the development of both economic indicators and the social infrastructure and social security of society as a whole. The purpose of the study is to identify the main problems of the development of Russian consumer cooperation and proposals to ensure the competitiveness of these organizations in the market sector.

2 Materials and Methods The theoretical emergence of cooperation as an independent area of scientific knowledge began in the second half of the XIX century. The fundamental theoretical and methodological foundations of cooperation were laid in the works of W. King, E. Norson, R. Owen, F. Raiffeisen, A. Sapiro, and C. Fourier. An understanding of the essence, content, and nature of a cooperative organization is described in the writings of N. P. Ballin, A. O. Vasilchikov, V. P. Vorontsov, E. R. Vreden, A. A. Isaev, and N. D. Kondratyev. An understanding of the essence, content, and nature of a cooperative organization can be found in the writings of S. N. Krivenko, V. F. Luginin, V. S. Sadovsky, F. G. Turner, V. N. Khitrovo, A. V. Chayanov, A. I. Cheprov, F. A. Shcherbina, A. V. Yakovlev, etc. The materials of the work are based on studies of applied and fundamental works of Russian and foreign authors, official data of the Center of Russia, and public information. The work presents well-known methods, such as abstract-logical judgments, comparisons and generalizations, classification, analysis and synthesis.

3 Results At the end of the 80s of the XX century, during the Union of Soviet Socialist Republics (USSR), the system of cooperation and problems of social infrastructure was considered a problem of capitalism. All other problems were connected with the technical and economic plan and the state plan of the USSR (Blokhin 1975). However, foreign economists consider the importance of not only economic performance and social security, but also the development of social infrastructure (Youngson 1967) of the population and society as a whole. In the institutional environment of a market economy—in the system of cooperation—obtaining the financial and economic effect as the goal of the activity is the lack of domestic policy and strategic values of the cooperative movement. In the system of cooperation, the economic result is a means of achieving a common goal and missions of cooperation. In Russia, consumer cooperation organizations play an important role in the country’s social development and the creation of the state’s social infrastructure. The results of the activities of the organization of consumer cooperation for September 2019 are presented in Table 1.

646

K. A. Kartashov et al.

Table 1 Indicators of security and effective activity of consumer cooperation in Russia as of September 2019 The activities of the organization of consumer cooperation in groups

Result as of September 2019

1. Consumer cooperation organizations Retail chains, units 33,000 Catering, units 4,000 Production workshops, units 4,000 Reception and collection points, units 9,000 2. Educational system of consumer cooperation The number of organizations and branches of educational institutions 80 that are part of consumer cooperation, units Number of students, people 70,000 3. Cooperative healthcare system Number of doctors and specialists, people 80 The area of own territory allocated for the sanatorium, ha 35 Number of rooms in sanatoriums 600 Number of vacationers annually, people 70,000 4. The numerical composition of the organization of consumer cooperation Number of shareholders, people 1,500,000 Number of consumer societies, units 2,300 The number of employees of consumer cooperation organizations, 130,000 people Source (Official site of the Centrosoyuz of the Russian Federation n.d.)

According to Table 1, it becomes clear that the role of consumer cooperation in Russia is significant. In addition to production activities and sales of products (goods, work, services), the procurement (supporting activity) system is one of the most important in the life of society and consumer cooperation (more than 9 thousand transceivers procurement centers). It should be noted that during the Union of Soviet Socialist Republics, there were more than 18 thousand such centers. At the present stage of development, the main problems of consumer cooperation organizations are the following: • Problems of procurement, supply activities; • Problems of product sales (market and distribution channels) and significant competition in the markets; • Problems of providing information and communication technologies to consumer cooperation organizations and individual territories; • Problems of material and technical base and their infrastructure support; • Problems of coordination and distribution of resources (problems of management in an economic entity) in the activities of consumer cooperation organizations.

Competitiveness of the Organization of Consumer Cooperation …

647

To overcome the above problems, we consider it reasonable to present the development of a strategy for the economic growth of the organization of consumer cooperation, which contains the following areas (Syroizhko and Golikova 2015): 1. Existing markets include the following: (a) The growth of the organization of consumer cooperation in existing markets; • Increase market share; • Consumption intensification; • Brand support. (b) New products development includes the following: • Adding new features; • Product expansion in new markets. 2. New markets include the following: (a) Market expansion includes the following: • Geographic expansion; • Entering new markets. (b) Diversification is divided into: • Related; • Unrelated. 3. Integration includes a vertical and horizontal integration strategy. The procurement strategy of the organization of consumer cooperation is one of the important and basic elements of their development in the overall development strategy. New markets make it possible to improve the capabilities of an economic entity by interacting with peasant farms and subsidiary farms (Ragulina et al. 2020). As a result, this will lead to the development of social infrastructure, an objective determinant of the development of the processing industry system in the system of consumer cooperation. Moreover, horizontal and vertical integration allows you to streamline the entire process (from procurement to production to sales activities). Firstly, this will solve the problem of surplus food products from subsidiary, peasant farms. Secondly, this will eliminate the problem of the procurement and supply process in the organization of consumer cooperation. Thirdly, it will solve the issues of unsteady and illegal trade. Table 2 presents and summarizes the indicators of analysis and evaluation of procurement and supply activities of the consumer cooperation organization. We propose improving procurement activities by reciprocating the participation of consumer cooperation organizations involved in public catering for municipal budgetary educational institutions. The educational system of cooperation has a

Relative measure of coordination

Relative intensity indicator

The specific weight of each group of raw materials, etc. Analysis of the range of procurement products

The amount of necessary raw materials, semi-finished products

Purchase of material resources (raw materials, materials, products)

Analysis and evaluation indicators

nn dn 100

P

dn is the specific gravity in% of each item in the procurement group of products

C is the annual cost of organizing the procurement, delivery and storage of stocks; A is the cost of organizing one order for the supply of the purchased lot; V is the necessary need for materials, raw materials, semi-finished products of a certain type; P is the unit price of raw materials, materials; H C is the cost of storing a unit of goods, raw materials, materials, etc. Qn is the amount of necessary procurement material, raw materials, etc.; n is an individual rate of expenditure per unit of output; q is the number of required products, units; Nav is a weighted average batch of raw materials, materials, monetary units; qtotal is the total amount of raw materials needed, etc.

Note

is the level of the indicator planned for a subsequent period of time; level of the indicator achieved in the current period of time

– is the

ABC analysis allows you to see the largest% of the result of the procurement and sale of products, which is provided by a lower percentage of costs XYZ-analysis will identify priorities in procurement and accounting for volume fluctuations OПИ = The indicator characterizing the phenomenon The indicator characterizing the propagation environment of the phenomenon

Ncp ¼

ðnqÞ Qn ¼ 1000

Calculation formula

Table 2 The indicators of analysis and evaluation of procurement and supply activities of the organization of consumer cooperation

648 K. A. Kartashov et al.

Competitiveness of the Organization of Consumer Cooperation …

The purpose and sources of financing the organization of consumer cooperation

Meeting the needs of society, socioeconomic development

Activities of the organization of consumer cooperation

Procurement development program

649

Procurement, production, trade and other activities

Forms of state support for consumer cooperation

The procurement base and objectives of the development of consumer cooperation

Formation of consumer cooperation funds

Cashback depends on the conditions and represents the crediting of the amount of the refund of money or other property

Performance analysis and risk assessment

Support for the production and sale of quality products based on procurement activities of the organization of consumer cooperation

External property contributions (share)

Distribution of income in proportion to the share and unused limit

Fig. 1 Management organization of the consumer cooperation system (summarized and proposed by the authors)

significant number of graduates of catering technologists. In our opinion, this will improve the food quality in the proposed municipal organizations. Figure 1 presents a simplified management model of the consumer cooperation system’s organization. The next recommended solution is for practical volunteers and employees of higher education institutions to implement a financial literacy system for the rural population. This will allow citizens and entrepreneurs to skillfully use and rationally distribute and redistribute financial instruments and to know about and apply various financial products. None of the above measures can eliminate the problems with the consumer cooperation system without information and communication technologies and the

650

K. A. Kartashov et al.

development of the digital economy as a whole. One of the strategic directions for the state’s socioeconomic development is the formation of a digital economy and society.

4 Discussion The Civil Code of the Russian Federation divides cooperatives into consumer (part 1, article 123.2 and article 123.3) and production (part 1, article 106.1 and article 106.2). The first type provides share contributions to the cooperative and the possibility of labor activity in it. The second type covers labor contribution to production and other property and shares participation in the activities of an economic entity. Moreover, there is no general definition of a cooperative in the legislation. In our opinion, this is due to specific features, different purposes of creation and their attribution to taxation regimes in Russia. However, there are common signs, such as the voluntary association of citizens on the basis of shares of members of the cooperative. In the concept of development of the consumer cooperation system for 2017– 2021, it is noted that the union of the cooperative movement is supposed to have a greater impact. The concept also involves the creation of a single regulatory normative act (the Cooperative Code, the Law on Cooperation) for the cooperation of various forms of cooperatives. The purpose of this law is to obtain a synergistic effect from the development of the cooperative sector (Centrosoyuz of the Russian Federation 2016). This circumstance will allow for an intensification of the supply processes of the organization of consumer cooperation based on interaction with subsidiaries, peasant farms and the population of the district and region. Improving the technology of cooperation is as follows. The delivery of food products by subsidiary, peasant farms and the population to the cooperation system exempts them from registration as an individual (entrepreneur without the formation of a legal entity) or legal entity. The above categories, which surrender only the surplus of their products, are exempt from income tax because they have no goal of generating income, i.e., profit. This will eliminate the problem of procurement and supply activities in consumer cooperation organizations. In our opinion, the creation of a cooperative code will allow for integrating the activities of the organization of the cooperation system into the global structure of the cooperative movement. The proposed activities are aimed at ensuring the competitiveness of consumer cooperation enterprises and improving management efficiency in the modern market sector. The proposed measures to address the problems of the functioning of consumer cooperation suggest the following areas:

Competitiveness of the Organization of Consumer Cooperation …

651

• To develop a program and goals for the development of procurement and supply activities in a region and country by consumer cooperation organizations; • To provide forms of state support for the organization of consumer cooperation in the procurement, production and marketing activities; • To use well-known methods of analysis and assessment of economic efficiency and possible risks in the activities of consumer cooperation; • To ensure the procurement, supply process with the necessary conditions and a basis for the reception, storage and processing of products by consumer cooperation organizations; • To amend the legislative field on duties and responsibilities in the interaction of consumer cooperation organizations with the population in order to sell quality products in the food sector; • To provide special status in the procurement sector to consumer cooperation organizations; • To introduce financial literacy of the population and the organization of consumer cooperation in order to effectively manage finances and financial resources in rural areas and throughout remote areas of Russia.

5 Conclusion Satisfying the needs of consumers (i.e., society) is the basis of the state and its regions’ economic development. This determines the objective need for the development of social security and social infrastructure. Consumer cooperation organizations are called upon to solve the socioeconomic problems of remote territories and cooperation with the population in the procurement sector. However, state support in the supply, production and implementation activities of consumer cooperation organizations. The interaction between both will ensure competitiveness and increase the importance of the organization’s management system for that of the latter. The management system of the organization is aimed at the effective and efficient activities of an economic entity.

References Blokhin, Yu.V.: On the essence of infrastructure, the composition of its industries and their classification. Ekonomika, Moscow, USSR (1975) Centrosoyuz of the Russian Federation: Decree of the Council of the Central Union of the Russian Federation “On approval of the Concept of development of the consumer cooperation system for 2017–2021”, 14 September 2016, No. 5-c, Moscow, Russia (2016) Nelson, T., Nelson, D., Huybrechts, B., Dufays, F., O’Shea, N., Trasciani, G.: Emergent identity formation and the co-operative: Theory building in relation to alternative organizational forms. Entrepreneurship Reg. Dev. 28(3–4), 286–309 (2016)

652

K. A. Kartashov et al.

Official site of the Centrosoyuz of the Russian Federation: About the Centrosoyuz of Russia (n.d.). https://rus.coop/ru/about/ Official website of the International Co-operative Alliance: Facts and figures (n.d.). https://www. ica.coop/en/cooperatives/facts-and-figures Ragulina, J.V., Bogoviz, A.V., Lobova, S.V., Alekseev, A.N., Pyatanova, V.I.: Strategy of increasing the global competitiveness of Russia’s economy and Russia’s becoming a new growth vector of the global economy. In: Lecture Notes in Networks and Systems, vol. 73, pp. 203–210 (2020) Syroizhko, V.V., Golikova, G.V.: Conceptual approaches to the development of procurement activities of consumer cooperation of the Voronezh region. Reg. Econ. Theory Pract. 1(376), 26–35 (2015) Youngson, A.J.: Overhead Capital: Study in Development Economics. Edinburgh University Press, Edinburgh (1967)

Management Problems in Cooperative Platforms and Traditional Cooperatives Oksana A. Konnova, Irina V. Minchenckova , Vera A. Drobisheva , Ludmila A. Mityurnikova , and Elena N. Podsevalova

Abstract Digital platforms connecting service providers to consumers create a new model of business and society. The so-called “joint economy,” based on breakthrough technologies, is radically changing the reality of traditional sectors of the economy, i.e., transport and accommodation. The platforms were based solely on financial results, paying little attention to the social and environmental aspects of their activities. Alternatively, another movement called platform-based cooperativism came about as a result of the work of cooperative developers and scholars who tested an alternative platform model. In this regard, this study analyzes management aspects in cooperative platforms and traditional cooperatives based on the practice of digital participation. Our goal is to compare traditional and platform cooperatives in terms of communication, transparency, co-creation of services, and decision-making. Document analysis methods are basic. The results show that both cooperative platforms and traditional cooperatives take the insufficient initiative in digitalization compared to the opportunities offered by the literature. Keywords Digital participation Management


Cooperative platforms
Cooperatives


O. A. Konnova (&)
I. V. Minchenckova
V. A. Drobisheva
L. A. Mityurnikova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] I. V. Minchenckova e-mail: [email protected] V. A. Drobisheva e-mail: [email protected] L. A. Mityurnikova e-mail: [email protected] E. N. Podsevalova Russian State University of Tourism and Service, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_70

653

654

O. A. Konnova et al.

1 Introduction The beginning of the 21st century was marked by the rapid spread and growth of the phenomenon called the collaborative economy. This new model of business and society makes extensive use of digital platforms, which radically changes the reality of different traditional sectors. At present, digital platforms are the most valuable and demanded by many organizational and legal forms of the economy, society, and informal groups. This interest is explained by the fact that digital platforms, facilitating, accelerating, and cheapening exchanges, can involve dispersed groups of people in their organizational network and allow them to collaborate or exchange resources in various ways. The practice of the platforms is almost entirely based on economic activity, and many of them operate on a small scale and an equitable basis, identifying themselves as new forms of social business (Dervojeda et al. 2013). However, the commercial nature of the platforms raises some criticism regarding their management, as well as questions about how value is created and assigned. If the platforms receive value-generating assets from users, then the profit is assigned to a limited group of platform owners. Regulatory gaps allow large multinational platforms to engage in unfair competition with existing enterprises. Other problems relate to insufficient consumer and employee protection on these new and still unregulated platforms, which also causes criticism and concern. In other words, the collaborative economy, accompanied by digital platforms, is imperfect, and critics emphasize the new movement cannot retain power for its owners: power continues to concentrate, even if people unite (Martin et al. 2017). Scholars, specialists in the field of cooperative organizations, and Internet activists have developed an alternative movement and tested an alternative platform model, which they called platform cooperativism. Conceptually, the goal is to facilitate exchanges more based on solidarity, reciprocity, and the desire to develop strong bonds between people. Cooperation in its form is more cooperative than competitive because the relationship between equal people is based on shared values and the idea of a positive communal impact (Schneider 2018a, b; Scholz 2016). Following the United States, which became the homeland of several global platforms, countries of the European Union show interest in this phenomenon. The European Commission has only recently announced an official position on a joint economy based on three main reasons (European Union: European Commission 2016c). Firstly, the economic potential of the business, in 2015, had increased and reached 28 billion euros. Secondly, they noted the empowerment of European consumers—consumers are interested in the benefits they receive in the form of reduced prices and savings (European Union: European Commission 2016b). Thirdly, the emergence of new markets was noted—new businesses can harness the potential of these rapidly growing markets, which impacts employment.

Management Problems in Cooperative Platforms …

655

The activities of cooperative platforms have their specifics and require in-depth discussions and thorough study. Traditionally, the existing cooperative organizations, for their part, also invest in the digitalization of their business. However, the issues of their democratic governance and the participation of members in the digitalization process have not yet been sufficiently considered. The purpose of this study is to analyze democratic governance in cooperative platforms and traditional cooperatives based on the practice of digital participation.

2 Materials and Methods This study analyzes traditional and platform cooperatives, comparing them in terms of governance, identifying their capabilities, and proposing ideas for better democratic governance in a digital context. The purpose of the study is to reveal the problems of management and of the participation of members in cooperative platforms and traditional cooperatives based on the practice of digitalization. In this study, the main method is the analysis of documents and subject literature, which is still a fast-growing list. The cooperative platform, as an alternative model, coincides in its guidelines with the target orientation of traditional cooperatives. Both movements are based on democracy and joint ownership, but people connected to the Internet and platforms do not necessarily know cooperativeism. Although the links between the joint economy and cooperativeism are reliable and have great potential, there are still a lot of thematic issues that need to be studied for best practice. For traditional cooperatives, new opportunities are opening up in the digital age, in particular, in the way members of cooperative platforms make decisions. Management and participation topics are important as they explain what makes cooperative platforms different. At the same time, traditional cooperatives have more experience working on these topics, but they invest in digitalizing their business processes, and not in cooperative identity. If traditional cooperatives have a specific location, platform cooperatives are associated with a digital platform and often do not have a physical location for cooperative users or participants. In this regard, the focus of this study is on communication and transparency, the provision of services, and decision-making.

656

O. A. Konnova et al.

3 Results Nowadays, digital platforms offer digital services or physically facilitate the services provided. Digital platforms have a positive impact on society and territories. They allow for stimulating not only a different level of involvement and use of workers and consumers, but also introduce new forms of interaction into the classical model of cooperation and positively influence management and participation (Vandaele et al. 2019). The joint economy is seen in developed countries (USA, UK, France, etc.) as an interesting novelty and an opportunity to develop much-needed innovations in the cooperative sector. Cooperatives defended their traditional areas for a long time and were the first developers of a specific model of entrepreneurship, which is based on the principles of cooperation, participation, increasing the value of people and public assets, etc. A modern joint economy leads to important changes and transformations. As a result, cooperatives feel the need to update their models in order to adapt to changes and prevent the risk of losing positions and important opportunities. Researchers emphasize the urgent need for cooperatives, in particular, to catch up with new digital technologies and forms of exchange. In other words, the cooperative organizations of these countries see that synergies between cooperatives and a joint economy are not only possible but also highly desirable and almost inevitable. They also believe that cooperative organizations should act quickly to stimulate and support their members in this direction (Como et al. 2016). In Eastern Europe, for example, Poland and the Czech Republic, the debate on a joint economy is just beginning. This is mainly due to the recent historical past (the communist legacy and general distrust of the population towards a cooperative concept related to collective farming). In these countries, the prevailing culture looks individualistic, and the idea of private ownership of goods and assets is generally preferable to exchange with other citizens. However, the main global platforms (Airbnb and Uber) are used by a growing number of young people (for example, in Poland) who consider them smart and comfortable but do not identify them with the concept of a sharing economy. In the Czech Republic, after the end of the communist period, some forms of civic organization and collective action are now starting to regain momentum, and there is some evidence of joint economic initiatives born on the ground. Nevertheless, there is practically no debate on this topic; politicians and scholars usually ignore it. Despite their interest in cooperatives and some bottom-up experience in a cooperative form, they are still small—from an economic and a membership point of view. Cooperatives have yet to take action in this area.

Management Problems in Cooperative Platforms …

657

Inter-cooperative collaboration can significantly benefit from the use of technology and the “platform approach” currently provided by the use of digital technology. In all of the opportunities mentioned above, a critical element that generates a shift from modern collaborative practices to new cooperative models is digital innovation. However, several barriers make these innovations challenging to implement. One of them is the complex nature of cooperatives for the development and implementation of this type of innovation. This is due to apparent difficulties in converting existing enterprises. If we want to promote a cooperative economy, innovation needs to promote the emergence of entirely new cooperatives, with a special innovative logic. This requires that the cooperative model be better informed and more attractive for young people who would otherwise find their joint economic enterprises in a different legal form. Another obstacle to the emergence of new cooperatives is the lack of appropriate financial instruments to attract capital and long-term investments, which slows down innovation and creates a disadvantage compared to capitalist competitors. Another limitation is the tendency of newly created cooperatives to remain local, small in size, and not sufficiently interconnected. The technology will allow them, like any other operator, to work on the scale and overcome the barriers of space and time, but cooperatives are geographically dependent (in many respects this is a distinctive and robust feature) and sometimes remain small and marginal in the market. In a globalized market, a cooperative economy can become weak, and it may be impossible for local cooperative platforms to compete with large multinational ones. Therefore, cooperatives will need to increase their size or create trans-local networks of interconnected cooperatives that could jeopardize the ability of international competitors to penetrate their territory. Another problem is the difficulty for cooperatives to copy ideas and models. Non-cooperative platforms accurately copy what they do. However, there is a risk of copying the same mistakes and weakening the cooperative model if cooperatives cannot preserve their distinctive features, such as their connection with local territories and the ability to combine risks and benefits and promote joint growth and long-term local development. For example, cooperatives may develop new platforms for freelance workers, but they must avoid pushing all people to become freelance employees, and vice versa, to combat the polarization and precarization of labor, trending in the modern economy. Maintaining democratic governance on potentially large co-operative platforms is also challenging, as one cannot assume technology alone can be a solution. In general, the biggest problem is the application of cooperative values on the Internet and cooperative principles (as defined by the International Cooperative Alliance), which, in new forms of cooperation, can be quite different from the principles used previously (International Cooperative Alliance 1995).

658

O. A. Konnova et al.

4 Discussion Currently, the issues regarding platforms under discussion focus mainly on the need to democratize existing cooperative economic platforms or promote their new democratic forms. Less attention is paid to how the economy can transform existing cooperatives, or how existing cooperatives can develop their new models based on their specific needs for innovation. The emerging perspective focuses on the emergence of innovation within the cooperative movement and raises several important issues. First of all, there is a question of how cooperatives will be able to include new elements of the model of a joint economy without losing their distinctive features and principles. Subordinate to this issue is the question of evaluating cooperatives that have acquired their strengths, given the more exceptional ability to adapt to changing socio-economic systems. The current debate on the framework of platform cooperativism is concerned with issues of managing digital platforms and of guarantees of security and involvement fo employees and consumers. An insufficient degree of use of technology and tools for participation in digital technologies in both traditional and platform cooperatives is noted. This has been confirmed by the results of studies that were devoted to tools that help cooperatives use digital technologies and a comparison of these results with the proposals that are found in the literature (Cuesta et al. 2015). In matters of transparency and communication with members, research results also showed a small number of initiatives in traditional and platform cooperatives. It was noted that everything is limited to communication in individual social networks or messages in exchange groups. These processes are still little institutionalized on platforms and are taking place informally. There is a vast amount of tools in the literature that cooperatives still underutilize (such as monthly schedules, podcasts, websites, webinars, videos). The second analyzed aspect (co-creation in cooperatives) is also still very undeveloped, both in traditional and platform terms. When analyzing digital co-creation, the experience is virtually absent. In the literature, several possibilities are noted for performing this process with members, for example, through seminars, surveys, interviews, and audits. Contrary to what was initially expected, platform cooperatives, despite their digital nature, do not yet have many collaborative processes exploring the role of a member and using technology to obtain it. One of the explanations for this may be the fact that the life cycle of these platforms has begun recently. Another reason may be the number of participants who are still physically manageable and demonstrate benefits in person. As soon as the number of members increases, the distance between them also increases, which means that technology becomes more widespread.

Management Problems in Cooperative Platforms …

659

Regarding meetings and decision-making, the initiatives of traditional cooperatives for the study of digital formats are sometimes analyzed. These initiatives are still in their beginnings and have little substantiation from the legislative point of view for almost all countries. However, cooperatives on the platform that started with members in several countries already have an organizational culture for conducting general meetings remotely and digitally. The literature describes other possibilities, like discussions held on forums.

5 Conclusion Participation and democracy are critical to the survival of cooperatives. A cooperative that has the right mutual communication practices and consistent interaction among members becomes more economically sustainable and socially fair. Traditional cooperatives, as well as platform cooperatives, have few initiatives for digital participation compared to the opportunities offered by the literature. Traditional cooperatives still do not use the potential of digital transformation processes. A small number of cooperatives are seeking another initiative, especially during their meetings. The digitization process is useful for cooperatives, but initiatives are limited to social networks; thus, communication only goes one way. In platform cooperatives, old practices and tools that are observed here are not very different from those practiced in traditional cooperatives and are contrary to expectations that they count on a higher number of digital participation initiatives. The literature describes numerous tools, methods, and initiatives designed to enable members to participate in cooperative activities. Great opportunities for creating conditions to expand the use of digital initiatives continue to open up; however, small cooperatives do not seize them since the cost of digitalization exceeds the cost of the physical association of people. Moreover, platform cooperatives are mostly local. It is expected that as the cooperative grows in size, digital participation tools will expand.

References Como, E., Mathis, A., Tognetti, M., Rapisardi, A.: Cooperative platforms in a European landscape: an exploratory study. In: Proceedings from ISIRC 2016: International Social Innovation Research Conference, Glasgow, UK (2016). https://coopseurope.coop/sites/default/files/Paper_ Cooperatives%20Collab%20Economy_.pdf Cuesta, C., Ruesta, M., Tuesta, D., Urbiola P.: The digital transformation of the banking industry (2015). https://www.bbvaresearch.com/wp-content/uploads/2015/08/EN_Observatorio_ Banca_Digital_vf3.pdf

660

O. A. Konnova et al.

Dervojeda, K., Verzijil, D., Nagtegaal, F., Lengton, M., Rouwmatt, E.: The sharing economy: Accessibility-based business models for peer-to-peer markets (2013). https://www.eukn.eu/ fileadmin/Lib/files/EUKN/2014/12-she-accessibility-based-business-models-for-peer-to-peermarkets_en.pdf European Union: European Commission. The use of collaborative platforms (2016b). https://data. europa.eu/euodp/en/data/dataset/S2112_438_ENG European Union: European Commission. Communication on a European agenda for the collaborative economy (2016c). http://ec.europa.eu/DocsRoom/documents/16881 International Cooperative Alliance: Cooperative Identity (1995). https://www.ica.coop/en/ cooperatives/cooperative-identity Martin, C.J., Upham, P., Klapper, R.: Democratizing platform governance in the sharing economy: an analytical framework and initial empirical insights. J. Clean. Prod. 166, 1395–1406 (2017) Schneider, N.: An internet of ownership: A democratic design for the online economy. The Sociol. Rev. 66(2), 320–340 (2018a) Schneider, N.: Everything for Everyone: The Radical Tradition that is Shaping the Next Economy. Nation Books, New York (2018b) Scholz, T.: Platform cooperativism: challenging the corporate sharing economy 2016 (2016). http://www.rosalux-nyc.org/wp-content/files_mf/scholz_platformcooperativism_2016.pdf Vandaele, K., Piasna, A., Drahokoupil, J.: “Algorithm breakers” are not a different “species”: Attitudes towards trade unions of Deliveroo riders in Belgium. ETUI, Brussels, Belgium (2019)

A Methodological Approach to Determining the Competitive Positions of the Labor Potential in Regional Consumer Cooperation Svetlana F. Bolshenko , Victoria B. Gorbunova , and Oksana V. Martynenko Abstract The article developed a methodological approach to determining the competitive positions of the labor potential in consumer cooperation enterprises in the Kaliningrad region. It is proposed to modify the well-known SWOT-analysis matrix for the purpose of assessing the competitive positions of consumer cooperation enterprises in the region, relying on the example of the Kaliningrad region. The organizational stages of the SWOT analysis are developed, and the content of the work for each of them is defined. In this paper, a modification of the matrix “industry attractiveness—position in competition” to the matrix “region attractiveness—competitive position of labor potential” is presented. This will allow us to determine the competitive position of the labor potential in consumer cooperation enterprises in the region. It is proposed to assess the attractiveness of a particular region for the formation of competitiveness of labor potential using the expert method on a five-point scale. The article outlines the matrix approach developed by the authors to the selection of a strategy for the formation of the competitiveness of the labor potential of consumer cooperation enterprises in the region. The calculations made it possible to determine the most attractive cities in the Kaliningrad region for the development of labor potential, as well as those cities requiring special state support to create the necessary conditions. The calculations were made using the model “competitiveness of labor potential–an increase in gross regional product” and computational methods of multidimensional scaling.







Keywords Labor potential Competitiveness of labor potential Competitive position of labor potential Strategy of development of labor potential Methodical approach Matrix methods










S. F. Bolshenko
V. B. Gorbunova (&)
O. V. Martynenko Kaliningrad Branch of the Russian University of Cooperation, Kaliningrad, Russia e-mail: [email protected] S. F. Bolshenko e-mail: [email protected] O. V. Martynenko e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_71

661

662

S. F. Bolshenko et al.

1 Introduction In modern economic conditions, the functioning of the economy is characterized by a variety of different forms of ownership, among which consumer cooperation holds a special place (Gorbunova 2018). The competitive position of the labor potential of enterprises of consumer cooperation in the region is formed in the market environment under the influence of many factors. These factors either create its competitive advantages in the current, medium, and long term, or become barriers to the implementation of strategic projects for the development of consumer cooperation and the socio-economic development of the region as a whole. Determining the competitive position of the labor potential of the region’s consumer cooperation enterprises is a necessary step in developing a strategy for its development (Golikov and Lobacheva 2015). The choice of an evaluation method is an important task in organizing analytical work on monitoring the national labor market and world labor market, and determining the competitive positions of the labor potential of consumer cooperation enterprises in the region. A study of existing methodological approaches to assessing the competitive positions of labor potential indicates the absence of an appropriate methodological basis. The development of such a methodology is extremely necessary for bodies of regional government, as they are called upon to solve the problem of maintaining and developing the labor potential of the region and increasing its competitiveness. The development can be done through the implementation of relevant programs, the formation of regional economic and social policies, and the development of a regional development strategy.

2 Materials and Methods The task of determining the competitive positions of the labor potential of consumer cooperation enterprises in the region falls under the category of strategic analysis tasks. Strategic analysis has led to the development of many methods based on modeling and logical thinking. In this context, strategic analysis is a way of researching and transforming the data obtained as a result of the analysis of the labor-potential formation environment, with the help of power structures that determine the strategic directions of the potential’s development. The structures determine what competitive advantages are necessary to create in the short, medium, and long term. The strategic analysis questions should cover the following questions: 1. What macro environment analysis indicators characterize the competitive position of labor potential? 2. What factors (and at what force) affect the competitiveness of the labor potential of the region? Which factors determine the position that the potential occupies in a competitive environment?

A Methodological Approach to Determining the Competitive Positions …

663

3. Is the region attractive for the influx of competitive labor? 4. Which regions have the strongest (weakest) positions in the formation of competitive labor potential? (Bolshenko 2017) 5. Which regions have the best opportunities (threats) for creating competitive advantages of labor potential? 6. What should be the state regional strategy for the development of labor potential with certain competitive positions of the labor potential of the regions? 7. How to ensure the effective implementation of the chosen strategy? Matrix methods (matrix analysis) are most acceptable for assessing the competitive positions of the labor potential of regions. Matrix analysis and a method for studying the relationships between objects (political, economic, social) using their matrix modeling is an analysis based on the application of matrix theory. According to which, the parameters of the model elements that make up the economic system are calculated. To study the internal and external environment of the formation of the competitiveness of the labor potential of the region, SWOT analysis can be applied. It is an important analytical tool for choosing a strategy and making optimal management decisions that would ensure a strong and reliable competitive position (Zagorodnikov 2012). The peculiarity of using SWOT analysis (strengths, weaknesses, and opportunities and threats) is as follows. Comparing all possible combinations of environmental indicators and resource capabilities, this method makes it possible to develop a large number of current strategies corresponding to them. The universality of the method allows one to adapt it to solve diverse problems at the regional, sectoral, and state levels.

3 Results In this scientific study, in order to assess the competitive position of the consumer cooperation enterprises in the region, it is proposed to conduct a SWOT analysis by sequentially performing the following steps: I. The first stage involves the study of the external environment of the formation of the competitiveness of the labor potential of the consumer cooperation enterprises in the region. This stage involves the identification of factors that open up new opportunities for creating competitive advantage and factors creating external threats to the development of labor potential. These factors may include the following: 1. State regional policy; 2. International labor migration processes; 3. Investment attractiveness of the region;

664

S. F. Bolshenko et al.

4. Ecological situation; 5. Foreign economic relations of the region. II. The second stage involves the analysis of the internal environment of the formation of the competitiveness of the labor potential of the consumer cooperation enterprises in the region, which allows us to determine its strengths and weaknesses, which are as follows: 1. 2. 3. 4. 5. 6. 7.

Labor activity of the population; Motivational potential; Increase in fertility and decrease in mortality; Creation and implementation of innovations; Regional labor market development; The level of social responsibility of society; The mentality of the region.

III. The third stage of the SWOT analysis involves comparing external capabilities and threats with internal potential and limitations. This allows one to determine the ability of the labor potential to take advantage of existing opportunities and minimize the negative impact of external threats. Thus, in the third stage, the classification and evaluation of the following combinations of factors of the external and internal environment are carried out: “Opportunities—strengths” (determining the guidelines for the strategic development of the labor potential of the region); “Opportunities—weaknesses” (determining the guidelines for internal transformations of the labor potential of the region); “Threats—weaknesses” (highlighting the significant limitations of the strategic development of the labor potential of the region); “Threats—strengths” (highlighting potential strategic advantages). The result of the SWOT analysis is a system of possible strategic actions aimed at strengthening the competitive position of the labor potential of the region’s consumer cooperation enterprises. Another well-known strategic portfolio analysis matrix, “industry attractiveness - position in competition,” was developed by McKinsey & Co. It can be transformed into the matrix “attractiveness of the region—competitive positions of labor potential” (Fig. 1). The matrix “attractiveness of the region—competitive positions of labor potential” characterizes the long-term attractiveness of the region (the regional labor market) and the competitive position of labor potential within it. Clear characteristics can be given to the positions of labor potential, which are in the angular quadrants of the matrix. The intermediate positions of the middle quadrants are more difficult to interpret, since some of the attributes of these quadrants may approach higher indicators of attractiveness or competitiveness, and some of the attributes may approach the lowest indicators of attractiveness or competitiveness.

A Methodological Approach to Determining the Competitive Positions …

High

Uncompetitiveness – there are development prospects

Average

B Rapid growth of competitiveness, high use of competitive advantages

Uncompetitiveness – there are small development prospects

Moderate growth of competitiveness, the average use of competitive advantages

Satisfactory use of competitive advantages of labor potential

Low

Region attractiveness

A

665

D Uncompetitiveness – there is no prospects for development

Underutilization of labor potential (low activity)

C Underutilization of labor potential (low activity)

Low

Average

High

Moderate growth in competitiveness

Competitive position of labor potential Fig. 1 The matrix of competitive positions of the labor potential of the region “the attractiveness of the region – the competitive position of the labor potential” Source (Own development)

The previous stage of the analysis identified factors (indicators) that determine the competitiveness of the region and its attractiveness as an environment for the formation of labor potential. In the first stage, an assessment of the attractiveness of the region is carried out using a five-point scale (Table 1). The attraction and efficient use of investment resources contribute to the creation of an investment climate as an important competitive advantage of the region, which provides conditions for its sustainable economic and social development. High employment, decent wages, and the ability to increase professionalism, expand knowledge, and acquire new abilities create a favorable motivational field for increasing the competitiveness of labor potential. In the second stage, the competitiveness of the labor potential of the region is assessed. We consider the definition of a taxonomic indicator (di) to be the most appropriate for these purposes. In the third stage, the obtained indicators of the attractiveness of the regions and the competitiveness of the labor potential of the regions are positioned on the quadrants of the matrix “attractiveness of the region—competitive positions of labor potential” (Fig. 1). These indicators are obtained in the process of analysis and related calculations. Depending on the positioning of the labor potential of the region, strategic alternatives for its further development are selected. They are aimed at creating appropriate competitive advantages.

666

S. F. Bolshenko et al.

For those regions that are positioned in quadrant A (high attractiveness of the region - low competitiveness of labor potential), the recommended strategy is to strengthen competitive advantage (supporting strategy). This strategy provides for a more efficient use of the region’s capabilities in increasing the competitiveness of labor potential. This involves the creation of new and strengthening of the existing competitive advantages of the labor potential identified in the analysis process. For example, with a large number of higher educational institutions in the region, the number of applicants to universities is small. The reason may be the high cost of training, lack of motivation to learn, etc. Quadrant B (high attractiveness of the region—high competitiveness of labor potential) means the best competitive position of the labor potential of the region. For such regions, it is advisable to implement a strategy of rapid growth, that is, increase investment in expanding the innovation sphere, creating elements of social infrastructure. Quadrant B is characterized by low attractiveness of the region, but high competitiveness of labor potential, at the same time. For such regions, a regional, sustainable development strategy is needed. The sustainable development strategy of the region is understood as the achievement of the harmonious development of three components: social, environmental, and economical. Quadrant G is the most threatening and undesirable position for the region. Such regions are depressed due to the negative impact of external political and legal factors, or natural ones (disadvantageous geographical location, difficult weather conditions, etc.), and due to the aggravation of internal socio-economic problems. In such circumstances, a protective strategy is necessary. Table 1 An approximate assessment and rating of the attractiveness of a particular region for the formation of competitiveness of labor potential Criteria (factors) 1. Investment attractiveness of the region 2. Ecological situation in the region 3. The effectiveness of the implementation of state regional programs 4. Number of educational institutions in the region 5. The level of medical support for citizens in the region 6. Creating jobs in the region 7. Providing citizens with housing 8. Creating additional conditions for youth housing 9. Foreign economic relations of the region Source Compiled by the authors

Weight

Assessment

Balanced assessment

0.20 0.15 0.10

4 2 3

0.80 0.30 0.30

0.10

5

0.50

0.10

4

0.40

0.15 0.10 0.05

2 1 1

0.30 0.10 0.5

0.05

3

0.15

A Methodological Approach to Determining the Competitive Positions …

667

The determination of the strategy for the formation of competitiveness of labor potential on the basis of the matrix approach can also be carried out using the model “competitiveness of labor potential and the growth of the gross regional product.” The choice of an indicator of gross regional product (GRP) as a criterion for assessing the competitive position of labor potential is explained by the fact that this is a general indicator of economic activity in the region. It characterizes the production process of goods and services, to which the labor potential is attached. GRP growth contributes to an increase in income and the quality of life of the population and creates opportunities for the prevention of health. In turn, this is a strong motivation for the constant self-development of able-bodied citizens, their professional growth (Kozlova et al. 2011) It is proposed to use computational methods for multidimensional scaling to construct an analytical model. They are described in detail in Khalafyan (2010). Multidimensional scaling (MS) is a series of interconnected statistical techniques often used in information visualization to study the similarities and differences in data. A feature of the method is the placement of objects in the space of a given dimension and the checking of the accuracy of the obtained configuration with respect to maintaining the distance between them. Multidimensional scaling is a class of methods for representing the perceptions and preferences of respondents in a space using a visual representation. Most often, to assess the quality of fitting a model, which is measured by the degree of reproduction of the original matrix of similarities, the criterion of agreement, stress used, etc. For the current configuration, it is determined by the following formula: u¼

X X  2 dij  f dij i

j

where dij isthe reproduced distances in the space of a given dimension; f dij is a nonmetric monotonic transformation of the source data (distances). It is believed that the smaller stress the criterion takes, then the initial distance matrix is better consistent with the resulting distance matrix. The corresponding calculations are performed using the STATISTIKA program of the multidimensional scaling module, which is an implementation of non-metric multidimensional scaling methods. As the initial configuration, the program calculates the main components for the difference similarity matrix and then starts the process of an iterative search for a solution. The goal of this process is to minimize non-standardized stress.

668

S. F. Bolshenko et al. Shepard Diagram Distances and A D-Hats vs. Data 4,0 AA AA AA

3,5

AA

A

A

A AAA

AA A

3,0

Distances/D-HatsData

AA

2,5 2,0 1,5 1,0 0,5 A A AAAA AA AA

A AAA A AA AA AA AA AA AAAA AA AAA AA A AA AA A A A A A A AA AAA A A AAA AAA AAA A A A A AAA AA A A AA AAA A AAAA A A A A A AA AA A A A A AA AAAA A A A AAA A AAAA A A A AA AAA A AAAA A A A AA A AA A A AA AA A A AA A A A

0,0 A 0,0

0,1

AAA AA A A A

A AA AAA AAAA A AAA

AA

AA A A AA AA

0,2

AA A A A AA A A

A AA AAA

A

A AA AA

A

A

A

0,3

0,4

0,5

Data

Fig. 2 Shepard diagram Source (Khalafyan, 2010)

Level of competitiveness of labor potential

1,0 0,8

C_14

0,6

C_17 C_6

0,4

C_15 C_16

C_3 C_24 C_21 C_18 C_23

C_27

0,2

C_8 C_1

C_2

0,0 -0,2 -0,4

C_26

C_20

C_25 C_4 C_11

C_12

C_13

C_19 C_22

C_9

-0,6

C_10

-0,8 -1,0

C_7

-1,2 -1,4 C_5

-1,6 -1,8 -1,0

-0,5

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

The growth of gross regional product on average per 1 person from the employed population

Fig. 3 The matrix “competitiveness of labor potential–an increase in gross regional product” Source (Official website of the Federal State Statistics Service n.d.)

A Methodological Approach to Determining the Competitive Positions …

669

The Shepard diagram displays the dependence of reproducible (resulting) distances from the original distances. Updated distances are plotted on the y-axis, and true distances between objects are plotted on the abscissa axis. On the same graph, a graph of a step function is plotted. This function can be either monotonically increasing or monotonically decreasing. The model is considered adequate, provided the least dispersion of data points around the step function line. Ultimately, the program makes it possible to obtain a matrix on which all the objects that have been investigated will be represented and located at updated distances from each other (Fig. 2). In our case, this matrix is a clear picture of the location of cities in the Kaliningrad region in terms of the competitiveness of the labor potential of consumer cooperative enterprises and the increase in GRP based on an average of 1 person from the employed population (Fig. 3). Figure 3 shows that the following cities are most remotely located: Kaliningrad (C 26), Guryevsk (C 5), and Svetlogorsk (C 20). According to certain criteria, these regions have the best competitive positions. Thus, the use of multidimensional scaling methods to determine the competitive position of the labor potential of the regions opens up new opportunities in the strategic planning of regional development. The purpose of such planning is to achieve a competitiveness level of labor potential that is close to the reference.

4 Discussion Among the methods of strategic environmental analysis that can be used to assess the competitive position of the labor potential of the region, PEST analysis and SPACE analysis should be considered in more detail.

5 Conclusion To summarize, the following should be noted: The use of multidimensional scaling to determine the competitive positions of the labor potential of the region’s consumer cooperation enterprises opens up new opportunities in the strategic planning of regional development. The purpose of planning is to achieve a level of competitiveness of labor potential that is close to the desired level.

670

S. F. Bolshenko et al.

References Bolshenko, S. F.: The level of quality of education as a factor in the competitiveness of the labor potential of the region. In: Materials of the International Scientific and Practical Conference of the Faculty and Staff of Cooperative Universities Based on the Results of Research Work in 2016: “Science, Education, Cooperation: Problems and Development Prospects”, pp. 106–111. Kantsler, Yaroslavl-Moscow, Russia (2017) Golikov, S.Y., Lobacheva, A.S.: The labor potential of the region: the essence, structure, formation. Econ. Entrepreneurship 3(56), 204–208 (2015) Gorbunova, V.B.: On the tourist vector of the development of consumer cooperation in the Kaliningrad region. Fund. Appl. Res. Coop. Sect. Econ. 6, 121–127 (2018) Khalafyan, A.A.: Statistical Data Analysis. Binom-Press LLC, Moscow (2010) Kozlova, O.A., Lavrentiev, A.S., Lobareva, N.S.: Factors of the formation of labor potential of the municipality. Econ. Region 1, 115–122 (2011) Official website of the Federal State Statistics Service. Statistics (n.d.). https://www.gks.ru/statistic Zagorodnikov, A.N.: The sociological dimension of SWOT analysis in business. Bull. Peoples’ Friendship Univ. Russia Ser. Sociol. 3, 94–103 (2012)

On the Issue of Improving the System of Remuneration of Workers in Consumer Cooperation Nataliya V. Alexandrova , Olga L. Alekseeva , Slavyana Y. Gurova , Tamara Ya. Silvestrova , and Elena V. Shkolnik Abstract The study aims to analyze the methodology of the remuneration of workers in consumer cooperation using efficiency ratios. The methodological basis of the study is the works of domestic and foreign scholars in the field of theory and practice of payroll, fundamental principles of economic science, a system-evolutionary approach to the problem of remuneration, and the methods of theoretical and empirical research (abstract-logical, comparative-analytical, interpretation, typologization, observation, grouping and generalization, statistical information, and tabular visualization). The main result of the work is the development of a methodology for the application of efficiency coefficients in the remuneration of workers in consumer cooperation using the example of retail trade. We consider the proposed method as the simplest in the calculation and aimed at the result. This method is not widely used in the consumer cooperation system but has been tested in some retail enterprises of the Chuvashpotrebsoyuz.




Keywords Effective use of human resources Holistic personnel management system Organization of remuneration Problem of poverty Consumer cooperation Priority areas for the development of consumer cooperation Remuneration Employment Key performance indicator




















N. V. Alexandrova
O. L. Alekseeva
S. Y. Gurova
T. Ya. Silvestrova
E. V. Shkolnik (&) Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] N. V. Alexandrova e-mail: [email protected] O. L. Alekseeva e-mail: [email protected] S. Y. Gurova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_72

671

672

N. V. Alexandrova et al.

1 Introduction In current conditions, the stable development of the organization and its competitiveness depends primarily on the effective use of its personnel potential, since it is the personnel who ensure the efficient use of all production factors. A holistic personnel management system includes many elements, including the development of highly qualified personnel, placement of workers based on the optimal production structure, creation of favorable working conditions, improvement of labor organization, and selection of optimal wage systems. The organization of remuneration at the micro-level is determined by the prevailing schemes in the national economy for the formation of monetary incomes of the population, instruments of state regulation of labor relations, and remuneration. The socioeconomic development of any country, including Russia, is fraught with problems. The poverty level of the population is one of the most discussed problems. The problem of poverty is directly related to the organization of employment, the system of remuneration, and social benefits. In order to solve this problem, scientific and methodological justification of organizing remuneration at enterprises is required, regardless of their form of ownership and field of activity. However, in the structure of the branches of activity, there are those whose socio-economic functions, firstly, are clearly expressed, and secondly, cannot be performed by other industries (Silvestrova et al. 2019, p. 38). This type of activity is consumer cooperation, since it supports and ensures the standard of living of the population living in small towns and rural areas, and it creates jobs for the most vulnerable groups of these societies. However, the system of consumer cooperation can be preserved and developed only if the remuneration of its employees matches their qualifications. If we are talking about the need to improve skills, then wages in consumer cooperation should grow. It is important to remember that the higher the qualification of the employees, the higher the intensity of their work, and the higher the level of their need (Silvestrova 2005; Prokopyeva et al. 2015). Understanding this feature, the Central Union of Russia signed an Agreement in 2018 with the All-Russian Union of Consumer Cooperation and Entrepreneurship Workers for 2019–2021, which defines the provisions recommended for use in the development of labor contracts.

2 Materials and Methods Currently, the “Concept for the Development of Consumer Cooperation for 2017– 2021” and “Decree of the President of the Russian Federation ‘On National Goals and Strategic Tasks of the Development of the Russian Federation for the period until 2024’” (May 7, 2018 No. 204) are used to develop consumer societies. Following these documents, priority areas for the development of consumer cooperation are, among others: expanding employment opportunities for youth and

On the Issue of Improving the System of Remuneration ...

673

women; creating healthy and safe working conditions; improving the conditions and procedures for remuneration, ensuring wage growth, and taking into account annual inflation; providing social guarantees, social protection, and realization of benefits to employees; stimulating highly productive labor; and creating the conditions for the professional growth of employees. The “Agreement between the Central Union of the Russian Federation and the All-Russian Professional Union of Workers in Consumer Cooperation and Entrepreneurship for 2019–2021” defines the requirements for the organization of remuneration and the provision of compensation payments, social guarantees, and benefits (Sect. 3). The first requirement is the joint implementation of policies that are aimed at organizing remuneration in conjunction with the assessment of its results. The Agreement emphasizes that the organization of remuneration in consumer cooperation must comply with the Labor Code of the Russian Federation (Art. 129 and Art. 130) and the regulation on remuneration and motivation of consumers and consumer cooperation in the Central Union of the Russian Federation, as was approved by the 141st General Meeting of consumer societies in Russia. This means that the remuneration of employees of consumer cooperation organizations is a reward for labor; its value depends on employee qualifications, quantity, complexity, quality, and working conditions. It is envisaged that remuneration may include additional payments and allowances of a compensatory nature and incentive payments. In this case, compensation payments include payments for work in conditions that deviate from normal, in particular climatic conditions, in territories with radioactive contamination. Incentive payments are also made in the form of surcharges, bonuses, incentive payments, and allowances, and are aimed primarily at increasing labor motivation (Vakalyuk 2008). The Agreement must state that the wage of a cooperative consumer employee cannot be lower than the minimum wage established by federal law. Collective agreements or local regulatory acts establish the remuneration systems of consumer cooperation organizations. It is recommended to set the share of the tariff aspect of labor remuneration in the employee’s salary structure within 75% without taking into account district coefficients and percentage allowances in consumer cooperation organizations. The Agreement (subsection of social guarantees and benefits) contains a provision that employees of consumer cooperation may be paid bonuses based on the results of work for a month or a year or for meeting key performance indicators.

3 Results Next, let us concretize the provisions of this Agreement and bring their understanding closer to the practice of calculating the remuneration of sellers. The system of key performance indicators (KPI) of the activities of these employees is used to implement a system of motivating employees. Thus, employees are encouraged to achieve indicators necessary for the organization and

674

N. V. Alexandrova et al.

to build a wage system in which its level depends on the employee’s contribution to improving the organization’s performance. The methodology of this tool is based on the separation of performance indicators into two groups. The first group is delayed indicators, for which level and dynamics give an assessment of the organization. The indicators of this group make it possible to determine the unused potential of the organization and its structural divisions, as evidenced by the results of the assessment. The second group of indicators includes leading or operational indicators, which reflect the process of forming the results of the organization’s activities and its current position, where we can still make adjustments and, thus, change the course of the formation of reporting indicators to increase efficiency before the end of the reporting period. In the practice of introducing a KPI system, we propose to use the following classification of these indicators by type (Table 1). All KPIs needed to build a holistic system concerning a particular organization are conditionally divided into five groups: results, costs, productivity, functioning, and efficiency. From the presented indicators of consumer cooperation for retail trade enterprises—taking into account the performance of each employee—it is possible to recommend the following when creating a new system of remuneration: As shown in Table 2, KPIs for the organization as a body are different from KPIs used in the workplace. Each seller’s hourly sales are easily determined based on cash register data. This indicator allows one to identify the most active and the most passive sellers who need to increase professional training (courses, training, individual coaching). The number of units of goods sold to one buyer (or one transaction) in practice is called the “sales” ability of the employee. The effect of service, in this case, is the duration of communication with the buyer until the purchase. Therefore, the seller’s salary per-hourly sale amount can be one of the indicators of labor productivity. The mechanism of introducing the system of key performance indicators, in our opinion, is quite simple: at the beginning, a list of significant results of the organization’s activity is compiled, and target parameters of these indicators are

Table 1 Classification of key performance indicators (KPI) by type KPI Result indicator Cost indicator Productivity indicator Functioning indicator Efficiency indicator Source Developed

Group code

The essence of the indicator

01

The measure of quantity and quality of the result

02 03

Reflects the amount of costs used. The ratio of time and level of achieved results

04

The indicator of the assessment of the work process, its compliance with the planned indicators 05 It shows how proportional are the obtained results and the incurred expenses by the authors

On the Issue of Improving the System of Remuneration ...

675

Table 2 Key Performance Indicators (KPIs) for retailers Level

Indicators

Organization as a whole

Sales to annual turnover ratio The number of purchases Receipt value (average) Attendance to the number of goods sold Comparison of the qualitative and quantitative volume of products The amount of salary to staff Service culture, number of complaints Personnel development: training, coaching, turnover rate Sales Manager, Counter Hourly sales of each seller (manager) Worker The number of units of goods sold to one buyer The effect of service (the transition rate of the buyer from potential to real) Wage per number of hourly sales Source Developed by the authors

established. Then, indicators to assess personnel performance by categories are determined, and payroll systems are developed, accounting for the achieved results. We believe that one of the most important stages of the implementation of the system is to bring an approved procedure for calculating wages to each employee, depending on the achieved results. Otherwise, when the employees do not understand why they were encouraged or, conversely, why their level of incentive allowance was reduced, the result of using such a system may not be an increase in labor efficiency but an increase in staff turnover. Also, bringing information to sellers about the list of indicators that determines the level of remuneration for their work is directly related to the formation of future results of the organization’s activities. Let us give an example of calculating the salary supplement for a retail employee of the consumer cooperation system: provided that the volume of sales is brought to the seller in the form of a plan for a fixed period in July, the employee needs to sell goods worth 630,000 rubles, or 10% more than in June. For the indicator performance, a wage premium of 5% is established, and a bonus of 0.8% is given for each percent of the task over fulfillment. At the same time, target parameters can be set for the seller by such indicators as the number of receipts for a certain period of time; the amount of the average receipt (the sale of additional so-called associated goods is encouraged); conversion rate, measured by the ratio of the number of store visitors (traffic) to the number of real customers (the number of receipts). For example, if 140 people visited the store, and 35 of them made purchases, then the conversion rate is 25%. We believe that the introduction of general incentive rules (for example, a bonus of 10% on salary when the store as a whole overfulfils the sales plan) does not bring about the necessary effect on the enterprise. If the incentive mechanism is developed individually for each seller or group of sellers, then the effectiveness increases.

676

N. V. Alexandrova et al.

At the same time, it is essential that the methodology for calculating indicators should correspond to an objective reflection of the results. When using such payroll systems, it is essential to distinguish between the concepts of crude and precise conversions. Raw conversion determines the number of potential buyers by counting visitors according to infrared video-surveillance devices. Precise conversion is calculated based on the seller’s data and can distinguish a random visitor from a potential customer, as each seller is given a keychain with a tachometer and can identify a real buyer by pressing a button. KPIs, in our opinion, can be used to apply various forms of promotion of the seller, such as tangible, intangible, and moral. The material type includes various types of surcharges to the tariff salary, such as interest on overfulfillment of the established indicators or bonuses for achieving a certain (high) level of indicators. A wide range of ways of the non-material motivation of employees is currently used (medical voluntary insurance policies, free training, additional leave, corporate events). Methods of moral encouragement involve the traditional public expression of gratitude (best employee certificates or an additional leave). It is generally accepted that the value of material incentive stimulating component is negligible. However, our sociological survey showed that 75% of working sellers (retail players) are interested in a professional reputation for public recognition of the level of qualification of a sales floor employee. It is generally accepted that the highest level of staff turnover in the consumer cooperation system is typical of retail, although this trend is not typical for the Chuvashpotrebsoyuz system. However, in the industry as a whole, retail is the sphere of activity of consumer cooperation that has high rates of personnel replacement. Therefore, we believe that the stable development of a retail organization is possible only with a high level of motivation of sellers. As practice shows, high staff turnover rates are already evident at the stage of employee training. The study conducted by us in the retail organizations of the Chuvashpotrebsoyuz showed that the main reason for the dismissal is the fact that actual remuneration does not meet the expectations even though working conditions are sufficiently comfortable. It is fair to note that the experience of the author’s team with young people, who have received professional training at various levels, indicates an unfounded claim of young professionals to receive pay that is much higher than the minimum wage for the region and the industry. This situation can only be overcome by applying coefficient premiums strictly defined by the organization. It is essential that the work on payroll accounting based on KPI can be automated using the 1C software product: Goal Management and KPI. Young specialists clearly and easily perceive such a system. In this case, the employee, aimed at obtaining a certain amount of wages, will be interested in increasing the intensity of their labor.

On the Issue of Improving the System of Remuneration ...

677

4 Discussion The possibility of applying the proposed methodology was discussed at the International Correspondence Scientific and Practical Conference: “Practical Economy of Russia: Processes, Risks, and Prospective Development” on June 28, 2019 (“Tax Management in Organizations…”, 2019).

5 Conclusion Thus, in our opinion, the introduction of a system of key performance indicators (KPIs) is the only method of calculating wages that has tangible advantages today over the generally applicable system of consumer cooperation by time wages. We believe that the payroll methodology should be transparent, socially fair, and negotiated in all details when concluding labor contracts of individual and collective nature, especially since the Agreement we analyzed provides such an opportunity.

References President of the Russian Federation: The decree On national goals and strategic objectives of the development of the Russian Federation for the period until 2024 (May 7, 2018 No. 204). Moscow, Russia (2018) Prokopyeva, S.E., Belyaeva, A.M., Eremina, S.G.: Modern Personnel Technologies in Government. Law House Justicinform, Moscow (2015) Silvestrova, T.Ya.: Human Needs and Social Services. Cheboksary Cooperative Institute, Cheboksary (2005) Silvestrova, T.Ya., Gurova, S.Yu., Bolshova, L.A., Shipeev, Ya.G.: Tax Management in Consumer Cooperation Organizations. Ru-Science, Moscow (2019) Vakalyuk, T.V.: Trade Union Organizations: The Legal Basis of Activity, Organizational, Financial Work, Taxation, and Accounting (2nd edn.). Pravoved-2001, Yekaterinburg (2008)

Protecting the Rights of Members of Housing Cooperatives Using Criminal Law as an Important Element of Economic Development Vera R. Averyanova , Taisiya N. Sidorenko , Andrei A. Zhukov , Nellya I. Orfanidi , and Andriy A. Klyuev Abstract The purpose of this work is based on the need to study the protection of the rights of members of housing construction cooperatives against criminal attacks and their assessment in Russian criminal law. The research methods are dialectics, comparative research, system analysis. The main result of the work was the proposals for evaluating the actions of people on the board of the housing cooperative or acting as chairperson of the board of the housing cooperative, as a fraud. The proposals for some adjustment of the Criminal Code of the Russian Federation are made. This work is the first study on the assessment of criminal behavior in the framework of violation of property rights in the implementation of the activities of the housing cooperative. Keywords Housing cooperative erty Fraud





Housing
Property
Estate
Right to prop-

V. R. Averyanova
T. N. Sidorenko (&)
A. A. Zhukov
N. I. Orfanidi Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] V. R. Averyanova e-mail: [email protected] A. A. Zhukov e-mail: [email protected] N. I. Orfanidi e-mail: [email protected] A. A. Klyuev North Caucasus Branch of the Russian State University of Justice, Krasnodar, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_73

679

680

V. R. Averyanova et al.

1 Introduction One of the pressing issues of every person is always the housing provision. The importance of housing relations is reflected in the Constitution of the Russian Federation, which proclaims the orientation of the state to ensure a decent human life (Constitution of the Russian Federation 1993). In developing this provision, the Housing Code of the Russian Federation establishes the possibility of each person located in the territory of Russia to freely choose a place for their residence (Russian Federation 2004a). The state cannot create obstacles to the realization of the essential human right to housing, but it must create conditions for its free choice, as well as adequate protection. The forms of acquisition of real estate can be very different. First of all, this is the acquisition of real estate following the contract of sale, which is one of the most common ways. However, in this case, dwelling prices are very impressive, so many choose to participate in a shared investment construction based on Federal Law “On participation in shared construction of apartment buildings and other real estate and amendments to some legislative acts of the Russian Federation” (December 30, 2004, No. 214-FZ), including with the attraction of credit funds (Russian Federation 2004b). The entry of citizens into housing construction cooperatives also acts as one of the ways of acquiring housing objects. This method attracts citizens with its simplicity, the absence of strict requirements for these associations of citizens in the legislation, and the efficiency and convenience of its application in the construction industry. It should be borne in mind that all methods, including the latter, require the state to take specific actions related to the protection of the rights and interests of citizens. These actions of the state are associated with the establishment of requirements for the construction of housing and other real estates, control over their activities, and the establishment and prosecution of offenders. In terms of cooperative relations, everything seems to be clear and simple since the management is carried out by the participants of these associations themselves. However, as some scholars point out, “The latter, as a rule, take the position of a passive consumer to the housing construction cooperative instead of taking an active and responsible position of a member who voluntarily entered into a voluntary association, whose actions define the result of satisfying own needs” (Sadrieva 2017). It is this behavior of members of the housing construction cooperative that leads to specific criminal attacks on their interests.

Protecting the Rights of Members of Housing Cooperatives ...

681

2 Materials and Methods The issues of violation of the rights of participants in housing construction cooperatives are most often associated not just with the failure to provide them with premises as such, but they contributed in their favor with the illegal circulation of the money. Such a thing must be considered as fraud (Article 159 of the Criminal Code of the Russian Federation), which is due to the specific features of this crime specified in the criminal law. If we consider the object of criminal encroachment, then we should follow the established practice, such as the person’s right to own, use, and dispose his/her property, as well as the obligation of all other members of the company not to encroach on these powers (Boytsov 2002). However, this opinion is not supported by all scholars. As for the issues of cooperative relations, it should be understood that the object of a criminal assault is the right of a certain private person (a person who has reached the age of sixteen) or a legal entity to possess a property (the Housing Code of the Russian Federation provides an opportunity for legal entities to participate in such associations in a limited manner (Article 111). Criminal law links property with certain items that recognize someone else’s property or right to property. If we consider the essence of those actions that form the objective side of the crime, provided for in Article 159 of the Criminal Code of the Russian Federation, then concerning housing and construction relations, the subject should be the right to property. However, this is not the case. In the formation of a housing construction cooperative, funds are attracted to the joint receipt by all its participants of a specific housing object. It turns out it is precisely the funds raised for their use in construction that is the subject of the crime. The right to receive a particular property is not yet formed, as it should appear in the future. Such a circumstance determines the recognition of money as the subject of a crime. This situation was reflected in the third subparagraph of paragraph 10 of the Resolution of the Plenum of the Supreme Court of the Russian Federation: “On judicial practice in cases of fraud, misappropriation, and embezzlement” (November 30, 2017 No. 48). In the document mentioned above, the highest court clarified the meaning of the phrase “right to premises,” which states that Part 4 of Article 159 of the Criminal Code of the Russian Federation should be understood as deprivation of the right to housing due to illegal treatment of property owned by the victim, in which the latter cannot own, use, and dispose of it (Plenum of the Supreme Court of the Russian Federation 2017). It should be kept in mind that protecting the housing rights of citizens led to a change in Article 159 of the Criminal Code of the Russian Federation. On November 29, 2012, Part 4 of Article 159 of the Criminal Code of the Russian Federation was set out in a new edition, which included a qualifying attribute— theft of property by fraud or breach of trust—which led to the deprivation of citizens’ right to premises (Russian Federation 2012). This position of the legislator relates to the importance of housing as an essential subject in connection with the

682

V. R. Averyanova et al.

right of ownership and its deprivation in the process of committing criminal behavior. However, this could not solve all of the contentious issues arising in the field of housing fraud. Concerning the issue under consideration, this qualifying attribute cannot be applied due to the circumstances indicated above. However, such behavior can be mitigated by the fact that within the framework of Part 4 of Article 159 of the Criminal Code of the Russian Federation, fraud can be considered both housing and other property (right to property) with a value that exceeds one million rubles (fraud committed on a particularly large scale). If we consider the practice, then a relatively significant amount of money—often exceeding one million rubles—is required for the purchase of residential premises. This situation has led to the inclusion of such items as housing and large-scale property within one qualifying attribute. However, if the amount of funds raised for use in the housing construction cooperative is less than one million rubles—as might be the case for a small, one-room apartment with a value of 800,000 rubles—then the rights of the person will not be appropriately protected. It is possible to change this provision by making appropriate amendments to the Criminal Code of the Russian Federation. In our opinion, the legislator should understand that in the case of fraudulent actions, as a result of which a person uses the property to obtain housing, but this does not work, property in the form of money should not be recognized as a crime. It is necessary to indicate the committed fraud “on a particularly large scale, which entailed the deprivation of the right of a person to a dwelling or not receiving a dwelling,” as noted in Part 4 of Article 159 of the Criminal Code of the Russian Federation. Such a formulation of the criminal law would allow for the proper protection of the rights of participants in the housing construction cooperative and other people who are trying to enter into legal relations regarding the acquisition of housing in the future, including the use of an investment-shared construction agreement.

3 Results When deciding on the protection of the rights of participants in a housing construction cooperative from fraudulent actions, it is essential to find out the signs of the objective side of the crime under Article 159 of the Criminal Code of the Russian Federation. First of all, the allocation of this norm was due to the special way the perpetrator committed the theft of the property of the other private person or acquired the right to property. Such acts deceive the victim or the use of his confidential relations with the guilty person. It is essential to understand that both deception and abuse of trust are manifestations of the treatment of someone else’s property by the perpetrator or the treatment of the right to someone else’s property. There is no withdrawal in fraud, which distinguishes it from other types of theft. The victims make their contribution to the housing construction cooperative in the

Protecting the Rights of Members of Housing Cooperatives ...

683

form of fraud or breach of trust. Thus, both methods can be used in the theft of property in the framework of a housing cooperative. The first manifestation of a criminal act is deception. For its characterization, we should refer to the already mentioned resolution of the Plenum of the Supreme Court of the Russian Federation of November 30, 2017: “Deception consists of knowingly reporting false information that does not correspond to the reality, omission of facts, or intentional actions aimed at introducing the owner of the property or other person’s confusion” (Supreme Court of the Russian Federation 2017). Concerning the relations connected with the issues of criminal actions within the housing and construction cooperative, deception will consist of misleading members of the cooperative about future actions, the subject being a particular real estate object. When considering this method of fraud, it is crucial to understand that, when deceiving, the guilty persons convince the victim to join the housing construction cooperative by entering the appropriate amounts, promising the opportunity to receive a specific object of housing in the future. As a second method of fraud, criminal law indicates a breach of trust. This way is as follows: “Using a special trusting relationship with the victim, the guilty person assumes obligations in the absence of an intention to fulfill them and illegally turns it in his favor or favor of third parties” (Supreme Court of the Russian Federation 2017). This method is less commonly used when stealing the property of housing construction cooperative members, although it is not excluded. Both methods of fraud involve encouraging the victim to join a housing construction cooperative with the aim of causing damage to the victim’s property. It is essential to understand that when cheating or breaching trust, the perpetrator falsifies his or her true motive, which becomes incomprehensible to the victim. The result of the victim’s criminal behavior is the distortion or misinterpretation of the events that are associated with joining the housing construction cooperative and making certain shares. According to Article 159 of the Criminal Code of the Russian Federation, the consequence of this criminal offense is an obligatory sign in the form of property damage. Its occurrence attracts criminal behavior, which is consequently punishable. The perpetrators perform the actions themselves in order to take possession of other people’s property or property rights.

4 Discussion Fraud is classified as a property crime caused not only by the specific subject of the crime but also by the fact that the victim’s property is damaged as a result of it. This implies a clear definition. Property damage is equal to the value of the property that was unlawfully turned by the perpetrator. The value is quite simple to determine since the victim makes a strictly defined contribution in the appropriate monetary form to the housing construction cooperative. It is this monetary amount that acts as the subject, and its size, respectively, as a consequence.

684

V. R. Averyanova et al.

Since the composition of fraud is formulated based on material principles, there must be a causal relationship between the circulation of property in favor of the perpetrator through deception or abuse of trust and the ensuing criminal result. It is essential to establish here that the non-receipt by the victims of a particular dwelling is not due to external factors that do not depend on the persons who carry out the general management of the housing construction cooperative but, instead, on their actions aimed at the circulation of funds contributed to the housing construction cooperative. A rather complicated issue of the composition of fraud committed in the field of housing and cooperative relations is the subject of the crime, provided in Article 159 of the Criminal Code of the Russian Federation. First of all, the difficulty is that the housing construction cooperative is a non-profit organization based on members who are included to meet their housing needs. The management of the housing construction cooperative should be carried out in its general meeting (Article 115 of the Housing Code of the Russian Federation, HC of the RF). In this regard, it seems like the members of the housing construction cooperative themselves manage their own property, which eliminates the possibility of fraud. However, in Article 115 of the Housing Code, the management bodies include the board of the housing cooperative and the chairman of the board of the housing cooperative. These leaders determine the fulfillment of powers related to the use of the entire housing construction cooperative’s funds by some individuals. As for the people who enter there, they must be members of a housing construction cooperative in any case. Accordingly, they must be at least sixteen years old (these requirements are determined by Article 116.1 of the HC of the RF), which is entirely consistent with the indicators of the subject of fraud, taking into account Article 20 of the Criminal Code of the Russian Federation. However, these people must have certain rights associated with the use of property, which is a share contribution. This allows us to conclude that there is a particular subject of such behavior—a person who uses his powers. At the same time, both the board members and the chairman of the housing construction cooperative can act as crime subjects. If several people participated in the theft of property by fraud or breach of trust within the framework of a housing construction cooperative, then the degree of their participation and the nature of their actions should be clarified. If there are powers to manage the share contribution by several people, a group of people by prior conspiracy or an organized group should be recognized if there are relevant signs (indicated in Article 35 of the Criminal Code of the Russian Federation). As suggested by E. V. Belov, fraud in the field of violation of housing rights is most often carried out precisely by organized groups, when there are special participants who “invite” other participants, and other people illegally turn the property of victims in their favor (Belov 2014). If only one of the members had authority to manage the share contribution, then there is no group crime, and the actions of persons not endowed with special powers must be qualified following paragraph 4 of Article 159 of the Criminal Code of the Russian Federation with reference to Article 33 of the Criminal Code of the Russian Federation, depending on the nature of the actions taken by the accomplice (organizer, instigator, and accomplice).

Protecting the Rights of Members of Housing Cooperatives ...

685

An essential issue for determining signs of fraud is the subjective side. It forms guilt as a vital sign of crime, as well as a particular purpose (an indication of the purpose follows from the general concept of theft, contained in the note to Article 158 of the Criminal Code of the Russian Federation). The first important sign of the subjective side of fraud committed within the framework of a housing cooperative is guilt. In scientific works, fraud, as a criminal assault on someone else’s property, is considered only as a deliberate crime; the latter can only be direct (Karpova 2011). Concerning the content of intent in the framework of housing fraud, it is necessary to establish that members of a housing construction cooperative are aware the reversion of the property by the deception or breach of trust are unlawful and free. The perpetrator must understand his actions will inevitably lead to the onset of consequences for one or several members of the housing construction cooperative in the number of their share contributions. The perpetrator should also wish to turn the property of others in his favor or favor others and cause property damage to the housing construction cooperative. As for the mercenary purpose, it assumes that the perpetrator receives certain property conclusions at the expense of the share contribution from the illegal circulation of property by a member of a housing construction cooperative.

5 Conclusion The state should effectively protect economic rights, including those arising from the housing. One of the means for realizing the right to housing is to enter into the housing construction cooperative. Illegal actions on the part of the board of the housing cooperative and its chairman should be considered fraud from the perspective of Russian criminal law. Currently, the law does not specifically stipulate that, in cases of fraud where there is no home yet, the alleged property is the subject of the crime, not the cash. In this study, we have proposed to adjust Part 4 of Article 159 of the Criminal Code of the Russian Federation.

References Belov, E.V.: Housing Real Estate Fraud. Methods of Accomplishment, Qualification, and Problems: A Scientific and Practical Manual. Jurisprudence, Moscow (2014) Boytsov, A.I.: Crimes Against Property. Yuridichesky Center Press, St. Petersburg (2002) Constitution of the Russian Federation (1993). http://www.pravo.gov.ru Karpova, N.A.: Theft of Another’s Property: Problems of Differentiation of Criminal Liability and Qualification Issues: Scientific and Practical Manual. Jurisprudence, Moscow (2011)

686

V. R. Averyanova et al.

Russian Federation: Housing Code of the Russian Federation (December 29, 2004 No. 188-FZ) (2004a). Moscow, Russia. http://www.pravo.gov.ru Russian Federation: Federal Law “On participation in shared construction of multi-apartment buildings and other real estate and on amendments to some legislative acts of the Russian Federation” (December 30, 2004 No. 214-FZ) (2004b). Moscow, Russia. http://www.pravo. gov.ru Russian Federation: Federal Law “On Amendments to the Criminal Code of the Russian Federation and Certain Legislative Acts of the Russian Federation” (November 29, 2012 No. 207-FZ) (2012). Moscow, Russia Sadrieva, R.R.: Topical Problems of the Cooperative form of Construction of Multi-Apartment Residential Buildings: Cooperative Relations of Shareholders with Housing Construction Cooperatives. Justicinform, Moscow (2017) Supreme Court of the Russian Federation: Decisions of the Plenum of the Supreme Court of the Russian Federation “On judicial practice in cases of fraud, misappropriation, and embezzlement” (November 30, 2017 No. 48) (2017). Moscow, Russia

Conceptual Framework for the Implementation of Audit Control of the Financial and Economic Activities of Agricultural Consumer Cooperatives Oxana V. Boyko

Abstract Agricultural consumer cooperation system development entails their financial and economic activity revisioning control system development. This type of control provides coordinated and effective work of agricultural consumer cooperative. This control give possibility to coordinate activity by negative factors periodical tracing and incompetent decisions making prevention, leading to cooperative economical state worsening. In article modern revisioning control system state was analyzed, basic conceptual approaches to legislation regulation of revisioning control system and performing revisioning and consulting activity of revision unions was suggested. Keywords Revision Revision rules


Revision control
Agricultural consumer cooperative


1 Introduction Recently, increased attention has been paid to the system of agricultural consumer cooperation, which is considered as a way to increase the profitability of the rural population and the involvement of small businesses in the countryside in the country’s economy. Also, the system of agricultural consumer cooperation is considered as a factor in reducing unemployment in rural areas and, accordingly, the preservation and development of rural areas. However, now, the system of legal regulation of audit control of financial and economic activities of agricultural consumer cooperatives is in the process of formation. This circumstance complicates the performance of their functions by the audit unions assigned to them by the Federal Law of December 8, 1995, No. 193-FZ “On Agricultural Cooperation” (hereinafter also “the Law”) (Russian Federation 1995). O. V. Boyko (&) Russian State Agrarian University – Moscow Timiryazev Agricultural Academy, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_74

687

688

O. V. Boyko

2 Materials and Methods The study was carried out on the documents of existing agricultural consumer cooperatives that have a valid membership in the audit unions of agricultural cooperatives. These agricultural consumer cooperatives are part of the self-regulatory organization Agrokontrol RSO. In the study of the role of audit control and its regulatory system, in order to ensure a systematic approach, analysis and synthesis methods were used. They provided a study of the structural elements of the system, its subsystems and the organizational and economic processes occurring in them. Also, the graphical method and methods of comparison and generalization were used. The expert opinions of scientists in this area of research have been studied.

3 Research Results At the request of the law, all agricultural consumer cooperatives are obligatorily included in the audit unions of agricultural cooperatives and receive an audit opinion from them. Even if the cooperative passes another test, such as an audit, this provision is established by law and does not provide exceptions. According to domestic scientists, the mandatory membership of an agricultural cooperative in the revision union helps increase the efficiency of the financial and economic activities of an agricultural cooperative (Belov 2008; Katelynikova 2015; Nesterenko and Bezdolnaya 2016). The revision union of agricultural cooperatives (hereinafter referred to as the revision union) is a union of agricultural cooperatives that carries out the audit of the financial and economic activities of its member cooperatives, unions of cooperatives and the coordination of these activities. Also, the audit union represents and protects the property interests of cooperatives, provides audit services to members of the audit union and provides other related audit services (Russian Federation 1995). The audit union, created by at least twenty-five agricultural cooperatives of its various types, is included in the self-regulatory organization of audit unions (hereinafter SRO). Without being in SROs, the audit union does not have the right to carry out audits and provide audit-related services. According to the requirements of the law, there should be at least forty audit unions in a self-regulatory organization (Fig. 1). According to many researchers, the audit union, when conducting an audit of the financial and economic activities of agricultural cooperatives, performs the function of internal control in the system of agricultural cooperation (Belov 2008; Nesterenko and Bezdolnaya 2016; Kolesnikova 2010; Zyryanova and Zagurski 2019).

Conceptual Framework for the Implementation of Audit Control ...

689

Self-regulatory Organization of Revision Unions (< 40 Auditing Unions)

Revision Union (< 25 СПК)

СПК

СПК СПК

Revision Union (< 25 СПК, СПоК, СКПК)

СПК

СПоК

Revision Union (< 25 СПоК)

СПоК

СКПК

СПоК СПоК

Fig. 1 The system of organization and self-organization of audit unions

However, this is not entirely true. Revision unions are unique to the Russian agricultural cooperation system. Currently, they fully perform the functions of external control, while the supervisory boards carry out the functions of internal control. Supervisory boards are created within agricultural consumer cooperatives, as well as within agricultural production cooperatives when they reach a certain number of members. Some scientists consider conducting an audit of the financial and economic activities of agricultural consumer cooperatives only in terms of its characteristics, stages, and classification of its types (Shirobokov and Katelnikova 2012; Katelnikova 2015; Sumarokova 2018; Horuzhiy et al. 2010). Thus, the issue of legal regulation of the activities of audit unions and their self-regulatory organizations in the system of agricultural cooperation has not been sufficiently studied (Volodina and Boyko 2016) and requires more detailed study. At the moment, the regulatory system of audit control includes three levels. The first level is occupied by Federal Law No. 193-FZ, dated December 8, 1995, On Agricultural Cooperation. It regulates the general requirements for the organization of audit affairs and the control of the financial and economic activities of agricultural cooperatives, including consumer ones. The second level is occupied by the SRO rules, which regulate the activities of the audit unions in it and should not contradict the Law. The third level is occupied by the rules of each specific audit union, which are adopted by decision of the general meeting of members of the audit union, namely agricultural cooperatives. In turn, these rules should not contradict the Law and SRO rules. Accordingly, each self-regulatory organization can set its own rules. The only requirement for SRO rules is their consistency with the Law.

690

O. V. Boyko

Federal Law “On Agricultural Cooperation”

Rules of the Self-regulatory Organization of Audit Unions of Agricultural Cooperatives

Rules of the Audit Union of Agricultural Cooperatives

Fig. 2 Modern system of legal regulation of audit control

Thus, the mechanism for implementing audit control over the financial and economic activities of agricultural consumer cooperatives can be schematically presented as follows in Fig. 2. Based on the results of the audit (completion of the audit), the audit union draws up an audit opinion in writing. The audit report, the form, content, the procedure for signing and the procedure for the submission are determined by the rules of the SRO, which includes this audit union. Thus, there are no unified, universally accepted rules for the implementation of audit control over the financial and economic activities of agricultural consumer cooperatives or unified, approved forms of working documents and audit opinions. In addition, at this stage of the development of the system of audit unions in their activities, there is no clear separation of approaches to the implementation of audit control of various forms of agricultural cooperatives. This is due to several factors. First of all, common approaches to the implementation of audit control of agricultural cooperatives have not been developed; that is, there is no single methodology applicable to all audit unions. Secondly, the interaction between the audit unions of different self-regulatory organizations is not carried out (i.e., there is no exchange of experience and dissemination of the applied methods for the implementation of audit control). Often, this is also due to the fact that the developed methods of audit control are the intellectual property of audit associations. Third, the development of the system of audit unions for a long time was based on borrowing approaches and methods used in audit control. Fourth, the membership base of the audit unions is basically represented by various types of cooperatives, and, therefore, the methods used for the implementation of audit control are universal. Various approaches to conducting an audit,

Conceptual Framework for the Implementation of Audit Control ...

691

depending on the type of agricultural cooperative (agricultural production cooperative or agricultural consumer cooperative), have not been developed1. Thus, at present, we can conclude that in the Russian Federation, there are no clearly defined, established recommendations for the rules governing the implementation of audit control of the financial and economic activities of agricultural consumer cooperatives and the activities of audit unions.

4 Discussion of the Results The existing system creates contradictions. There is a risk of the transition of an agricultural cooperative from one audit union to another, where the rules for conducting an audit of financial and economic activities are “softer.” In our opinion, in order to eliminate contradictions, limit risks and prevent such a development of events, the introduction of a unified methodology for the implementation of audit control at the federal level is required. This approach should be implemented using the Federal rules (standards) of audit control, the activities of audit unions and their self-regulatory organizations. Federal rules should establish principles and define strict criteria for conducting audit control procedures by all audit unions, without exception. We propose not to eliminate the existing regulatory model, but to improve it. Accordingly, the federal rules (standards) of audit control, the activities of audit unions and their self-regulatory organizations will be developed on the basis of the requirements of the Law. At the same time, they will be dominant over the SRO rules of audit unions and the rules of audit unions. Therefore, we propose to present the hierarchy of the regulatory system as follows (Fig. 3). To determine the functionality, we propose to formulate a definition of the federal rules (standards) of audit control, the activities of audit unions and their self-regulatory organizations. Federal rules (standards) of audit control, activities of audit unions and their self-regulatory organizations are the rules establishing the procedure for the audit of financial and economic activities of an agricultural cooperative (union of cooperatives) at the federal level, and they regulate the audit and consulting activities of the audit unions of agricultural cooperatives and the activities of the self-regulatory organizations of the audit unions2. Thus, consolidation of the proposed approach to legal regulation will improve the quality of audits and audit and advisory activities by audit unions.

1

The agricultural production cooperative is a commercial organization; and the agricultural consumer cooperative is a non-profit organization. 2 Suggested by the author.

692

O. V. Boyko

Federal Law No. 193-FZ “On Agricultural Cooperation”

Federal Rules (standards) of audit control, activities of audit unions and their self-regulatory organizations

Rules of the Self-regulatory Organization of audit unions of agricultural cooperatives Rules of the Audit union of agricultural cooperatives Fig. 3 The proposed system of legal regulation of audit control Source Developed by the author

5 Conclusion Audit control, being a type of economic control of agricultural consumer cooperatives, faces many problems in practice. However, we should not forget that, in addition to performing the functions of the supervisory authority, audit unions also advise agricultural cooperatives on current issues. Therefore, we believe that it is legitimate to talk not only about the implementation by the audit unions of audit control but, in general, about their conduct of audit and consulting activities. The objectives of this activity are to control and coordinate the activities of the agricultural cooperative by conducting audit procedures for financial and economic activities and the provision of services related to the audit. In our study, the main factors constraining the development of the audit control system were identified and highlighted. Also, the study suggested a way to overcome and further develop them. Audit unions carry out audit control in full and at a high level, as well as carry out audit and consulting activities. They perform extremely important functions in the development system of agricultural consumer cooperatives. Therefore, the development of a system of audit unions and the development of federal rules (standards) for audit control of the activities of audit unions and their self-regulatory organizations is one of the most important tasks for increasing the effectiveness of audit control. And, as a result, it is important for increasing the efficiency of the activities of agricultural consumer cooperatives themselves.

Conceptual Framework for the Implementation of Audit Control ...

693

References Belov, N.G.: Actual questions of revisioning unions development in agricultural cooperation system. Econ. Agric. Process. Enterp. 6, 46–49 (2008) Horuzhiy, L.I., Alborov, R.A., Kontzevaya, S.M., Hosiev, B.N.: Revision of agricultural cooperatives. Russian State Agrarian University – Moscow Timiryazev Agricultural Academy,. Moscow, Russia (2010) Katelnikova, T.I.: Features of the organization of revision work in agricultural consumer cooperatives. Vestnik Voronezh State Agric. Univ. 4(47), 275–279 (2015) Kolesnikova, E.N.: The formation of agricultural manufacturing cooperative control system. Agric. Econ. Russ. 9, 52–54 (2010) Nesterenko, A.V., Bezdolnaya, T.Yu.: Economic necessity of functioning of audit unions to ensure the safety of property of agricultural cooperatives. Agric. Bull. Stavropol Region S1, 117–121 (2016) Russian Federation: Federal Law “On Agricultural Cooperation” (December 8, 1995 No. 193-FZ). Moscow, Russia (1995) Shirobokov, V.G., Katelnikova, T.I.: Direction of procurement-sales agricultural consumer cooperatives. Acc. Agric. 4, 45–49 (2012) Sumarokova, M.A.: System of agricultural consumer cooperatives functioning and development creation in Kurgan region. Bull. Kurgan State Agric. Acad. 2(26), 6–8 (2018) Volodina, N.G., Boyko, O.V.: Revisioning control of financial and economic activity agricultural consumer cooperatives. In: Volodina, N.G., Boyko, O.V. (eds.) Actual Problems of Accounting, Analysis and Control, pp. 143–170. Russian State Agrarian University – Moscow Timiryazev Agricultural Academy, Moscow (2016) Zyryanova, T.V., Zagurski, A.O.: Organization of the internal control system within the regulatory activity agricultural enterprises. Diskussiya 93, 6–17 (2019)

System-Targeted Reengineering of Business Processes in Cooperative Enterprises Irina V. Liberman , Sergey I. Koryagin , Pavel M. Klachek, Anna A. Bogdanova , and Valeriya A. Vasileva

Abstract A universal system-target method for modeling and reengineering of business processes in cooperative enterprises is proposed, which allows us to overcome the inertia and systematicity in the management of cooperative enterprises and eliminate the systemic problem in the field of modeling and reengineering of business processes in cooperative enterprises. An algorithm for creating system-targeted models for reengineering the business process at cooperative enterprises has been developed. The architecture of the software and hardware complex “CENTER-C1,” designed to create system-targeted models for reengineering the business process at cooperative enterprises, is proposed. As shown by the results of successful implementation, the system-target model for reengineering business process based on the “CENTER-C1” software and hardware complex makes it possible to use the existing potential of cooperative enterprises more effectively, significantly increase the profitability and profitability of the business, and provide the possibility of transition to new, innovative forms of ecosystems of consumer cooperation.







Keywords Reengineering of business processes Cooperative enterprises Software and hardware complex Intelligent technology Hybrid computing systems Production and economic systems Business model













I. V. Liberman (&)
S. I. Koryagin
P. M. Klachek
A. A. Bogdanova
V. A. Vasileva Engineering and Technical Institute of Immanuel Kant Baltic Federal University, Kaliningrad, Russia e-mail: [email protected] S. I. Koryagin e-mail: [email protected] P. M. Klachek e-mail: [email protected] A. A. Bogdanova e-mail: [email protected] V. A. Vasileva e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_75

695

696

I. V. Liberman et al.

1 Introduction “In the conditions of a sharply and often unpredictably changing market conditions and fierce competition, the speed (and adequacy) of the reaction of all systems of a cooperative enterprise, the accuracy and efficiency of its operations are of particular importance. It is believed that under such conditions when implementing a large-scale reorganization of a cooperative enterprise, the most effective is the reengineering approach that has been quite widely discussed recently in various works devoted to management issues. Reengineering, which is essentially conceived as a technology that helps to increase the efficiency of an enterprise by redefining its business processes and adjusting or replacing the business model used in it, should and, most importantly, can help many Russian cooperative enterprises” (Makarov and Varshavskiy 2015). To date, as the practice has shown, the following three main approaches are used most widely in the modeling and reengineering of business processes in cooperative enterprises: • “zero-approach”—the creation of business models from scratch, based on well-known methods of reengineering companies (Strnadl 2006); • the approach based on integrated solutions—the creation of business models based on the analysis of managerial decisions (Guha and Kettinger 2003); • the approach based on detailed analysis using knowledge engineering methods —the creation of business models through a comprehensive analysis of companies using knowledge engineering methods and intelligent technologies (Klachek 2018). An analysis of the practical application (Kressel and Lento 2017) of the approaches to modeling and reengineering business processes at cooperative enterprises and their various hybrid schemes showed that the highest practical efficiency is achieved with the combined (hybrid) use of the “zero approach” and “detailed knowledge engineering analysis.” The most significant results in this area were achieved in the framework of the following projects: Toronto Virtual Enterprise (TOVE) project and Process Specification Language (PSL) project (Klachek 2018). As part of these projects, hybrid ontological models of business processes were used (Gavrilova and Leshcheva 2015) for modeling and reengineering business processes of various types of companies, including enterprises in the cooperative sector. According to studies developed within the framework of these projects, ontological models of business processes do not provide a comprehensive (system) solution that takes into account the specifics of the cooperative industry, which leads to the formation of a systemic problem when modeling and reengineering business processes of cooperative enterprises. Thus, the task was to create a universal system-target method for modeling and reengineering business processes at cooperative enterprises. The method of system-targeted reengineering of business processes at cooperative enterprises, as well as software tools developed on its basis that can be used to overcome inertia and non-systematic management of

System-Targeted Reengineering of Business Processes ...

697

cooperative enterprises—which, as shown by the implementation of application systems developed based on this approach—will allow successful adaptation to modern business conditions and eliminate the systemic problem in the field of modeling and reengineering business processes at cooperative enterprises.

2 Materials and Methods In Fig. 1, an algorithm for creating system-targeted models for reengineering the business process at cooperative enterprises is presented. It was obtained by following the general methodology for creating hybrid computational models of complex industrial and economic systems (Klachek 2018) and the synergetic model of hybrid computational intelligence (HCI) (Klachek 2018). The central element of the algorithm for creating system-target models for reengineering business processes in cooperative enterprises, shown in Fig. 1, is the system-target graphosemantic model of knowledge transformation and decisionmaking, which is based on the semantic graph Ga of the following form (Klachek 2018): Ga ¼ hC; Ri;

ð1Þ

where: C – a set of graph vertices denoting the goals of the system-target structure (Makarov 2015); R – a set of arcs denoting semantic relations of the system-target structure.

Fig. 1 The algorithm for creating system-targeted models for reengineering the business process at cooperative enterprises Source Klachek 2018

698

I. V. Liberman et al.

With this graph in mind, let us consider a tuple D E ðm2Þ;jm2 C ¼ c0 ; c01;j1 ; c1;j1 2;j2 ; BA{:; Cðm1Þ;jm1 ; h i ði1Þ;j where: i ¼ Ci;j1 i1 a set of ji – x goals of ith level, subordinate to ji1 -м goals of (i-1)th level. A set of semantic arcs of the graph (1) is represented as: R¼

n

ði1Þ;ji1

Ci;j1

; Ci;j1 ði þ 1Þ;j1 þ 1

o ;

Figure 2 gives an example of a semantic graph Ga . Generalizing, following (1), the process of forming the graph Ga , i.e., assuming that the time points ti correspond to the nomination of goals, we get a system-target semantic graph of the innovation, research, production, economic, and other tasks performed in the process of reengineering business processes in cooperative enterprises (Davenport, 2013; Maкapoв, 2015), Gati : Gati ¼ hC; R; ti i

ð2Þ

Gati is a mapping process of system-targeted planning of the process of knowledge transformation and problem-solving. This process is formed from C0 of the ðm2Þ;jm2 graph Gati in the direction Cðm1Þ;jm1 (in Fig. 2, this process is shown by arcs going from top to bottom).

Fig. 2 An example of a semantic graph Ga goal structure (a), a block diagram of goal attainment (b)

System-Targeted Reengineering of Business Processes ...

699

Model (2) allows us to create a knowledge bank (Gavrilova and Kudryavtsev 2016), which is necessary for creating system-target models for reengineering business processes in cooperative enterprises, the main goal of which is to ensure the effective implementation of procedures: forming the structure of goals, achieving goals, developing a system-target planning process for solving a problem, etc., and ultimately providing processes for automated development of decision support systems (Castillo 2016) in the process of modeling and reengineering business processes in cooperative enterprises. In order to solve these problems, the author’s approach to creating a knowledge bank was proposed. It is based on the method of intelligent system-target planning, which Klachek presents in detail (2018). Proposed methodological approach and applied methods and models in the form of the system-target graphosemantic transformation model of knowledge and decision-making (Gavrilov and Alsufev 2014)and the intelligent system-oriented planning, etc. (more details on the methodological and applied elements of the system-target knowledge management technology can be found in work (Klachek 2018)), allowed for the partial implementation of full automation of the processes of transformation of knowledge and decision-making to create a system-targeted model for reengineering business processes at the cooperative enterprises based on intelligent information subsystem “SITAP,” the architecture of which is shown in Fig. 3.

Fig. 3 The architecture of the intellectual information subsystem. SITAP Source Klachek 2018

700

I. V. Liberman et al.

3 Results Testing of the proposed methods and tools is currently being carried out as part of the program to create the Governor Center in the Kaliningrad region and as part of the Federal Target Program “Electronic Russia” (Klachek 2018). The main activity of the Governor Center in the Kaliningrad region is information and analytical support for managerial decision-making by the governor and the city government. Figure 4 shows the architecture of the “CENTER-C1” software and hardware complex, which is designed to create system-targeted models for reengineering the business process at cooperative enterprises. Based on the architecture of “CENTER-C1,” a complex of system-target models for reengineering the business process in the housing sector of the Kaliningrad region was developed (Fig. 5), including housing cooperative partnerships, etc. As the implementation results showed (Klachek 2018), the model proposed in Fig. 5 has high adaptability to various types of housing management, which allows one to create an effective system of relations between participants in the housing management market; it also allows for reducing the time to complete certain operations and the cost and risks of providing housing services, which leads to a significant increase in the effectiveness of housing management.

Fig. 4 The architecture of the software and hardware complex based on the system-targeted knowledge management technology “CENTER-C1” Source Klachek 2018

System-Targeted Reengineering of Business Processes ...

701

Fig. 5 A generalized version of the system-target model for reengineering the business process in housing in the Kaliningrad region Source Klachek 2018

Fig. 6 The dynamics of revenue and net revenue from the implementation of the system-target model of business process reengineering based on the “CENTER-C1” software and hardware complex Source Klachek 2018

In the period from 2017 to 2019, the software and hardware complex “CENTER-C1” and the reengineering of the business process model shown in Fig. 5 were used in the reengineering of elevator business processes based on the housing cooperative “My Home” in the Kaliningrad region. As the result of the implementation, the use of the system-target model for reengineering business processes based on the “CENTER-C1” software and hardware complex allowed us to significantly increase net profit (Fig. 6), reduce repair time, reduce elevator downtime by almost half, and reduce the number of crimes related to unauthorized

702

I. V. Liberman et al.

access to the engine room, shaft, and elevator car; that is, there was a significant social effect (Klachek 2018). Besides, the use of the system-target model of business process reengineering based on the “CENTER-C1” software and hardware complex as a tool for the innovative development of the lifting mechanisms of the Kaliningrad region made it possible to develop a more flexible tariff plan for a housing and cooperative partnership, update and modernize equipment, increase staff qualifications, etc. (Klachek 2018).

4 Discussion Many researchers pay attention to the phenomenon of rapidly developing high-tech forms of cooperative enterprises (Davenport 2013). As studies have shown (Makarov 2015), the traditional forms of business processes of modern cooperative enterprises are gradually superseded by new innovative technologies, which, according to many researchers, leads to the phenomenon of rapidly developing high-tech forms and ecosystems of cooperative enterprises. Moreover, an important fact is that Russian cooperative enterprises are at a mature stage due to their long-term existence in the market. In this regard, the main task of reengineering and designing effective business models of cooperative enterprises is the transition of cooperative enterprises to the stage of evolution and new forms of activity. As the research and implementation results (Klachek 2018) showed, the reengineering of cooperative enterprises based on a system-target approach and methods of intelligent system-target planning allows us to harmoniously switch to new productive forms of business models of cooperative enterprises as a type of business model based on the system of innovations and intelligent technologies and characteristic of new, innovative forms of ecosystems of consumer cooperation.

5 Conclusion The studies presented in work allowed one to obtain the following scientific and applied results: • Based on the study of theoretical developments and modern business processes of reengineering practices of cooperative enterprises, the task was to create a universal system-targeted method for the modeling and reengineering of business process at cooperative enterprises, allowing one to overcome the inertia and systematicity in the management of cooperative enterprises and eliminate the systemic problem in the areas of modeling and the reengineering of business processes in cooperative enterprises.

System-Targeted Reengineering of Business Processes ...

703

• An algorithm was developed for creating system-target models of business process reengineering at cooperative enterprises, obtained by following the general methodology for creating hybrid computational models of complex industrial and economic systems, and a synergetic model of hybrid computational intelligence. • The “CENTER-C1” software and hardware complex has been developed, designed to create system-targeted models of business process reengineering at cooperative enterprises. As the results of successful implementation have shown, the system-target model of business process reengineering based on the “CENTER-C1” software and hardware complex makes it possible to more effectively use the existing potential of cooperative enterprises, significantly increase the profitability of the business, and provide the possibility of transition to new, innovative forms of ecosystems of consumer cooperation.

References Castillo, O., Mellin, P.: Hybrid intelligent systems. In: Intelligent Systems. Intelligent Systems Reference Library, vol. 17. Springer, Berlin (2016). https://doi.org/10.1007/978-3642-21004-4_17 Davenport, T.H.: Process Innovation Reengineering Work Through Information Technology. Harvard Business School Press, Cambridge (2013) Gavrilova, T.A., Kudryavtsev, D.V., Muromtsev, D.I.: Knowledge Engineering. Models and Methods. Lan, St. Petersburg (2016) Gavrilova, T., Leshcheva, I.: The interplay of knowledge engineering and cognitive psychology: learning ontologies creating. Int. J. Knowl. Learn. 10(2), 182–197 (2015) Guha, S., Kettinger, J.: Business process reengineering. Int. J. Inf. Syst. Manage. 10(3), 13–22 (2003) Klachek, P.M., Polupan, K.L., Koryagin, S.I., Liberman I.V.: Hybrid computing intelligence: Fundamentals of the theory and technology of creating applied systems. Kaliningrad, Russia: Immanuel Kant Baltic Federal University (2018) Kressel, H., Lento, T.: Competing for the Future: How Digital Innovations are Changing the World. Cambridge University Press, New York (2017) Makarov, V.L.: The evolution of economic theory: Reproduction, technology, institution. In: Proceedings from the X International Symposium on Evolutionary Economics and the Methodological Seminar on Institutional and Evolutionary Economics. Aleteia, St. Petersburg (2015) Makarov, V.L., Varshavskiy, A.E.: Financial and real sectors “Science, High-Tech Industries, and Innovation”. In: Alexeev, M., Weber, S. (eds.) The Oxford Handbook of The Russian economy, pp. 468–489. Publishing House of the Gaidar Institute, Moscow (2015) Strnadl, C.F.: Aligning business and IT: The process-driven architecture model. Int. J. Inf. Syst. Management 23(4), 67–77 (2006)

A Technical Service System to Increase Business Efficiency and Competitiveness Wiktor E. Panasenko , Mikhail A. Sharonov , Mikhail V. Boginya , Tatiana G. Vlasova , and Zhanna S. Zhukova

Abstract There is a new understanding of the system and business strategy developing both in the industry and academia, the authors argue. Service is a system for ensuring a business’s stability and profitability, the formation of long-term competitive advantages, and company image, profit, and market share. The space-time system “service” is built from the model of the system of industrial segments, with the concept of the integral principle of constructing modules of segments and the “human”, as the key element. The critical module determines the direction of the industry. The system’s material and technical segment is the foundation on which the technical service system is based. This segment is not just an integral part of the automotive service system but also a critical element, forming the fundamental component of a service product. Companies operating in the segment develop the necessary foundation of the service business, contributing to its effective functioning and dynamic development. The authors describe a new format of relations that take on the character of partnership. The partnership goal is mutual benefit. The essence of the programs of the marked segment offered can be titled as “Program for the Formation, Support, and Development of the Client’s Business.” This program is based on a systematic approach to customer expectations, where the range of proposed solutions is a complete cycle. The program is a mechanism that allows one to learn to look more broadly at a business, understand W. E. Panasenko (&)
T. G. Vlasova
Z. S. Zhukova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] T. G. Vlasova e-mail: [email protected] Z. S. Zhukova e-mail: [email protected] M. A. Sharonov Academy of Public Administration, Mytishchi, Russia e-mail: [email protected] M. V. Boginya Krasnoyarsk State Agrarian University, Krasnoyarsk, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_76

705

706

W. E. Panasenko et al.

its underlying patterns, and find optimal solutions. Considerable attention is paid to the technical support of customers through the Service and Training centers, as well as service support in management and marketing, financial and technical audits. As practice shows, in this area, substantial potential and reserves are hidden. Such growth would significantly contribute to a business’s successful operations and, accordingly, competitiveness.







Keywords Service Service system Technical service Service product Client Competitiveness








Logistics segment


1 Introduction The 21st-century market is significantly different from what it was in the past. The ideology of business has begun to change increasingly distinctly. Its focus is shifting, and many tasks begin to be seen differently. Reality forms a new understanding of the system and business strategy. Service is a system and strategy of the company’s “life activity.” It is a source of systematic support for the stability and profitability of a business. Service is a system and strategy for the formation of long-term competitive advantages and company image, profit, and market share (Panasenko 2018a). The spatiotemporal system “service” is not built on the traditional sectoral model (primary, secondary, and tertiary sectors) with the concept of the service sector (tertiary sector). It proceeds from a model of a system of industrial segments, with the concept of a fundamental principle for constructing modules of segments, the key element of which is a person. The premise for this was predetermined by the dynamics of development (according to objective laws). The service system unfolds at the stage of development (a fragment of reality) in certain spatiotemporal coordinates. It forms a new qualitative spatial area with such conditions requiring new forms and qualities of the systems, i.e., a different model based on different categories. This defines the “borders” for the implementation of the service system as an industrial system, reflecting the connections between the industrial segments of a country/region, and as a subsystem, i.e., the industry segment key module. This module reflects connections with other modules, including other industrial segments. The key module is the “field of activity” of businesses/companies (and other institutions). It determines the direction of industries such as healthcare industry, pharmaceutical industry, bio-industry, beauty industry, fashion industry, tourism industry, accommodation industry, leisure industry, cinema industry (film industry), PR industry, advertising industry, nanotechnology industry (nanoindustry), IT industry, transport industry, vehicle technical service industry, construction industry, agricultural industry, etc. (Sharonov and Sharonova 2016). For the first time (more than 20 years ago), the content of the service—service system concept—was reflected in such a segment as the automobile business.

A Technical Service System to Increase Business Efficiency …

707

In particular, the car service business system includes such main segments as sales, operation, disposal. Furthermore, the car service business system is considered as a car service system is a system for fulfilling the expectations of the client (person) in ensuring the technical condition of the car from the moment of its manufacture to disposal (Panasenko 2018b). First of all, the system is customer-oriented. Moreover, the effectiveness of the system depends both on the mechanism of interconnection and on the efficiency of the modules. Thus, from a systemic standpoint, we can designate the following: service is a system for realizing customer expectations through a service product. We can also indicate that the service object (client) is a person as an element of the system (Panasenko 2018b). As a rule, the only difference that a customer can notice today is a service product. This is precisely what creates the client’s positive image and disposition towards the company, which provides it with a competitive advantage (Panasenko 2018a). We would like to note that the material and technical segment of the system is the foundation on which the technical service system. This segment is not just an integral part of the automotive service system but one of the key elements. It is the basic component of a service product. Today, we can already take the following as an axiom. There was no car technical service system and a car service business school in Russia, and there was no historical experience. Nevertheless, market laws cannot stand the vacuum. The objective reality of demand in a civilized car service business that meets the market laws has been outlined. In modern Russia, the car technical service business was one of the first segments in which reasonable market laws began to operate. The reason is simple. The client here has become the central figure and the center of all relationships, and it is necessary to fight for him/her. The car owner became free to choose the company suitable for him/her while making increasingly high demands on the work of all its divisions. The same laws marked the emergence of new vehicle technical service enterprises. In these enterprises, the client is offered a range of technologies that define a service product, taking into account all modern requirements. The research purpose is to designate the material and technical segment as the basic component of the technical service system and to reflect its importance in the competitiveness and efficiency of the business and company.

2 Materials and Method The following fact has become an objective reality. Companies operating in the material and technical segment form the basic foundation of the car service business, contribute to its effective functioning and dynamic development (Uspensky 2015; Samokhin 2017). We would like to make a few points. First, when creating an enterprise, a person copies the business from successfully operating technical centers or uses a different scheme, it would most likely be negative. Copying a business as a whole is

708

W. E. Panasenko et al.

impossible. In the best case, it will be possible to repeat the “external” shell of the business. As a rule, in this case, its internal content will inevitably be missed. This is because the features are too individual, and the nuances are numerous. Second, as a rule, design organizations do not have experience in this business, first of all, they focus on the architectural component, the exterior design, and interior of the building. Questions about how to start a business, debug it and develop in the future, and many others, will most likely remain unanswered. Third, as practice shows, organizing a business is not enough. It is necessary to maintain its components at an acceptable and effective level, responding to environmental changes. For technical service enterprises whose goal is to always remain on the crest of modernity, this means continuously moving forward, introducing the latest technologies in all areas of their activity. Fourth, creating a modern enterprise is a costly affair. As practice shows, enterprises are created with borrowed money. Serious investors are often willing to invest in technical services if there is a prospect of their return with a profit. A business plan is necessary, and for its preparation and approval, certain knowledge, skills, and experiences are necessary. As a rule, the organizer of the enterprise does not possess them. As a rule, the history of companies operating in the considered (logistics) segment began with the auto service business’s supply of hardware. However, as reality and the studied and actively used foreign experience have shown, in addition to the supply of equipment and tools, the client needs to provide intelligent and service technologies. The main factor hindering the development of the car service business was not the absence of certain products, technical means, or technologies on the market, but the shortcomings in enterprises’ organization. Demand for consulting technologies has appeared in the country. The demand for technical support technologies, in particular assistance in the direct organization of efficient and profitable operations of the enterprise, is growing significantly (Sharonov et al. 2015). A technical service company is, first of all, a commercial enterprise, obliged to work profitably. An interesting fact is that the new format of relations based on principles that obey the following simple logic: the demand for any product directly depends on how successful its client’s business is. This means that companies striving to provide stable, increasing sales volumes of their goods become vitally interested in ensuring that the clients’ business functions efficiently. Relationships take on the character of a partnership whose goal is mutual benefit. After all, a successful customer business is a basis for mutual prosperity in the future (Trostin 2016). The effectiveness of this approach to customers is becoming increasingly evident for civilized suppliers of technical equipment and car repair materials. The basis of the company’s commercial success is a thorough, comprehensive offer of products and services that can ensure the profitable operation of a service company (Shubin 2015). The concept of companies operating in this segment of the automotive business system can be reflected as follows: everyone should be engaged exclusively in their professional activities. Clients should be engaged in technical services; companies should provide everything necessary for this.

A Technical Service System to Increase Business Efficiency …

709

Today, in the Russian market, service equipment for various purposes is presented in abundance. Hundreds of firms in dozens of countries produce it. The intensified competition between manufacturers caused the emergence of a vast supply of goods and services. This situation has given rise to the notorious problem of choice and poses many questions for management when equipping or re-equipping production. Some of these questions are such as: what kind of work and technology to carry out? which system of technical means most harmoniously meets the task and form of the technical service business? how to build all the technological chains in a complete production cycle? how to manage them? how to achieve the greatest filling of a service product with existing internal resources and capabilities? how many service products will be accepted by the market and at what price? Until recently, management had to solve such problems themselves. Now, we can state certain shifts. Almost all answers can be obtained from professionals (Shubin 2017; Samokhin 2017). It is clear that companies have their own views, have their own methods and programs for problems. And it is quite natural. As a rule, the proposed answers and solutions differ in detail, but, in general terms, they all lead to the same goal. This goal is the creation of the most effective scheme of the technical service enterprise, ensuring its maximum profitability.

3 Study Results and Discussion The essence of the programs of the noted segment of the car service system, which are offered by companies, we can reflect as “Program for the Formation, Support, and Development of the Client’s Business.” This program is based on a systematic approach to customer expectations. The complex of proposed solutions is a complete cycle that includes two components. The first component is an offer to a client of a completed business when a “service” is formed from scratch. The second component is to increase the enterprise’s profitability by optimizing the entire production cycle when the “service” is being reconstructed. In general terms, the program meets the general principles: • To be flexible and self-learning, resolve issues as they become available, and provide individual work with the client within the framework of the tasks early set up; • Not be a set of strict rules and dogmas that inevitably become obsolete in a changing market, but be the tool with which the client can find the answer to their questions; • To facilitate the organization of informal communication among program participants, which opens up new, unexpected ways to solve problems. The program is based on direct contact with the client. It can cover the most diverse areas of the enterprise to achieve its most effective work.

710

W. E. Panasenko et al.

The program takes into account the features of the car service business, located at the junction of many areas. The program takes into account that the people involved in it are not always immediately able to discover the origins of their enterprise’s problems. The program really is the tool with which the client can independently find the answer to his/her questions. The company’s specialists only help to understand the causes of “bottlenecks” and suggest possible options for improving the enterprise’s efficiency, whether it is an increase in throughput, modern technologies, an increased profitability, etc. The program is a mechanism that allows one to learn to look more broadly at a business to understand its underlying patterns. The program helps to find the best solutions. In practice, already at the initial stage of the creation of a technical service enterprise, assistance in the correct formulation of the task is essential taking into account the mission. Already at the initial stage, the look of the future enterprise is specified, since the basis for future success is laid here. A clear understanding by the client is that the technical service is not only production facilities, equipment, and personnel, but also a spare part and accessories store, a tinting studio, wheel service, and many more. These factors can significantly increase profits. Solving the key issues noted above based on techniques and accumulated statistics, options are modeled. Already jointly, taking into account the wishes of the client, the most harmonious option is chosen. At the same time, the analysis of various factors is taken into account. For example, such factors are taken into account: regional specifics; demand for a service product directly in the sector where it is planned to open an enterprise. In the case of creating a specialized enterprise, corporate requirements for authorized enterprises of a particular automaker are taken into account. Of course, the prospects of different forms of business, given the specific working conditions, can be planned. However, subjective factors bring their share, sometimes quite significant. First of all, these are ways to attract customers and organize advertising. In other words, the primary data on the form of business gives rise to the size, layout, and equipment of the enterprise building. At the same time, taking into account such an important aspect as the formation of bottlenecks is essential. This aspect must be avoided. It is essential to keep in mind a moment, such as throughput or a production program. The fact is that the reality for modern enterprises is the “system of sudden calls/repairs,” while the previously existing service stations were based on the “system of preventive maintenance.” A significant difference exists between these systems, not only in terms but also in the methodology. Moreover, this is a significant important fact, given the presence of subjective factors. Equipment or, in other words, the selection of a system of technical means in many respects indicates the enterprise’s configuration, largely determining its cost and the level of profitability in the future. It should focus on the fact that the service product is completed not just with equipment, namely, the selection of a system of technical means is carried out. The peculiarity of the production processes of technical service, especially car body

A Technical Service System to Increase Business Efficiency …

711

service, is that ensuring its effective functioning is not solved only by selecting a set of equipment, even of high quality. For this, the following cannot be dispensed with: without the development of a rational layout of the working area (environmental factors), coordination of equipment characteristics, etc. In particular, the main components of the system are hardware and accessories, consumables, technology, environmental factors, information support (Kobelev et al. 2016). The main properties of the system can be characterized by the following factors: flexibility, modularity, compatibility. The system of technical tools allows one to take into account such factors as design features of cars, a type of work performed, a planned throughput of each unit of the enterprise, a technical ability to install, price, etc. (Gerasimov et al. 2011). The system of technical means provides significant freedom of maneuver, allows one to vary and combine different options. The system of technical means allows minimizing prices and, as a result, reaching the most acceptable option, thereby solving the cost optimization problem. It is gratifying to note that floor plans and equipment layout plans are carried out by computer-aided design methods. The software products used are of a high level with almost unlimited possibilities. Using the modern method of computer design significantly simplifies the creation of a plan for the placement of equipment, allows one to visually and effectively implement various combinations of its placement, finding the best option. In this case, if necessary, the adjustment of the premises can be carried out. Similarly, it is possible to determine the “appearance” of auxiliary facilities. Thus, a variant of the enterprise with the optimal configuration and layout of the premises of the building with a system of technical means in which the client is interested is modeled. Modern design tools make it possible to tie the equipment to the building’s structural elements with the highest accuracy. When performing design work, marking the foundations for the installation of the equipment will not be difficult. In the future, plans for the placement and wiring of the electrical network, lighting devices, ventilation, water supply and sewerage, pneumatic and hydraulic lines are compiled. The combination of these plans and special requirements for installing technological equipment is sufficient to develop a detailed design for the construction or reconstruction of the building for the “service.” As a rule, a feasibility study is underway in parallel with the development of plans, the goal of which is to determine the breakeven line and calculate the payback of the enterprise. Modern techniques make it possible to sufficiently effectively carry out an assessment for each post and the enterprise as a whole. Some data sources are subject to agreement with the client. Particular attention should be paid to the throughput of posts due to the circumstances noted above. In resolving customer problems, companies are not limited to a range of design work. They can also provide engineering support for the construction and subsequent installation of equipment, helping to avoid errors when performing specific work. Companies pay significant attention to technical customer support. In particular, we are talking about Service and Training Centers. It is clear that in the organization and distribution of functions, each company approaches in its way. However, the

712

W. E. Panasenko et al.

general direction and scope of the centers coincide. At the same time, in general, Training centers fit into the concept of the formation of an independent qualification assessment system (Sharonov et al. 2018). The functions of the Service Centers include not only commissioning, maintenance, and repair of equipment. The center performs the function of a “hotline” or a kind of “ambulance.” In case of any technical problems, the client can quickly contact the Service Center, find out the causes of defects, and receive specific recommendations. As a rule, Service centers take upon themselves the functions of providing the company’s information resources, mastering advanced modern technologies, and providing active support in their implementation. Training centers play a critical role in the training and professional development of personnel. Training centers are complexes consisting of exemplary sites and laboratories equipped with the highest level of technical equipment. Training for professional skills in relevant methods is carried out in centers. As a rule, the centers use advanced techniques that are not inferior to the world level. Training centers are also the basis for management seminars. It is clear that, in this case, the programs are devoted to aspects of the application of new equipment and technologies, the rational organization and management of production, etc. As technical and technological problems are solved, it becomes evident to the client that a sufficient number of non-ordinary problems are in management and marketing. With this in mind, many companies have expanded service support, extending it to these areas. The following points should be noted and taken into account here: • The personal nature of Russian business; • The real Russian reality is the inadequacy of many postulates and principles of the classical theory of management; • Consulting involves many more variables than material products, which poses a particular risk to the client; • The service product formation mechanism is complex and delicate, strictly confidential. However, despite the factors noted, the client, sooner or later, realizes the fact that enormous potential and reserves are hidden in this area. They significantly contribute to a successful business and, consequently, competitiveness. In particular, for enterprises experiencing any difficulties or wanting to assess the degree of business efficiency and identify hidden reserves for its improvement, financial and technical audits can be noted from a significant number of possible measures. In the process, comprehensive scanning and monitoring of the enterprise is carried out. The final results of the work are reflected in the form of a report most acceptable to the client. It differs from the reports that we have standardly encountered before, with a mutually agreed degree of detail and depth of analysis. Based on the analysis of the enterprise, “pain points” are determined, and recommendations for their elimination are given.

A Technical Service System to Increase Business Efficiency …

713

4 Conclusion As practice shows, reality forms a new understanding of the system and business strategy. Service is a system and strategy for ensuring the stability and profitability of a business, the formation of long-term competitive advantages and company image, profit, and market share. The service system is represented by a model of a system of industrial segments, with the concept of the integral principle of constructing modules of segments and such a key element as a person. The key module determines the direction of the industry. The material and technical segment of the system is the foundation on which the technical service system, i.e., service business based. This segment is not just an integral part of the service system, but one of the critical elements. This segment is the core component of a service product. The material and technical segment lays the basic foundation for service businesses, contributes to their effective functioning and dynamic development. There is a new format of partnerships based on the principles of partnership, the purpose of which is mutual benefit. The basis of the company’s commercial success is a thorough, comprehensive offer of products and services that can ensure the profitable operation of a service company. The essence of the programs of this segment can be reflected as “Program for the Formation, Support, and Development of the Client’s Business.” The program is based on a systematic approach to customer expectations. The complex of proposed solutions is a complete cycle. The program is based on direct contact with the client and can cover the most diverse areas of the enterprise in order to achieve its most effective work. The program takes into account the features of a business located at the junction of many areas and is the tool with which the client can independently find the answer to his/her questions. The program is a mechanism that allows one to learn to look more broadly at a business, understand its underlying patterns, and find optimal solutions. Considerable attention is paid to the technical support of customers through Service and Training centers, as well as service support in the field of management and marketing, financial and technical audit. Thus, as practice shows, considerable potential and reserves are hidden in this area, which significantly contributes to successful businesses and, consequently, their competitiveness.

References Gerasimov, M.K., Korosteleva, V.P., Sharonov, M.A., Sharonova, V.P.: Reliability of Service and Equipment Systems. Teplotekhnik, Moscow (2011) Kobelev, A.G., Sharonov, M.A., Kobelev, O.A., Sharonova, V.P.: Materials Science. Composite Materials Technology. Knorus, Moscow (2016)

714

W. E. Panasenko et al.

Panasenko, V.E.: Service as a system business or competitive advantage and company image. Fundamental’nyye Issledovaniya 6, 183–187 (2018a). https://doi.org/10.17513/fr.42189 Panasenko, V.E.: The technological basis of the business model of the service or systemic support of the company’s competitiveness. Fundam. Appl. Res. Coop. Sector Econ. 3, 144–153 (2018) Samokhin, S.: Equinet solutions. Technical advisory service. ABS 9, 24–26 (2017) Sharonov, M.A., Sharonova, V.P.: Interconnection of individual services offered and competitive advantages of the service process. Fundam. Appl. Res. Coop. Sector Econ. 1, 111–115 (2016) Sharonov, M.A., Sharonova, O.V., Sharonova, V.P.: Eulerian circles (venn diagrams) as model for modern economy education on the basis of Russian professional standards. J. Phys: Conf. Ser. 996, 012022 (2018) Sharonov, M.A., Sharonova, V.P., Korotitsky, R.Yu.: Some technological capabilities of modern domestic services. Fundam. Appl. Res. Coop. Sector Econ. 3, 53–57 (2015) Shubin, A.: New services helping business. ABS 3, 22–24 (2015) Shubin, A.: Customer support program. Russian version. ABS 10, 52–53 (2017) Trostin, I.: In the field of client interests. ABS 2, 10–11 (2016) Uspensky, M.: New wave. ABS 8, 64–66 (2015)

Strategic Controlling Systems for Businesses: Key Features and Application Areas Vera V. Darinskaya , Oleg A. Antonyuk , Andrey A. Privetkin , Lyudmila A. Kryatova , and Elena V. Ivanova

Abstract The paper presents the results of a study on the implementation and use of strategic controlling, the stages of its formation, and their relationship with the areas of management development. The role of strategic controlling in a period of profound uncertainty of economic processes, in terms of forecasting and planning the financial result of activities. The research presented in the paper has highly important implications for cooperative enterprises working in Russia.







Keywords Controlling Strategic management Strategic accounting management Management accounting Balanced Scorecard








Crisis

1 Introduction In conditions of economic instability and the destructive influence of financial processes on many states, business entities of various forms, scales, and areas of activity are forced to use all the most effective management techniques and methods possible. In particular, one of the optimal management technologies in these conditions is controlling. Controlling tools are actively used for the timely identification,

V. V. Darinskaya (&)
L. A. Kryatova
E. V. Ivanova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] L. A. Kryatova e-mail: [email protected] E. V. Ivanova e-mail: [email protected] O. A. Antonyuk
A. A. Privetkin Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] A. A. Privetkin e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_77

715

716

V. V. Darinskaya et al.

prevention, and elimination of negative results of the company’s functioning or leveling their negative consequences on financial and economic activities. Despite the long history of forming and developing the theory and practice of financial controlling, its essence, concepts, and definitions are interpreted very ambiguously. There are several schools and controlling concepts which have in common the orientation toward the future of the management system and its strategic orientation. The acquisition of new qualities by the controlling system occurs under the influence of changes in the business environment and the management paradigm as a whole, which affects its implementation and use (Butorin 2017). At the time of the formation of the new management technology “controlling” in 1900–1930, the conditions for entrepreneurial activity were characterized by a practical lack of competition, predictability of economic processes, a low level of financial risk, and there was no need for a controlling function, at least in the modern sense. The enterprise was managed based on the use of control as an informative component of the management process. However, it should be noted that the combination of the planning and control functions during this period is an unambiguous sign of the emerging controlling system. From 1930 to 1960, there was a crisis of overproduction on a national scale in the United States and the era of mass marketing. Accordingly, the processes of achieving competitive differences and advantages, as the main factors affecting consumers and stimulating demand, were becoming more complicated. Effective cost and performance management became necessary. The first signs of financial controlling appeared in the form of the concept of management accounting, which was designed to ensure the profitability of the functioning of a business entity. The period from 1960 to 1970 is characterized by increased competition, increased consumer requirements for product quality, the development of international competition, and the complexity of management processes. During this period, concepts of strategic management began to develop actively, aimed at the long-term success of enterprises and organizations. Also, various organizational forms of entrepreneurial activity are being developed, which necessitates the coordination of management actions with business units. Another impetus to the acquisition by financial controlling of a modern form is the dynamic development, during the 1970–1990 period, of computer technology and the introduction of automated control systems. In this period, competition continues to increase; there are qualitative transformations of production technologies, and relations between producers and authorities are changing. The need for external analysis, integration processes, and risk reduction is becoming urgent. The basics of cognitive concepts of strategic management that appear in the 1980s show that management requires not only an assessment of costs, financial results, and the external competitive environment, but also of intuitive assumptions and knowledge of economic and financial processes in the enterprise. This leads to the formation of such controlling properties as intra-company coordination, a targeted focus on long-term survival, and ensuring competitiveness. An important factor that influenced the formation of financial controlling is the emergence of conflicts of interests between companies, stakeholders, and

Strategic Controlling Systems for Businesses …

717

institutions—the emergence of the concept of social responsibility. In this regard, financial controlling becomes complex; that is, it takes into account key performance indicators included in the four blocks of the Balanced Scorecard (BSC). At the same time, the coordination (balancing) of strategic and operational indicators becomes relevant. From the end of the 20th to the beginning of the 21st century, the period begins, characterized by the development of a creative approach to strategic management associated with the constant search for new types of activities, the creation of special competitive advantages of a product, and new ways of attracting consumers. The importance of the abilities (competencies) of the staff in achieving strategic goals is growing. Changes in the external environment are becoming more unpredictable, and an immediate reaction to such changes is needed, so the flexible and adaptive nature of enterprise management becomes relevant. During this period, a rational combination of rationality aspects (achieving a compromise between the goals and interests of various groups) and variability (choosing from possible alternatives to financial management decisions) was of great importance. Some scholars note that since the beginning of the 2000s, financial controlling has a purely strategic orientation since the solution of most operational tasks at the present stage can already be automated. However, it is impossible to automate the creative approach, knowledge, and intuitive achievements of experts and specialists in the field of financial solutions. Therefore, a combination of strategic and operational aspects of financial controlling is necessary (Gnezdova 2017; Karpova 2019; Lobova 2017). The analysis of scientific literature allowed us to identify the following conceptual features of strategic financial controlling: • the ability to help achieve the ultimate goal in the main areas of the company; • the presence of a specific set of techniques and methods, as well as tools aimed at the functional support of the financial management of the enterprise, covering information support, planning, coordination, control, and internal consulting of financial processes; • the presence of an integrated subsystem for making managerial decisions in priority areas of the financial activity of the enterprise, based on a comprehensive analysis of accounting data, internal control, and coordination of financial aspects of the functioning of all of the enterprise’s divisions; • it is a necessary component of crisis management in the enterprise. In world practice, two types (models) of controlling are known and are now widely used, which have quite significant differences, namely, the German and American versions of this management technology. Some results of a comparative analysis of the two controlling models are presented in Table 1. After an enlarged grouping and systematization of the elements of each controlling model, we can make an unambiguous conclusion that the American model is somewhat wider than the German one. Moreover, in terms of the elaboration and

718

V. V. Darinskaya et al.

Table 1 Features of controlling models Comparison area

German model

Anglo-American model

Main purpose

Continuous improvement of the planned and control functions of management—implementation and use of a system of plans and reports (management of deviations) Planning and control of financial and economic activities

Improving the performance of the company (profit, liquidity, capitalization, etc.)

Accounting for the calculation result (costs, expenses), financial result (expenses, income), balance sheet result (forecast balance) Problems of internal accounting, analysis, and assessment

Implementation of audit functions

Purpose of creation and functioning Main goals

Solved

Accounting and analytical procedures

The information basis of the controlling system and the method of collecting, organizing, summarizing, and analyzing data Source Developed by the authors

Planning and control of financial and economic activities

Problems of internal and external accounting, analysis, and assessment Accounting is as close as possible or completely perceived as a controlling system

essential filling of each element and the subsequent use of the collected information, the German model seems to be better. In order to determine which model of controlling the functioning system of the relevant economic entity belongs to, it is necessary to analyze the presence or absence of particular elements. The first four elements presented in the table are the basis of control, or in other words, if at least one of these essential elements is absent, with a high degree of certainty, it can be argued that there is no control in the organization under study. An undoubtedly important and, at the same time, the unifying element of different controlling models is information technology, which is justifiably perceived as the most popular and rapidly modernized element in the enterprise. At the same time, the controlling system, in order to obtain the best result, should be “inscribed” in the existing information architecture of the economic entity. Otherwise, even the most advanced information system providing data for the process of making managerial decisions will not produce the expected results. Modern controlling concepts correspond to the needs of economic entities and can be easily adapted to changing business conditions. Noteworthy is the Balanced Scorecard (BSC), which is the most promising and universal in terms of filling the strategic management decision-making process with the necessary information.

Strategic Controlling Systems for Businesses …

719

2 Materials and Methods The research materials in the theoretical aspect are the work of authors who studied management accounting, exploring such modern management technologies as controlling and BSC. In the practical part, the materials of production companies of various scales and forms of ownership were used. For a comprehensive study of strategic controlling and the features of its implementation and use, the following research methods were used to identify specific patterns of development of this management technology: • monitoring the implementation and use of strategic controlling at manufacturing enterprises in various fields of activity; • a survey in the form of interviews and questionnaires for employees of economic services of the studied organization; • the analysis of the information obtained based on a deep and thorough check on the relevance of information, its consistency, and reliability.

3 Results The materials of the study indicate that the conditions in which modern business entities operate determine the further development of the conceptual provisions of financial controlling, taking into account the need to overcome crisis phenomena in financial processes at the macro level. It is necessary to move from ascertaining control based on extrapolating the dynamics of indicators to its expert forms of forecasting. All management actions should be focused on early detection of the first signs and prevention of an insolvent state, such as bankruptcy. It should be noted that the strategic orientation and operational measures of financial activity, based on the controlling function, must meet the preventive anti-crisis policy of the enterprise and cover various aspects of the activity, external destabilizing trends, and internal competencies to overcome the negative impact. Thus, despite the long history of the formation and development of domestic theory and practice of financial controlling, the interpretation of its essence and definitions given in literary sources are very ambiguous. Also, modern research allows the identification of schools and controlling concepts. In our opinion, the acquisition of new qualities of the controlling system occurs under the influence of changes in the business environment and the management paradigm. The modern activities of enterprises and organizations require considerable costs, including managerial ones. In order to facilitate their activities, various technologies are being introduced into their work, most of which are foreign. Controlling is no exception. Such technology is used not only in commercial organizations but also in state-owned enterprises, including the customs authorities.

720

V. V. Darinskaya et al.

Thus, the conditions in which modern business entities operate to determine the further development of the conceptual provisions of financial controlling, take into account the need to overcome crisis phenomena in financial processes at the macro level. Currently, a transition from establishing control based on extrapolating the dynamics of indicators to its expert forms of forecasting is necessary. All management actions must be focused on early detection of the first signs and prevention of an insolvent state, bankruptcy, and other negative trends. It should be noted that the strategic focus, operational, and financial goals that are rationally combined in the controlling system should meet the preventive anti-crisis policy of the enterprise and cover various aspects of the activity, including external destabilizing trends and internal competences of staff to overcome the negative impact. A comprehensive, objective assessment of financial and economic activities is necessary for interested users of information. Particular attention during its implementation is given to reserves for increasing efficiency, identifying its hidden reserves and potential opportunities, which is impossible without comprehensive analysis. The analysis of carefully selected, objectively characterizing indicators will deepen and detail the incoming information, helping in making informed management decisions. Controlling as a single data processing and analysis space allows for a detailed assessment of financial and economic activities. In practice, multidimensional estimates of the effectiveness of the enterprise are used, taking into account data of a technical, environmental, social, financial, and other nature. The essential condition for ensuring the successful operation of an economic entity is the consistency of the goals and objectives of a Balanced Scorecard for all structural divisions. The development of special performance targets helps to characterize the quality of the entrusted work, to consolidate responsibility for specific employees and arouse their interest in achieving the targets.

4 Discussion The problem of the most effective functioning of strategic controlling is most often the lack of a system of indicators. The development of a system of strategic indicators is an essential element in the development of managerial technologies. Its underestimation may lead to the loss of competitive enterprise advantages. It is very problematic to quickly eliminate the gap in this area since this implies significant changes in all areas of the company’s activities and the corporate culture in general. In this connection, we can highlight the presence of effective feedback, as another problem, which is impossible without the personal interest of the personnel responsible for the implementation of the relevant indicators at different levels of management. Also, the lack of alternative options does not contribute to quick, high-quality, well-considered adaptation to changing business conditions. Therefore, the

Strategic Controlling Systems for Businesses …

721

competent functioning of the strategic control system assumes the existence of several development scenarios of both positive and negative trends in the development of financial and economic activities. A Balanced Scorecard, in turn, makes it possible to quickly and timely monitor these trends.

5 Conclusion Despite the current economic instability, planning, as a management function, acquires special significance in strengthening the financial condition and economic activity of the enterprise. At the present stage, the main task is the introduction and use of such management technologies that would provide the ability to adapt to changing conditions quickly. Therefore, strategic control is becoming more popular. In addition to the economic effect, the introduction of a strategic controlling system will allow one to plan financial and economic activities and make competent management decisions; will ensure continuous monitoring of the financial activities of all structural divisions of the company; increase company manageability by quickly tracking deviations; and will raise the responsibility of managers at various levels for the resources provided.

References Butorin, S.N., Sandu, I.S.: Formation of the innovative infrastructure of a control system in the agrarian sector. Agrarian Ind. Complex Econ. N. Z. Manage. 9, 39 (2017) Gnezdova, Y.V., Glekova, V.V., Adamov, N.A., Bryntsev, A.N., Kozenkova, T.A.: Development prospects of the transport infrastructure of Russia in the conditions of development of the market of transport and logistic services. Eur. Res. Stud. J. 20(4A), 619–631 (2017) Karpova, I.F., Dontsova, L.V.: Strategic aspects of controlling organizations. In: Accounting and analytical processes in the context of the digitalization of the economy. Interuniversity collection of scientific papers and results of joint research projects, pp. 158–164. Moscow, Russia (2019) Lobova, S.V., Suglobov, A. E., Karpovich, O.G.: Characteristics of the innovation development of Russia’s industrial enterprises under conditions of economic sanctions. J. Appl. Econ. Sci. 12(2 (48)), 321–331 (2017)

Competencies Management in an Organization Alla V. Deineka , Pavel V. Gorlachev , Nadezhda A. Ovcharenko , and Taisiya N. Sidorenko

Abstract Continuing education for the development of employee professionalism contributes to the improvement of corporate culture and personal competencies. The modern use of competencies in the work of staff allows us to apply critical theoretical provisions of the staff policy. The main goal of this paper is to draw the attention of the heads of organizations to the need to use a competency-based approach in working with staff. The paper describes the methods of forming professional competencies during the mentoring mechanism, the structure and content of job descriptions, subjects, and objects of control in the HR management system. The use of competencies in HR management will improve the professionalism and individuality of staff. Keywords Competencies


Staff
Workplaces
HR management
Staff control

1 Introduction When developing and implementing an HR management strategy, organizations often began to use competency management technologies. Let us point out some essential theoretical provisions of the HR policy of staff work in the organization: • planning requirements for specific jobs and, on this basis, developing job descriptions for employees of the organization; A. V. Deineka
P. V. Gorlachev
N. A. Ovcharenko
T. N. Sidorenko (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. V. Deineka e-mail: [email protected] P. V. Gorlachev e-mail: [email protected] N. A. Ovcharenko e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_78

723

724

A. V. Deineka et al.

• using competencies in the organization of staff work; • assessing the labor characteristics of various categories of employees in order to choose the most appropriate form; • organizing staff control at all levels of management. One of the latest innovations in the field of labor organization was the competency-based approach. In accordance with it, the HR management of a modern organization is primarily focused on the professional and personal competencies of employees as essential components of the quality of human capital. Professional competencies reflect the skills, knowledge, and skills necessary to fulfill the duties stipulated by the job characteristics at a particular workplace. Staff acquires and forms them during productive activities from the very beginning of the career to retirement (Bulatova 2017).

2 Results Mentoring is one of the main directions for forming professional competencies. Table 1 presents the process of forming professional competencies during the mentoring mechanism. After the specialized development of the employee (advanced training and professional retraining in the form of acquiring new or updating existing professional skills), continuing education contributes to the formation of the corporate culture of the organization and personal competencies of the staff (Lymareva and Gorenko 2013). Personal competencies reflect the intellectual professional physiological and psychological level necessary for employees to perform a job that can have a direct Table 1 The formation of professional competencies during the mentoring mechanism Elements of professional competencies

Methods for acquiring professional competencies

The place of acquisition of professional competencies

1. The acquisition of professional ideas and knowledge

Primary career guidance

School, family, different social circle Professional education institutions of three levels: - primary vocational education (vocational schools); - secondary vocational education (technical schools, colleges); - higher professional education Specialized centers; universities; training centers The employee’s choice

Professional education from primary to higher education

Further education and professional retraining Self-education

Competencies Management in an Organization

725

or indirect impact on the effectiveness of their work: in professional activities as part of performing duties. At the genetic level, each person has innate qualities that are developed in the course of specialized training to the necessary level for the implementation of professional activities. However, if a person completely lacks the necessary innate personal qualities (for example, the qualities of a leader or logical thinking), it is almost impossible to acquire them. This restriction should be taken into account in the process of organizing the staff work, especially when planning requirements for jobs. The competency-based approach is currently used in the system of primary vocational guidance, in the system of vocational education, and the implementation of the staff policy of the organization. When regulating the number of staff members, a competency-based approach is applied (Chulanova 2015): • during the process of attracting staff, at the stage of selecting candidates for employment by comparing the actual professional and personal competencies of the applicant with the competencies planned by the employer for the proposed position; • in the process of staff reduction. The approach is used to identify candidates who will be dismissed. These are employees whose professional (and partially personal) competencies meet the requirements of the employer to the least extent in comparison with the competencies of other employees holding a similar position. The competency-based approach is applied when motivating staff: • during the organization of the basic remuneration of employees while differentiating the size of the official salary of employees holding the same positions but different professional competencies; • during the organization of the benefits for employees to determine candidates for additional material incentives for the implementation of competencies that provided the employer with an unplanned positive effect; • during the process of non-material stimulation for employees inclined toward self-improvement in order to acquire additional professional competencies that contribute to increasing the organization’s competitiveness. This approach is applied: • when identifying new employees of the organization whose labor potential was not disclosed at their previous place of work by analyzing their competencies and comparing them with the relevant requirements for professional categories of staff; • when organizing the initial training of new employees. One of the main objectives of this training is to assist in the speedy acquisition of previously absent but desirable professional competencies for the employer;

726

A. V. Deineka et al.

Table 2 The structure and content of the job description Name

Content

General part

The document status following an employment contract; The development of a document following the regulations of the organization; The purpose of the document; The procedure for making the necessary changes and additions to the document Statement of professional and personal competencies for an appointment: Necessary for the given workplace; Desirable for the given workplace Subordination following the workplace; Technical subordination of the workplace, if any; A manager representing for appointment or dismissal; The manager is making an appropriate management decision The list of duties following the organization’s requirements for the workplace The list of rights required to perform the above functions: To manage the structural unit in accordance with jobs; To access confidential information; To participate in confidential meetings or the activities of collegial management bodies, etc. Administrative and economic sanctions for failure to perform or improper performance of official duties, including as a result of improper use or non-use of rights

Grounds for appointing to a position

Administrative subordination, appointment, and grounds for dismissal

Functional responsibilities Functional rights

Functional responsibility

• when organizing advanced training and any other forms of additional training for employees, always related to updating existing or acquiring new professional competencies; • when selecting candidates for the reserve for the nomination, one of the requirements for which is the presence of certain personal qualities. Employees with unique professional and personal competencies are of particular value to the manager. To this end, for the further development of professionalism and competence of such employees, the administration provides additional support. The highest efficiency is provided by the use of a competency-based approach in the implementation of the company’s HR policy and the organization of staff labor when planning the employer’s requirements for jobs. The practice of HR management in Russia considers the requirements for the workplace in the framework of formalization following the internal regulations of

Competencies Management in an Organization

727

Table 3 Subjects and objects of control in the personnel management system Subjects of control

Objects of control

The first head of the organization HR service

General functioning results of the organization’s HR activity

Security service The department of finance and economics Heads of structural divisions

High-quality on-time delivery of services by specialized organizations within the framework of the labor market; An improvement of an effective personnel strategy; Effectiveness of the functioning of structural units and personnel services; Operational efficiency of operational subsystems; Compliance by all structural divisions of the organization with internal regulations on personnel activities; Participation in personal control procedures provided for by the functional responsibilities of the personnel service All aspects of ensuring the organization’s security in terms of personnel Target use of costs for ensuring personnel activities; The effectiveness of financial payments aimed at personnel work to invest in human capital Compliance of qualification and personal qualities of specific employees with the requirements for relevant jobs; The results of current professional activities of subordinates

the organization and the list of professional and personal competencies necessary for the employee to perform official duties in order to match the workplace in the market conditions. Planning requirements for jobs is justified and appropriate. Practice shows that its results make it possible to objectively assess the degree of professional suitability of the employees who replace them. Based on the results of this assessment, the organization can quickly improve the quality of its staff by the following: • the replacement of employees whose actual competencies do not fully meet the newly established requirements; • the advanced training or professional retraining of employees whose actual competencies correspond to these requirements only partially. When planning requirements for jobs, it is necessary to take into account the features of a specific organization, a specific industry, a specific structural unit, and a specific workplace. The results of planning workplace requirements are used in almost all areas of HR management, helping to increase its efficiency. Predefined job requirements are a prerequisite for ensuring the valid selection of candidates for employment. The competencies identified as a result of studying the submitted CV, interviews, testing, and other procedures make it possible to select employees with the relevant requirements for the workplace. The job description for

728

A. V. Deineka et al.

the employees is developed following the job requirements. The structure and general requirements for the content of the job description are reflected in Table 2. Each employee applying for a job is required to familiarize themselves with their job description in detail before signing an employment contract and endorsing it with the head of the unit. An essential place in the implementation of personnel policy is personnel control. The development strategy of the organization in all areas of activity provides for checking the compliance of the actual state with the planned tasks in the personnel management system. The management relationships that arise here are illustrated in Table 3.

3 Conclusion Since the competency-based approach is one of the main components in the implementation of personnel policy, it should be applied by all categories of employers. This approach suggests that the two most essential components of the personnel policy in the organization, determining its quality and real value, are: – Professional competencies of the organization’s personnel following the requirements necessary for the adequate performance of functional duties provided by the organization’s charter and the employer to a specific workplace using existing skills and knowledge. – Personal competencies of the personnel following the requirements for the intellectual, physiological, psychological, and other functions of the employee, capable of directly or indirectly affecting work efficiency. The essential prerequisite for the effective functioning of staff is that the employer has a system of professional standards as a result of planning requirements for jobs. The professional and personal competencies defined by these requirements should be grouped based on the degree to which they must be available for the candidate to fill the corresponding workplace: – mandatory competencies, in the absence of which it is impossible to replace a certain workplace; – desirable competencies, in the absence of which it is possible to replace the workplace subject to subsequent further training and the acquisition of the necessary skills for effective work; – tolerable competencies, suggesting the possibility of replacing a particular workplace subject or their subsequent elimination as part of enhanced control; – unacceptable competencies that exclude the possibility of a subject occupying a workplace, as they do not meet the requirements for the proper performance of official duties.

Competencies Management in an Organization

729

Depending on the industry characteristics and the individual specifics of a particular business entity, one of four basic forms is used to organize work with personnel: an individual form of labor organization, a conveyor form of labor organization, a collective form of labor organization based on permanent labor collectives, and a collective form of labor organization based on temporary labor collectives. Any of the above forms of labor organization will be effective in achieving strategic and tactical goals, taking into account the competency-based approach to the implementation of personnel policy.

References Bulatova, Yu.V.: Innovative personnel management: concept, principles, tasks, methods, and functions of innovative management in personnel work. In: Proceedings from International Scientific and Practical Conference: Finance, Accounting, and Management: Theoretical and Practical Developments. Professional Science, Perm (2017) Chulanova, O.L.: The methodology of the study of competencies of personnel of organizations. INFRA-M, Moscow (2015) Lymareva, O.A., Gorenko, A.A.: Innovative approach in personnel management. Econ. Manag. Innov. Technol. 10, 9 (2013)

A Target-Costing Cost Accounting System as a Strategic Management Tool Vera V. Darinskaya , Irina V. Bratko , Elena V. Zubareva , Elvira N. Borisova , and Irina P. Drachena

Abstract The article is devoted to the study of target costing cost accounting system, which can be used as a tool for strategic enterprise management. The role of the cost accounting system as a system-forming element necessary to maintain a stable level of profit both in the short term and in the long term has been studied. It helps to maintain the required level of profit in the long run.







Keywords Cost accounting Cost management Strategic management Management accounting Target costing Strategic accounting










1 Introduction The formation and competent implementation of a strategic management process is the most important task for the leadership of any organization. The constant change in the external environment, especially dynamic at the present time, contributes to the emergence of new management technologies. All of them, to one degree or another, are called upon to contribute to solving long-term tasks and achieving key performance indicators in the long term. It is quite difficult to do without a V. V. Darinskaya (&)
E. V. Zubareva
E. N. Borisova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] E. V. Zubareva e-mail: [email protected] E. N. Borisova e-mail: [email protected] I. V. Bratko Military University of the Ministry of Defense of the Russian Federation, Moscow, Russia e-mail: [email protected] I. P. Drachena Moscow Region University of Technology, Korolev, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_79

731

732

V. V. Darinskaya et al.

comprehensive planning process. Especially given the fact that in conditions of instability of the environment, it is extremely difficult to achieve the planned indicators, and sometimes it is not necessary. Management technologies aimed at the future help track emerging negative trends early, allowing management to take into account deviations from the planned results in a timely manner. Also, management technologies allow us to predict the influence of external factors on the internal environment of the company. The skillful use of strategic accounting gives a company an undeniable competitive advantage in the market, by increasing the company’s ability to adapt in uncertain operating conditions and transform the business as necessary (Veselovsky et al. 2019). It should be noted that in almost all industrial markets, there is an intense competition that contributes to increasing constant and close attention to the issue of cost management, finding ways to improve their accounting and analysis. The development of effective measures within the framework of cost management makes it possible to reduce the overall level of costs, which also leads to additional advantages in the framework of competition. In order to make competent managerial and, in particular, financial decisions, information on production costs should be used to the maximum. Also, for these purposes, it is necessary to continuously analyze their level and dynamics, cost-effectiveness and their impact on the result of the organization. Timely monitoring and cost analysis provide an opportunity to determine their effectiveness. Also, timely monitoring and cost analysis positively affect the control of quality indicators of activity, the validity of prices, the objectivity of profit planning and profitability (Lobova et al. 2018). The concept of “strategic management” appeared around the 1960–1970s in connection with the need to separate management aimed at implementing the mission of the enterprise, achieving the objectives of the functioning of the economic entity and the main production tasks from operational decisions and plans. The key idea of using strategic management was the need to shift the attention of management to the micro and macro environment of the organization. The purpose of the transfer of attention is the timely and effective response to the changes taking place in it, the timely response to environmental challenges. To get the most profit, the organization must effectively interact with the external environment and accordingly build its internal environment. In turn, the external environment of the organization is divided into general and operational. Figure 1 shows a diagram of the interaction of the organization with the internal and external environment. The strategic position of the organization is determined by the state of its relationships with the external environment in the long run. These relationships are very diverse. For example, we can consider the organization’s position in relation to suppliers, in terms of who the real and potential suppliers are, the range of material assets purchased at the moment, and the change in stock in the future. Also, we can consider the organization’s position in relation to suppliers by considering the dynamics of the volume of purchases, fluctuations in the purchase price, the main criteria for choosing this counterparty, etc.

A Target-Costing Cost Accounting System …

733

Fig. 1 The interaction of the external and internal environment of the organization

The internal environment of the organization must comply with the strategic position. For example, the staff of the procurement department should correspond to the volume of purchases, the organization of production should correspond to the nature and volume of goods and (or) services, etc. Thus, one of the strategic objectives of the organization’s management is to change the internal environment in accordance with planned or forced changes in the relationship with the external environment. The key link in the interaction of the organization with the external environment is the product being released; this relationship is reflected in Fig. 2. On the one hand, it serves to meet the needs of the external environment. On the other hand, product sales provide the organization with revenue and, therefore, the possibility of profit. Strategic management and, therefore, the goals of each organization, include the following: • Creation of products that meet the requirements of the external environment, as well as ensure an acceptable sales volume (revenue); • Building the internal environment in a way that provides an acceptable level of resource costs. Figure 3 shows the relationship of revenue, cost and profit with factors of the external and internal environment, provided that the characteristics of the product correspond to the needs of consumers.

734

V. V. Darinskaya et al.

Fig. 2 The interaction of the organization with the external environment

Fig. 3 The relationship of revenue, cost, and profit with factors of external and internal environments

Modern methods of cost accounting do not always meet the needs of economic entities. Typically, large companies pay attention to strategic planning using various cost accounting methods. Although, in the current economic conditions, medium and small enterprises are actively interested in finding optimal management technologies, forming their information base, and using advanced techniques and methods of cost accounting. One of the ways to reduce the cost of works (services) based on the expected profitability of sales and the planned market price is the use of target cost accounting systems by an economic entity.

A Target-Costing Cost Accounting System …

735

2 Materials and Methods In a theoretical aspect, the research materials are the work of authors who have studied management accounting, cost accounting, as well as exploring the features of strategic management. In the practical part, materials of service companies of various scales and forms of ownership were used. Certain methods were used to comprehensively study the cost accounting method and calculate the cost of target costing, the features of its implementation and its use. In order to identify certain patterns of development and adaptation to different business conditions, the following research methods were used: • Monitoring the activities of economic and production services of companies introducing and using target costing in their activities; • Survey in the form of interviews and questionnaires of employees examined by the organization; • Analysis of the information obtained on the basis of a deep and thorough check for the relevance, consistency, and reliability of the information.

3 Results The target costing cost accounting system is one of the areas of strategic company management that helps the organization adapt management accounting to a policy of rational cost reduction. This is carried out through a series of measures aimed at improving production planning, preliminary cost control, and calculating the target cost of an adequate real market situation. Undoubtedly, the basis of the target costing system is an orientation toward the requirements of the market and customers. In this case, the price of the product will be calculated based on its importance to the client. The calculation of target costs for new products (services) should ensure the achievement of a predetermined amount of profit under existing business conditions. At the same time, the cost of a product (service) becomes its target characteristic. The uniqueness of the cost-accounting system for target costing is taking into account the impact of customer wishes about the timing and quality of the product (service) on cost. At the same time, an active search for alternative options for consumer properties of the product, allowing cost reduction, is carried out. The instability of the economic situation, the constant change in external and internal factors, has led to the active use of the concept of “product life cycle” in the target-costing system. At the same time, the company’s product line must be constantly updated in accordance with the needs of the external environment. The target cost of the product is the difference between the estimated market value of the product and the amount of profit that the company intends to receive.

736

V. V. Darinskaya et al.

The target cost price of a product can rightfully be considered one of the most important indicators; its definition underlies the entire production planning. Costing using the target costing system can be implemented, as shown in Fig. 4. Before direct settlement, marketing analysis is carried out and a product concept is developed. This makes it possible to determine the future selling price and the necessary sales volume, taking into account the future qualitative characteristics of the product. Further, based on the target price and target profit, the value of the target cost of the future product is calculated. Target cost is used as input for development. After development, the estimated cost of the product is calculated. The difference between the target and estimated cost shows the organization how much costs need to be reduced in order to achieve established goals. To reduce costs, an analysis of alternative options for the production of the product is carried out; its characteristics are adjusted if necessary. The design process can be repeated many times until the estimated cost is not equal to the target. If it turns out that the target cost cannot be achieved, a decision is made to refuse to produce the product. Target costing is a costing system in which the production and sale of a particular product with specific functionality and quality will provide the required level of profit according to the estimated selling price. The specificity of target costing suggests that the formation of consumer qualities of the product is inextricably linked with the production and accounting process, and with the integrated design of both. When using the target-costing accounting system (Fig. 5) in the process of market research, the organization determines which goods or services are in demand among consumers.

Fig. 4 Cost management using the target costing system

A Target-Costing Cost Accounting System …

737

Fig. 5 The role of costing in the functioning of the organization when using the cost accounting system

As a result, the necessary characteristics of the product, its possible price, as well as sales volume are determined. In addition, the organization sets the value of the target profit. Next, the target cost is calculated by the formula (1) ð1Þ where Ct is the target cost of the product and Pt is the target profit from the sale of a product. Next, the product is designed in accordance with the specified characteristics and target cost. After completion of the design, the calculation of the planned (or normative) cost is carried out. Thus, when using the target costing cost calculation system, the costs of resources for its production are designed in parallel with the product. Based on the results, alternative production methods are being developed, and alternative resource providers are being considered. Targeting costs allows one to choose the best option (Kachkova et al. 2019). The use of cost-accounting system target-costing once again emphasizes that cost accounting is an instrument of strategic management of an organization. Since cost indicators characterize the relationship of the organization with various factors

738

V. V. Darinskaya et al.

of the external and internal environment, the impact on technological and managerial processes are indicators of financial results.

4 Conclusion The cost-accounting system “target costing” allows one to design the parameters of the relationship with the internal and external environment of the enterprise. The calculated parameters of the relationships are the source data for changing the internal environment of the organization, the product being released, or allow you to make a decision to refuse to release the product, etc. It should be noted that from a strategic point of view, the use of the target-costing system is not difficult enough to require a serious structural adjustment of the economic entity. The successful implementation of this system is based not only on deep knowledge, impeccable knowledge of production technology, but also on the high quality of managerial work. It is characterized, in particular, by the sincere involvement of staff in the processes taking place in the organization. In the event that the enterprise does not have a process of interaction among departments, it will be difficult for the company to use this method. In addition, an important factor is that departments seek to reduce their own costs in order to achieve success for the whole company. Nevertheless, target costing, as an instrument of strategic management, will become increasingly important based on the current situation for economic entities. For successful operation, with an unconditional desire to maximally satisfy the needs of customers, it is necessary to take care of improving the technological process, competent cost management, and positive dynamics of own sources of funds. It is also necessary to take care of one of the main sources of funds, namely the organization’s profit (Veselovsky et al. 2017).

References Kachkova, O.E., Demina, I.D., Krishtaleva, T.I., Kosolapova, M.V., Alferova, E.Y.: Building the concept of the control-oriented accounting system. Int. J. Civ. Eng. Technol. 10(2), 1830–1837 (2019) Lobova, S.V., Suglobov, A.E., Karpovich, O.G.: Economic incentives for creation of highperformance jobs on the basis of the latest internet technologies. Qual.–Access Success 19(S2), 38–42 (2018) Veselovsky, M.Yu., Izmailova, M.A., Adamov, N.A., Morozova, N.B., Suleymanov, Z.E.: Strategic management of customs-logistics activities: innovation, integration and regional aspects. Int. J. Civ. Eng. Technol. 10(2), 1794–1801 (2019) Veselovsky, M.Yu., Khoroshavina, N.S., Bank, O.A., Suglobov, A.E., Khmelev, S.A.: Characteristics of the innovation development of Russia’s industrial enterprises under conditions of economic sanctions. J. Appl. Econ. Sci. 12(2), 321–331 (2017)

Accounting and Analytical Systems as an Integral Element of Contemporary Accounting Victoria V. Saliy , Olga V. Ishchenko , Victoria G. Bush , Elvira G. Gladysheva , and Elena V. Abyzova

Abstract The paper considers issues related to accounting information in analytical information systems. Analytical information systems are a data warehouse in which the entire structured information space of an organization is combined. On its basis, a structured system accumulating and automating all business processes of the organization is being built. The creation of a single data warehouse based on the accounting and analytical system makes it possible to quickly identify bottlenecks, analyze newly incoming data, and develop new performance indicators. The core of the accounting and analytical system should be developed and supplemented with new data. The integration of all accounting information in the data warehouse will allow one to present the organization’s data from disparate sources in the form of a holistic analytical review and provide completeness and ease of access. A single data warehouse will allow one to contain external databases, previously existing text files, accounting reports. Using this approach, access to data is greatly simplified. Since each employee uses the part of the information from the repository that is presented most conveniently and is relevant at the moment. Keywords Accounting and analytical system Organization Data warehouse





Information system


V. V. Saliy (&) Krasnodar Branch of Plekhanov, Russian University of Economics, Krasnodar, Russia e-mail: [email protected] O. V. Ishchenko
V. G. Bush
E. G. Gladysheva Krasnodar Cooperative Institute (Branch) of the Russian University of Cooperation, Krasnodar, Russia e-mail: [email protected] V. G. Bush e-mail: [email protected] E. G. Gladysheva e-mail: [email protected] E. V. Abyzova Russian University of Transport (MIIT), Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_80

739

740

V. V. Saliy et al.

1 Introduction The constantly changing economic situation is of particular interest in improving management information support, in which structured and consistent decisions are made. These decisions make it possible to form a common opinion on the accounting and analytical process in the organization and determine the direction for further actions. A significant problem arises in the context of globalization of the market, the penetration of high-tech products on the market with various forms of production or storage, and with various factors of price formation for similar products. There is a pronounced need for a significant increase in the conditions for tracking quality management, inventory, cost, forecasting, and market expansion. At the same time, it is necessary to introduce new technologies and a full-scale information system of internal control. The tasks of modern accounting are to automate the organization’s resource allocation systems, economic analysis systems, work with various internal links, etc.

2 Materials and Methods The information system of any organization includes one or more databases containing information about various goods and their movement, customers, suppliers, operations with them, etc. Forming data based on the incoming information, such a system automatically becomes an information and analytical system. Accordingly, the organization, more often with the problem of accounting for all operations, is forced to review the effectiveness of the functioning of accounting and analytical information systems. The traditional task of any information and analytical system is the effective storage, processing, and analysis of data. Effective storage of information is determined by the presence of a data warehouse in such a system. The data warehouse accumulates a large amount of data with further conversion and loading with the help of extraction tools. Such information and analytical systems provide all the necessary management decisions, which are the basis for the creation of accounting and analytical systems integrated with accounting information. It includes operational, external, and internal data necessary for economic analysis and statistical information collection. It is from the effective construction of accounting and analytical accounting within the framework of the organization’s business processes in the information and analytical system that the monitoring of incoming and outgoing information depends on. Monitoring is carried out at the level of all indicators of financial and economic activity. This is necessary to make effective management decisions. That is, all the structural data of the accounting and analytical systems mark all the primary information only from different angles. They are a necessary element for

Accounting and Analytical Systems as an Integral Element …

741

the formation of reliable reporting and the successful construction of business processes built on different accounting principles and controls depending on the direction of the organization. Improving the management of an organization in itself is associated with the adoption of sound economic decisions based on reliable information and internal standardization of activities. At the same time, all external and internal processes are built into independent stages operating within the framework of one system. The system is understood as observation, registration, systematization, evaluation, and transmission of information to the integrated information system in the form of databases to make an effective management decision. The goals for which management decisions are made can be divided into three components: strategic, tactical, and operational. Making operational decisions leads to the achievement of expected and predicted short-term results. That is, if an error occurs in the volume of the material order, then it can be quickly corrected without significant losses affecting profit. Tactical decisions are not as structured as operational ones. Important performance ratings may also be unknown. The relationship between decisions and characteristics is not always clearly defined. At the same time, strategic decisions are made, taking into account the goals of the organization defined in its charter. These decisions are fundamental for making tactical and operational decisions. Computer support for the formation and decision-making is connected to the work, which should be supported by specially selected methods and tools. These methods and tools reflect the real specifics of the made decisions, consisting of several stages: 1. 2. 3. 4. 5. 6.

Strategic goal definition; Situation identification; Analysis of the situation; Criteria for selection decisions; Analysis of the consequences; Management decision making for the formation of information in the accounting and analytical system.

Automated support is required at all stages. It helps to process strategic analytical information coming from various levels of the decision support system. At the same time, it is necessary to implement formal and informal procedures of computer analysis of a difficult situation. Additionally, there is a need for functional and cost and situational analysis. These processes can be built based on such modeling technologies as tools for operational analytical data processing (OLAP) and Data Mining, which reflect all aspects of the relationships in the processes. Thus, when processing accounting information, the identification of problems resulting from the analysis of the situation occurs. The formulation of the direction of achieving the goal-oriented towards achieving the strategic goal is taking place. The strategic decisions form the basis for the formation of an automated accounting and analytical information system. It is built based on a data warehouse using data mining, namely, DM technology.

742

V. V. Saliy et al.

The use of unstructured information from the external environment is the complexity of using DM technology in the accounting and analytical system. In the external environment, the generation of alternative solutions should be based on direct calculations, i.e., cost-effectiveness. In the future, the selection criterion is justified; alternatives are appreciated. The choice based on the criteria for making the optimal decision given by the organization is made. This criterion for making the best decision should be measurable within the framework of the scales used. However, the analysis of the consequences of decision making requires the use of the latest tools in the model of accounting and analytical system, namely, the tools of situational management. Thus, the user can independently select the data and carry out the decomposition. Statistical and accounting reports presented in tables and graphs can be displayed on the screen in the form of interactive pictures and multidimensional business models for generating analytical reports based on BI technologies (Saliy et al. 2018). The indicator is used to evaluate an object or process. Therefore, it should be measurable. The problem can be well-structured or poorly structured. The first problem representing solutions and goals is recurring; it can be formalized and automated according to specific criteria. The second problem involves the participation of a specialist and the capabilities of an accounting and analytical system built based on a software complex. However, most management tasks are poorly formalized and unstructured, i.e., composed of heterogeneous information and data. Indicators determining the state of the economic management object are usually measurable by some indicators. If we choose the one that, in the opinion of the acting person, characterizes the object for a given purpose, then such a criterion will be the key. If the indicators are set incorrectly, then management and management accounting will be ineffective. The formation of a variety of reporting is the primary function of the organization’s information system. All reporting in the organization can be divided into operational and analytical. Operational reports store information for the current period. Existing operational (OLTP) systems are designed to identify and optimize reports from disparate sources within a decentralized storage system. These systems are mainly suitable for processing simple operations and storing data for the current period. However, as a data source for analytical reports, such a system has significant disadvantages. Operating systems must process data in a reasonably short period. In turn, the report generation slows down their work. If the reports cover several disparate OLTP systems and use external data to process them, there is a need for attracting programmers, additional calculations, and exports to intermediate formats. Consequently, such operations form new problems. Report processing takes a significant amount of time. There is a high probability of making mistakes when performing operations that are carried out manually in most cases (Kovalev and Kovaleva 2015).

Accounting and Analytical Systems as an Integral Element …

743

3 Results The introduction of a comprehensive automated accounting and analytical system will create a single information space in the organization. At the initial stage of creating such a system, the construction of a domain model or a model of the information space of an organization with all its structural divisions and business processes is necessary. Moreover, the positioning of the organization in the created model will help determine the development stage of the information space and identify alternative options for further perfection. Accounting and analytical systems should be based on operational data obtained from operational systems that automate all business processes of the organization. Such a system should cover all the management activities of the organization, starting from the analysis of business processes, operational and strategic planning, and include all financial statements. The typical tasks of accounting and analytical systems should include: • the preparation of consolidated financial statements and provision of documents containing information on financial and production indicators; • the analysis of financial and economic activity, containing all mutual settlements and financial indicators; • the analysis of the organization effectiveness, its profitability, costs, etc.; • the identification of general criteria for the effectiveness of the organization’s functioning, based on relationships with customers, partners, the pace of development, etc.; • the formation of marketing research, mutual settlements, control overall business processes. Reporting is one of the essential functions of the accounting and analytical systems. Various types of reports, methods for storing and retrieving data are generated depending on the requests of employees of the organization. Reporting is usually divided into operational and analytical. Operational reporting is data on the organization’s activities for a short period (day, week, month) containing information on payment and financial documents and transactions conducted with other organizations. To create this kind of report, it is inappropriate to refer to a large database that stores information for a longer period, since this will require large operations. This creates a controversial situation since short reports should take little time. The creation of a data warehouse for accounting and analytical information will cause the creation of a single centralized source of information within one organization, which will have several necessary components: • all stored information should be organized following the aspects of the organization; • the integration of data while extracting it from operational databases. At the correct time, it is possible to select the necessary indicators for further loading

744

V. V. Saliy et al.

into the data warehouse. This greatly simplifies the work on data analysis and further reporting in the accounting and analytical system; • all data is tied to a specific period, and the selected information from operational databases should be accumulated in the data warehouse in the form of reliable and relevant information. Since in the preparation of financial statements, the results of operations and cash flows should lead to a real presentation of information for an effective accounting policy that allows the formation of reliable information. In general, the process of extracting data from the storage should be a series of procedures: • • • • •

sample; conversion; data normalization; data Mining; compilation of a report.

During data analysis, the data is collected from various sources. A sample is formed. Based on this sample, any of the Data Mining methods are applied. The collected data also needs to be processed, since incorrect or insufficiently supplemented values can be entered into the database. This will complicate the work of the accounting and analytical system or lead to inaccurate results. However, there is a significant problem of maintaining an accounting and analytical system using a data warehouse. This problem is linked with the fact that the user is most often an expert in the economic field (accountant, economist, manager) and does not have technical knowledge about working with such a system. When working, it is necessary to form certain queries in a specialized query language. Then, there arises the next problem, namely, the problem of creating understandable semantics between the data warehouse and analytical applications. The Data Mining method allows one to solve the above problem by creating semantic layers, which will be used when creating various economic reports in the future.

4 Discussion Data Warehouse technology can solve all the organization-wide data storage and analysis tasks. A corporate data warehouse can also solve all the above problems. In this repository, the organization’s data array is specially organized (financial and economic documentation, financial statements, marketing research, etc.). This data array is processed and stored in a single hardware-software complex. The corporate data warehouse allows one to solve the issues of access to operational and archive information. It provides more extensive reporting and data analysis (Saliy et al. 2019).

Accounting and Analytical Systems as an Integral Element …

745

Thus, a single or corporate data warehouse allows one to optimize several processes occurring within the organization: • by subject orientation: customers, warehouses, etc., where the data is organized following processes (billing, shipment of goods, etc.); • newly received data is extracted from the operational databases of the organization and then checked and analyzed; • the data is always tied to a certain period, which allows one to analyze the trends and prospects for the development of the organization and its business processes; • the data contained in the data warehouse should not be changed. In the operational database, the data may vary depending on the request.

5 Conclusion The interaction of disparate data sources will allow integration into the corporate data warehouse in the form of a single picture. It will ensure the completeness of information and ease of access for employees of the organization at any time. This integration should be a complex consisting of applications, products, technologies, and methods, which are integrated for consolidation, virtual presentation of data, and dissemination. That will allow business applications to generate data requests and create the required reports on their basis. Additionally, this will allow business applications to analyze newly received data as part of operational analytical data processing using OLAP technologies in the data warehouse. OLAP organizes data in the form of a logically built information system consisting of multidimensional representation of business processes. This allows the specialist to quickly analyze the entire amount of data for a specific period. Multidimensional data analysis in corporate storage allows one to build an effective accounting and analytical system built on data consolidation, where access can be obtained in any direction. Thus, nowadays, OLAP technology is the most powerful type of table-based report generator. Both forms of reports are presented in it. These are such reports as interactive data analysis and the creation of printed forms. This significantly saves the cost of programming the system. Another advantage is that the user can change the form of reports, sort, and filter by the data needed. Therefore, this technology is the optimal resource for optimizing the accounting and analytical system.

746

V. V. Saliy et al.

References Kovalev, A.E., Kovaleva, Y.I.: Accounting prospects in the 21st century. Bukhgalterskiy Uchet i Analiz 6, 135–140 (2015). http://journal.safbd.ru/sites/default/files/articles/journal_sfs_safbd_ 2015-6.135-140.pdf Saliy, V.V., Ishchenko, O.V., Aksenova, J.A.: The main aspects of the organization of management accounting of procurement and procurement activities of an economic entity. Vestnik Akademii Znaniy 28(5), 21–31 (2018) Saliy, V.V., Khodarinova, N.V., Shaposhnikov, V.L.: The formation of accounting and analytical information system in the framework of the organization. In: Prodanova, N.A., Tchaikovskaya, L.A., Karpova, I.F., Malinina, E.A., Bachurina, Y.L., (eds.) Interuniversity Collection of Scientific Papers and Results of Joint Research Projects “Accounting, Control and Analytical Processes in the Context of the Digitalization of the Economy”, vol. 1, pp. 342–348. KnoRus Company, Moscow (2019)

Case Studies: Insights for Cooperative Enterprises

Critical Factors of Food Production in Cooperatives: Methodological Aspects Anatoly E. Shamin , Tatiana N. Kutaeva , Marina L. Nechaeva , and Vladimir A. Makarychev

Abstract Over the current year, the monitoring of economic development in the country made it possible to identify the increasing food production in the country, macroeconomic stabilization, and increased investment activity of organizations. Consumer cooperation is an important segment of the economy and has a diversified type of activity. Consumer cooperation makes a significant contribution to the budget development in rural settlements, and provides rural residents with basic necessities. The authors analyze the state of consumer cooperation organizations in Russia. The characteristics of consumer cooperation enterprises that potential buyers take into account when choosing are defined. These characteristics are the factors of enterprise competitiveness. Analysis of consumer preferences using factor analysis conducted; main directions of improving the activities of consumer cooperation enterprises identified. The research shows that for when potential buyers choose a consumer cooperative enterprise, the quality and range of goods and services become the decisive factors. A methodology for analyzing the influence of factors on the production of food products of consumer cooperation in the regional market is developed and presented in the paper. The proposed method is a tool that allows to improve the management process of consumer cooperation organizations, taking into account logically interconnected and settlement-based conclusions. Therefore, this method allows one to increase the efficiency of the organization and helps to improve competitive position in the market.

A. E. Shamin
T. N. Kutaeva
M. L. Nechaeva (&)
V. A. Makarychev Nizhny Novgorod State Engineering-Economic University, Knyaginino, Russia e-mail: [email protected] A. E. Shamin e-mail: [email protected] T. N. Kutaeva e-mail: [email protected] V. A. Makarychev e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_81

749

750

A. E. Shamin et al.







Keywords Consumer cooperation Consumer society Centrosoyuz of russia Production of bread and bakery products Regression analysis Factor analysis Assortment policy Product quality














1 Introduction Russian consumer cooperation is a large system and the most important sector of the country’s economy. Its progressive development contributes to the solution of socio-economic problems at a territorial and sectoral level and ensures the formation of budgets for regions and rural settlements. Russian consumer cooperation activates the production of consumer goods. It improves the quality of life of rural residents by providing services such as (1) retail; (2) catering; (3) the direction of activities for the procurement of agricultural products; (4) the process of production of goods. The increase in the volume of the cooperative sector in all types of activities requires solving many problems associated with the effectiveness of its functioning, as well as increasing the competitiveness of consumer societies themselves and the production of competitive products, goods, and services. The analysis of literature sources allowed us to determine that cooperated structures should build relationships exclusively on a market, commercial basis. They should be focused on end results and improving the efficiency of joint production (Shamin and Frolova 2011). It should be noted that increased competition in the consumer market has led to a decrease in the share of consumer cooperation in the total volume of retail trade and the production of goods in the country. All this negatively affected the financial result and the effectiveness of cooperative organizations. So, at the end of the 80s of the XX century, there were 390 thousand retail enterprises, 21 thousand industrial enterprises, and 108 thousand public catering facilities as part of the Centrosoyuz and the share of shareholders was 9% of the country’s population. Today, the share of cooperative retail in the total retail turnover of Russia has decreased from 27% to 1%, and the share of shareholders is 2% of the total population (Valigursky and Kharlamov 2016). Fundamental structural transformations in the country’s economy necessitated the development of a Concept for the Development of Consumer Cooperation for 2017–2021. Adopted on September 16, 2016, this document identified the most important indicators and indicators for the development of a cooperative system. For such an indicator as “total volume of activity,” there is an increase to 390 billion rubles by 2,021, including an increase in this indicator for the production of industrial and food products to 37 billion rubles by 2021. Today, consumer cooperation is an integrated-diversified system with diversified sectors of the economy. So, in 2018, the following types of services were included in the structure of the total volume of activities: the volume of retail turnover amounted to 61.5%; catering amounted to 6.6%; wholesale turnover amounted to 4.5%; industrial production amounted to 10%; harvesting of agricultural products

Critical Factors of Food Production in Cooperatives …

751

amounted to 11.9%; paid services amounted to 1.7%; other activities amounted to 3.8% (Shamin et al. 2018) (Table 1). According to the analysis data, there was a 14.6% decrease in the activity volume of cooperative organizations for the 2014–2018 period. Turnover in the retail industry decreased by almost 20%, and catering decreased by 11.2%. The production of goods and the procurement industry remained at the 2014 level. At the same time, a decrease in the number of consumer societies and shareholders was noted. According to literature sources, in 2016, compared with 2011, the number of consumer societies decreased by 14%, and that of district consumer unions decreased by 20.5% (Tkach 2016a). We will consider the dynamics of the total volume of the Centrosoyuz organization of the Russian Federation. The data are presented in chart form (Fig. 1). According to the results of the analysis of the graph of values for indicators such as “total volume of activity,” there is a clear pattern of a decrease and departure from the planned indicators. For example, for 2018, the planned indicator value was 215,933.87, but in reality, it amounted to 207,823, which is 4% lower. This trend suggests that consumer cooperative organizations need directions to improve their activities. In this system, the production of bread and bakery products should be attributed to the main type of food products produced. This type of activity can be attributed to the traditional branch of activity related to meeting the needs of rural residents. Dynamics analysis is presented in Fig. 2. An analysis of Fig. 2 showed that the schedule is downward, that is, production volume dropped sharply from 383.9 thousand tons in 2014 to 284.57 in 2018. According to the Centrosoyuz, for the study period, there is a decrease in the number of production shops for the production of bread and bakery products. So, if in 2014, 1,648 units of production workshops were counted, then in 2017, their

Table 1 Trends in the development of the Centrosoyuz by industry (billion rubles) Name of industries

2014

2015

2016

2017

2018

Growth rate %

Retail turnover 159,628 148,091 143,035 134,686 127,727 80.01 Turnover of public 15,445 14,342 13,840 13,783 13,703 88.72 catering Wholesale turnover 11,218 11,811 10,688 10,481 9,283 82.75 Volume of 24,001 23,486 23,914 24,417 24,735 103.06 procurement activities Production volume 20,905 21,754 21,699 21,254 20,935 100.1 Paid services to the 4,885 4,927 3,760 5,152 3,621 74.12 population Other activities 7,349 7,287 7,383 7,424 7,817 106.4 Total 243,432 231,698 224,321 217,197 207,823 85.37 Source The table is compiled according to: (Centrosoyuz of the Russian Federation 2018)

752

Individual Value Plot of Ñî âî êóï í û é î áúåì ä åÿòåëüí î ñòè vs Ãî ä 245000 Ñî âî êóï í û é î áú åì äåÿòåëüí î ñòè

Fig. 1 The total volume of activity as the main indicator of the economic activity of consumer cooperation in the Russian Federation (Compiled using the statistical program package)

A. E. Shamin et al.

240000 235000 230000 225000 220000 215000 210000 2014

2016 Ãî ä

2017

2018

Individual Value Plot of C2 vs C1 380

360

340

C2

Fig. 2 An individual graph of the value of the indicator of production of bread and bakery products of consumer cooperation organizations, thousand rubles. (Compiled using the statistical program package)

2015

320

300

280 2014

2015

2016 C1

2017

2018

number decreased by 256 units. Over the last time, the industry has been efficient. In the whole of the Centrosoyuz, profit on the results of work is noted. About 40 million people are served by cooperative organizations of the Russian Federation, including 85% who are residents of rural settlements (Kuznetsov 2015). This is due to the low level of production processes, the presence of outdated technologies, insufficient updating of production assets, lack of financial resources for the introduction of innovations (Kostenko and Vasilyeva 2017). Food production remains the main industry of cooperation after retail and agricultural purchases. Since 2014, after the imposition of sanctions, Russia has revised import deliveries to the country, and both agriculture and the food industry have been actively developed. Over the past five years, the driver of industrial production has been the increase in food production. In 2018, the growth in food production amounted to 4.9% in comparable prices. Retail trade in Russia saw a 2.6% growth, which had a positive impact on the development of the food industry (Ozina and Chernyshov 2017). The volatility of industrial cooperative product output is noted. If the share of manufactured products in the total volume of activity of the Centrosoyuz in 2005 was 11.4%, then in 2010, the share of manufactured products was 8.7%, and in 2015, it was 9.4%. In 2005–2015, economists observed a decrease in the production of soft drinks by 29%, bread by 57.7%, and sausages by 500% (Kruchinina 2017). An analysis of literature allowed us to determine that at present, cooperative production of goods is one of the promising areas of import substitution and has

Critical Factors of Food Production in Cooperatives …

753

caused an increase in the share of domestic producers, including agricultural (Tkach 2016b). Nevertheless, the following factors negatively affect the development of the industry: – The presence of small enterprises where it is impossible to apply modern technologies and equipment; – The lack of own financial resources for the implementation of production modernization; – The sale of finished products is carried out mainly through its own retail, which is integrated at the level of administrative regional consumer societies in most regions; – Rural population decline; – Limited range of products; – Insufficient use of the competitive advantages of cooperation as an integrated-diversified system (Alekhina et al. 2017). The aim of the study is to develop methodological support for the analysis of factors affecting the increase in production volumes of cooperative organizations. Also, the aim of the study is to improve the activities of enterprises in the field of cooperation on the basis of improving product quality and restructuring the assortment policy. In the framework of this article, the objective of the study is to solve the following problem: adequately assessing the real factors affecting the development of food production, highlight the main factors that can affect the benefits of the production of cooperative organizations.

2 Materials and Methods We will present methodological aspects of the analysis of the influence of factors on food production. 1. The purpose and objective of the study are determined. 2. The selection of the nomenclature of indicators used to build the model, and the selection of the study period occurs. 3. Regression analysis is performed; multiple regression equations are constructed. 4. The implementation of the parameters obtained by factor analysis occurs. 5. A prediction of the results occurs when individual parameters are changed and compared, and the best option is chosen. 6. Strategic and tactical decisions are being developed to improve the activities of consumer cooperation organizations. It is advisable to use a specific statistical method reduced to the analysis of data at this stage of the research in order to obtain the most accurate result and solve the problem. An important condition to make a forecast is to choose a method of analysis of the statistical data obtained as a result of field studies is to take into account specific characteristics and differences between variables. Regression

754

A. E. Shamin et al.

analysis refers to multidimensional methods of statistical analysis. As it complies with the requirements presented above, regression analysis is an affordable method and meets the set research objectives. This method allows one to establish relationships with one dependent variable on many parameters; in our example, this is the attitude to consumer cooperation organizations. The construction of a multiple regression equation is possible. The research objective was solved with the empirical method by conducting a regression analysis; factors are determined on the basis of which the buyer makes a choice. These factors are simultaneously factors of enterprise competitiveness. As part of the solution to the problem stated in the study, the survey was conducted to determine the factors determining the attitude of potential consumers to consumer cooperation organizations (Kutaeva and Melnikova 2017). The survey was conducted in March–April 2019. The study was conducted on the territory of the Volga Federal District, and the number of respondents was 557 people. Field studies allow us to obtain an array of data, which, when processed in a statistical program in compliance with the laws of statistics, allows us to obtain favorable results in the form of an economic-mathematical model. In the future, the results may become the basis for managerial decisions (Nechaeva 2018).

Table 2 Initial data for the compilation of the multiple regression equation (authoring) Respondent number

Attitude to the manufacturer (Y)

Geographic location (X1)

Suggested assortment (X2)

Product quality (X3)

Product price (X4)

Appearance (X5)

1

5

4

3

5

6

5

2

4

2

5

5

4

4

3

3

2

3

1

5

3

4

8

8

10

10

10

9

5

4

2

5

4

6

3

6

6

6

6

6

6

5

7

6

6

5

7

6

6

8

8

7

6

8

7

6

9

5

5

6

5

5

5

10

4

5

3

3

6

3

8

8

… 50

7

7

8

Correlation matrix X1

0.653

X2

0.764

0.757

X3

0.580

0.669

0.647

X4

0.716

0.749

0.794

0.779

X5

0.813

0.838

0.870

0.736

0.842

8

Critical Factors of Food Production in Cooperatives …

755

3 Results The procedure of regression analysis of the relationship of customers to the manufacturer (the organization of the Centrosoyuz of the Russian Federation), based on consumer preferences, was carried out. The following results were obtained by interacting after with the data shown in Table 2 and the results of the calculation of regression analysis identified using the statistical program package. Based on the correlation matrix, there is a direct dependence of some of the studied parameters, which allows one to use these relationships for integrated decision-making in the management of consumer cooperation. The semantic coefficients in the multiple regression equation allow us to judge the “weight” of each parameter, and the minus sign indicates the negative influence of the parameter. The linear regression equation is as follows (1): Y ¼ 0:506 þ 0:207 X1 þ 0:261 X2 þ 0:248 X3 þ 0:0880 X4 þ 0:113 X5 ð1Þ Based on the analysis of the equation, we observe that X2 and X3 have a strong influence on the dependent variable. This indicates that when choosing products and services of cooperative organizations, consumers are guided, first of all, by quality and assortment. This mathematical formula reflects the values of two linear regression parameters, namely: a ¼ 0:506 and b1 ¼ 0:207; b2 ¼ 0:261; b3 ¼ 0:248; b4 ¼ 0:0880; b5 ¼ 0:113. Evaluation of the obtained parameters shows that the regression is non-linear with respect to the variables, but linear in the estimated parameters. K of 2 determination = R = 85.6%, shows the quality level of the presented mathematical model. This indicator varies from 0 to 1. The higher the coefficient, the more qualitative the model is presented, and it more accurately reflects the prediction of the dependent variable. This linear model clearly shows and interprets the following: the quality of the products offered, and the assortment have the greatest impact on the dependent variable (Y). The prices of the products have the least impact, which is typical for consumer-cooperation organizations.

4 Discussion Studies have identified the following key indicators for the development of consumer cooperation: 1. Product quality 2. Suggested assortment

756

A. E. Shamin et al.

To implement the first direction, we have developed an option to increase the efficiency of cooperation to improve product quality. The main components of the competitiveness of bakery products were identified. For the initial stage of the study, the parameters that reflect product quality were selected. According to the submitted questionnaire, industry experts were interviewed. The number of parameters was 22 (x1−x22). Further, the results formed the basis of factor analysis. The correlation matrix was built. The dispersion indicators for each factor were calculated, and three factors were obtained. Factor 1 models were calculated. We can conclude that this factor is aimed at a number of consumers who choose products according to certain criteria. These features will distinguish the enterprise from others with a high level of innovation, ease of location, and an active social policy. This factor is not aimed at product quality in general. Therefore, factor 2 is key in this series of factors. Factor 3 is most correlated with the variable X4 (Enterprise Image). For the consumer, the main motive is to purchase products of a particular brand. As a result of data processing, three factors were identified that were most effective in influencing the opinion of the consumer. That is, when developing a program to improve the competitiveness of bakery enterprises by introducing new products, the following factors are the most significant: innovative technologies, taste characteristics of bakery products, and confidence in the manufacturer. These factors can be useful to leaders making management decisions to improve the competitiveness of the enterprise.

1,0 0,5

Loaves

Baking

Rye bread

0,0 S quality” “Product

Cupcake

Wheat bread Rye-wheat varieties Cakes

-0,5

Gingerbread products -1,0

Puff products

C1 1 2 3 4 5 6 7 8 9 10 11 12

-1,5

Healthy eating -2,0 -1

0

1

2

3

“Depth of the product line”

Fig. 3 An example of interpretation of the perception map for the product groups of the organization of consumer cooperation (Compiled using the statistical program package)

Critical Factors of Food Production in Cooperatives …

757

The second direction contributes to the possibility of sustainable economic development by adapting the assortment policy to the conditions of the cooperation market. In order to implement the second direction, the development directions of the assortment policy of cooperative organizations are proposed. These directions are aimed at developing the organization. The improvement of assortment policies through restructuring can be carried out in the following sequence. Field studies are conducted to examine the assortment groups of goods by constructing a perception map. 1. The main groups of bakery products that correspond to the most likely indicators of customer perception are selected for analysis. The assessment is carried out on a 10-point scale. 2. Commodity and quality characteristics for constructing a perception map are being studied. They will be projected on 2 axes for greater visual perception. We will get the name of the abscissa axis and the ordinate axis when interpreting factors; the name will depend on factor loads. 3. The factor model is as follows: Y ¼ a þ dx þ . . . þ nx1 þ n

ð2Þ

Two factors were obtained for such areas of assortment development as “product quality” and “depth of the product line” (Fig. 3). The map can be interpreted by studying the coordinates and relative location. Nearby product groups compete more fiercely. Isolated product groups have their own unique perceptions. Spaces on the map may indicate potential opportunities for introducing new products to the market and using modern production lines.

5 Conclusion According to the results of the study into improving consumer cooperation enterprises by improving the quality of services and restructuring the assortment, the following can be noted. It was determined that the quality and assortment of the products offered have the most significant effect on the attitudes of customers, and the price of the product has the least impact. The described methodological tools will be of interest to the leadership of consumer cooperation organizations, investors, and specialists from service organizations as they can use them to develop a system of measures aimed at improving the market position of the enterprise. The proposed methodology will make it possible to identify the most effective areas of managerial influence from the standpoint of achieving set goals with limited financial resources. The developed methodological tools will improve enterprise competitiveness management by facilitating managerial decisions that take into account logically interconnected and settlement-based conclusions. One of the main directions of competitiveness management and consumer cooperation enterprises is improving the quality of services and optimizing the assortment policy.

758

A. E. Shamin et al.

References Alekhina, O.F., Udalov, F.E., Burmistrova, O.V., Larionova, N.A.: Organizational and managerial aspect of the development of the Russian economy. Bull. NGIEI 6(73), 77–86 (2017) Centrosoyuz of the Russian Federation: Key indicators of socio-economic activity of consumer cooperation in the Russian Federation for 2014–2018. Centrosoyuz of the Russian Federation, Moscow, Russia (2018) Kostenko, O.V., Vasilyeva, A.M.: Consumer cooperation organizations of the system of the Centrosoyuz of Russia: status, problems and development prospects. Electron. Res. J. Econ. Res. Dev. 10, 316–334 (2017) Kruchinina, V.M.: The current state and development prospects of the consumer cooperation industry of the Centrosoyuz. Bull. Voronezh State Univ. Eng. Technol. 79(1), 401–409 (2017) Kutaeva, T.N., Melnikova, N.A.: The main factors affecting the competitiveness of consumer cooperation organizations. Kazanskaya Nauka 12, 33–35 (2017) Kuznetsov, E.: Rural COOP Argumenty i Fakty 31, 11 (2015) Nechaeva, M.L.: Analysis of the service market as the main aspect of the socio-economic development of the regions. Econ. Manage. Probl. Solutions 4(2), 61–64 (2018) Ozina, A.M., Chernyshov, A.N.: Conceptual aspect of the formation of a mechanism for regulating socio-economic relations in the services sector based on social partnership. Bull. NGIEI 2(69), 82–89 (2017) Shamin, A.E., Frolova, O.A.: The economic mechanism of regulation of inter-economic relations in agro-industrial associations. Reg. Econ. 33(216), 20–25 (2011) Shamin, A.E., Frolova, O.A., Yashkova, N.V.: Comparative analysis of theoretical approaches to the definition of the concept of “cooperation” and its classification. Azimuth Sci. Res. Econ. Manage. 7(4), 365–368 (2018) Tkach, A.V., Nechitailov, A.S.: Consumer cooperation in the market. Econ. Agric. Process. Enterprises 8, 61–66 (2016a) Tkach, A.V., Nechitailov, A.S.: Consumer cooperation in food market infrastructure. Agric. Econ. Russia 2, 76–81 (2016b) Valigursky, D.I., Kharlamov, V.I.: Priority areas for the development of consumer cooperation in Russia. Round table “State and prospects of development of consumer cooperation”, pp. 23– 35. Russian University of Cooperation, Moscow, Russia (2016)

Interaction Models of Entrepreneurial Organizational Structures in the Fuel and Energy and Agro-Industrial Complexes Olga A. Fedorova

and Shamil Z. Valiev

Abstract Due to the reduction of traditional oil reserves and price volatility, there is a risk in the supply of raw materials for petrochemical and refining enterprises. In order to make the most optimal management decision that contributes to the continuation of the life cycle of these enterprises, cognitive technologies contributing to the development of communications between participants are needed. The authors propose scenario models for enterprises of the agro-industrial and fuel and energy complexes, focusing on the enterprises operating in petrochemical and oil refining industries in particular. The authors argue that focusing on interactions between organizational structures within the cluster and the creation of a cooperative platform in it are of the highest importance. The purpose of such a platform is to solve specific tasks of the cluster strategy that contribute to the production of an innovative range of commodity products (biofuels in particular). The cognitive approach helps to reduce the cognitive dissonance between enterprises, especially during a crisis, and to stabilize prices on diesel fuel, which, in turn, slows inflation. The introduction of innovations reduces the cognitive distance between intellectual workers and production. It also contributes to the development of agglomeration of territories, the continuation of the life cycle of petrochemical and oil refining enterprises, and the increase of economic growth in the region and the quality of life of people.







Keywords Cognitive distance Cognitive dissonance Renewable energy sources Shale oil Organizational interaction Petrochemical and oil refining enterprises










O. A. Fedorova (&)
S. Z. Valiev Ufa State Petroleum Technological University, Ufa, Russia e-mail: [email protected] S. Z. Valiev e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_82

759

760

O. A. Fedorova and S. Z. Valiev

1 Introduction The process of making a managerial decision is one of the main steps in the activity of any organizational structure. The paper discusses models of interaction scenarios between organizational structures that allow the production and implementation of an innovative nomenclature of marketable products and contribute to the continuation of the life cycle of these structures, using the example of enterprises in the agro-industrial and fuel-energy complex. The purpose of the paper is to develop such scenarios for the interaction of organizational structures, in which the adoption of a managerial decision is economically viable short and long term. With the example of (Alves and Ferreira 2019), the authors proposed the creation of a cooperative in a cluster for enterprises in the agro-industrial, fuel, and energy complex, and scientific, educational, and research institutions promoting the creation of innovative products of intellectual labor. The short cognitive distance (Mol and Brandl 2018) contributes to the rapid introduction of these products into mass production and vice versa.

2 Materials and Methods Based on the existing methods of economic research, the study of scientific and statistical information, it is proposed to analyze the prices of diesel fuel, rapeseed oil, and conventional mixed fuel, in the percentage of weight parts 95:5; 90:10. The software product “Excel 2019” is used to build a graph of the dependence of price changes depending on the period. Information is needed to make the best management decision. A clear statement of the problem, reflecting both financial and intangible indicators, allows us to propose a way to find a solution to the problem, which takes into account such indicators as changes in profit, the value of fixed assets, inventories, etc. The type of such a search can be proposed through the spatial modeling of scenarios based on the historical and logical research methods. Cognitive technologies help to determine the best source of information about a problem, as well as to determine a rational tool that allows one to offer the most optimal scenario for solving a problem. These include representation, which shows the object of each participant in the process, as estimated using the knowledge of phenomena and processes (the proposed scenario). According to Baksansky (2019), the development of communication between participants in the process, i.e., the construction of a cognitive representation, is equally satisfying and directly perceiving all participants. At the same time, the perceiving participant can change his cognitive representation, making it more similar to the representation of another participant. Another participant may change their cognitive representation in favor of reaching an agreement with perceiving participants. If participants do not change

Interaction Models of Entrepreneurial Organizational Structures …

761

their cognitive representation, there is a dissonance—“cognitive conflict” (Matsumoto 2014). There are several ways of getting rid of dissonance: stating the information material more accurately, taking into account new elements of the perceived participant, changing the script itself, creating a new cognitive representation, and selecting perception information; that is, perceiving only the information consistent with existing representations of the process and discarding the contradictory one. In works (Muscio and Pozzali 2013; Balconi et al. 2013), the term “cognitive distance” refers to the distance between participants—producers of intellectual labor and enterprises-producers, i.e., the introduction of innovations in production with a certain speed and time. From this, we can conclude that the higher the speed of innovation for a certain period, the shorter the distance.

3 Results Let us consider scenario models from agro-industrial, petrochemical, and oil-refining enterprises. We suppose that there was a dissonance between the participants; each participant has their representation and does not agree with the representation of the other participant. It is necessary to find consensus and make a decision from which each participant will benefit. The initial conditions for these enterprises will be equal and are as follows. In connection with the reduction of proven energy reserves in the world, as well as with the need to reduce CO2 emissions in the atmosphere, according to the document (United Nations 2019), the development of renewable energy sources is relevant. Based on statistical data, Fig. 1 shows changes in the average price of rapeseed oil, as well as wholesale and retail prices of diesel fuel for the period 2010–2016. Figure 1 shows that the price of diesel fuel for the population is steadily growing (taking into account inflation), and the price of rapeseed oil is unstable and tends to decrease in times of crisis. The goal of the participants in the spatial experiment is

60000 40000 20000 0 2010

2011

2012

2013

Rapeseed oil, ton

2014

2015

2016

Diesel fuel at retail, ton Diesel fuel, ton

Fig. 1 The average price of rapeseed oil, diesel fuel, and diesel fuel sold to the public

762

O. A. Fedorova and S. Z. Valiev

to continue the life cycle of each participant, develop the surrounding area, and improve the living standard. Scenario 1—from agricultural enterprises (AIC). In Russia, there are about 30% of reserve arable lands that can be used exclusively for biomass production—as raw materials for biofuels. To develop these lands, the Russian government may provide grants that promote the development of agricultural enterprises and subsidize certain projects—for example, the development of a digital communication platform (Musina et al. 2019)—as well as provide tax incentives that promote the development of these enterprises, which are presented in Fig. 2. With the development of such a scenario, agricultural enterprises will be interested in the receipt of funds and their development. A new project is the establishment and development of a new industry for the production of biofuels from biomass. This scenario contributes to the reduction of CO2 emissions and the development of territories. The interaction of forms of organizational structures is proposed to be used in the form of public-private partnerships (Charkina and Miroshnikov 2016) (Fig. 3). This cognitive representation is built on the perception of a certain category of participants: agricultural enterprises. The participants in the energy sector will not accept it. In this scenario, there will be cognitive dissonance. Scenario 2—from petrochemical and oil-refining enterprises. Similar to scenario 1, we construct a scenario 2 from the enterprises of petrochemical and oil-refining industries. Currently, these enterprises are interested in raw materials and interact with oil and gas companies. In turn, these enterprises, in connection with a reduction in proven reserves of traditional oil, will be interested in developing effective ways to increase oil recovery, as well as improving methods for the production of shale oil described in (Abdullin et al. 2019). According to (Ministry of Natural Resources and Ecology of the Russian Federation 2018), there is a sufficient amount of shale reserves in the Russian Federation. At the same time, measures to protect the environment and sponsor funds allocated for the development of territories are being developed. As in scenario 1, the interaction of forms of organizational structures is proposed to be used in the form of public-private partnerships (Charkina and Miroshnikov 2016). However, in this scenario, the representation is built into a specific category: energy companies. Cognitive dissonance is inevitable in this scenario.

Government of the Russian Federation Allocation of grants, subsidies, tax benefits

Fig. 2 The representation of enterprises of AIC

Enterprise of AIC

Interaction Models of Entrepreneurial Organizational Structures …

763

Government of the Russian Federation Allocation of grants, subsidies, tax benefits

Energy companies

Fig. 3 The representation of petrochemical and oil refining enterprises

Scenario 3—A search for consensus. It is well known that “demand determines supply, and, vice versa, supply determines demand.” In turn, the supply creates demand through an assortment of manufactured products and their prices. This means that demand determines the volume and structure of product supply, since only what is recognized is reproduced. Thus, demand for rapeseed oil is increasing, as shown in Fig. 1. We have proposed a spatial and organizational structure in the form of a cooperative platform that is part of a cluster. The cooperative platform is a type of entrepreneurial organization—a cooperative, which, in essence, means that the participant (legal entity or individual) has the right to vote based on equal shares. Hence, the decision is based on the majority of votes of the cooperative members. Any organizational structure has its mission—the goal of the activity. Based on the goal, tasks are set; the process of achieving these tasks (including through the use of the cognitive approach) is carried out by enterprising people (Valiev and Fedorova 2019). The implementation of a particular task through the vote of the cooperative is carried out functionally based on the competence and practical experience of each participant. Let us suppose that a cluster that combines its innovation development strategy with the enterprises of various industries is formed. The core of this cluster is the scientific and technical council and the board of directors, which form the development strategy of the cluster itself. In order to implement several tasks within the cluster strategy, certain participants are united into a cooperative, which makes it is possible to solve these problems. At the same time, the cooperative interacts with various cluster structures. For the new system (a cooperative in a cluster) to work effectively, the interaction of both the cooperative members and the cluster members is necessary. The activity of any system has a result with the precise implementation of each function shown in Fig. 4. Their common goal is the production of an innovative nomenclature of commercial products, which are mixed fuels (biodiesel, bioethanol). Two options are proposed in the percentage ratio of weight fractions of 5:95 and 10:90. For the production of an innovative product (mixed fuel—biodiesel), agricultural enterprises produce raw materials in the form of processing oilseeds (for example, rapeseed, as the most effective) into rapeseed oil; oil refining enterprises produce diesel based on traditional oil. The production of mixed fuel-biodiesel occurs as a result of mixing rapeseed oil and diesel fuel. Figure 5 shows a price chart according to statistical data [up to 2016, followed by a forecast model for annual inflation of

764

O. A. Fedorova and S. Z. Valiev Government of the Russian Federation

Agricultural enterprises

Research and educational institutions Energy companies

Scientific and Technical Council Granting Providing tax benefits, subsidies for the introduction of patented products of intellectual activity Grant distribution prerequisite – intellectual product must be patented Commercialization of Products of Intellectual Property

Fig. 4 Cognitive representation of consensus

10% and average price growth]. 5% biodiesel consists of rapeseed oil (5%) and diesel fuel (95%); 10% biodiesel is made of including rapeseed oil (10%) and diesel fuel (90%). Figure 5 shows that the selling price will be slightly higher than the price of traditional diesel, but during the crisis (2014), the price of biodiesel will become lower than that of traditional diesel, which can slow down inflation. This cognitive representation allows us to find a compromise that promotes the unification of enterprises in order to obtain an innovative product, reduce the cognitive distance by introducing the results of intellectual activity.

4 Discussion Based on the obtained results, it is clear that the cooperative platform in the cluster, which facilitates the production of mixed biofuels (especially the one located in the territory of the Republic of Bashkortostan, where the unique center of the petrochemical and oil refining industries is concentrated)—and taking into account the stocks of arable land of agricultural enterprises—has a positive result. The author’s

Interaction Models of Entrepreneurial Organizational Structures …

765 Rapeseed oil, ton

150000

Diesel fuel, ton Diesel fuel sold to the public, ton

100000

Rapeseed oil forecast, ton Diesel fuel forecast, ton diesel fuel forecast for the population, ton

50000

Biodiesel 5%, ton Biodiesel 10 %, ton 0 2010

2015

2020

Fig. 5 Actual and forecast price chart for the period 2010–2024

studies (Ahamer 2018) assess the global potential of growing biomass for energy production, taking into account five alternative strategies for land use and crop production: the use of agricultural biomass for energy production; the establishment of plantations of energy biomass in previously undeveloped territories; energy extraction from natural biomass that has reached the age of more than five years; the use of natural biomass in energy production (forestry); and the establishment of plantations on former agricultural lands. However, on the whole, the global energy potential from biomass is not evenly distributed throughout the world and often does not coincide with places of highest demand. Hence, the main problem, transportation, arises, at the same time, the use of only the fuel produced from biomass cannot provide a global power grid.

5 Conclusion Spatial scenario models have shown that the creation of a cooperative platform in a cluster with a goal of making a decision to create an expanded innovative range of marketable products, including petrochemical and oil-refining enterprises, agroindustrial enterprises, which can reduce cognitive dissonance during crisis periods stabilize the price of diesel fuel, which, in turn, will slow down inflation, contribute to economic growth in the region, as well as the continuation of the life of the enterprises themselves.

766

O. A. Fedorova and S. Z. Valiev

Acknowledgements The authors would like to express their gratitude and deep appreciation to the staff of the Ufa State Petroleum Technical University for recommendations on the paper.

References Ahamer, G.: Applying global databases to foresight for energy and land use: the GCDB method. Foresight STI Gov. 12(4), 46–61 (2018). https://doi.org/10.17323/2500-2597.2018.4.46.61 Alves, W., Ferreira, P.A.: Mining co-operatives: a model to establish a network for sustainability. J. Co-op. Org. Manag. 1(7), 51–63 (2019) Balconi, M., Lorenzi, V., Saviotti, P.P., Zucchella, A.: Cognitive distance in research collaborations. Dipartimento di Scienze Economiche e Aziendali, Università di Pavia, Pavia (2013) Matsumoto, T.: Connectionist interpretation of the association between cognitive dissonance and attention switching. Neural Netw. 60, 119–132 (2014) Mol, J.M., Brandl, K.: Bridging what we know: the effect of cognitive distance on knowledge-intensive business services produced offshore. Int. Bus. Rev. 3(27), 669–677 (2018) Muscio, A., Pozzali, A.: The effects of cognitive distance in university-industry collaborations: some evidence from Italian universities. J. Technol. Transf. 38(4), 486–508 (2013) Valiev, S.Z., Fedorova, O.A.: Aspects of modeling a petrochemical and petroleum refinery lifecycle. Int. J. Eng. Adv. Technol. (IJEAT) 8, 121–127 (2019) Abdullin, M.M., Fedorov, P.A., Abdullin, V.M., Kurmaev, S.A., Fedorova, O.A.: Patent No. 2697339 RU (2019) Baksansky, O.E.: Modeling in Science: Cognitive Models and Intelligence. LENAND, Moscow (2019) Ministry of Natural Resources and Ecology of the Russian Federation: State report “On the State and Use of Mineral Resources of the Russian Federation in 2016 and 2017”. Ministry of Natural Resources and Ecology of the Russian Federation, Moscow (2018) Musina, D., Yangirov, A., Nasyrova, S., Kharitonov, S.: The methodological base for the design of a regional industrial digital platform. Econ. Manag. 4, 40–43 (2019) United Nations: Paris Agreement (December 12, 2015) (2019). https://unfccc.int/resource/docs/ 2015/cop21/eng/l09r01.pdf Charkina, E.S., Miroshnikov, S.N.: Forms of interaction between government and business in the Russian Federation in modern conditions: the territorial aspect. Bull. Inst. Econ. Russ. Acad. Sci. 6, 155–170 (2016)

Consumer Cooperation in the Market of Environmentally Friendly Products Elena I. Balalova , Olga V. Baskakova , Mariya Sh. Machabeli , Tatyana V. Rudakova, and Aleksandr V. Tkach

Abstract The relevance and novelty of the topic is caused by the state significance of using the potential of environmentally friendly products produced in the climatic conditions of Russia. Natural conditions in Russia favor the growth of ecologically clean wild plants in large volumes. In vast forests and swamps, it is possible to organize large-scale collection of wild fruit crops, mushrooms, nuts, medicinal herbs, and other products. However, the harvesting of such products is not always carried out at the proper level. In this regard, a significant amount of environmentally friendly wild plants grown in natural areas does not reach the domestic food market. Unfortunately, in Russia, the regulatory and legal framework for the organized harvesting of environmentally friendly wild plants is still not developed. Not enough attention is paid to the development and adoption of effective mechanisms and forms of organizational and economic measures that contribute to the development of the market for environmentally friendly products of wild plants. The previously published research demonstrates that the poorly used potential of cooperative procurement offices, collection points of consumer societies of the Russia’s Centrosoyuz can be an important source for increasing the efficiency of harvesting. Both the government and cooperative entrepreneurship bodies are encouraged to step up work on developing economic and legislative mechanisms to support activities in organizing the harvesting, processing, and sale of wild plants from rural residents and temporary pickers through an extensive cooperative network.







Keywords Centrosoyuz Food market Cooperative entrepreneurship plants Consumer societies Trade Harvesting











Wild

E. I. Balalova (&)
O. V. Baskakova
M. Sh. Machabeli
T. V. Rudakova
A. V. Tkach Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] A. V. Tkach e-mail: [email protected] E. I. Balalova Moscow Institute of Economics, Moscow, Russia © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_83

767

768

E. I. Balalova et al.

1 Introduction This is an assessment of the place and role of consumer societies and unions, consumer cooperation, in the infrastructure of the Russian food market, its segment for the sale of the wild plants fruit crops, forest mushrooms and nuts, medicinal and technical raw materials in the formation of resources of environmentally quality wild products for food system development. This characteristic includes the features of the formation and development of the food market in Russia and its segment— the market of wild plants, in the implementation of the concept of economic and social development of consumer cooperation in the context of sanctions. Fruit and berry crops, forest nuts and mushrooms from Russia have great potential to enter the international food market of environmentally friendly products. The Centrosoyuz of Russia can become an active participant in the international food market since in Russia, there are significant natural conditions for growing wild plants—forests, whose area is 1.2 billion ha. Large areas of forests and marshes create favourable conditions for the cultivation of environmentally friendly wild berries and mushrooms. Analysis of commercial stocks of wild plants in Russia shows that stocks exceed 8 million tons, including the following: berries – 4.7 million tons, of which lingonberries – 1.51, blueberries – 1.31, cranberries – 0.8, bog blueberries – 0.51, cloudberries – 0.23, raspberries – 0.07, others – 0.28 million tons; mushrooms – 2.1 million tons, and nuts – 1.6 million tons. In Russia in 2016, 35,000 thousand tons of wild berries were collected from an area of 17.1 million sq km, which, in terms of area, is the lowest indicator compared to other countries. In Russia, the collection of wild plants is only 3%–4% of the available stocks (Zubov et al. 2019). The purpose of this work is to determine the place and role of consumer societies and unions—consumer cooperation—in the infrastructure of the Russian food market and its segment for the sale of wild plants: fruit crops, forest mushrooms and nuts, and medicinal and technical raw materials in the formation of resources of wild products of environmentally quality for food system development. An additional purpose of this work is to characterize the features of the formation and development of the food market of Russia and its segment: the market of wild plants in the implementation of the concept of economic and social development of consumer cooperation in the context of sanctions.

2 Materials and Methods The theoretical and methodological basis of the study was composed of general scientific economic methods, as well as scientific works of Russian and foreign scientists on the development of the food market and its segment: the wild-growing market with the participation of consumer societies of the Centrosoyuz of Russia

Consumer Cooperation in the Market of Environmentally …

769

and consumer cooperation, as well as the organization of cooperative entrepreneurship in the food supply system.

3 Discussion In order to increase the harvest of wild-growing ecologically friendly crops, it is necessary to include internal domestic organizational, economic, and normative-legal regulators. To a large extent, Russia’s development strategy for the world market of wild fruit crops and wild mushrooms will be determined by the development of the domestic food market and its segment of the wild plants market. At the same time, the level of organization of harvesting and processing of wild fruit and berry crops, nuts, mushrooms and other medicinal and technical products comes first. Food resources include wild mushrooms, wild berries, and nuts, which occupy an important place in the food market for environmentally friendly (organic) products. Wild plants are food products and are one of the main biological resources of the forest. The size of the natural areas of Russian forests on which wild mushrooms and berries grow and the possible volumes of their harvests are a favorable basis for the development of cooperative entrepreneurship in Russia. The scientifically based effective organization of collection, harvesting and processing of wild plants by cooperatives allows them to expand their role and significance in the Russian and world food markets, including in wild fruit, berry crops, and forest mushrooms. The Russian market of wild plants has great potential for successful development through the intensification of cooperative production, independent of import supplies. With the growing consumer demand among Russians for environmentally friendly products, the relevance of the development of the food market, including the market of wild fruit and berry crops, as well as forest mushrooms, is increasing. In this regard, the study of economic indicators, structure, and trends in the development of the market of wild plants is of scientific and practical interest for the development of scientifically-based areas of functioning and strategic development in modern conditions. The market of wild crops, in the structure of the food market, acts as its segment and is one of the links in the food supply system. Therefore, cooperative entrepreneurs in the field of food supply, which has not only economic, but also social significance, play a significant role in filling the market with wild fruits, berries, nuts, and wild mushrooms. Currently, the RusBioAlliance group is the leader in the Russian market of wild plants, wild berries, and mushrooms. The work of this company is focused on the harvesting and deep processing of wild berries and mushrooms in more than ten regions of Russia. RusBioAlliance Group includes six sites in the Republics of Karelia and Komi, Arkhangelsk and the Vologda regions. In 2018, the company’s revenue from the sale of wild plants amounted to about 6 billion rubles (Nechitaylov and Tkach 2016a, b).

770

E. I. Balalova et al.

The Republics of Karelia and Komi, Perm Krai, Vologda, Arkhangelsk, Pskov, Leningrad, Novgorod, Murmansk and the Kirov regions, which have great potential for wild plants, are the main suppliers of wild berries and mushrooms to the Russian food market. In Russia, consumer societies of the Centrosoyuz of Russia take an active part in organizing the collection and delivery of wild crops to collection points. Consumer societies, through a system of cooperative collection points, ensure uninterrupted acceptance of and sending for the processing and storage of wild plants during their mass collection. It should be noted that the constant participants in the Russian market of wild plants are consumer societies, procurement offices and consumer cooperation points of the Centrosoyuz of Russia. For example, in 2018, consumer societies of the Centrosoyuz of Russia harvested 285.4 tons of wild-growing fruits and berries in dry and fresh form, 189.4 tons of cranberries and lingonberries (translated into fresh), 9.3 tons of dried mushrooms, 125.1 tons of fresh, salted and pickled mushrooms (translated into fresh), and 27.3 tons of wild nuts. The largest number of wild-growing fruits and berries in dry and fresh form (translated into fresh) was harvested by consumer societies of the Siberian Federal District: 156.3 tons, which is 54.8% of the total harvest of the Centrosoyuz of Russia. The second place in terms of procurement is occupied by consumer companies of the Volga (Privolzhsky) Federal District—94.9 tons, or 33.3%. Third place belongs to consumer companies of the Northwestern Federal District—17 tons, or 6%. Thus, consumer societies of the three federal districts account for 88.7% of the total volume of purchases on the mushroom market in Russia. It should be noted that the main part of harvested cranberries and lingonberries is purchased by consumer societies of the Northwestern Federal District—89.8 tons, or 47.4%. Consumer societies of the Siberian Federal District are the main supplier of dry mushrooms—6.3 tons, or 67.7%. The largest number of fresh, salted, and pickled mushrooms (translated into fresh) were purchased by consumer societies of the Siberian Federal District—44.8 tons, or 35.8%. The Northwestern Federal District purchased 18.9 tons, or 15.1%, and the Central Federal District purchased 16.6 tons, or 13.3%. The main amount of harvested wild nuts was purchased by consumer companies of the Central Federal District—11 tons, or 40.3%. The Volga (Privolzhsky) Federal District purchased 9.3 tons, or almost 34.1% (Table 1). Consumer cooperation occupies a significant place in the field of harvesting wild-growing forest and marsh berries in regions where there are favorable natural conditions. In the Northwestern Federal District, consumer societies of the Arkhangelsk region are the main suppliers of harvested wild-growing fruits and berries in dry and fresh form (translated into fresh)—49.0 tons, or 67.1% in the district. In second place are consumer societies of the Leningrad Region—9.66 tons, or 16.4%. In third place are consumer societies of the Komi Republic—9.66 tons, or 13.2%. The largest number of cranberries and lingonberries was harvested by consumer societies in the Arkhangelsk region—164 tons, or 76.2% in the district (Dianova et al. 2018). It should be noted that two types of cranberries grow in Russia: marsh and small-fruited. In the Arkhangelsk region, cranberries grow in well-lit areas of peat

Consumer Cooperation in the Market of Environmentally …

771

Table 1 Purchase of wild plants by consumer societies of the Centrosoyuz of Russia, 2018, tons Name of federal districts Centrosoyuz of the Russian Federation Central Northwestern Southern Volga (Privolzhsky) Ural Siberian Far Eastern Source Compiled

Wild fruits and berries (dry and fresh)

Cranberries and lingonberries

Mushrooms (dry)

Fresh, salted and marinated mushrooms

Wild nuts

285.4

189.4

9.3

125.1

27.3

4.1 17 6.3 94.9

5.7 89.8 0 17.4

0.1 0.5 0 1.2

16.6 18.9 1.2 16.4

11.0 0 0 9.3

0.9 24.6 0.7 6.0 156.3 23.5 6.3 44.8 5.9 28.2 0.5 19.1 by the author based on materials from the Centrosoyuz of Russia

3.6 0.6 2.7

marshes. Creeping reddish stems set these apart from other plants. Cranberries, having wintered under the snow, do not deteriorate. In addition, they become sweeter because they lose a share of vitamin C during the wintering period. Recently, the business has increased interest in growing wild berry crops. So, in the Kholmogorsky district of the Arkhangelsk region on the Dikoye peat marsh, marsh cranberries are cultivated by an industrial method with mechanized harvesting. This business was recognized as relevant because, in this natural-climatic zone, there are excellent conditions for the industrial cultivation of forest berries, including cranberries. At this stage, the cultivation of marsh cranberries is not regulated in the Arkhangelsk region. For the most part, the collection of cranberries is carried out by local residents. Fruit harvesting is carried out spontaneously, and cranberry harvests vary greatly over the years, as they depend on weather conditions. Harvesting is a family business; collecting cranberries and selling them can further add to the family income. The yield of Kostroma varieties of marsh cranberries grown on varietal plots ranges from 9 to 15 tons per 1 ha, which is 10 times higher than the cranberry yield obtained in wild conditions. Cranberry fruits of the following varieties have the highest quantitative and qualitative indicators: “Dar Kostromy,” “Krasa Severa,” “Severyanka,” and “Sominskaya,” which are not only equal to but in some cases even better than American varieties in terms of ripening time and quality of berries. The cultivation of Russian varieties of marsh cranberries under industrial conditions at the Dikoye peat deposit in the Arkhangelsk region is carried out in collaboration with scientists from the All-Russian Research Institute for Silviculture and Mechanization of Forestry (ARRISMF). This project was initiated and organized by AO (JSC) “Pitek Bio.” The construction of the industrial plantation cranberry marsh was started at the end of 2016. The construction of the plantation

772

E. I. Balalova et al.

was carried out in two stages; the size of only the first stage was 200 ha, the construction of which required 150 million rubles. The total size of the cranberry plantation was 500 ha. For the efficient use of production capacities of the indicated scale, it is necessary to create a network of cranberry processing enterprises in the region. The opening of a large-scale production in the region to grow Russian cranberry varieties indicates the emergence of a new direction of production in the economy of the Arkhangelsk region. Modern cooperative measures are used to organize the cultivation of wild plants. So, the “Arkhangelsk Cranberry” project is an agricultural consumer cooperative in which a significant number of citizens of the rural territory of this region can participate on a voluntary basis. Suppliers of cranberry products from America are one of the main competitors of the Arkhangelsk Cranberry cooperative in the Russian food market. However, the Arkhangelsk cooperative has advantages over importing companies, expressed in the cost of the final product. The production costs of the Arkhangelsk Cranberry project are lower since there are no costs for the construction and operation of pumping stations and the dusting of the root system of cranberry plants. Cranberry fields of the Arkhangelsk Cranberry cooperative can be considered as a collective berry field. The mutual fund in the amount of 400 million rubles is expected to be spent on the construction of 200 ha of plantations for the cultivation of cranberries “on a turn-key basis.” The project provides for having their own employees to cultivate cranberries, as well as using a natural reservoir with fresh water. Also, the project takes into account the distance from the cranberry plantation to the federal highway M8 and rural settlements, and it organizes the creation of its own laboratory for the cultivation of mother plants and nurseries (Zubov et al. 2019). The main measures include the construction of a road to the M8 highway, reclamation, establishment of a nursery, the construction of a laboratory, the formation of social and industrial infrastructure, and the purchase of new machinery and equipment. In the second year, it is planned to create checks, grow seedlings, and purchase machinery and equipment. In the third year, it is planned to plant seedlings and build hydraulic structures and an irrigation system. In the fourth and fifth years, it is planned to care for cranberry plants and purchase harvesting machinery and equipment (Centrosoyuz of Russia 2014–2018). In the organization of cranberry production, a certain order is observed. So, in 2016, cranberry plantations were built, and in 2017, the first cranberry seedlings were planted. The entry fee of the shareholder was 3500 rubles. Each shareholder received 280 m2 of cranberry plantation. The estimated cranberry yield from 1 sq m amounted to 1 kg of berries, which can be sold at 250 rubles per 1 kg. At the same time, the shareholder can sell, give, or pass on his share (Centrosoyuz of Russia 2014–2018). Forest mushrooms occupy a special place, role and significance in the procurement of wild-growing products. The collection, processing and sale of these wild plants are carried out by both individual citizens and commercial organizations. Cooperative entrepreneurs can develop their own cooperative mushroom market. In Russia, on average, one person consumes 3 kg of mushrooms per year,

Consumer Cooperation in the Market of Environmentally …

773

most of which are wild mushrooms. Residents of large cities in the Central and Northwestern regions of the country are the main consumers of frozen mushrooms. The growing demand for wild mushrooms in large cities reflects a higher level of well-being of residents of these cities and their concern for environmentally friendly food. In recent years, the share of consumers of frozen mushrooms has increased from 9.6 to 16.7%, which is 1.7 times (Nechitaylov and Tkach 2016a, b). At this stage, the main resellers of wild mushrooms in the population are individual private entrepreneurs and consumer cooperatives. Often, individual collectors of wild mushrooms sell products collected in the forest on the side of the road among passing motorists. A lot of intermediaries work in the wild mushroom market as they buy products from collectors at a lower price and then organize their processing and selling procedures at a higher price. When opening a mushroom business, cooperative entrepreneurs include their own deep processing of mushrooms in the technological chain. At the same time, thanks to the use of warehouse equipment, they have the opportunity to store things for a longer period of time in order to preserve the quality of their products. This is important because the purchase of wild mushrooms is a seasonal business. The yield of wild mushrooms, like other crops, depends on weather and climate conditions, including drought. In lean years, mushrooms cultivated on mushroom farms via the plantation method are used to load equipment for processing wild mushrooms. This is most often champignons. In European supermarkets, the price of frozen mushrooms reaches about 30 euros per 1 kg. The cultivation of wild forest mushrooms is much less common. It is economically most profitable to collect wild mushrooms in the forest as gifts of nature. In many countries, mushroom collection is free, and the money earned from their sale is not taxed. However, independent trade in mushrooms is prohibited. Some entrepreneurs attract people to collect wild forest mushrooms for a certain salary. In Russia, consumer societies of the Centrosoyuz of Russia are engaged in harvesting and processing wild mushrooms. From 2014 to 2018, mushroom harvesting by consumer societies of the Centrosoyuz of Russia increased from 7.58 to 9.30 thousand tons, or by 22.7%. During this period, consumer societies of the Siberian Federal District significantly increased the harvest of dried mushrooms from 1.75 to 6.30 tons, or 3.6 times. Consumer societies of the Central Federal District and the Far Eastern Federal District significantly increased the volume of harvested dry wild mushrooms—5 times and 1.3 times, respectively. At the same time, consumer societies of the Northwestern Federal District and the Ural Federal District reduced the purchase of dry wild mushrooms from 0.98 to 0.28 tons, or 71.1% and 2.2 times, respectively (Table 2). A study of the work of consumer societies on the purchase of dried mushrooms showed that the share of consumer societies of the Siberian Federal District is 67.7%, or 6.3 tons, of which about 6.3 tons are in the Tomsk region. The consumer companies increased purchases of dried mushrooms from 0.20 to 6.3 tons, or 31.5 thousand times.

774

E. I. Balalova et al.

Table 2 Dynamics in purchases for wild-growing mushrooms in a dry form by consumer societies of the Centrosoyuz of Russia, tons Federal districts

Years 2014

Centrosoyuz of the Russian 7.58 Federation Central 0.02 Northwestern 1.20 Volga (Privolzhsky) 2.79 Ural 0.31 Siberian 1.75 Far Eastern 0.51 Source Compiled by the author based on

2015

2016

2017

2018

2018 in % to 2014

7.96

6.53

23.01

9.3

1.2 times

0.05 0.66 2.44 0 1.17 3.64 materials

0.20 0.09 0.1 5 times 0.75 0.28 0.5 41.7 2.81 1.28 1.2 43.0 0.20 0.06 0.7 2.2 times 1.65 20.71 6.3 3.6 times 0.92 0.49 0.5 98.0 from the Centrosoyuz of Russia

In 2018, in the Tomsk region, alongside consumer societies, other companies were engaged in the harvesting of mushrooms. At present, in a number of regions, it is necessary to restore broken ties between collectors and producers.

4 Results and Conclusions The infrastructure of the food market in Russia has not yet developed a full-fledged segment of the market for wild crops. The main plan for increasing the efficiency of the wild plants’ existing potential involves a more active inclusion in the production of available cooperative resources and forms of cooperation. We suggest expanding the activities of cooperative entrepreneurship in organizing the procurement and processing of wild crops. The stability of harvesting volumes of wild fruits, berries, and forest mushrooms largely depends on productivity, which is affected by weather conditions, which are not favorable every year. In this regard, large cooperative enterprises engaged in harvesting wild plants and focused on long-term work in this sector of the economy, we recommend taking into account the difficulties of production and diversifying their activities in several areas: • firstly, include in the scope of its activity several geographical regions that have different climatic zones; • secondly, create a modern material and technical base for the collection, transportation, and processing of mushrooms, and build an effective logistic scheme for promoting products to the consumer, using the speed and quality of operations; • third, create reserve sources of guaranteed raw materials, to acquire cultivated species, so that, if necessary, it would be possible to load the existing production capacity;

Consumer Cooperation in the Market of Environmentally …

775

• fourthly, in connection with the seasonality in the production of wild plants, it is necessary to form their own procurement network to determine their clientele capable and ready to work on their harvesting in the season of mass gathering of wild plants.

References Babakaev, S.V., Kaurova, O.V., Larionova, A.A., Volkov, D.V., Vinogradova, M.V., Leonova, V. P.: The study of criteria of the consumer choice of financial services in Russia. Mod. J. Lang. Teach. Methods 8(6), 252–261 (2018) Balalava, E.I., Maksaev, A.A., Ovcharenko, N.A., Suglobov, A.E., Tkach, A.V.: Entrepreneurship in Food Security. Publishing and Trading Corporation “Dashkov & Co”, Moscow (2019) Bogoviz, A.V., Semenova, E.I., Ragulina, J.V.: Agricultural products’ quality. In: Lecture Notes in Networks and Systems, vol. 57, pp. 154–160 (2019) Centrosoyuz of Russia: The main indicators of socio-economic activity of consumer cooperation in the Russian Federation for 2014–2018. Centrosoyuz of Russia, Moscow (2014–2018) Dianova, V.Yu., Tkach, A.V., Zhukova, O.I.: The main directions of development of cooperation. Fundam. Appl. Res. Coop. Sect. Econ. 3, 14–20 (2018) Gordeev, A.V., Suglobov, A.E.: Пpoблeмы peгyлиpoвaния пpoдoвoльcтвeннoгo pынкa. Agric. Econ. Russ. 8, 3–4 (1999) Maloletko, A.N., Andryushchenko, G.I., Kaurova, O.V., Mityushina, E.A., Shatskii, A.A.: Current employment patterns in the labor market of the Eurasian Economic Union. Espacios 38(49), 19–21 (2017) Maloletko, A.N., Kaurova, O.V., Volkov, D.V.: Formation of bounded consumers’ rationality based on micro-segmentation. Eur. Res. Stud. J. 21(4), 754–762 (2018) Maloletko, A., Kaurova, O., Yumanova, O.: Ways to counter retrieval of “shadow income” from businesses with fixed assets in hospitality. Middle-East J. Sci. Res. 15(5), 757–762 (2013). https://doi.org/10.5829/idosi.mejsr.2013.15.5.11404 Matraeva, L., Kaurova, O., Maloletko, A., Erokhin, S.: Prospects and problems of adaptation of foreign experience of participation of pension funds in infrastructure and social investment projects in the Russian economy. Man India 97(21), 15–28 (2017) Matraeva, L., Kaurova, O., Maloletko, A., Erokhin, S., Bakumenko, L.: Comparative analysis of approaches to providing information regarding actuarial activities of pension funds in various countries. Int. J. Econ. Perspect. 10(2), 241–251 (2016) Matraeva, L., Kaurova, O., Vasiutina, E., Erokhin, S.: A dynamic model in the labor market: reasons of imbalances at the transition stage of the economy. Eur. Res. Stud. J. 21(3), 206–217 (2018) Nechitaylov, A.S., Tkach, A.V.: Consumer cooperation in infrastructure of the food market. Agric. Econ. Russ. 2, 76–81 (2016a) Nechitaylov, A.S., Tkach, A.V.: Consumers cooperation under market conditions. Econ. Agric. Process. Enterp. 8, 61–66 (2016b) Nechitaylov, A.S., Tkach, A.V., Zhukova, O.I., Zhukov, A.S.: Cooperative small businesses in the agricultural sector. Econ. Labor Manag. Agric. 3(48), 118–124 (2019) Skryl, T., Osipov, V., Vorozheykina, T.: On the way to ecological agriculture: decision-making process in agrarian state policy. IOP Conf. Ser.: Earth Env. Sci. 274 (2019) Suglobov, A.E., Lipalina, S.Yu.: Methodological approaches to understanding of essence of innovative activity in modern conditions. Vestnik Moscow Univ. Minist. Intern. Aff. Russ. 7, 202–206 (2012)

776

E. I. Balalova et al.

Suglobov, A.E., Boboshko, B.I., Ladnyuk, I.A.: Status and problems of adaptation of international audit standards in Russia. Int. Account. 2(134), 20–31 (2010) Tkach, A.V., Zhukov, A.S.: Activity of consumer societies and unions in the conditions of sanctions and embargo. Agric. Econ. Russ. 7, 59–68 (2015) Tkach, A.V., Balalava, E.I., Ishmuratov, M.M., Zhukova, O.I.: Consumer cooperation in the system of food security of the country. Fundam. Appl. Res. Coop. Sect. Econ. 6, 25–35 (2018) Vinogradova, M.V., Maloletko, A.N., Kaurova, O.V., Kulyamina, O.S., Larionova, A.A.: The use of MBO (management of objectives) method of attraction and evaluation of effectiveness of investments to the tourism and hospitality. Manag. Educ.: Probl. Perspect. 6(2), 241–246 (2016) Vinogradova, M.V., Maloletko, A.N., Kaurova, O.V., Larionova, A.A., Tinyakova, V.I.: Model of evaluation of influence of globalization on the national stock market. In: Popkova, E.G. (ed.) Russia and the European Union Development and Perspectives. Springer, Cham (2017) Vinogradova, M.V., Maloletko, A.N., Kulyamina, O.S., Kaurova, O.V., Larionova, A.A.: Digital technology in the field of educational services. Manag. Educ.: Probl. Perspect. 6(2 s: special issue), 281–287 (2016) Zhukov, A.S., Tkach, A.V.: Harvesting activities of consumer cooperatives in rural areas. Econ. Agric. Process. Enterp. 2, 38–41 (2013) Zhukova, O.I., Tkach, A.V.: Cooperative entrepreneurship for food security. Econ. Agric. Process. Enterp. 3, 35–41 (2018) Zubov, D.L., Maksaev, A.A., Tkach, A.V.: Consumer cooperation in the market of herbs. Fundam. Appl. Res. Coop. Sect. Econ. 1, 3–12 (2019)

Comparative Analysis of the Legal Status of Personal Subsidiary Plots and the Legal Status of Peasant Farms Igor A. Vladimirov , Louise K. Rashitova , and Radmir A. Iksanov

Abstract The paper reveals a comparative analysis of the legal status of personal subsidiary plots and peasant farms. The authors substantiate the idea of combining personal subsidiary farms of citizens in “social, agricultural cooperatives” on a territorial basis. Such an approach requires granting these cooperatives with the status of a subject of social entrepreneurship.




Keywords Personal subsidiary plots Peasant farming entrepreneurship Agricultural cooperatives





Legal status
Social

1 Introduction This paper discusses the main differences between a personal subsidiary farm and a peasant farm. This issue is relevant to those involved in the agricultural business. For the state and the entrepreneurs, it is an open question where the line between personal farms and entrepreneurship passes (Nechaev et al. 2017).

I. A. Vladimirov (&) Bashkir State University, Ufa, Russia e-mail: [email protected] L. K. Rashitova Bashkir Cooperative Institute (Branch) of the Russian University of Cooperation, Ufa, Russia e-mail: [email protected] R. A. Iksanov Bashkir State Agrarian University, Ufa, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_84

777

778

I. A. Vladimirov et al.

2 Materials and Methods The study is based on the Rosstat data on the cross-section of agricultural organizations (Bashkortostanstat 2018), the results of our previous research, and other data. The following legal methods were used during the study: 1. Comparative legal method. It is used to compare, characterize, and identify features of the legal status of private farms and peasant farms, as well as to compare the laws of foreign countries that regulate entrepreneurial activity in agriculture. The works of foreign authors on the topic were studied. 2. The method of analysis of legal norms. The analysis of the provisions of the current legislation makes it possible to identify the meaning of a legal norm and determine the degree of its influence on the development of social relations, in which private subsidiary farming and peasant farming are engaged. 3. The method of analysis of judicial and law enforcement practice. It is based on an analysis of the decisions of the judicial bodies of constitutional and arbitration proceedings regarding relations in which private subsidiary farms and peasant farms participate.

3 Results The main difference between personal subsidiary farming and peasant farming is the scale of agricultural activity and the volume of agricultural products processed by the subject of agri-entrepreneurial activity. The organizational and legal form and taxation system chosen by the subject of agri-entrepreneurial activity depend on the scale and volume of processed agricultural products. Personal subsidiary farming is a type of economic activity of citizens who are not registered as entrepreneurs. Agricultural products of this entity are grown for personal consumption. Citizens can sell surplus agricultural products. It should be borne in mind that retailers cannot accept products manufactured by personal subsidiary farms for sale since they do not want to take risks associated with the sale of these products with missing documented and complete information about the manufacturer, methods of manufacturing, and confirmation of safety guarantees of nutrition products. In such circumstances, private farms have the opportunity to sell surplus agricultural products at seasonal fairs and weekend fairs. The requirements on the part of the control and supervisory authorities related to the certification of agricultural products are practically not presented to the products of personal subsidiary farms. Another issue that impedes the sale of products of personal subsidiary plots at retail enterprises is the lack of stability in the supply of the products. For the state and the entrepreneurs, it is an open question of where the line between personal farms and entrepreneurship exists. The main activity of private

Comparative Analysis of the Legal Status…

779

farms is the production of agricultural products for personal consumption. Particular issues of entrepreneurial activity in agriculture were the subject of research by Safin (Safin and Mikhailov 2013). The concept of “farming” is not etymologically Russian. Farmers are entrepreneurs who grow agricultural products for sale. The activities of peasant farms were initially designed to sell their products on the market. Legislative recognition of a legal entrepreneur, the head of a peasant farm, was carried out in order to legitimize this type of activity. Citizens engaged in peasant farming receive income that has to be taxed by the state, given that the activities of the peasant farming are carried out on state lands, lands re-registered in private ownership, or lands that are leased. A private subsidiary farm can take land into use, but the area of land plots provided to private subsidiary farms depends on the Russian Federation. It is hard to collect other types of payment from personal subsidiary plots besides rent and land tax. This is due to the benefits of a personal farm. An individual entrepreneur, such as the head of a peasant farm, functions as a business entity that can receive grants. The disadvantages of the legal form of peasant farming include the fact that the head of the peasant farm is solely responsible. In the legislation of the Russian Federation, there is no concept of subsidiary liability for peasant farmers as there is in business companies. In practice, there was a problem concluding an agreement among citizens on the establishment of a peasant farm that followed the provisions of the Peasant Farming Law. The legal problem also included the provisions of the legislation on livestock breeding, which only allowed such activities as livestock breeding for legal entities. In the case of creating a family-type peasant farm with several (three) families when the head of the farm is registered as an individual entrepreneur, the conversion of Soviet collective farms with an average number of more than 50, and in some cases more than 300 people, was simply impossible to carry out. All members of the reorganized agricultural enterprise cannot be relatives, and the reorganized property will not be in their joint ownership. In the early 1990s, when collective farms were being transformed into peasant farms with the status of legal entities, the above legislative requirement to limit the number of peasant farm members within three families was not observed in practice. Furthermore, law enforcement and scholars considered the legal entity status of peasant farms created in this way to be a temporary phenomenon. This allowed such farms to operate outside of the legal field and employ the most exotic options for organizing management and income distribution in the organization. Under Russian law, a person wishing to engage in entrepreneurial activity was obliged to choose the legal form established by the Civil Code of the Russian Federation or by federal law. That is, the Civil Law limits the list of commercial legal entities. It should be recognized that the legal forms that exist in the Civil Code of the Russian Federation do not meet the specific conditions of agricultural entrepreneurship and remain unclaimed by potential participants in agricultural entrepreneurship. According to sociological research, rural residents—who run personal subsidiary plots, are dominant in the food market, and produce and sell actual marketable agricultural products in urban and rural markets—do not see the

780

I. A. Vladimirov et al.

point in registering with the state as a business entity. The main reason for this is the desire to avoid excessive state control, namely the obligation of state registration, taxation, and state and municipal control and supervision. At the same time, citizens running personal subsidiary plots do not have the proper level of state support. Personal subsidiary plots are not covered by the measures of state support provided in the “Program for the Development of Agriculture and the Regulation of Agricultural Products, Raw Materials, and Food Markets for 2008—2012” and subsequent programs. According to the “Recommendations on ensuring the implementation of programs for state support of small and medium-sized enterprises, promoting self-employment of unemployed citizens, supporting small businesses in the countryside, and supporting small forms of innovative entrepreneurship,” the measures of state support are provided only for small and medium-sized businesses. The system of legislation for the legal regulation of agricultural entrepreneurship should consist of the rules that govern the following: – the features of the legal status of agribusiness entities, including legal entities, individual entrepreneurs, peasant (farmer) households, and private farms; – the legal regime of lands and other natural objects; – the legal regime of agricultural property; state regulation and support of agricultural enterprises, including state-targeted programs; material, technical, scientific, and personnel support of the village; – the norms establishing state guarantees for the purchase of agricultural products in order to ensure the efficiency and break-even of agricultural entrepreneurship; – the social development of the rural areas; – the contractual relations of agricultural, commercial organizations; – quality control and food safety for the population and consumers; – certain specific agricultural activities in crop production, animal husbandry, processing, storage, transportation, and sale of products; – the implementation of the principle of greening agricultural entrepreneurship; the mechanism for the legal protection of agricultural enterprises; – the bankruptcy of agricultural organizations. It is possible to ensure the availability of domestic food for Russians only by increasing the production of agricultural products by local agricultural producers.

4 Discussion One of the comprehensive legal studies of the problems of the legal status of peasant (farmer) households is the work of V. V. Ustyukova and N. N. Melnikov. Melnikov (Melnikov 2012) analyzes the evolution of family-labor associations of citizens based on the norms of Roman law and the law of foreign states in the Middle Ages and modern times. The scholar also considers the problem of legal

Comparative Analysis of the Legal Status…

781

regulation of the status of a peasant (farm) economy, comparing the norms of Russia and the CIS with the specifics of the norms of the Baltic countries, Eastern and Western Europe, the USA, and Great Britain. N.N. Melnikov set the task of identifying specific signs of farming as a family form of agrarian entrepreneurial activity of citizens. The scholar also analyzed the legal status of the head of the peasant economy and its members. According to N.N. Melnikov, the main problem of determining the status of a peasant (farm) economy in Russia is the problem of legal consolidation of the place of a peasant economy among the subjects of Russian law in the norms of Russian law. Based on the analysis of foreign legislation, N.N. Melnikov identifies four typological forms of peasant (farm) farming in Russia and the CIS, the Baltic States, Eastern and Western Europe, the USA, and Great Britain. They are (1) family and labor association of citizens operating without the formation of a legal entity; (2) the farm as a legal entity; (3) the family farm; (4) the farmer as an individual entrepreneur. Among foreign researchers of the features of the legal status of personal subjects of agricultural entrepreneurship, the works of Coen-Pirani, Sieg (Coen-Pirani and Sieg 2019), Samphantharak and Townsend (Samphantharak and Townsend 2012) should be highlighted. These authors studied the effectiveness of the activities of private entities of agricultural entrepreneurship. The impact of financial and economic policies and legislation on private agricultural entrepreneurship has also been studied (Turdaliev and Zhang 2019; French and Vigne 2019; Alpanda and Zubairy 2017). The social sustainability of agribusinesses was the subject of research by Pacoma, Delda (Pacoma and Delda 2019), Jayasinghe, Chai, Ratnasiri, Smith (Jayasinghe et al. 2017). In the dissertation “The Legal Status of Peasant (Farmer) and Personal Subsidiary Plots in the Russian Federation,” Ustyukova (Ustyukova 2002) notes that peasant (farmer) farms are the main recipients of Russian agrarian reform. She rightly draws attention to the problem of erasing the gap between peasant (farmer) farms and personal subsidiary farms in Russia. As noted by A. V. Gabov, according to the 2011 data from the Federal State Statistics Service, 84 thousand (out of 304 thousand) peasant farms in Russia had the status of a legal entity, that is, almost a third of peasant farms in Russia (Gabov 2014). The author notes that most peasant farms, which are managed individually or by members of the same family, generate a production volume sufficient only for personal consumption. These farms cannot provide the necessary volume of commodity production to guarantee the food security of the country. The author also notes that the previously taken course on the fermentation of the agricultural economy did not meet the reformers’ expectations. This is due to the lack of traditions among the population in small-scale family farming since more than one generation of rural residents in Russia has grown by the example of collective forms of organization of agricultural production. According to the author, this population cannot conduct agrarian and entrepreneurial activity by themselves, especially in the severe climatic conditions typical for Russia.

782

I. A. Vladimirov et al.

The norms of the law on personal subsidiary plots are disputable, since their agricultural activity, including the keeping of farm animals and birds, is possible within the boundaries of a settlement subject to the requirements of town-planning regulations and environmental, sanitary-hygienic, and fire prevention standards. Thus, the citizens O. V. Kosareva and A. A. Styazhkin filed a complaint with the Constitutional Court of the Russian Federation disputing the constitutionality of paragraphs 1 and 2 of Article 4 and Article 6 of Federal Law “on personal subsidiary plots” (July 7, 2003, No. 112-FZ) applied by the court in their case, which provides the way the agricultural activities within the boundaries of settlements should be carried out but not the right to carry out these activities. According to the applicants, the indicated norms of the law “On personal subsidiary plots,” as allowing the production of agricultural products within the boundaries of settlements, do not comply with Articles 17 (part 2), 36 (part 2), 41, 42, and 55 (parts 2 and 3) of the Constitution of the Russian Federation. The Constitutional Court of the Russian Federation, making a decision (September 24, 2012 No. 1593-O) on the refusal to accept complaints on violation of constitutional rights by clauses 1 and 2 of Article 4 and Article 6 of the Federal Law “On Personal Subsidiary Farming,” pointed out the need to comply with regulatory restrictions and environmental requirements, taking into account the particular purpose of the settlements’ lands, intended primarily for living in favorable conditions that meet environmental legislation, and not for agricultural production by the citizens with private farms. Thus, the Constitutional Court of the Russian Federation clarified according to which, within the boundaries of settlements, the priority is to comply with environmental laws, town planning regulations, sanitary and hygienic rules, and not with the federal law “On personal subsidiary plots,” which normally only allows for the possibility of conducting a personal subsidiary farm in the boundaries of the village, but does not guarantee an unconditional right to the implementation of the specified activity on the land settlements. Article 1 of the Law on Agricultural Cooperation gives the basic concepts. From them, it follows that an agricultural cooperative is created by agricultural commodity producers—citizens who conduct personal subsidiary plots. An agricultural cooperative can be created either as production or as a consumer cooperative. Although the agricultural consumer cooperative, according to civil law, is not a subject of agricultural entrepreneurship, as well as personal subsidiary plots, according to the Federal Law “On the development of small and medium enterprises in the Russian Federation” (July 24, 2007, No. 209-FZ), consumer cooperatives are classified to small and medium-sized enterprises (Article 4 of the Law). Article 1 of the Law on Agricultural Cooperation sets out the concept of agricultural cooperation as a system of agricultural production and consumer cooperatives. Thus, personal subsidiary plots of citizens can be members of collective agricultural, commercial organizations—production cooperatives. According to sociological surveys, the main reason that encourages rural citizens to engage in personal subsidiary farming is not a desire to increase personal consumption, but a desire to increase personal income, while working in an agricultural, commercial

Comparative Analysis of the Legal Status…

783

organization. Rural residents can simultaneously have the status of both the founder (participant) of a legal entity and its employee. Cooperation should be understood not only as a network of agricultural production and consumer cooperatives but also as a union of personal subsidiary farms of rural citizens as the basis of rural cooperation, its primary and central cell. Therefore, in the Federal Law “On the Development of Small and Medium-Sized Enterprises in the Russian Federation” (July 24, 2007, No. 209-FZ), it is necessary to stipulate that state support measures extend to agricultural consumer cooperatives and personal subsidiary plots of citizens as the central unit in the structure of agricultural cooperatives. The legal regulation of the cooperative’s activities should be based on the principles of non-profitability of cooperative activities, in connection with which it is necessary to stipulate in the Federal Law “On the Development of Small and Medium-Sized Enterprises in the Russian Federation” (July 24, 2007, No. 209-FZ) that state support measures also apply to agricultural consumer cooperatives and personal subsidiary plots of citizens as the central unit in the structure of agricultural cooperatives. According to Kozyr and Bystrov (Bystrov and Kozyr 1999), “Agrarian relations are an organic complex of land, property, labor, organizational and managerial relations based on private, state, and municipal property, developing in the field of agricultural and other related activities of agricultural enterprises and associations, as well as the activities of peasant and personal subsidiary farms of citizens”. In 2019, in order to create a support system for Russian farmers and to develop rural cooperation in Russia, the Government of the Russian Federation adopted a decree “On the creation of a support system for farmers and the development of rural cooperation in Russia” (April 20, 2019, No. 476). Based on this decree, regional regulatory acts were adopted in the regions and were aimed at the development of a regional system of support for farmers and rural cooperation in the regions. Thus, the Government of the Republic of Bashkortostan adopted the decree “On approval of the procedures for providing subsidies from the budget of the Republic of Bashkortostan as part of the regional project, on the creation of a system of support for farmers and developing rural cooperation” (April 30, 2019, No. 267). The decree allowed for the receipt of grants from the respective budgets in the amount of 3 million rubles if personal subsidiary plots (at least five private household plots) created an agricultural consumer cooperative. Subsidies are granted to agricultural consumer cooperatives in order to reimburse part of the costs (up to 50% of the property value) incurred by members of the cooperative (private farms) for the purchase of agricultural equipment or fixed assets (a list of such property is established by the Ministry of Agriculture of the Russian Federation), but not for more than 3 million rubles per agricultural consumer cooperative. Thus, the state tried to extend state support to private farms, which are not business entities under Russian law but, due to the current situation in the country, are dominant among all agricultural producers. Private farms are also participants in

784

I. A. Vladimirov et al.

future agricultural consumer cooperatives, whose growth will contribute to the development of agricultural cooperation in Russia. The Decree of the Government of the Republic of Bashkortostan (June 5, 2017, No. 254) provides for compensation of 50% of the costs of the purchase of agricultural machinery and equipment by personal subsidiary farms. The Decree of the Government of the Republic of Bashkortostan (December 30, 2016, No. 574 [as amended on February 15, 2019]) ensures the provision of state grants to consumer cooperatives with the participation of personal subsidiary farms in order to achieve the following: increased marketability of honey through the creation of consumer cooperatives by personal subsidiary farms; the creation of a consumer marketing cooperative for the collection, processing, and marketing of potatoes; the creation of a supply and marketing cooperative; and the development of small-scale production for the cultivation of waterfowl with the participation of personal subsidiary plots. As a rule, the participants in most of the ongoing comprehensive programs for the development of agriculture in the constituent entities of the Russian Federation are personal subsidiary plots united in agricultural consumer cooperatives. According to the Order of the Government of the Republic of Bashkortostan (June 24, 2019 No. 645-r), 300 million rubles were allocated from the republic’s 2019 budget to reimburse part of the costs of agricultural producers (including owners of personal subsidiary plots) for the purchase of agricultural machinery.

5 Conclusion In Russian legislative and law enforcement practice, one should adhere to the positive experiences of industrialized countries in the formation and development of the agricultural economy sector, treating it as socially oriented by improving agricultural cooperative legislation. Earlier, we put forward the idea of combining personal subsidiary plots on a territorial basis into “social agricultural cooperatives” by granting the status of a subject of social entrepreneurship to these cooperatives. Currently, the cooperation of citizens maintaining personal subsidiary plots is voluntary and encouraged by guarantees of state support at the federal and regional levels of small—and medium-sized enterprises. This idea is motivated, first of all, by the need to build relationships between the owners of personal subsidiary plots and state authorities with regard to the participation of private household plots in state-targeted programs. This applies to small- and medium-sized enterprises, as well as credit organizations, in order to access credit facilities.

Comparative Analysis of the Legal Status…

785

References Alpanda, S., Zubairy, S.: Addressing household indebtedness: monetary, fiscal, or macroprudential policy? Eur. Econ. Rev. 92, 47–73 (2017) Bashkortostanstat. Agricultural activities of households in the Republic of Bashkortostan: A statistical compilation. Bashkortostanstat, Ufa, Russia (2018) Bystrov, G.E., Kozyr, M.I.: Agricultural Law: Textbook for High Schools. Yurist, Moscow (1999) Coen-Pirani, D., Sieg, H.: The impact of the Tax Cut and Jobs Act on the spatial distribution of high productivity households and economic welfare. J. Monetary Econ. 105(C), 44–71 (2019) French, D., Vigne, S.: The causes and consequences of household financial strain: a systematic review. Int. Rev. Finan. Anal. 62, 150–156 (2019) Gabov, A.V.: State and Business in the System of Legal Coordinates. Institute of Legislation and Comparative Law, Moscow (2014) Jayasinghe, M., Chai, A., Ratnasiri, S., Smith, C.: The power of the vegetable patch: how home-grown food helps large rural households achieve economies of scale & escape poverty. Food Pol. 73, 62–74 (2017) Melnikov, N.N.: Theoretical problems of the formation of the legal status of a peasant farm (Abstract of the dissertation of Doctor of Law). RAS, Moscow (2012) Nechaev, V.I., Saifetdinova, N.R., Bogoviz, A.V.: Theoretical aspects of state regulation of agriculture within the classical and physiocratic schools: a modern view. Adv. Intell. Syst. Comput. 726, 870–884 (2017) Pacoma, A.J.U., Delda, J.S.: Social capital in the post-Haiyan setting: the role of local and trans-local ties in building household resilience. Int. J. Disaster Risk Reduction 40, 101–250 (2019) Safin, Z.F., Mikhailov, A.V.: Legal basis of entrepreneurial activity in agriculture. Sci. Not. Kazan Univ. Ser. Humanit. 155(4), 157–166 (2013) Samphantharak, K., Townsend, R.M.: Measuring the return on the household enterprise: what matters most for whom? J. Dev. Econ. 98, 58–70 (2012) Turdaliev, N., Zhang, Y.: Household debt, macroprudential rules, and monetary policy. Econ. Model. 77, 234–252 (2019) Ustyukova, V.V.: The legal status of peasant (farmer) and personal subsidiary plots in the Russian Federation (Dissertation of Doctor of Law). RAS, Moscow, Russia (2002)

Stream Modeling of an Online Store Based on Modified Petri Nets in Consumer Cooperation Svetlana N. Savdur , Gulia A. Khamatshaleeva , Galina S. Stepanova , Nadezhda N. Maslennikova , and Juliya V. Stepanova Abstract This article shows the prospect of organizing direct electronic trade in farmers’ cooperatives. One of the possible approaches to modeling material and information flows of an online store is considered. A review of the main modeling methods made it possible to design the flows of an online store based on discrete-continuous economic and technical systems in consumer cooperation in the form of a modified Petri net. This model includes priority transitions taking into account the delay time of labels in positions and transitions.








Keywords Modified Petri nets Material and information flows Simulated systems Economic and technical systems Computer modelling Online stores Electronic commerce System analysis













1 Introduction For consumer cooperation in Russia, ensuring product access to markets is an important issue. Today, for consumer cooperative enterprises, there are four main sales channels for their own products: network retail, collective farm markets, processing enterprises, and resellers. For retail chains, inexpensive products with S. N. Savdur
G. A. Khamatshaleeva (&)
G. S. Stepanova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] S. N. Savdur e-mail: [email protected] G. S. Stepanova e-mail: [email protected] N. N. Maslennikova
J. V. Stepanova Kazan (Volga Region) Federal University, Kazan, Russia e-mail: [email protected] J. V. Stepanova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_85

787

788

S. N. Savdur et al.

standard characteristics—such as maintaining their quality properties during transportation, and having a long shelf life—are of interest. However, such products suggest that chemicals and other properties are actively used in the manufacturing process. The products of consumer cooperation enterprises are of high quality, are environmentally safe, fairly high in price, and there is not a high volume of production. The level of service on collective farm markets is not high enough; it does not allow customers to guarantee product quality (i.e., reliability of sanitation and veterinary examinations). Very often, access to such markets is limited due to the dominance of ethnic businesses in them. The low purchase prices offered by processing enterprises, as well as by dealers, do not provide high profitability to consumer cooperative enterprises. As a result of this, it is advisable to sell products of consumer cooperation enterprises without processing. However, at present, consumer cooperation enterprises are forced to use existing distribution channels, as there are no alternatives. Consequently, products of consumer cooperation enterprises most often reach the final consumer in a processed form. Thus, the problem of creating a direct relationship between consumer cooperation enterprises and consumers is becoming increasingly important. The creation of alternative distribution channels for products of consumer cooperation enterprises has been proposed to solve this problem. Alternative distribution channels will allow consumer cooperative enterprises to quickly sell their own products, which will positively affect their quality characteristics and expand distribution channels. However, overall, this will affect pricing, but the degree should not be too high. Related to business entities in the field of consumer cooperation, the development of direct electronic commerce acts as a modern, promising solution with serious opportunities for improvement. In this case, the approach in which the formation of an electronic store is necessary, which is common for consumer cooperation enterprises, seems to be the most appropriate. At the same time, external trading operators are not involved. Significant advantages with this form of management are associated, first of all, with the ability to avoid income dispersion. The exclusion of external operators allows for significant financial savings. In addition, the resource integration by a number of farms opens up opportunities for accumulating finances across the subsequent distribution to meet the needs of the site’s technical support, creation and development of a delivery service, etc. The combination of farms that differ in the profile of their products is the most promising option for integration. Thanks to this approach, great opportunities to expand the range of products open up. In addition, in the event that households close in profile are integrated, contradictions related to competition may arise within the association. An important factor contributing to improving the efficiency of the integrated enterprise is the territorial proximity of its components. Thanks to this, the company’s transportation and logistics costs will be significantly reduced.

Stream Modeling of an Online Store Based on Modified Petri Nets …

789

The effectiveness of the adoption and implementation of administrative decisions is also directly related to the compact location of the farms that are part of the integrated enterprise. Currently, for the practical activities of the online store, information exchange and its quality and efficiency are of special importance. Information about products ordered by the customer may be distorted, and delivery may be delayed. An analysis of the online store indicates that a significant number of domestic consumers have repeatedly had a negative experience in acquiring products that do not match the description on the website. Another common case that indicates possible malfunctions in the operation of online stores is the delivery of other products (i.e., not the one ordered by the consumer). Significant characteristics such as size, weight, color, and even the functional properties of the product may vary. This practice must be avoided. After all, cases of delivery of goods other than ordered goods significantly reduce the attractiveness of Internet commerce for the end user. In this regard, the online store must properly process information flows for efficient operation. If this condition is not met, the profitability parameters of such a business are reduced. It is legitimate to interpret online stores as complex economic and technical systems that have a hierarchical multi-level structure (Barzegar and Motameni 2011). Increasing the efficiency of the functional activities of a modern online store —not traditional methods, but the widespread introduction of a mathematical description of the process, as one of the types of system analysis of complex objects —is required (Wikipedia—the free encyclopedia, n.d.). One of the most effective and widely used tools at the present stage is computer experiments with an object replacement model and mathematical modeling. The use of such methods is due to the complexity and multidimensionality of the online store as a multi-level system that is affected by factors of both internal and external order.

2 Materials and Methods As complex economic and technical systems, modern online stores have a hierarchical, multi-level structure and are distinguished by pronounced behavioral complexity. The degree of complexity is directly related to the number of components of one type and their relationships (Azimov et al. 2014). The behavioral complexity of multilevel economic and technical systems is associated with the presence of control processes and functioning over time (Azimov et al. 2014). The control processes act as a discrete parameter, and the functioning of the system in time can be considered as a continuous indicator. The combination of such parameters makes it possible to classify such systems as hybrid. At the present stage, modeling acts as one of the effective methods for studying systems. According to modern scientific understanding, modeling is a process of methodological reflection on the real (or planned) activity of an economic entity (Motameni et al. 2008). The construction of the model is used to display the object

790

S. N. Savdur et al.

that replaces the object of study. At the same time, the presence of pronounced related lines between the displayed object and its model is an obvious fact (International Telecommunication Union [ITU]: Committed to connecting the world. Official website, 2019). In the field of study, simulation is the most widely used (Zhou and Li 2010). It includes agent-based modeling, system dynamics, and discrete-event modeling (International Telecommunication Union, (ITU): Committed to connecting the world. Official website, 2019). These approaches reveal both related traits and certain differences. So, in particular, the highest degree of abstraction is characteristic of the system dynamics method. Mostly, this method is used to analyze continuous processes. The difference between the two methods consists, first of all, in using them for the analysis of discrete processes (International Telecommunication Union, (ITU): Committed to connecting the world. Official website, 2019). J. Gordon is the founder of the use of discrete event modeling. In the early 1960s, he developed the GPSS system. The main object in this system is a passive transaction, which becomes a queue for multi-channel and single-channel devices, is transformed, etc. (International Telecommunication Union, (ITU): Committed to connecting the world. Official website, 2019). Transact has the ability to represent a variety of concepts (documents, raw materials, materials, employees, etc.). J. Forrester is the founder of the use of system dynamics. In 1961, he developed this methodology as a mechanism for analyzing feedback information links in the production process of business entities. When using system dynamics, the processes and phenomena functioning within the system are displayed in terms of drives and flows between them as negative and positive feedbacks and delays. Mathematically, such a model is presented in the form of differential equations (International Telecommunication Union [ITU]: Committed to connecting the world. Official website, 2019). As for the third type of simulation, namely agent-based modeling, in this case, the system is presented as a decentralized model that does not have a point that determines the behavior of the system as a whole. The behavior of the system is described at the individual level of the set of agents (objects) interacting with each other (International Telecommunication Union [ITU]: Committed to connecting the world. Official website, 2019). Network techniques have a whole range of advantages over traditional research methods since they are distinguished by an increased proximity to the models used to intuit ideas about the processes occurring in the framework of system development (Wikipedia—the free encyclopedia, n.d.). Currently, Petri nets (PN) are among the various graphical tools for system analysis. By using this technique within processes at different levels, the duration of operations is analyzed, and bottlenecks of economic and technical systems are detected. Currently, the application of this technique is widespread because it opens up wide opportunities for establishing the size and possible savings of financial and material-technical resources. In addition, serious opportunities to reduce human capital costs are being discovered. Petri nets have high potential in analyzing the

Stream Modeling of an Online Store Based on Modified Petri Nets …

791

relationships of parallel processes (Wikipedia—the free encyclopedia, n.d.). The advantages of using the Petri net can include the following aspects: 1) The increased degree of visibility, ease of perception, and characteristic for this technique; 2) The possibility of applying various analysis methods (Gollapudi et al. 2017); 3) The application of an event approach to modeling and successful presentation of objects of various types of systems. Thus, at present, Petri nets can be considered the optimal system-analysis mechanism due to the possibility of describing many classes of distributed, parallel, non-deterministic, asynchronous, discrete systems. To describe the operation scheme of an online store, it seems appropriate to use N–schemes based on the mathematical apparatus of Petri nets. The undoubted advantage of this approach is the presentation of the network model both in analytical form, with the possibility of automating the analysis process, and in graphical form, ensuring the visibility of the model (Gollapudi et al. 2017). When analyzing structural and functional schemes, the main limitation of the formalism of N–schemes should be taken into account: N–schemes do not include the temporal characteristics of the simulated systems since the transition response time is considered equal to zero. Given these conditions, we have proposed MPN (modifications to Petri nets) (Gollapudi et al. 2017). The modification of Petri nets is a Petri net of the form C ¼ \P; T; I; O; M; L; s1 ; s2 [ ; Where T = {tj} is a finite nonempty set of characters called transitions. P = {pi} is a finite nonempty set of characters called positions. I: PxT ! {0, 1} is an input function that for each transition ti defines the set of its positions pi 2 I (tj). O: PxT ! {0, 1} is an output function that displays the transition to multiple output positions pi 2 O (tj). M: P ! {1, 2, 3…} is a function of marking (marking) the network, which associates with each position a non-negative integer equal to the number of labels in this position, which changes during the operation of the network. Triggering the transition instantly changes the markup M (p) = (M (p1), M (p2), M (p3)…M (pn)) to the marking MI (p) according to the following rule: MI ðpÞ ¼ M ðpÞ  Iðtj Þ þ Oðtj Þ;

ð1Þ

Writing Eq. (1) means that the transition tj removes one label from each of its input positions and adds one label to each of the outputs.

792

S. N. Savdur et al.

L = {c1, c2,… ck} is the set of colors of marking marks. Labels are interpreted as discrete streams (financial, material, or informational). s1: T ! N and s2: P ! N are functions that determine the delay time when the transition is triggered and the delay time in the position. The dynamics of the implementation of MPN is determined by the movement of labels simulating the movement of discrete flows. Thus, the considered modification of Petri nets allows us to solve the following problems (Gollapudi et al. 2017): 1. Analyzing the functioning of system elements in emergency situations; 2. Analyzing network management switching; 3. Analyzing the system to ensure a steady, stable state.

3 Study Results and Discussion of Results It is believed that each material flow corresponds with the information. However, this correspondence is not always isolated (complete). Often, flows occur at different time intervals and can exist simultaneously, alternate with each other, be directed in one direction, and do the opposite (Barzegar and Motameni 2011). The characteristics of the information flow are as follow: order of goods— counter direction; arrival of goods—forward direction; quantitative and qualitative parameters of goods—forward direction; and acceptance of goods, complaints, and order confirmation after—counter direction. Information flows are preferred for goods acceptance. However, they are not always ahead. Often, there are times when they lag behind the timing of the movement of material flows. Information flows must correspond to material in terms of characteristics. However, this is not always true. There are cases where documents can have a general description for several recipients or a large amount of information that is redundant for each individual recipient. Failures in management lead to significant economic losses. The conditional movement of the flows of an average online store is shown in Fig. 1 (Zhou and Li 2010). The scheme of the online store is described by the following sequence of stages of the purchase of goods: 1. The buyer draws up an order for food products on the website of the online store of consumer cooperatives. The order request is sent to the information system. A notification about the formation of the order request and the payment amount is received by email; 2. When a new order arrives, the sales service receives an automatic notification;

Stream Modeling of an Online Store Based on Modified Petri Nets …

793

Fig. 1 The scheme of the online store

3. The sales service makes a request to the information system about the availability of food in stock, their quantity. In case of insufficient quantity of goods, a repeated application to the procurement service is carried out; 4. The goods in the required quantity and quality are delivered to the warehouse. Purchasing data is entered into the information system by the procurement service. Next, the order is transferred to the delivery service, and then to the buyer who transfers the funds; 5. The buyer accepts the order and signs the documents; 6. Cash flows to the delivery service; 7. The order is assigned the status of “completed.” The presented scheme is simplified. It is assumed that the store has a warehouse and works directly with suppliers. However, such a scheme allows us to say that flow control is an important part of the store. And practically, every department has the opportunity to lose, delay, or distort information (Zhou and Li 2010). A mathematical model in the form of MPN has been developed to manage consumer cooperation flows in an online store. The model allows you to explore systemic relationships and the laws of the functioning of the system as a whole. Models of its main elements are constructed using the results (Table 1) (Gollapudi et al. 2017; Motameni et al. 2008; Molinillo et al. 2018). The online store operation scheme was synthesized based on the PN models of the main elements (Fig. 2).

794

S. N. Savdur et al.

Table 1 Models of the basic elements of the online store’s work scheme Graphic description of the models of the basic elements of the online store

Analytical description of the models of the basic elements of the online store 2 Positions O(t1)={p1} I(t1)={p2} 4 Transitions O(t2)={p1} I(t2)={p2} 2 Colors O(t3)={p2} I(t3)={p1} O(t4)={p2} I(t4)={p1}

a) Buyer 2 Positions 2 Transitions 2 Colors

O(t1)={p1} O(t2)={p2}

I(t1)={p2} I(t2)={p1}

b) Online store website 2 Positions 9 Transitions 2 Colors

O(t1)={p1} O(t2)={p1} O(t3)={p1} O(t4)={p1} O(t5)={p1} O(t6)={p2} O(t7)={p2} O(t8)={p2} O(t9)={p2}

I(t1)={p2} I(t2)={p2} I(t3)={p2} I(t4)={p2} I(t5)={p2} I(t6)={p1} I(t7)={p1} I(t8)={p1} I(t9)={p1}

2 Positions 5 Transitions 2 Colors

O(t1)={p1} O(t2)={p1} O(t3)={p1} O(t4)={p2} O(t5)={p2}

I(t1)={p2} I(t2)={p2} I(t3)={p2} I(t4)={p1} I(t5)={p1}

2 Positions 4 Transitions 2 Colors

O(t1)={p1} O(t2)={p1} O(t3)={p2} O(t4)={p2}

I(t1)={p2} I(t2)={p2} I(t3)={p1} I(t4)={p1}

2 Positions 5 Transitions 2 Colors

O(t1)={p1} O(t2)={p1} O(t3)={p2} O(t4)={p2} O(t5)={p2}

I(t1)={p2} I(t2)={p2} I(t3)={p1} I(t4)={p1} I(t5)={p1}

2 Positions 2 Transitions 2 Colors

O(t1)={p1} O(t2)={p2}

I(t1)={p2} I(t2)={p1}

2 Positions 4 Transitions 2 Colors

O(t1)={p1} O(t2)={p1} O(t3)={p2} O(t4)={p2}

I(t1)={p2} I(t2)={p2} I(t3)={p1} I(t4)={p1}

c) Information system

d) Sales service

e) Stock

f) Procurement service

g) Supplier

h) Delivery service

Stream Modeling of an Online Store Based on Modified Petri Nets …

795

Fig. 2 The model of the scheme of the online store in the form of a modified Petri net

Analytical description of a common Petri net: 16 Positions 17 Transitions 2 Colors

O(t1)={p1, p16} O(t2)={p2, p3} O(t3)={p4, p5} O(t4)={p6, p13} O(t5)={p7, p10} O(t6)={p8, p9} O(t7)={p10, p11} O(t8)={p12, p13} O(t9)={p14, p15} O(t10)={p16, p2} O(t11)={p16, p13} O(t12)={p14, p5} O(t13)={p11, p6} O(t14)={p12, p5} O(t15)={p9, p6} O(t16)={p10, p5} O(t17)={p1, p6}

I(t1)={p2, p15} I(t2)={p1, p4} I(t3)={p3, p6} I(t4)={p5, p14} I(t5)={p8, p9} I(t6)={p7, p10} I(t7)={p9, p12} I(t8)={p11, p14} I(t9)={p13, p16} I(t10)={p15, p1} I(t11)={p15, p14} I(t12)={p13, p6} I(t13)={p12, p5} I(t14)={p11, p6} I(t15)={p10, p5} I(t16)={p9, p6} I(t17)={p2, p5}

4 Conclusion The article presents an online store model for consumer cooperation based on modified Petri nets. This model allows you to explore systemic relationships and the laws of the functioning of the system as a whole. Based on this model, it is advisable to create a software package that allows one to analyze information and material flows and predict the development of emergency situations in the online store.

796

S. N. Savdur et al.

References Azimov, Y., Savdur, S.N., Fesina, E.L.: Ensuring environmental safety based on the modeling of biological process of oily SEWAGE. Mediterr. J. Soc. Sci. 5(24), 372–377 (2014) Barzegar, B., Motameni, H.: Modeling and simulation firewall using colored Petri Net. World Appl. Sci. J. 15(6), 826–830 (2011) Gollapudi, S., Kumar, R., Panigrahi, D., Panigrahy, R.: Partitioning orders in online shopping services. In: International Conference on Information and Knowledge Management, Part F131841, pp. 1319–1328 (2017) International Telecommunication Union, (ITU): Committed to connecting the world. Official website. Measuring digital development: Facts and figures 2019 (2019). http://www.itu.int/en/ ITU-D/Statistics/Pages/facts/default.aspx Zhou, M.C., Li, Z.W.: Special issue on “Petri nets for system control and automation”. Asian J. Control 12(3), 237–239 (2010) Molinillo, S., Liébana-Cabanillas, F., Anaya-Sánchez, R.: A social commerce intention model for traditional E-commerce sites. J. Theor. Appl. Electron. Commerce Res. 13(2), 80–93 (2018) Motameni, H., Movaghar, A., Shirazi, B., Aminzadeh, M., Samadi, H.: Analysis software with an object-oriented Petri net model. World Appl. Sci. J. 3(4), 565–576 (2008) Wikipedia–the free encyclopedia. Electronic commerce (n.d.). https://ru.wikipedia.org/wiki/% D0%AD%D0%BB%D0%B5%D0%BA%D1%82%D1%80%D0%BE%D0%BD%D0%BD% D0%B0%D1%8F_%D0%BA%D0%BE%D0%BC%D0%BC%D0%B5%D1%80%D1%86% D0%B8%D1%8F

Cooperation in Pharmaceutical Development Elena A. Bryzgalova , Marina V. Kovshova , Olga V. Kolesnikova , Lidiya B. Larina , and Olga I. Zhukova

Abstract The relevance of the study is due to the fact that global R&D spending in the pharmaceutical industry continues to grow every year, but the effectiveness of R&D is reduced. The pharmaceutical development process is the first and very important stage in the development of the new drug substance. The purpose of the study is to study the modern structure of the organization of pharmaceutical developments in large pharmaceutical companies. In the study, the authors used a systematic approach, inductive analysis, deductive analysis, content analysis method, comparison method. The study identified the main participants in the pharmaceutical development process in large pharmaceutical companies. Keywords R&D


Pharmaceutical company
Pharmaceutical development

E. A. Bryzgalova Russian State Social University, Moscow, Russia e-mail: [email protected] M. V. Kovshova (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] Olga V. Kolesnikova Engineering-Economic Institute, National Research University “Moscow Power Engineering Institute”, Moscow, Russia e-mail: [email protected] L. B. Larina National University of Oil and Gas “Gubkin University”, Moscow, Russia e-mail: [email protected] O. I. Zhukova Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_86

797

798

E. A. Bryzgalova et al.

1 Introduction In Russia and abroad, the pharmaceutical industry continues to develop rapidly. And, the main driving factor in the development of this industry is innovation (Kovshova and Bryzgalova 2019). Sustainable development of the pharmaceutical company, and of the country as a whole, will be determined by the level of innovation development. Pharmaceutical companies, therefore, understand how important it is to invest in R&D with budgets that grow every year. McKinsey predicts that global R&D expenditures in the pharmaceutical industry will reach approximately $173 billion USD in 2019 (Novartis Institutes for Biomedical Research n.d.). At the same time, world experience shows that the effectiveness of R&D is reduced (Scannell et al. 2012). Pharmaceutical companies face problems with the optimization of research and development. The use of the phrase “agile R&D” has increased. This is a more flexible, agile approach to the organization and conduct of R&D. The purpose of this study is to examine the current structure and organization of pharmaceutical development in large pharmaceutical companies.

2 Materials and Methods The information base of the study consists of official statistical and analytical materials from the Federal Drug Administration (FDA/USA), Associations of Pharmaceutical Developers and Manufacturers (PhRMA/USA), the European Medicines Agency (EMA), the European Federation of Pharmaceutical Industry and Associations (EFPIA), the Ministry of Health of the Russian Federation, the international consulting company McKinsey, the international consulting company PricewaterhouseCoopers, and pharmaceutical companies, as well as the normative legal acts of the Russian Federation, EU, and USA and publications of Russian and foreign authors. In this study, the authors used a systematic approach, inductive analysis, deductive analysis, content analysis method, comparison method.

3 Research Results Pharmaceutical development is the first and fundamental stage in the creation of a new drug. The success of preclinical and clinical trials and subsequent registration of a new drug will depend on the results of the pharmaceutical development. You can see this in Fig. 1, which illustrates the life cycle of the drug.

Cooperation in Pharmaceutical Development

799

Fig. 1 Life cycle of a drug product

Figure 2 shows the general modern structure of the organization of the pharmaceutical development process in large pharmaceutical companies. If you look at pharmaceutical development from different angles, it immediately becomes clear that this is a complex and multi-level process, the search for solutions is carried out at the junction of several scientific disciplines, and inherently involves many participants. Large pharmaceutical companies are engaged in pharmaceutical development in their R&D centers. But, it is difficult to achieve success in this area only by one’s own efforts. Therefore, pharmaceutical companies are looking for new ways of fruitful cooperation with other organizations in this area. First, the pharmaceutical company is always interested in expanding its portfolio of developments. This can be done in several ways, one of which is a purchase or merger with a similar pharmaceutical company. At the same time, there are synergies in R&D, and the portfolio of innovations is supplemented and expanded. In each country, pharmaceutical manufacturers are united in a national association. One of the main objectives of such associations is to increase the competitiveness of the domestic pharmaceutical industry within the country and integration into the pharmaceutical markets of other countries. There is the European Federation of Pharmaceutical Industries and Associations (EFPIA) in the EU, the Pharmaceutical Research and Manufacturers of America (PhRMA) in the USA, the Association of Pharmaceutical Manufacturers of Japan (JMPA) in Japan, and the Association of Russian Pharmaceutical Manufacturers (ARPM) in Russia. Pharmaceutical companies constantly cooperate with various academic institutions engaged in basic research and academic institutions engaged in applied

800

E. A. Bryzgalova et al.

Association of pharmaceutical manufacturers, PhRMA (USA), EFPIA (EU), JMPA (Japan), Association of Russian pharmaceutical manufacturers (Russia)

Pharmaceutical company (manufacture, R&D center, ...)

Innovative small, medium-sized companies, startups engaged in pharmaceutical development

Pharmaceutical company (manufacture, R&D center, ...)

Academic institutions conducting basic / applied research

ICH (International Conference on Harmonisation)

Methodology State / regulatory authorities, drug registration authorities, FDA( USA), EMA( EU), Ministry of health

Fig. 2 The General modern structure of the organization of the process of pharmaceutical development in large pharmaceutical companies

research to achieve successful results in pharmaceutical development. We cannot do anything without fruitful cooperation with the academic community. It takes years to conduct basic and applied research. Many research teams and schools are involved in such research. The role of fundamental and applied research cannot be overestimated, as, in essence, the further development of the pharmaceutical industry depends on them. These studies are funded by the state. McKinsey’s research found that the share of innovation revenue generated outside of Big Pharma grew from about 25% in 2001 to about 50% in 2016. It means that more and more innovations are created by small- and medium-sized companies, innovative start-ups. The implementation of cluster policy at the state level contributes to the growth of the number of such companies in the market. Such small companies are much more agile. It is easier to manage risks here than in a large company. Therefore, large pharmaceutical companies are now looking for such small innovative companies that are engaged in pharmaceutical development in order to implement joint projects and, as a rule, further purchase of such companies.

Cooperation in Pharmaceutical Development

801

Pharmaceutical companies carry out pharmaceutical development in accordance with ICH Q8 “pharmaceutical development,” established by the ICH (International Conference on Harmonisation). The purpose of ICH was to simplify the interaction between government agencies and pharmaceutical manufacturers, creating a universal methodology for them. The company cites the results of pharmaceutical development in CTD-dossier (Common Technical Document), and this dossier is one of the mandatory documents for the registration of a new drug. A pharmaceutical company submits documents for registration of a new drug to the relevant state authorities. In the USA, the FDA performs such registration; in the EU–the European Medicines Agency EMA; in Russia – the Ministry of Health; in Japan–the Ministry of Health, Labor, and Social Security (European Medicines Agency n.d.; FDA n.d.; Ministry of Health of the Russian Federation n.d.).

4 Discussions PricewaterhouseCoopers (PwC), an international consultancy, conducted a major study on R&D costs in the pharmaceutical industry. The results of this study are shown in Fig. 3 below.

Fig. 3 Global R&D expenditures in the pharmaceutical industry. Origin: official report PwC 2018 Strategy & Global Innovation 1000

802

E. A. Bryzgalova et al.

R&D expenditures in pharmaceuticals are on an upward trend. In 2018, total R&D expenditures in the industry were estimated at about 166 billion USD, and the expected figure in 2019 is 173 billion USD. It is obvious that nothing will change in the coming years; large pharmaceutical companies will invest more money in research and development. But the main question is how effective these investments are. It is still necessary to take into account the fact that the original products have a certain period of patent protection, which is established by law and may differ from country to country. But the average patent protection period is about 20 years. After this period, the company’s revenue from the original drug, which has lost patent protection, is significantly reduced. It also affects the calculation of R&D cost-effectiveness. In any case, now all pharmaceutical companies are faced with a serious challenge— how to organize the R&D process most effectively, especially the process of pharmaceutical development, so that the company continues to develop steadily. Since the process of pharmaceutical development is always associated with a high risk of obtaining unsatisfactory results, special attention should be paid to organizing it. This process involves highly qualified, highly paid professionals from different fields of knowledge. Therefore, the personality of the head of the R&D center is very important here since it is his responsibility to organize the processes of interaction and communication between employees of the R&D center, other pharmaceutical companies, fundamental and applied institutions, and innovative start-ups. Each year, R&D costs are reviewed by the management of the pharmaceutical company. Depending on the situation, managers are always trying to find the most optimal and effective ways to organize R&D, primarily pharmaceutical development.

5 Conclusions The organization of the process of pharmaceutical development takes a lot of time, effort, and money. We must remember that there is always an increased risk, as not all studies lead to the desired result. Teams of professionals from different fields of knowledge work on pharmaceutical developments. In large pharmaceutical companies, special attention is paid to interaction with innovative small and medium-sized companies engaged in pharmaceutical development, as well as interaction with academic institutions that are engaged in basic and applied research.

Cooperation in Pharmaceutical Development

803

References Association of Russian Pharmaceutical Manufacturers: Projects (n.d.). http://www.arfp.ru/proekty/ partnering/ BAYER: Research and development (n.d.). https://www.bayer.com/en/research-and-development. aspx EFPIA: Development of medicines: Explore the process of medicine development (n.d.). https:// efpia.eu/about-medicines/development-of-medicines/ European Medicines Agency: Medicines (n.d.). https://www.ema.europa.eu/en/medicines FDA: Development & approval process (n.d.). https://www.fda.gov/drugs/development-approvalprocess-drugs ICH: Process of harmonization (n.d.). https://ich.org/page/process-harmonisation JPMA: Official website (n.d.). https://jpma.or.jp/english/ Kovshova, M.V., Bryzgalova, E.A.: Pharmaceutical Industry of Russia on the Way to Transformation, Modern Development Trends. Nauchnyj konsul’tant, Moscow (2019) McKinsey Global Institute: Official website (n.d.). https://mckinsey.com/mgi/overview Ministry of Health of the Russian Federation: Structure (n.d.). https://rosminzdrav.ru/ Ministry of health, labor, social security of Japan: Official website (n.d.). https://mhlw.go.jp/ english/ Novartis Institutes for Biomedical Research: Major discovery efforts at the frontiers of science (n. d.). https://www.novartis.com/our-science/novartis-institutes-biomedical-research Pharmaceutical development: Q8(R2) from August, 2009. Brussels, EU: ICH (2009) PhRMA: Official website (n.d.). https://phrma.org PWC: Pharmaceuticals (n.d.). https://pwc.com/gx/en/industries/pharmaceuticals-life-sciences.html SANOFI: Research and development (n.d.). https://www.sanofi.com/en/science-and-innovation/ research-and-development Scannell, J.W., Blanckley, A., Boldon, H., Warrington, B.: Diagnosing the decline in pharmaceutical R&D efficiency. Nat. Rev. Drug Discov. 11(3), 191–200 (2012). pmid:22378269

Improving the Efficiency of Agricultural Cooperatives in the Republic of Kazakhstan Sairan N. Ulakov , Gulmira N. Nakipova , Ziyada N. Borbasova , Anastasya M. Helmle , and Ruslan Y. Nesipbaev

Abstract The paper analyzes the concept “a cooperative business entity,” focusing on characteristic patterns in their organizational structures and functioning. The authors argue that we believe that it is essential not only to consider the common features of a cooperative form of management but also to classify various types of cooperatives. Agricultural production cooperatives are the commercial organizations uniting citizens for the production of agricultural products within a single enterprise. The paper analyzes the economic efficiency of cooperative enterprises in agriculture. The case study of agricultural cooperatives in Kazakhstan is presented in the paper.













Keywords Cooperative Support Development Funds Financial performance

1 Introduction In economics, the term “cooperation as a business entity” refers to two diverse phenomena. Firstly, cooperation is a universal form of labor organization, a necessary way to form a single, efficiently functioning system of social production, complementing the division of labor and its specialization, and, together with them, expressing the process of socialization. Cooperation of labor is one of the most S. N. Ulakov (&)
G. N. Nakipova
Z. N. Borbasova
A. M. Helmle
R. Y. Nesipbaev Karaganda Economic University of Kazpotrebsoyuz, Karaganda, Kazakhstan e-mail: [email protected] G. N. Nakipova e-mail: [email protected] Z. N. Borbasova e-mail: [email protected] A. M. Helmle e-mail: [email protected] R. Y. Nesipbaev e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_87

805

806

S. N. Ulakov et al.

profound general economic categories, expressing the direction of the process of social production, not depending on the specific historical forms of its embodiment. Secondly, the term “cooperation” defines a particular form of organization of production—cooperatives, which are the organizations of producers based on voluntary membership and the union with share contributions of their property for joint entrepreneurial activity through personal labor and other participation. It does not bear the character of universal law; it arises at a certain stage in the development of social reproduction and is a specific expression of its socialization. Cooperatives of various types form certain groups that have characteristic patterns in their organizational structures and functioning. Therefore, we believe that it is essential not only to consider the common features of a cooperative form of management but also to classify various types of cooperatives. The differences between agricultural cooperation and other types of cooperation, and the prerequisites for its emergence are primarily due to certain features of agricultural production. These include, firstly, the seasonal nature of production processes (primarily in crop production, but also in animal husbandry), which leads to a different procedure for the formation of working capital and the reproduction of labor force from most industrial sectors. Secondly, there is a need to maintain the social sphere at a high level for the reproduction of the workforce. Thirdly, the high costs of manual labor is a critical factor. For example, in agriculture in Kazakhstan, up to 70% of the work is done manually even in large farms. Agricultural production cooperatives are the commercial organizations uniting citizens for the production of agricultural products within a single enterprise. As the organizational basis of the cooperative movement, an agricultural cooperative is a form of socialization of agricultural means of production. In this regard, an analysis of the nature of the various types of agricultural cooperatives allows us to argue that the agricultural production cooperative (APC) meets the criterion of socializing production to the greatest extent (Bogoviz 2019). The fundamental feature of an agricultural production cooperative is the socialization of land, means of production, and labor voluntarily and self-government, which is economically realized by the right to leave with a property share and a land share for owning and inheriting it. The second sign of an agricultural production cooperative is mutual relations. The property shares materialize the interest of participants in the cooperative. The third sign of an agricultural production cooperative characterizes the independent determination of the type and nature of the activity, the presence of economic democracy, as well as the strong social component of social policy. Significant features of agricultural production and the specifics of cooperative relations have led to the fact that the modern agricultural production cooperative is a special unified industrial, economic, and social complex organically linked to the land. Cooperative organizations are traditionally referred to as associations of economically weak groups of the population. According to many researchers in the field of motivational mechanisms of cooperation, this is a sociological fallacy and

Improving the Efficiency of Agricultural Cooperatives ...

807

an untenable statement, since cooperative associations of farms are introduced into all socio-economic sectors of society. Production cooperatives significantly differ from other forms of management by the most democratic participation of shareholder members in the management of the cooperative. Firstly, this includes the implementation in the cooperative of the principle “one member—one vote.” Secondly, there is a rule of limiting the maximum number of units of share capital in order to avoid the concentration of economic interests and power in one person. The third distinctive principle of the functioning of production cooperatives is the close relationship between shareholders and the cooperative since membership in the cooperative is necessarily associated with the labor participation of a member of the cooperative in its activities. For an exhaustive justification of the role of a particular legal form of entrepreneurship, it seems significant to compare the degree of their effectiveness. The economic efficiency of cooperative enterprises is the subject of numerous studies. In particular, attention is drawn to the analysis of labor productivity in cooperative enterprises in comparison with companies of the private sector. It is generally accepted to emphasize a lower level of efficiency of such enterprises and an insufficient level of production investment, which supports the assertion of some researchers about the insignificant role of production cooperatives in developed countries. Indeed, their internal efficiency (efficiency of production factors) is lower in comparison with other forms of production organization. R. Louis also points out to the insufficient level of training for cooperatives of both the technical, commercial, and managerial sides, as well as the chronic lack of financial resources for the development of these enterprises (Louis 1983, p. 104). A group of French scholars, summarizing the experience of the cooperative movement of several Western countries, in their work, gives numerous examples of low labor productivity in cooperatives (Greffe et al. 1983, p. 13). However, cooperative enterprises have a relatively low capital-labor ratio and low technical equipment. Given the correlation of cooperative indicators with the data of similar private firms, in almost all cases, both labor productivity and other indicators of microeconomic efficiency turn out to be higher in cooperatives. According to I. Regis, the president of the International Committee for Production Cooperatives, thousands of cooperative-type enterprises also have 10–25% higher productivity compared to other forms of a labor organization in the US (Demyanenko and Demyanenko 2001, p. 131). The thesis about the insufficient level of production investments does not find complete confirmation by practice. For example, the results of a study of French production cooperatives show that cooperatives do not differ from other firms in this indicator, and those factors that are usually cited as the reasons for allegedly low levels of investment in the statistical study do not show any lowering effect on the level of investment (Harlanov 1992, p. 70). Even with the confident recognition of the lower entrepreneurial efficiency of cooperative enterprises, it is not something insurmountable. The involvement of workers in the management process leads to a simplification of the administrative

808

S. N. Ulakov et al.

structure and a reduction in managerial expenses, and also it increases labor motivation and labor productivity, which can increase the efficiency of a cooperative. Also, we cannot ignore the fact that the cause of the internal inefficiency of the enterprise in general and the collective in particular is not necessarily due to irrational management (Taranukha 2003, p. 39). As foreign practice shows, cooperative forms of management are often used to meet the local needs of citizens and enterprises in a narrow market. A private enterprise simply cannot be profitable there, and cooperatives are satisfied with an income sufficient for remuneration and simple reproduction since the scale of demand for their services does not leave room for activity expansion. Indeed, despite the desire for profit, cooperative enterprises arise and successfully function everywhere where a low level or a small volume of possible incomes do not allow other enterprises to operate (Greffe et al. 1983, p.14). The social function of production cooperatives is manifested, firstly, in the creation and preservation of jobs in a jointly managed enterprise. Moreover, the capital in it performs an official function. A person is brought to the forefront and is not considered only as a cost factor, since their work is a value, and the corresponding occupation is a meaningful basis. Since production cooperatives involve active self-help and participation of members in the affairs of the enterprise, they “resist the pessimism of people thrown to the sidelines of a society organized on the principle of economic efficiency” (Atmaka 1998, pp. 13–21). Secondly, cooperatives are initially democratic organizations, they practically implement the principles of the development of democracy in production, and significant influence is exerted on the entire process of formation of a democratic society. An essential element of cooperative democracy is the participation of wage-workers in the management of cooperatives, which is fixed in the legislation and the cooperative charters of several countries. Thus, realizing the social mission of cooperation, agricultural production cooperatives, as one of its organizational embodiments, in the developed market economy, perform the following functions: • The economic function—the market saturation with specific types of products and services; • The social function—ensuring favorable living conditions for the cooperative members; • The function of management democratization—the organization of a mechanism for democratic decision-making, stimulation of personal incentives to work, increasing its quality and general interest in the final results, and, ultimately, promoting the democratization of society; • The function of macroeconomic stabilization is the development of a competitive environment in the market through the creation of conditions for lowering prices and acting as an antitrust and anti-inflation factor, as well as maintaining the industrial infrastructure of the agro-industrial complex.

Improving the Efficiency of Agricultural Cooperatives ...

809

2 Agricultural Cooperatives in Kazakhstan In the Republic of Kazakhstan (RK), as the analysis of the situation in the agricultural sector has shown, the opportunities and advantages of agricultural cooperatives are not yet fully realized, their role and importance in socio-economic development are underestimated. As a result, the measures of state support and other decisions on the development of cooperation adopted in recent years have not given the desired effect. Until 2016, the issues of cooperation in the Republic of Kazakhstan were regulated by five laws. However, despite the abundance of legislative acts, the share of cooperatives in the total number of agricultural enterprises in Kazakhstan did not exceed 1%. The main reason for the current situation was the neglect of the basic principles of cooperation (voluntary membership in the cooperative, democratic governance, providing income for members of the cooperative, etc.). The adopted state support measures in the form of a special tax regime and soft loans for agricultural cooperatives were not used to protect the interests of farmers, but for individual private structures (limited liability partnerships), which were not satisfied with cooperative principles. Most types of agricultural cooperatives, except the agricultural production cooperative, were non-profit organizations. This means they were not entitled to distribute profits among their members. As a result, small farms could not accumulate financial resources for the acquisition of equipment. Also, farmers sell their products at low prices through intermediaries, who assign 70–75%, while intermediaries receive only 25–30% of the retail price in developed countries. Cooperation is one of the tools to overcome inefficiencies in agricultural production. Currently, in the structure of agribusiness entities, in which there are about 8 thousand legal entities, there exist 180 thousand peasant and farm enterprises and more than 1.5 million personal subsidiary plots (PSP). The specific contribution of the latter to gross agricultural output is slightly less than 50%; however, for meat production, it is 62%, and 80% for milk. It is complicated to talk about maintaining a modern, highly efficient agriculture capable of applying modern technologies, innovations, and steadily increasing export potential with such a structure. The same category (PSP) is also characterized by the lowest labor productivity—up to $1,000 per year, which is ten times lower than necessary for competitive production (Zhukov 2016). The creation of cooperatives gives the peasants a chance, retaining independence in decision-making, to manage and dispose of their property, jointly participate in negotiations with consumers, or solve some common economic problems, be it the purchase of fertilizers, machinery, livestock, and the joint introduction of new technologies. Many of these cooperatives in the foreseeable future have a chance to become medium and large enterprises with an industrial, highly efficient type of production. In order to increase the competitiveness of agriculture, the developed countries successfully use the cooperation of small agricultural producers. For example, in 2015, South Korea introduced significant amendments to the Law on Agricultural Cooperatives 17 years after its adoption. Individual farmers had to focus directly on

810

S. N. Ulakov et al.

production, and agricultural cooperatives—to deal with the sale of products. In Belgium, 50% of milk is produced in processed form through cooperative enterprises, in Germany and France—about 55–60%, in Denmark—about 90%. In European countries, the share of cooperation in the production of fruits and vegetables is high (30–50%). In Denmark, up to 60–70% are occupied by meat cooperatives. A significant share of cooperatives in these countries are involved in supplying farmers with material and technical resources, up to 50–60%. Marketing cooperatives have been developed in Scandinavian countries. More than 80% of commercial agricultural products are sold through them. In France, 67% of grain, 65% of pork, and 52% of milk are sold from farmers through marketing cooperatives. In the United States, 81% of milk is sold through dairy cooperatives. Supply cooperatives that cover the sphere of providing farms with means of production and production services have become widespread. In European countries, they supply 40–80% of mineral fertilizers and 60–80% of mixed feeds. Such a system made it possible to eliminate several intermediate steps, as a result of which agricultural products quickly reached consumers at more affordable prices. The experience of European countries, USA, Canada, Japan, shows the high efficiency of agricultural producers served by cooperatives (Moldashev 2016). The opportunities for developing the potential of the domestic agricultural sector, which are identified in the 60th step of the Nation Plan “100 concrete steps” adopted in Kazakhstan in 2015 to implement five institutional reforms, should help to develop cooperative production in rural areas. In 2016, in the Republic of Kazakhstan, instead of several laws regulating the activities of cooperatives in the agricultural sector, the Law on Agricultural Cooperatives was adopted (Republic of Kazakhstan 2015a). The law establishes such fundamental principles of cooperation as voluntary participation in a cooperative, mutual assistance, and ensuring economic benefits, democratic governance, equal rights of the cooperative members. At the same time, due to the possibility of joining legal entities into the cooperative, the provision on the non-obligatory personal labor participation for members of the cooperative is fixed. All types of agricultural cooperatives are defined as commercial legal entities in the legal form of a production cooperative. Additional amendments on these issues to other legislative acts were provided for by another Law of the Republic of Kazakhstan “On amendments and additions to some legislative acts of the Republic of Kazakhstan on agricultural cooperatives” (Republic of Kazakhstan 2015b). This Law eliminated the gaps in the distribution of profits between participants and also provides for the mandatory conduct of audits of cooperatives by audit unions (associations). Audit unions will ensure the transparency of agricultural cooperatives, thereby the development of agricultural cooperation will be aimed at reducing the unobserved (shadow) sector of the economy. Also, the obligation to conduct an annual internal audit for an agricultural cooperative has been introduced. The adopted Law “On Agricultural Cooperatives” was the result of great work on the cooperation of small farms into large ones. The new law eliminated previous inconsistencies, giving cooperatives the rights of legal entities, and placed them in terms of legislation on an equal footing with all.

Improving the Efficiency of Agricultural Cooperatives ...

811

The entry into the APC is especially attractive for owners of personal subsidiary farms—out of them, nine-tenths are the newly created cooperatives for raising cattle. Previously, they could not use the state support extended to limited liability partnerships and peasant households, and now almost every state program for the development of agriculture includes the concept of support for cooperatives. As a result of the adopted law, more than 500 agricultural cooperatives were already operating in Kazakhstan by 2017. The Ministry of Agriculture (MOA) plans to create 1,204 agricultural cooperatives as part of the state program for the development of the agro-industrial complex by 2021 (Republic of Kazakhstan 2017). Moreover, the number of cooperatives allowing villagers to combine efforts in the production and marketing of their products will be predominant. Out of the 517 newly established cooperatives covering, by 2018, more than 50 thousand personal farmsteads, 173 are engaged in the production of milk, 281 in the production and packing of meat, 41 in the harvesting of fruits, two in the cultivation of bees and packing of honey, four in breeding and slaughter of poultry, and four in gardening. Two more cooperatives specialize in the production of camel milk, three – in commercial fish farming. The Ministry of Agriculture, while updating the current state program, identified six critical problems of the agro-industrial complex, the solution of which is facilitated by agricultural cooperation. They include low labor productivity, low competitiveness of products which result in overloading of processing enterprises, bad technical equipment, lack of knowledge of workers, low profitability from product sales, and high overhead costs. Some indicators of the state program, not only do not allow us to assess the degree of solution to the above problems but even motivate participants in cooperatives and local executive bodies to register and falsify indicators. Therefore, the Ministry of Agriculture will maintain three measurable key indicators with annual growth of at least 10% to solve problems: growing labor productivity of cooperative members, growing revenues from providing products (including exports) and services, and growing investments in fixed assets of agricultural cooperatives. So far, one of the critical areas of the agricultural development program on the effective development of agricultural cooperation remains open and the most controversial. The Ministry of Agriculture stated that only one indicator was exceeded – the actual creation of agricultural cooperatives (with a plan of 467, 851 agricultural cooperatives were created). However, the increase in the number does not affect productivity in any way. For instance, out of the created 851 cooperatives, only 491 are equipped and ready to start harvesting products in 2018, while 360 cooperatives still do not have the necessary equipment. There also exist such problems as the processing and marketing of products produced by members of cooperatives, inadequate incentive measures for the development of cooperatives, the shortage of agricultural land. Agricultural cooperatives remain a priority for the state. Working together, peasants continue to gain access to state support. These are soft loans, subsidies for the purchase of agricultural machinery and equipment, as well as subsidies for the production of products. Innovations, first of all, influenced the collateral property.

812

S. N. Ulakov et al.

Under the new rules, a farmer can get a loan even since nowadays, as it was before, extensive collaterals are not needed. The Financial Support Fund provides microloans to private farms and peasant farms. The preferential lending program was approved (6%) for the creation of milk collection points and feedlots. It is also important to note that even when united in cooperatives, farmers remain, owners of their land, retain their legal status and property, and income between participants is distributed in proportion to their contributions. Also, 17 programs are available to participants of the APC. They are provided by various sectoral programs of KazAgro development institutes, which in total occupy a significant share in the total volume of agricultural lending in the financing. For smaller cooperatives, with needs of up to 15 million tenges ($50 thousand US), funds from microcredit organizations (MCOs) created by local executive bodies are available. The practice has shown that a cooperative has a higher potential as a borrower, due to higher efficiency of activity, the ability to attract and introduce modern technologies and means of production, scientific methods of farming, more favorable conditions for the acquisition of material and technical resources than individual producers, especially in the form of LLP and peasant households. We should not forget that the principle of democracy, which is the basis for decision-making on managing a cooperative, increases the mutual responsibility of participants for their actions and the reliability of such borrowers. Consequently, a steady increase in the number of borrowers in the form of SECs (agricultural production cooperatives), as well as their higher creditworthiness, is logical. In order to attract villagers to cooperatives, subsidies are provided per unit of milk sold in such associations (10 tenge per liter) and cattle delivered for slaughter (fattening of bull-calfs—20 thousand tenges per animal, fattening of lambs—1 thousand 500 tenges per animal). Also, the Ministry of Agriculture subsidizes a reduction in the cost of the feed purchased by the cooperative participants and pays up to 50% of the equipment and machinery purchased for the product development. We are talking about covering up to half the cost of milk collection points with a capacity of 1 ton per day, slaughter units slaughtering five animals per day, hatchery stations, factories for the production of mixed feeds, units for harvesting fruits and vegetables, refrigerators, and milk carriers. At the same time, farmers can take advantage of several programs that were adopted earlier. The program for the development of dairy farming “Yrys” is among one of these programs. The loan amount is up to 13 million tenges, for a period of up to 7 years. The interest rate is 6% per annum. With the money received, peasants can buy a breeding stock of cattle and join a cooperative. Moreover, according to the Bereke program, one can get up to 40 million tenges for up to 54 months at 6% per annum and buy bulls to create a feedlot. Working together, farmers will solve one of the main problems of small forms of management—the lack of guaranteed sales of manufactured products and the possibility of their delivery to the market or processing enterprises. At the same time, seeds, fertilizers, fuels, lubricants, and fodder are given to participants of associations at preferential prices. Thus, it can solve problems with the processing and marketing

Improving the Efficiency of Agricultural Cooperatives ...

813

of products produced by members of cooperatives and stimulate the development of cooperatives. As noted in the Ministry of Agriculture of the Republic of Kazakhstan, subsidizing interest rates on leasing and loans of agribusiness entities will be restored. It is proposed to exclude the installation of indicative plans for local administrations on the creation of cooperatives, as well as indicative indicators on the activities of cooperatives. The provision of microcredits for peasants, farms, agricultural cooperatives, and individual entrepreneurs will continue. In this regard, the agency plans to provide equal conditions for subsidizing agricultural cooperatives for all available measures of state support, to preserve investment subsidies, VAT subsidies for procurement organizations, as well as commodity-specific subsidies in animal husbandry at the expense of the local budget. In 2019, as part of the state program of the agro-industrial complex, special lending programs for the creation of farms in dairy and beef cattle breeding were launched. For the first half of the year, special lending programs were launched under the state program of the agro-industrial complex: 254 households received loans for 41,810 heads of cattle, and 311 farms received loans for 126,037 heads of small cattle. Also, financing and construction of another 19 industrial and 31 family dairy farms with a total capacity of 18.0 thousand animals are being implemented.

3 Conclusion Thus, for the development of agricultural cooperation in Kazakhstan, a system of state financial and credit support for agricultural cooperatives has been formed. One of the main tasks of the implementation of the State Program for the Development of the Agro-Industrial Complex of the Republic of Kazakhstan for 2017–2021 remains the involvement of small and medium-sized farms in agricultural cooperation, which will contribute to solving not only economical but also social problems in rural areas. Following this Program, agricultural cooperatives are given the priority right to receive all measures of government support (leasing of agricultural machinery and equipment; investment subsidizing of expenses for the purchase of agricultural machinery and equipment; subsidizing of interest rates for lending to agricultural entities, leasing of agricultural machinery and animals, etc.). Also, a special website will be created to service the activities of cooperatives, where each cooperative must register. It will make it possible to automate the collection of information, and monitoring data of cooperatives, evaluate results, keep records of jobs, and labor productivity of each participant. The information system will become an instrument of motivation, analysis, training, management, and evaluation of the results of activities for APC participants.

814

S. N. Ulakov et al.

References Atmaka, D.: Social functions of production cooperatives. In: Stoffregen, H., Smolyansky, S.V. (eds.) Production Cooperatives: A New Start—New Opportunities. How to Implement the Law on Production Cooperatives. News Bulletin, pp. 13–21. Marburg Consult, Moscow (1998) Bogoviz, A.V.: Approaches to building and evaluating sustainable agricultural systems in the member states of the Eurasian Economic Union. In: IOP Conference Series: Earth and Environmental Science, vol. 274, p. 012002 (2019) Demyanenko, V.N., Demyanenko, V.V.: Peasant cooperation at the turn of the 21st century: Economic efficiency and social justice. University News. Jurisprudence, vol. 4, pp. 129–138 (2001) Greffe, X., Dupuis, X., Pflieger, S.: Financer 1’economie sociale. Economica, Paris (1983) Harlanov, I.I.: Cooperation in the developed capitalist countries: the path to a new society or a dead end? In: Cooperatives in industrialized countries. Collection of reviews. INION RAS, Moscow, Russia (1992) Louis, R.: Labour Co-operatives. International Labour Office, Geneva (1983) Moldashev, A.B.: Kazakhstan: On the problems of the development of cooperation in the agricultural sector. Newspaper “KazakhZerno.kz”, 15–16 (2016) Republic of Kazakhstan: The law “On Agricultural Cooperatives” (October 29, 2015 No. 372-U-ZRK). Kazakhstanskaya Pravda, 11 (2015a) Republic of Kazakhstan: The law “On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on Agricultural Cooperatives” (October 29, 2015 No. 373- U-ZRK). Kazakhstanskaya Pravda, 12 (2015b) Republic of Kazakhstan. State program for the development of the agro-industrial complex of the Republic of Kazakhstan for 2017–2021 (February 14, 2017 No. 420) (2017) Taranukha, Yu.: Working stock ownership, its potential. Economist 3, 33–40 (2003) Zhukov, A.: What are the benefits for farmers in cooperation? (2016). https://forbes.kz/finances/ markets/aleksandr_samoylov_alternativ_selhozkooperatsii_ne_tak_mnogo

The Mechanism for Ensuring Economic Security of Consumer Cooperation Organizations Lyudmila P. Fedorova , Tatyana Yu. Serebryakova , Artur A. Semenov , Anastasia V. Nikolaeva , and Tatyana V. Stolyarova Abstract The theoretical and methodological approaches to ensuring the economic security of consumer cooperation organizations are systematized. The mechanism for ensuring economic security are diagnosed on the materials of cooperative organizations of the Krasnoarmeysky and Morgaushsky district of the Chuvash Republic. The factors determining the level of economic security of cooperative organizations in current conditions are highlighted. It was concluded that in order to ensure economic security, the problem of “shareholder-cooperative” should be solved since economic and democratic principles for the functioning of cooperatives are inextricably linked.










Keywords Mechanism Economic security Organization Consumer cooperation Shareholder Economic threats Stability Efficiency













1 Introduction The relevance of the research topic is due to the presence of several unresolved and debatable issues in the field of formation and implementation of the mechanism for ensuring economic security, which is a combination of organizational, economic, and legal measures in preventing threats to economic security. An effective mechanism allows one to correctly select indicators of threats, adequately assess

L. P. Fedorova
T. Yu. Serebryakova
A. A. Semenov (&)
A. V. Nikolaeva
T. V. Stolyarova Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] L. P. Fedorova e-mail: [email protected] T. Yu. Serebryakova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_88

815

816

L. P. Fedorova et al.

and predict the results of achieving the economic security of any organization, including consumer cooperation. The purpose of the study is to systematize the theoretical and practical foundations and develop recommendations in order to improve the mechanism for ensuring the economic security of consumer cooperation. The object of the study is the economic security of cooperative organizations in the Chuvash Republic. The subject of the study is a set of organizational and economic relations arising in the process of assessing and predicting the economic security of an organization.

2 Materials and Methods The study was based on the fundamental principles of economics, the works of scholars in the field of economic security management. The methodological tools are based on the dialectical method of cognition, providing a systematic approach to the problem under study, and general scientific methods (induction and deduction, analysis and synthesis, groupings, economic and statistical analysis, etc.). The information base was made up of official data from federal and regional state statistics bodies of the Russian Federation, Internet resources, and reporting data from cooperative organizations in the Chuvash Republic.

3 Results The scientific results of the study include the development of theoretical principles and the justification of practical recommendations for assessing and predicting the economic security of cooperative organizations. The analysis of scientific literature (Gilfanov 2013; Zaporozhtseva and Yuriev 2014; Kalinina and Fedorova 2017; Litvinova et al. 2016; Loktionova 2013) made it possible to choose a methodology for the assessment of the economic security of an organization and to identify the need to clarify the mechanism for ensuring economic security in modern conditions: • the economic threats in 2005–2018 are identified, and the causes of the deterioration in the performance of consumer cooperation in the Chuvash Republic are assessed; • cooperative organizations are diagnosed, taking into account the following provisions: (1) Economic security is the state of the system that ensures its stability and economic independence while creating the prerequisites for sustainable development; (2) The stability of the system is its ability to provide at least simple reproduction under conditions of uncertainty and external

The Mechanism for Ensuring Economic Security of Consumer ...

817

influences, as well as maintain the achieved parameters with different strengths of external influences; • the measures for ensuring the economic security of cooperative organizations by maintaining and increasing the number of shareholders (loyal customers), allowing organizations to increase their funds, were developed. The assessment of the mechanism for ensuring economic security was carried out based on materials from cooperative organizations of the Krasnoarmeysky and Morgaushsky districts of the Chuvash Republic. Following the Law of the Russian Federation No. 3085-1 (June 6, 1992), a consumer cooperative organizes economic activities taking into account the needs of shareholders, and shareholders undertake obligations to participate in the economic activities of consumer society by purchasing goods, using the services of a consumer society, and supplying agricultural raw materials and products, or they participate in another way. Accordingly, the interest of the shareholders and the extent of their participation in the economic activity of the consumer society determine the achieved development parameters and its stability as a system (Fig. 1). Since trade is the predominant type of activity, development and economic security indicators were the assessed basis for retail and public catering indicators. Sociodemographic factors have a significant influence on the level of economic security of organizations. Table 1 presents the dynamics of changes in the population of the region. Judging by the data in Table 1, the Chuvash Republic is characterized by a negative demographic situation. A long-term decline in the population is observed, including a reduction in the number of births and an increase in the natural loss of the population. For the study period from 2014 to 2018, the population of the

Fig. 1 The mechanism for ensuring the economic security of a cooperative organization Source Developed by the authors

818

L. P. Fedorova et al.

Table 1 The population of the Krasnoarmeysky and Morgaushsky districts of the Chuvash Republic by age as of January 1 of the current year, people District

Years 2014

2015

2016

2017

2018

2018 in % to 2014

The population of the 1,239,984 1,238,071 1,236,628 1,235,863 1,231,117 99.3 Chuvash Republic in total Krasnoarmeysky 15,163 14,864 14,616 14,279 14,078 92.8 district in total Younger than 2,754 2,764 2,720 2,624 2,585 93.9 working age Working age 8,388 8,070 7,845 7,564 7,334 87.4 Older than working 4,021 4,030 4,051 4,091 4,159 103.4 age The proportion of 55.3 54.3 53.7 53.0 52.1 −3.2 people of working age, % Morgaushskiy 34,304 33,989 33,492 33,009 32,685 95.3 municipal district – total Younger than 6,407 6,482 6,371 6,160 5,960 93.0 working age Working age 19,582 19,077 18,502 18,072 17,910 91.5 Older than working 8,315 8,430 8,619 8,777 8,815 106.0 age The proportion of 57.1 56.2 55.2 54.8 54.8 −2.3 people of working age, % Source Calculated by the authors based on the Chuvashstat data (Territorial authority of the Federal State Statistics Service for the Chuvash Republic 2019)

republic decreased by almost 1% or by 8867 people. The population in rural areas is declining at a faster pace: the Krasnoarmeysky district—by 7%, the Morgaushsky district—by 5%. This demographic situation negatively affects the number of labor potential, the proportion of people of working age is declining: in the Krasnoarmeysky district—by more than 3%, in the Morgaushsky—by more than 2%. Every third resident of the republic is a person of retirement age, and taking into account the increase in the survival age, this proportion will grow, the long-term outflow of the able-bodied population to economically developed regions continues. The negative demographic situation negatively affects the retail turnover of cooperative organizations, as there is a direct correlation between the number of the

The Mechanism for Ensuring Economic Security of Consumer ...

819

resident population and retail trade turnover (in the context of trading enterprises and settlements): the larger the population, the higher the turnover of the store. A study of scholars from the Cheboksary Cooperative Institute showed that the retail turnover of consumer cooperation in the Chuvash Republic has a low elasticity in terms of population, and that competitor stores also have a significant impact on it (Kalinina and Fedorova 2017, pp. 120). This is also confirmed by our calculations (Table 2). The data in Table 2 indicate that the competitiveness of consumer cooperation in the share of per capita purchases in the Chuvash Republic, for 2005‒2018, fell almost two times, from 4.7% to 2.6% by 2018. The development of cooperative organizations in the region in recent years, as well as the systems of the Central Union of Russia as a whole, was characterized by instability. There was a decrease in the turnover of retail trade and public catering caused, first of all, by the influence of the macroeconomic situation. Prices increased due to the introduction of economic sanctions against the Russian Federation, a slowdown in the economic development of the country, and a decrease in real incomes. At the same time, the economic situation of individual cooperative organizations of the Chuvashpotrebsoyuz differs. The Krasnoarmeysky, Morgaushsky, and Sundyrsky district consumers societies worked with growth rates of volumetric indicators above the average value, faster than the growth rates of average monthly purchases, despite the decrease in their competitiveness. The data presented indicate that district consumer societies, with the same external capabilities, show different results, as well as the same results under different external conditions. For example, stably functioning district consumer societies in the Chuvashpotrebsoyuz system are mainly included in the group of cooperative organizations with a retail turnover of more than 500 million rubles. However, the population of the service area is significantly different (the Morgaushsky district consumer society has a population in its service area of up to 25 thousand people; the Alikovskoye, Tsivilskoye, and Yadrinsky district consumer societies have populations of 25 to 40 thousand people; the Ishleysky district consumer society has a population of over 40 thousand people, except for the Sundyr District Consumer Society). This means that the Morgaush district consumer society shows higher performance indicators than the Ishlei district consumer society. Possible reasons are as follows: inconsistency of the structure of the assortment of goods with the needs of customers, pricing policy, inefficient marketing mix, inconvenient location of consumer goods trading enterprises, as well as low maneuverability, flexibility, responsiveness in management, low qualification of employees, and the quality of their work with customers, which requires special studies. Most rural stores have a low market (permanent population) and internal (store area, number of employees) potential, and, as a result, they demonstrate relatively low-performance indicators. With the abundance of goods and services, rural residents do not seek to bind themselves to any obligations to consumer cooperatives while retaining the right to choose the place to purchase goods freely. Also, they do not see any additional

4.7

The share of turnover per 1 person in the Chuvashpotrebsoyuz in average per capita incomes of the population, %

421.7 10.7

The population of the Krasnoarmeysky district, people

The turnover of the Krasnoarmeysky district consumer society for a person per month, rub

The share of turnover per 1 person in the Krasnoarmeysky district in average per capita incomes, %

100.0 114,992 100.0 269,206 36,800 609.6 15.5

As a percentage of the previous year

The turnover of retail trade and public catering of the Sundyr district consumer society, thousand rubles*

As a percentage of the previous year

The turnover of retail trade and public catering of the Morgaushsky and Sundyrsky district consumer societies, thousand rubles

The population of the Morgaushsky district, people

The turnover of the Morgaushsky and Sundyrsky district consumer societies for a person per month, rub

The share of turnover per 1 person in cooperative organizations in the average per capita income, %

15.0

1,605.6

34,801

670,499

221.4

254,576

269.7

415,923

11.5

1,231.3

15,936

269.0

235,456

3.7

395.9

10,726.7

1,250,518

208.3

5,940,639

2010

15.0

2,771.3

33,989

1,130,316

160.4

408,273

173.7

722,043

9.7

1,802.3

14,864

136.5

321,473

2.9

539.3

18,507.8

1,238,071

134.9

8,012,628

2015

15.6

2,784.9

33,492

1,119,260

98.1

400,577

99.5

718,683

9.7

1,738.6

14,616

94.9

304,933

2.9

519.8

17,834.8

1,236,628

96.3

7,713,110

2016

* On the territory of the Morgaushsky district, there operate the Morgaushsky and Sundyr district consumer societies Source Calculated by the authors based on Chuvashstat and Chuvashpotrebsoyuz data (Territorial authority of the Federal State Statistics Service for the Chuvash Republic 2019)

154,214

3. The turnover of retail trade and public catering of the Morgaushsky district consumer society, thousand rubles*

Consumer cooperation of the Morgaushsky district of the Chuvash Republic

100.0 17,300

As a percentage of the previous year

87,546

2. The turnover of retail trade and public catering of the Krasnoarmeysky district consumer society, thousand rubles

Consumer Cooperation of the Krasnoarmeysky district of the Chuvash Republic

3,925.4 183.9

1,292,236

The population of the Chuvash Republic, people

The turnover of the Chuvashpotrebsoyuz for a person per month, rub

100.0

The average per capita income of the population of the republic, rub

2,851,780

As a percentage of the previous year

2005

Years

1. The turnover of retail trade and public catering of the Chuvashpotrebsoyuz, thousand rubles

Consumer Cooperation of the Chuvash Republic

Indicators

2,732.9 15.0

16.0

32,685

1,071,900

95.5

356,825

100.3

715,075

9.6

1,745.9

14,078

98.2

294,951

2.6

472.7

18,177.0

1,231,117

95.6

6,983,690

2018

2,742.5

33,009

1,086,333

93.3

373,731

99.2

712,602

10.2

1,753.4

14,279

98.5

300,447

2.9

492.8

17,156.0

1,235,863

94.8

7,308,513

2017

−0.5

4.5 times

88.8

4.0 times

–

3,1 times

–

4.6 times

−1.1

4,1 times

81.4

–

3,4 times

−2.1

2.6 times

4.6 times

95.3

–

2,4 times

2018 in % to 2005

Table 2 Performance indicators of cooperative organizations of the Krasnoarmeysky and Morgaushsky districts of the Chuvash Republic in 2005–2018

820 L. P. Fedorova et al.

The Mechanism for Ensuring Economic Security of Consumer ...

821

benefits and advantages to participating in the activities of cooperatives. Also, competitors are actively using a system of discounts, various promotions, and bonuses to attract an additional number of buyers. On the other hand, consumer cooperatives themselves, in the process of searching for a motivation for the efficiency owner, have ceased to involve the local population in the cooperative movement actively. A limited circle of cooperative members helps, to some extent, reduce the costs of coordinating the interests of different parties. However, this undermines the social foundations of the consumer society and, ultimately, affects economic parameters. Thus, in the system of consumer cooperation, the problem of a shareholder cooperative remains unresolved. The existence of a system for the sake of the system does not make sense. The economic and democratic principles of the functioning of cooperatives are inextricably linked. The success of cooperatives consists not so much of the scale of activity but of solving specific problems that determine the motives for their creation and the desire of people to solve them independently without waiting for the help of the state or other interested parties. The history of the cooperative movement shows that at all times, cooperatives were considered as an alternative to the private capitalist form, i.e., large private business (Litvinova and Fedorova 2017). Undoubtedly, from economic laws, the scale of activity is a significant competitive advantage, which allows to significantly reduce costs and, thereby, provide goods and services at a lower price. However, it has a downside. The increase in the volume of activity implies the concentration of resources in a limited area of activity. As a result, the organization becomes less flexible, ceases to respond to market changes, takes more time to readjust production (a type of activity), etc., and when it reaches a specific size of organization and volume of activity, it may give a negative effect. Therefore, the effective scale of activity is a relative category, which depends on the scope and type of economic activity, territorial restrictions, and the circle of buyers (consumers) on which the organization focuses on its activities (Litvinova and Fedorova 2017). It is the participation of the shareholder in the affairs of the cooperative that creates current and strategic feedbacks in the cooperation of the cooperative with the external environment, which makes it possible to quickly respond to emerging external disturbances experienced by the system (cooperative) and to develop new rules (institutions) of behavior. Accordingly, we can assume that the problems of adaptation and socioeconomic development of consumer cooperation lie in the plane of contact and direct involvement of shareholders in the activities of consumer societies. Programs and strategies for the development of a consumer society should be determined not from above but from below. Consumer societies should be more proactive and independent in choosing directions and areas. In general, we can conclude that the overall level of economic security of cooperative organizations in 2005–2018 can be assessed as a “normal level of economic security.” Defense mechanisms are actively working for consumer cooperatives with additional resources. It seems that solving problems and determining the target setting for ensuring the economic security of each cooperative

822

L. P. Fedorova et al.

organization in the region can improve the efficiency of the work of consumer cooperatives in rural areas.

4 Discussion Under market conditions, the formation of a coherent competitive strategy for organizations of the cooperative sector is possible only based on economic security indicators, as each organization is forced to fight for existence, profitable business management, and its reputation. Under these conditions, the economic security of the organization acts as the protection of its activities from the negative impact of the external environment, as well as the ability to quickly prevent various threats or adapt to existing conditions (Litvinova et al. 2016). According to Fomina and Fomina (2010), cooperative organizations from all commercial and non-commercial structures are highly adaptive and self-organizing systems, which is due, firstly, to the direct participation of shareholders in the affairs of the cooperative and their interest in the results, and secondly, by direct and indirect participation of members of the cooperative in decision-making regarding the basic issues of the functioning of the cooperative. Our analysis of the economic security of the cooperative sector, in particular, the consumer cooperation of the Central Union of the Russian Federation, presented in previously published works (Kalinina and Fedorova 2017; Litvinova and Fedorova 2017; Litvinova et al. 2016), shows that, currently, primary cooperative organizations have a simple management model with single-level feedback. It is characterized by low adaptability and has an effect only with weak external disturbances, which, in principle, is proved by the experience of developing consumer cooperation in the 2000s. It is necessary to form current and strategic feedback between the system and the external environment so that the system can withstand strong external influences. In the context of institutions, this means that there is a need to revise both the basic law on consumer cooperation (in terms of goals, activities, and the economic mechanism of management), internal rules of conduct for cooperative organizations developed by the cooperatives themselves, and the possibility of exercising the right of democratic participation of shareholders in the affairs of a cooperative organization. A sufficiently detailed study in the field of diagnosing the state of economic security of an organization was conducted by Loktionova (2013, pp. 129–133). The analysis of her works allows for identifying the indicative method. A thorough study of theoretical and methodological approaches to managing the economic security of an organization is reflected in the works of Gilfanova (2013, pp. 22) and Zaporozhtseva and Yuriev (2014, pp. 90–96). The tools for monitoring financial security in organizations of the chemical industry using a cognitive approach are described in the work of Semenov (2018). A comprehensive study of the economic security of the cooperative sector of the economy conducted by V. V. Andreev, G. V. Kalinina, O. V. Litvinova, and L. P. Fedorova allowed them to develop an algorithm not only for assessing but also for forming a system for ensuring the

The Mechanism for Ensuring Economic Security of Consumer ...

823

economic security of the organization (Kalinina and Fedorova 2017; Litvinova et al. 2016). The mechanism for ensuring the economic security of cooperative organizations was clarified in this study, given the identified advantages and disadvantages of the above approaches.

5 Conclusion The results of the study led to the conclusion that the negative trends in the development of the retail trade of cooperative organizations are caused not only by external factors but also by some internal problems. This is because the market share of consumer societies, both in the volume of retail trade turnover of large enterprises and in the total turnover by the size of average per capita expenditures of the population of the regions, is decreasing. In the case of ensuring economic security, the source of economic independence should be shareholders who function as the social basis of the cooperative and own working capital. The security mechanism can be integrated into the monitoring system for developing a cooperative organization for the corresponding consumer union of the Russian Federation, which will make it possible to stimulate the sustainable and safe development of consumer cooperatives. Acknowledgements The authors would like to express gratitude to the Russian University of Cooperation for the opportunity to discuss the problems of assessing and ensuring the economic security of the organization of consumer cooperation on an open platform.

References Fomina, Yu.A., Fomin, E.V.: The impact of legal form on the adaptation of the company. Bull. Omsk Univ. 3, 63–72 (2010) Gilfanov, M.T.: Organizational and methodological tools for assessing determinants and ensuring the economic security of an enterprise. Socio-econ. Phenom. Process. 8(054), 19–27 (2013) Kalinina, G.V., Fedorova, L.P.: Ensuring the Economic Security of the Cooperative Sector in the Context of the Reindustrialization of the Russian Economy: Theory, Methodology, Practice. CIT and UO CHKI RUC, Cheboksary (2017) Litvinova, O.V., Fedorova, L.P.: Institutional aspects of the economic security of the cooperative sector. Bull. Russ. Univ. Coop. 4(30), 42–46 (2017) Litvinova, O.V., Kalinina, G.V., Andreev, V.V., Fedorova, L.P.: Methodological approaches to assessing the economic security of an enterprise. Bull. Russ. Univ. Coop. 3(25), 62–65 (2016) Loktionova, YuA: The mechanism for identifying the state of economic security of the enterprise. Socio-econ. Phenom. Process. 5(051), 129–133 (2013) Semenov, A.A.: Financial and Economic Security: Theory and Practice of Support in Chemical Industry Organizations. OOO IPF STRING, Yoshkar-Ola (2018)

824

L. P. Fedorova et al.

The territorial authority of the Federal State Statistics Service for the Chuvash Republic: Chuvashia in numbers. Brief statistical compilation. Territorial authority of the Federal State Statistics Service for the Chuvash Republic. Cheboksary, Russia (2019) Zaporozhtseva, L.A., Yuriev, V.M.: Critical areas for improving the strategic economic security of the enterprise. Socio-econ. Phenom. Process. 9(12), 90–98 (2014)

The Formation of a Multifunctional Transport Cluster Through the Development of Public-Private (Cooperative) Partnership Olga A. Galochkina , Tatiana N. Kosheleva , Elena V. Grozovskaya , and Dmitry V. Zmievsky Abstract The paper substantiates the need to form a mechanism for the formation of a multifunctional transport cluster based on the development of a public-private (cooperative) partnership. An author’s interpretation of the strategy for managing the infrastructural interaction of business structures in the transport complex is proposed, the stages of its implementation are indicated. The principles of the functioning and the functions of the multifunctional transport cluster are formulated based on the application of the mechanism of public-private (cooperative) partnership. The components of the strategy for managing infrastructure interaction in a multifunctional transport cluster are considered. The authors propose the forms of possible cluster interaction within the framework of the achieved public-private (cooperative) partnership, along with the mechanisms of cluster interactions.







Keywords Business activities Transport infrastructure Entrepreneurial structures Interactions Management Multifunctional transport clusters










O. A. Galochkina
D. V. Zmievsky (&) Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] O. A. Galochkina e-mail: [email protected] T. N. Kosheleva
E. V. Grozovskaya St. Petersburg State University of Civil Aviation, St. Petersburg, Russia e-mail: [email protected] E. V. Grozovskaya e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_89

825

826

O. A. Galochkina et al.

1 Introduction The development of public-private (cooperative) partnerships in the field of the development of entrepreneurial activity in transport is an objective necessity against the background of the need to solve transport problems of large urban agglomerations and the practical absence of transport networks (in the modern concept of this term) in rural areas. The inadequacy of transport networks characterizes transport services in large urban agglomerations and the rural regions. State resources are not enough to solve these problems. The statement of this problem and the insufficient funds of state service organizations determine the need to expand the use of the mechanism of public-private (cooperative) partnership in the development of entrepreneurial activity to ensure road and transport security. The level of security with high-quality pavement and transportation services in Russia remains insufficient. Thus, we are at the stage of forming new forms and mechanisms for developing multifunctional transport complexes. The tasks posed by the authors are reduced to considering the development of principles, functions, forms, and mechanisms for the formation of a multifunctional transport cluster based on the expansion of the use of public-private (cooperative) partnerships.

2 Materials and Methods The concept of developing a new management system based on the expansion of the use of public-private (cooperative) partnerships in the field of developing entrepreneurial transport activity in the direction of increasing the efficiency of public investment in the transport sector is necessary for the formation of a multifunctional transport cluster. Improving the efficiency of public expenditure is due to the goals of solving the problems of transport accessibility and the strategic development of the elements of supporting transport infrastructure, including in terms of enhancing the participation of small and medium-sized business structures in the competitive selection for the implementation of national transport projects.

3 Results The data on implementing public-private partnership projects in the Russian Federation according to the forms and sectors of the transport infrastructure in 2016–2017 are presented in Table 1.

The Formation of a Multifunctional Transport Cluster ...

827

Table 1 The statistics on the implementation of public-private partnership projects in Russia by forms and sectors of the transport infrastructure (2016–2017) A branch of project implementation

The level of project implementation

115-FZ

Agreement on public-private (municipal-private) partnership

A Aviation infrastructure and transport Road infrastructure

B Regional Municipal

1 1 1

2 1

3 4

4 5 1

Federal Regional Municipal Federal Regional Regional

5 9 6 1

2

9 2 1

Railway infrastructure

Other forms

1

1

14 13 7 1 1 2

1 1

4 1

5 2

12 1

13 3

1

Sea and river vessels, ports, and associated engineering infrastructure Public transport Regional The organization Municipal of parking space and the development of the road network Transport hubs, Regional bus and train Municipal stations, multi-level parking Source (Grozovskaya 2017)

Total

1 2

The number of public-private partnership projects in the Russian Federation by infrastructure and investment in 2016–2017 is presented in Table 2. Table 2 The distribution of the number of public-private (cooperative) partnership projects by infrastructure and investment volume (2016–2017) Sphere A Social Transport Utilities Information and communication Other Source (Grozovskaya 2017)

Share in infrastructure (%)

Distribution by volume (billion rubles)

1 11 3 84 1

2 204 845.7 417.2 46.9

1

6

828

O. A. Galochkina et al.

Analyzing the data presented in Table 2, we can conclude that the most significant investment in public-private (cooperative) partnership projects in 2016– 2017 is in the field of transport in Russia.

4 Discussion The participation of entrepreneurs in the implementation of national projects involves an entirely different type of management in the framework of the interaction of entrepreneurial structures of the transport complex. It is necessary to develop a strategy for managing the infrastructural interaction of the entrepreneurial structures of the transport complex when forming a concept based on the expansion of the use of public-private (cooperative) partnerships. It is also essential to determine the organizational and financial mechanisms and the principles and functions of entrepreneurial interaction (Burgonov and Kosheleva 2016; Vasilenok et al. 2018). It is proposed to define the strategy for managing the infrastructural interaction of transport enterprises as an organized structure of managerial algorithms in spatially built relationships and interdependencies of transport enterprises. The proposed structure fits into the main approach to the mechanism of building cluster interaction as a multifunctional transport cluster. This cluster will take into account the basic principles of their interaction within the multifunctional transport cluster. It will also ensure the implementation of the interconnected functions of all transport modes located within a particular territorial entity based on fundamentally different organizational and financial mechanisms. The strategy for managing the interaction of the entrepreneurial structures of the transport complex (forming a public-private [cooperative] partnership) implies identifying the critical implementation stages. The first stage is assessing the sufficiency of the enterprise’s internal potential, including the availability of the resources for entrepreneurial interaction with the study of the growth potential of participants of intracompany relations and patterns of functioning of transport enterprises within the multifunctional transport cluster. Then we consider the objective laws of development that determine the activities of transport enterprises. The next step is tracing cause-and-effect relations and interdependencies of the whole process of infrastructural entrepreneurial interaction on all transport within the framework of a multifunctional transport cluster, etc. (Galochkina and Chokaeva 2014). It is proposed to build public-private (cooperative) partnerships based on the following infrastructural entrepreneurial interactions: – Financial cooperation with the involvement of state support in the form of allocation of territory, premises at a preferential rental rate; – Financial guarantees of the state for obtaining loans for participants in the multifunctional transport cluster;

The Formation of a Multifunctional Transport Cluster ...

829

– Venture financing for innovative projects in creating transport infrastructure; – Creating a self-insurance fund for participants’ activities in a multifunctional transport cluster is based on the mechanism for partial repayment of cluster participants’ contributions based on the recoupment of next infrastructure projects; – The payback of infrastructure transport projects by participants of a multifunctional transport cluster on shares with state organizations servicing the elements of the created transport infrastructure; – Full servicing and restoration of damaged sections of the transport infrastructure based on the territorial unity, comprehensive repair, support and update of all transport modes within the multifunctional transport cluster on a prepaid basis with the financial participation of state organizations and the subsequent payment of part of the funds paid by state organizations from the profits of cluster participants, etc. Consumer cooperatives involved in motor trucking and conducting their activities in villages, small towns, and regional centers may act as one of the partners. Moreover, the simplification of the procedure for accessing the state orders (i.e., by securing the possibility of concluding direct state contracts) may also become an effective legislative measure (Andreev et al. 2016). The principles of functioning of a multifunctional transport cluster, in addition to the principle of territorial unity, should also include several more principal: – The principle of comprehensive service. It implies coordinated service with all transport modes operating in a particular territory. – The principle of self-servicing by cluster members. It implies independent functioning and maintenance of the transport park and traffic networks as part of a private-state partnership with state organizations. It is necessary to distinguish the following main functions of the multifunctional transport cluster based on the public-private partnership: – Transport-providing: the provision of transport services for freight and passenger transportation; – Transport-developing: the construction of new traffic intersections and highways; – Transport-servicing: the maintenance of transport networks within a specific territorial entity. Among the main participants in the multifunctional transport cluster, one could highlight those transport companies that operate within the limited territorial space. Also, there are individual entrepreneurs engaged in transportation, logistics companies, companies serving transport companies, and transport networks in the framework of public-private (cooperative) interaction, etc. The subjects and objects of management and management subsystem can be distinguished as the main components of a strategy for maintaining the

830

O. A. Galochkina et al.

infrastructural interaction of enterprises in a multifunctional transport cluster. In the control subsystem, we can distinguish: – The information component providing information, selecting, and organizing information flows, etc.; – The organizational and administrative component containing a sequence of stages of managerial influence in the process of building up organized economic interconnections of enterprises of all transport modes and infrastructure elements; – The financial-securing component: a system of sustainable sources of financial support for the management of a multifunctional transport cluster using state guarantees in the provision of loans, including using crowdfunding, i.e., the cooperation of business entities to merge their financial and other resources voluntarily; – The technological component: a mechanism for managing technical support and service technologies using significant amounts of data. In the managed subsystem of multifunctional transport cluster using a public-private partnership, it is necessary to distinguish: – Information and financial flows; – Multidirectional external and internal economic relationships of business structures of all types of transport and infrastructure elements (educational subsystems, road transport service subsystems, technological and technical supply subsystems, marketing subsystems, etc.); – Financial and economical transport complexes by transport mode providing interaction with financial institutions (including state ones), forming financial support for ensuring and organizing public-private partnership within the multifunctional transport cluster; – Transport services provided as part of the functioning of the multifunctional transport cluster, including organized on a remote basis. The forms, organizational, and financial mechanisms of entrepreneurial interaction in a multifunctional transport cluster based on public-private partnerships are built following the need to reduce and limit the possible negative impact of insufficient resources, primarily financial base, including information resources and managerial errors. They are determined by the pace of development of the multifunctional transport cluster and the level of opportunities within the private-state partnership. It is necessary to distinguish the forms aimed at solving particular tasks of transport services posed to the leader of the multifunctional transport cluster by the state organizations. One more form that needs to be highlighted is the form aimed at developing transport infrastructure within the boundaries of the territorial entity. These two forms include, for example, the duration of customer service, the convenience of moving goods and passengers, the speed of movement, etc.

The Formation of a Multifunctional Transport Cluster ...

831

In order to develop directions for the development of public-private (cooperative) partnership within the formation of a multifunctional transport cluster, we can identify the following tasks as priorities: – Comprehensive transport services for customers within a certain interval (logistics of freight and passenger traffic, both individual and collective); – Area-based services with a specific transport mode covering the territory within the boundaries of a territorial entity (servicing freight and passenger traffic, both individual and collective); – Transport services to a specific address, regardless of the type of transport, by any fastest method of transportation, regardless of the transport cluster (logistics of freight and passenger traffic, both individual and collective). It is advisable to consider the organizational and financial mechanisms of cluster interaction based on public-private (cooperative) partnerships in accordance with the proposed forms of possible task-oriented customer service for transport services aimed at solving a specific problem in the cluster. For each particular service, it is necessary to form a special organizational mechanism for the interaction of transport and service businesses of the multifunctional transport cluster and financing algorithm for each specific project as part of a private-state (cooperative) partnership. An integrated matrix management algorithm implying a complex subordinate structure of transport services with two or more transport modes may correspond to the complex mechanism for passenger carriage (both individual and collective) within a specified time interval. For regional services, a specific transport mode within the particular territorial entity may correspond to the organizational mechanism in the form of a divisional algorithm for managing entrepreneurial interaction within a multifunctional transport cluster, implying a complex service structure with the justification of priority criteria in developing a traffic route at a local border with a specific transport mode. The transportation of consumers (freight and passenger transportation, both individual and collective) to a specific address in the fastest way regardless of the transport mode and the participants’ costs can correspond to the linear and functional control algorithm with the possibility to use the elements of matrix algorithm to create temporary mobile groups for the development of route maps of transport interaction within the multifunctional transport cluster, which implies a service structure using special motivational mechanisms governing intra-district cooperation of all transport modes.

5 Conclusion Based on the study and development of the principles, functions, forms, and mechanisms of forming a multifunctional transport cluster based on the development of public-private (cooperative) partnerships, we can draw several conclusions.

832

O. A. Galochkina et al.

The main problems in providing transport services in large cities are the presence of inconsistency, and unregulated traffic flows both in time and in the movement of goods and passengers; in rural areas, there is practically no road network and a lack of their proper maintenance. It is proposed that the principles of functioning of a multifunctional transport cluster should include: – The principle of territorial unity. It implies the unification of all supply chains and the subordination of forming routes of all transport modes, within a cluster and a single goal). – The principle of comprehensive service. It implies coordinated service with all transport modes operating in a particular territory. – The principle of self-servicing by cluster members. It implies independent functioning and maintenance of the transport park and traffic networks as part of a private-state partnership with state organizations. – The principle of intersectoral functioning. It implies the interaction of all transport modes to transport consumers and meet the needs of legal entities and individuals in the transportation and movement of goods). The main functions of the multifunctional transport cluster based on the application of the mechanism of public-private (cooperative) partnership are: – Transport-providing: the provision of transport services for freight and passenger transportation; – Transport-developing: the construction of new traffic intersections and highways; – Servicing: the maintenance of transport networks within a specific territorial entity. The main forms of possible cluster interaction within the framework of the achieved public-private (cooperative) partnership are the duration of customer service, the convenience of moving goods and passengers, and the speed of their movement. The main mechanisms for forming a multifunctional transport cluster based on the development of public-private (cooperative) partnerships include: – The mechanism in the form of matrix management algorithm, implying a complex subordinate structure of service by two or more transport modes. – The mechanism in the form of a divisional algorithm for managing entrepreneurial interaction within a multifunctional transport cluster. This implies a complex subordinate structure of service with the justification of priority criteria in developing a traffic route at local borders by a specific transport mode. – The mechanism in the form of a linear and functional management algorithm with the possibility to use elements of a matrix management algorithm to create temporary mobile groups for the development of route maps of transport interaction within the multifunctional transport cluster. This implies a service

The Formation of a Multifunctional Transport Cluster ...

833

structure using special motivational mechanisms governing intra-district cooperation of all transport modes. The proposed mechanism for forming a multifunctional transport cluster on the development of public-private (cooperative) partnerships can be used to organize a transport cluster in large urban agglomerations. Consequently, this will cover the needs of the nearest suburbs and regions. The question remains only on the number of combined transport and service companies and the share of financial participation of state service companies in transport projects.

References Andreev, V.V., Vyazovskaya, T.N., Zmievsky, D.V., Lebedeva, A.A.: Problems of improving the legal framework for procurement from a single supplier (contractor, contractor). Law Pract. 4, 121–127 (2016) Burgonov, O.V., Kosheleva, T.N.: The approaches to the formation of a strategy for the innovative development of small businesses. Problems of Economics and Management in the Region. In: Proceedings from the Scientific-Practical Conference with International Participation, pp. 153– 160. Pskov State University, Pskov, Russia (2016) Galochkina, O.A., Chokaeva, N.O.: On state regulation of the activity of entrepreneurial structures. Bull. Econ. Law Sociol. 4, 38–41 (2014) Grozovskaya, E.V.: Import substitution policy as a tool to stimulate innovation and investment activity of industrial enterprises. Audit 4, 23–27 (2017) Ksenofontova, T.Yu., Kosheleva, T.N.: Approaches to the formation of the mechanism of innovative development of small business in air transport. Compet. Global World Econ. Sci Tech. 9–2(24), 94–98 (2016) Ksenofontova, T.Yu., Smirnov, R.V., Kadyrova, O.V., Burgonov, O.V., Kosheleva, T.N.: Practical application of methodologies and mechanisms of formation of regional innovation development strategies. IJRTE Int. J. Recent Tech. Eng. 8, 4302–4305 (2019) Vasilenok, V.L., Brazevich, D.S., Kosheleva, T.N.: Methodological approaches to assessing the success of the regional development of business structures. Sci. J. NRU ITMO Ser. Econ. Environ. Manage. 4, 62–68 (2018)

Scenarios of Commodity Circulation of Agricultural Products by Cooperatives of the Central Federal District to the Moscow Region Valery V. Gusev , Taisiya F. Ryabova , Israil Abdulragimov , and Natalia M. Suray Abstract This paper is devoted to the problem of the distribution of agricultural products by cooperatives of the subjects of the Central Federal District (CFD) to the Moscow region for meeting the needs of the population and ensuring food security. The study aims to substantiate the possibility and reserves of the regions for sending surplus products to the Moscow region, which does not yet produce the volumes necessary for the population. The purpose of the study is to increase the level of 3 of the needs of residents of Moscow and the Moscow region for agricultural products produced (purchased) by cooperative organizations in the nearest regions of the Central Federal district. The study gives the author’s concept of the process of digitalization, which is presented in the form of processes of automation of human functions in the technological, managerial, and mental spheres of activity, contributing to the creation of artificial intelligence. The object of the study is agricultural consumer cooperatives operating in the Smolensk, Lipetsk, and Tambov regions of the Central Federal district, as well as the market environment in which they are created and developed. The subject of the study is organizational and economic models of real and potential vertically integrated cooperative structures in the agricultural sector of the economy, the trends of their transformation. The results of the study were obtained in the framework of the research work “Draft program of promotion of agricultural products of regional producers of the Central Federal district to the markets of Moscow and the Moscow region”. The program of promotion of agricultural products on the example of Smolensk, Lipetsk and Tambov regions is understood as a set of prospective volumes of production V. V. Gusev
T. F. Ryabova
I. Abdulragimov
N. M. Suray (&) K. G. Razumovsky Moscow State University of Technologies and Management (the First Cossack University), Moscow, Russia e-mail: [email protected] V. V. Gusev e-mail: [email protected] T. F. Ryabova e-mail: [email protected] I. Abdulragimov e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_90

835

836

V. V. Gusev et al.

(purchase) and sale of agricultural products in the planning period in kind and value terms, corresponding to the nomenclature, assortment and quality requirements of consumers of the market network. The calculations of the consumption of agricultural products in the studied potato-producing regions are made. It is determined that about 30% of the products can be sent to Moscow and the Moscow region to provide for the population. Based on the use of three possible scenarios (optimistic, pessimistic, and most probable), possible situations for the medium-term supply of potatoes from the three regions of the Central Federal district to the Moscow region are established.




Keywords Scenario Commodity movement Consumption Reserves





Agricultural products
Regions


1 Introduction The current stage in the development of society is considered a breakthrough. It is designed to accelerate the pace of economic growth, improve quality of life, and ensure resource conservation. One study has shown that the terms “digital economy” and “digitalization” are often used in the media. However, an individual has his or her own understanding of these terms, depending on his or her competence in the field. The most basic definition of “digitalization” is the conversion of an analog (continuous) signal into a discrete (digital) one, which is an adequate, simplified representation of the term. In our opinion, the main component of “digitalization” is the automation of technological, managerial, and mental activity, with artificial intelligence as a long-term goal. The introduction of digitalization for the distribution of agricultural products seems appropriate, providing not only accounting and control of production at each stage but also justifying the optimal consumption and production volumes by region and in aggregate. Scholars have made a significant contribution to the development of the distribution of products of various forms and types of enterprises. N. Manning and N. Parison, assessing state regulation reforms, drew attention to the management of cooperatives (Manning and Parison 2003). I. Fuseini noted that the review of spatial planning in the path of socio-economic development is the prospect of sustainable development of the country and its enterprises (Fuseini and Kemp 2015, pp. 309– 320). J. A. Schumpeter created business development cycles acceptable for use in enterprises characterized by uneven development rates (Schumpeter 2017, pp. 67– 80). R. J. Gordon, in his study, noted that investment in fixed assets is the engine of accelerated economic growth (Gordon and Veitch 1986, p. 272). G. L. Tanase deduced the dependence of the performance indicators of large and small enterprises on the country’s budget. He found that the growth of GDP depends on the activities of a combination of large enterprises and cooperatives (Tanase 2015, pp. 1794–1803). Scholars at the School of Economics, Finance, and Banking of the

Scenarios of Commodity Circulation of Agricultural Products …

837

College of Business of Utara University of Malaysia note that strategies on the way to a new paradigm of sustainable development of the country are a transition to a sustainable global democracy (Abdelnaser 2015, pp. 59–74) and others. Russian scholars have made a huge contribution to the methodology of managing various types of cooperatives. First, it is necessary to single out the works of A. V. Chayanova and I. V. Emelyanova, who created the economic theory of cooperation. The ideas of these authors in the 1940s were actively developed and received positively by scientists from France, Sweden, the USA, and other countries (Emelianoff 1948). A. V. Chayanov noted: “The very nature of agricultural enterprises sets the limits for its enlargement. Due to it, the quantitative expression of the advantages of a large farm over a small one in agriculture can never be especially large” (Tarkhanov 2011, p. 131). E.G. Yasin, exploring the global problems of the economy, identified the primary sources of the development of market reforms, which includes improving the management of small enterprises and cooperatives (Yasin 2002). An essential role in improving the activities of cooperatives was played by I. Buzdalov and G. Shmelev, who identified the main problems and suggested ways of their effective functioning. Many early works on the development of the cooperative movement in Russia are successfully used in the practical activities of cooperatives in many countries. It is necessary to note the achievements of Russian scholars in the field of development of the cooperative movement in Russia in the late 20th and early 21st centuries. These scholars are A. V. Sobolev, V. M. Volodin, V. A. Kanakina, L. Nikiforov, T. Kuznetsova, G. O. Pavlova, O. V. Tarkhanov, A. A. Tushov, and many others. Their scientific provisions are taken as the basis of this study. Thus, A. V. Sobolev argued that the cooperative movement could increase the employment of the population, which provides itself with material goods (Sobolev 1997). In the course of the study, based on the expert estimates, the authors found several important factors depressing the profitability of agricultural producers. There are high rates of growth in prices for equipment, spare parts, fertilizers, electricity, and other material and technical resources; the imperfection of infrastructure, lack of information technology and robotics in the production, storage, processing, and sale of potatoes (Yazev et al. 2018). There were three breakthrough moments in the development of Russian cooperation. The first one happened after the abolition of serfdom and before the revolution; the second in March 1921, during the new economic policy, the third one, cooperative, began in the early 90 s. The 20th century is associated with the transition to the capitalist path of development (Pavlova 2004, p. 76). The agricultural policy of P. A. Stolypin, aimed at the liquidation of the peasant community, had a particular influence on the development of the cooperative movement (Volodin 2001). I. Dakhov revealed the possibilities for the revival of cooperative development and identified its main paths (Dakhov 2000, pp. 92–96). A. A. Tushov, analyzing target programs in the system of state regulation of the economy, noted that the cooperative movement in the country should be given special attention to disseminate them and increase work efficiency (Tushov 2012, pp. 151–154). The rapid development of cooperation began with the introduction of democratic

838

V. V. Gusev et al.

principles providing for voluntary membership, the free election of the board, etc. (Dakhov 2000, pp. 92–96). A priori, it can be assumed that the functions of production, purchase, sorting, short-term (several days) storage, and transportation of agricultural products are fully within the power of agricultural consumer cooperatives (ACP) of the first level. First-level ACPs can be organized by representatives of a personal subsidiary and peasant (farmer) households (Gusev et al. 2018, pp. 14–18). A new stage in the development of cooperation was characterized by a deficit in various types of consumer goods and the formation of a legal base for the cooperative movement (Nikiforov and Kuznetsova 1995, pp. 86–96). One of the most important conditions for creating cooperatives is the restructuring of management policies. Restructuring contributes to the formation of civilized methods of competition between producers, reducing risks, and expanding the product range (Minaeva 2014, pp. 605–608).

2 Materials and Methods Solving the problem of the product distribution of agricultural products is one of the most urgent tasks of the modern Russian economy. The expanses of the country, characterized by different climatic zones, necessitate the adaptation of farms to objective conditions and the production of products that provide high yields. It was established that even in one federal district, there are significant deviations in the yield and gross yield of crops. This study focuses on the justification of the possibilities of cooperatives in the Smolensk, Lipetsk, and Tambov regions to supply surplus agricultural products to the Moscow region, where the population is rapidly growing and the cultivated area remains constant. Therefore, it is necessary to find the possibility of product distribution to Moscow and the Moscow region from closely located entities. By commodity distribution, we mean the definition of a set of promising volumes of production (purchase) and sales of agricultural products of cooperatives in kind and value terms, corresponding in assortment and quality to the requirements of consumers of the market network. We will carry out the structuring of the task on the example of one area, which should provide a regional association of cooperatives, with the ability to distribute agricultural products in retail chains of the Central Federal District. A necessary condition for the implementation of such a program is the organization of production and the purchase of agricultural products by cooperative organizations in volumes, assortment, and quality that meet modern requirements. It is known that during harvesting, transportation, packaging, storage, and transportation to trade organizations of agricultural products, there is a partial loss of the use-value of the grown products, expressed in a decrease in the mass and quality of the products. While performing the above operations, it is necessary to strive to minimize product losses. The functions of production, purchase, weighing, transportation, sorting, packing, and various cooperative organizations can perform product storage. However, the high complexity, heat, energy intensity, and various technical

Scenarios of Commodity Circulation of Agricultural Products …

839

equipment of production operations differ significantly in the production environment. For example, for the preservation of crops, specific technological processes in inert gas or chilled air environment are required. It can be assumed that the functions of production, purchase, sorting, short-term storage, and transportation of agricultural products are quite within the power of the first-level agricultural consumer cooperatives (ACP). First-level cooperatives can be created by representatives of a personal subsidiary and peasant farms. The formation of cost-effective consignments of similar products, their long-term (several months) storage, sales by trading enterprises, and the performance of other logistics and information functions are generally not achievable for first-tier enterprises that operate, as a rule, within one municipal entity. Based on this premise, it is advisable to store and form bulk consignments of agricultural products of the required quality for trade organizations in other regions in second-level cooperatives, such as agrology centers. Of all the variety of agricultural products produced by cooperatives, we restrict ourselves to considering one crop product: potatoes. An agricultural consumer cooperative of the second level is an association of first-level cooperatives that carry out joint activities to provide their members with the services necessary for generating income. The algorithm for the functioning of a two-level system of agricultural consumer cooperation is presented in Fig. 1.

Fig. 1 The algorithm for the functioning of a two-level system of agricultural consumer cooperation

840

V. V. Gusev et al.

The main goals and priorities of the second-level cooperative are: • purchase and storage of products from first-level agricultural consumer cooperatives, and further sale to local trading networks and markets of other regions of the country; • primary processing, pre-sale preparation, and packaging of products for sale. The additional tasks undertaken by the cooperative are the following: • Position the cooperative’s presence in a market environment, developing a regional brand for promoting agricultural products. • Provide methodological support for the activities of first-level cooperatives. • Interact with regional authorities, lobbying for the interests of the members of the cooperation system. A second-level cooperative has its own characteristics, which largely depend on the specifics of its specialization. The organization of second-level cooperatives, as a rule, is handled by an initial group of representatives of first-level cooperatives, and the move should be of interest to the minimum number of cooperators required to register a new cooperative. At the general meeting, representatives of the first-level cooperatives who have expressed a desire to create a second-level cooperative form an organizing committee whose tasks include the following: • Prepare a business plan (feasibility study) and a project plan discussing the industrial and economic activities of the newly created cooperative. • Determine the size of the mutual fund and the sources of its formation. • Develop a draft charter for a cooperative. • Prepare and hold an organizational meeting. • Accept applications for membership in the cooperative. A business plan is developed, taking into account the provisions of strategic marketing to protect the created cooperative from potential problems. As part of this study, a basic version of a business plan for the creation and operation of a second-level agricultural consumer cooperative for the storage and sale of potatoes and other vegetables was developed. The developed business plan is considered and adopted at the organizational meeting of the participants of the second-level created cooperative.

3 Results The Tambov region was chosen as the base region. Among the nearby regions, it occupies an intermediate position in terms of the development of the cooperative movement and the volume of goods production. Let us refer the Tambov region to

Scenarios of Commodity Circulation of Agricultural Products …

841

the typical region of the country at the regional (republican) levels for potato production. In Russia, potatoes are often called second bread, since, in terms of consumption, they stably take second place after products made from cereal crops. This is due to their widespread distribution, good taste, the wide variety of meals that can be prepared from them, the original chemical composition, and democratic prices for them. The study showed that the Lipetsk region occupies a leading position in terms of volume of potato production in farms of all categories, in comparison with the Tambov and Smolensk regions. Potato production in the Lipetsk region for the period 2012–2016 averaged to 713 thousand tons, in the Tambov region—600 thousand tons, and in the Smolensk region – 227 thousand tons (Table 1). However, the rate of potato production, in 2018, in the Lipetsk and Tambov regions, decreased by almost 20%, and in the Smolensk region by 10%. An analysis of the structure of potato use on the example of data from the Tambov region showed that the production volume of this type of product in 2018 amounted to 484 thousand tons. The following indicators characterize the structure of the use of potatoes in the Tambov region in 2016–2018. Let us designate the volume of potato production in 2018 (484 thousand tons) as 100%. For simplicity, we will consider the carry-over balance of potatoes from the previous year to be equal to 0. The volume of real potato consumption amounted to 136.5 thousand tons, which is, on average, for each resident of the city of Tambov, 130 kg, or 44% more than the recommended value. Fodder, technical, and seed purposes account for approximately 10% of production. Losses of potato during harvesting, loading and unloading, transportation, and processing, on average, amount to 20% of the production volume. Taking into account these ratios, we determine the volume of potatoes that can be used for sale in the trading network of the Moscow region. This value, in 2018, equaled about 100 thousand tons. Let us determine the potato amount needed for the food purposes of Moscow and the Moscow region. It was established that the number of residents of Moscow and the Moscow region as of 01.01.2018 amounted to almost 20 million people. Table 1 The trend of the gross harvest of potatoes by farms of all categories of Smolensk, Lipetsk, and Tambov regions Districts Smolensk region, thousand tons Including to the level of 2012, % Lipetsk region, thousand tons Including to the level of 2012, % Tambov region, thousand tons Including to the level of 2012, % Source Calculated by the authors

2012

2013

2014

2015

2018

219.6 100.0 723.5 100.0 572.6 100.0

233.5 106.3 701.1 96.9 652.0 113.9

225.5 102.7 697.1 96.4 522.3 91.2

254.8 116.0 795.6 110.0 766.7 133.9

201.0 91.5 649.0 80.7 464.0 81.0

842

V. V. Gusev et al.

According to the Russian Federation’s Doctrine of Food Security, the average recommended per capita potato consumption in Russia is 90 kg per capita per year. Consequently, the estimated potato consumption per year by citizens of the capital of the Russian Federation and its region will be 1.8 million tons in 2018. Residents of these regions, on average, used 112.6 kg of potatoes for food. In fact, in 2018, potato consumption in the region amounted to 112.6 kg per person, which is 25% more than in 2017. A significant increase in personal potato consumption can be explained by a significant decrease in the income level of citizens of these regions. They are forced to compensate for the lack of financial resources by purchasing cheaper products. However, the excessive use of potatoes, which contain a significant amount of starch, processed in the human body into glucose, can provoke diabetes. A balanced diet, taking into account the characteristics of a particular person, is a prevention of such a disease. About one-third of the volume of potatoes is produced in the Moscow region. Thus, the additional demand for potatoes in the Moscow region for 2020 is approximately 1.6 million tons. If we assume that the potato consumption will remain in 2020, then, taking into account a growing population, the residents of Moscow and the Moscow region will need approximately 2.5 million tons of potatoes for food purposes. Currently, two-thirds of the volume of potatoes is imported from various regions of the country, including the Central Federal District, as well as from other states, which increases the product cost for the population. Therefore, it is more expedient for the cooperators of the Lipetsk and Tambov regions to sell part of the potatoes produced in the Moscow region, an action that is economical in terms of transportation costs and the share of product losses during transportation. Let us compare the possible scenarios for the implementation of the project for the distribution of potatoes by regional agricultural producers of the Central Federal District, that is, the Lipetsk, Tambov, and Smolensk regions. The volume of production (procurement) of potatoes by cooperative organizations in the Smolensk, Lipetsk, and Tambov regions, in 2018 amounted to 201,000 tons, 649,000 tons, and 464,000 tons, respectively. The total value is 1,314,000 tons. This parameter can be interpreted as a potential opportunity for these regions to sell potatoes to regional consumers, including Moscow and the Moscow region. Residents of these regions produce approximately one-third of the volume of potatoes used for food in the Moscow region. Two-thirds of the volume of potatoes are imported from various regions of the country, primarily from the regions of the Central Federal District, as well as from other states. Consequently, an increase in potato consumption in Moscow and the Moscow region may stimulate production and supplies from the Smolensk, Lipetsk, and Tambov regions. The study showed that these areas have good potential in the form of gross potato harvest by farms of all categories. For example, in 2015, the highest-grossing potato harvest over the past three years amounted to 1,819,000 tons, respectively, in the regions: 255,000 tons, 796,000 tons, and 768,000 tons. Given the volume of potatoes used in these regions for food, feed, technical purposes, seeds, as well as losses during harvesting, transportation, packing, and storage; the remaining part

Scenarios of Commodity Circulation of Agricultural Products …

843

(about 30% of the gross harvest) can be used for regional agricultural producers to move to Moscow markets and the Moscow region. Based on the real production volumes for 2012–2016, it can be recognized that the Lipetsk region occupies a leading position, the Tambov region is the second, and the Smolensk region is the third. Let us identify possible scenarios for the development of commodity distribution of products of regional agricultural producers of entities based on regional associations of agricultural cooperatives of the Smolensk, Lipetsk, and Tambov regions of the Central Federal District for the medium term (1–5 years). We will choose three possible options: the optimistic, pessimistic, and most likely scenario. The optimistic scenario is the best option for the project, which stipulates that based on regional associations of agricultural cooperatives in the Smolensk, Lipetsk, and Tambov regions, it is possible to fully distribute potatoes to the markets of Moscow and Moscow region. Taking into account the different level of development of cooperation in these areas, let us assume that the most successful distribution of potatoes will be implemented in the Lipetsk region, where, as of 01.01.2018, there are approximately 900 cooperatives of the first level and about 15 cooperatives of the second level. The Smolensk region is in the most challenging situation. As of 01.01.2018, only six cooperative organizations of the first level and zero cooperatives of the second level were registered. This region produces the least amount of potatoes, so it is possible to receive 10% of the planned volume. The cooperative movement of the Tambov region occupies an intermediate position between the studied regions. As of 01.01.2018, there are ten first-level cooperatives in it. In addition, it is supposed to create one united second-level cooperative. Therefore, we envisage that distribution will be carried out regularly and in the established amount. Let us consider the pessimistic scenario. This is the most negative scenario, which allows us, in the medium term, to predict that the regional associations of agricultural cooperatives of Smolensk, Lipetsk, and Tambov regions will not be able to organize a systematic promotion of significant volumes of potatoes to the markets of Moscow and the Moscow region due to insufficient competitive opportunities and will supply half of the needed volume of potatoes. Then, the second half of the missing product may come from the Bryansk and Tula regions, the Republic of Belarus, etc. The third scenario is the most likely. It occupies a position between optimistic and pessimistic scenarios. In this scenario, it is assumed that in the next 1–3 years, regional associations of agricultural cooperatives in the Smolensk, Lipetsk, and Tambov regions will organize the commodity batches of potato from existing reserves to the markets of the Moscow region.

844

V. V. Gusev et al.

4 Conclusion In the course of the study, we made several conclusions. 1. It has been established that the population of Moscow and the Moscow region, due to the specifics of population growth and the constancy of the size of land, require additional volumes of agricultural products necessary to meet the needs of the population. This specificity is typical for large cities around the world. 2. A concept has been developed that provides for the commodity movement of agricultural products by cooperatives of nearby entities that can most effectively fill the existing shortage of products to meet the needs of the population 3. Three scenarios for the development of production in three nearby regions (the Smolensk, Tambov, and Lipetsk regions), which have land and labor potential, are proposed in order to organize cooperatives of two levels that contribute to the provision of our own population and the population of the Moscow region by moving the existing reserve of products. Based on the obtained results, it becomes clear that there is a need to continue studying and disseminating positive experience not only in the Central Federal District but also in other constituent entities of Russia. The solution to this problem contributes to the growth of the innovation level, the well-being of the country, the increase in the number of the economically active population, the increase in the level of employment, and the quality of life for Russians.

References Abdelnaser, O.: Strategies Towards the New Sustainability Paradigm: Managing the Great Transition to Sustainable Global Democracy. Springer, Heidelberg (2015). https://doi.org/10. 1007/978-3-319-14699-7 Dakhov, I.: Possibilities of the revival of the cooperative sector of the economy. Economist 1, 92– 96 (2000) Emelianoff, I.V.: Economic theory of cooperation: economic structure of cooperative organizations, Washington, D.C. (1948) Fuseini, I., Kemp, J.: A review of spatial planning in Ghana’s socio-economic development trajectory: a sustainable development perspective. Land Use Policy 47, 309–320 (2015) Gordon, R.J., Veitch, J.: Fixed investment in the american business cycle, 1919–1983. In: The American Business Cycle: Continuity and Change, pp. 267–358. National Bureau of Economic Research, Inc., Cambridge (1986) Gusev, V.V., Ryabova, T.F., Sagina, O.A.: Scenarios for the implementation of the program for promoting potato on the market of the Moscow region from cooperative agricultural producers of the Central Federal District. In: Proceedings from International scientific-practical conference “Topical Problems of the Development of Cooperation and Small Business.” Penza State Technological University, Penza (2018)

Scenarios of Commodity Circulation of Agricultural Products …

845

Manning, N., Parison, N.: International Public Administration Reform: Implications for the Russian Federation. World Bank, Washington, D.C. (2003) Minaeva, E.V.: The formation of promising strategies for the functioning of organizations. Econ. Entrepr. 6(47), 605–608 (2014) Nikiforov, L., Kuznetsova, T.: The fate of cooperation in modern Russia. Econ. Issues 1, 86–96 (1995) Pavlova, G.O.: On modern agricultural cooperation. Economist 10, 76 (2004) Schumpeter, J.A.: Business cycles: a theoretical, historical, and statistical analysis of the capitalist process. J. Comparat. Res. Anthropol. Sociol. 8(1), 67–80 (2017) Sobolev, A.V. (ed.): Cooperative thought in Russia: History of economic thought. Moscow University of Consumer Cooperatives, Moscow, Russia (1997) Tănase, G.L.: An analysis of the existence of a link between budgets and performance in economic entities. Proc. Econ. Finance. 32, 1794–1803 (2015) Tarkhanov, O.V.: The essence of cooperation, according to A. V. Chayanov and modernity. Econ. J. 21, 131 (2011) Tushov, A.A.: Targeted programs in the system of state regulation of the economy. Econ. Sci. 3 (88), 151–154 (2012) Volodin, V.M.: Production cooperation in agriculture (theory, methodology, experience) (Abstract of the Dissertation of Doctor of Economics). All-Russian Research Institute of Economics, Labor, and Management in Agriculture, Moscow, Russia (2001) Yasin, E.G.: Russian economy: sources and panorama of market reforms. Higher School of Economics, Moscow, Russia (2002) Yazev, G., Ryabova, T., Zhenzhebir, V.: Differentiation of wholesale prices for organic agricultural products Moscow State University of technology and management. In: MATEC Web of Conferences, p. 193 (2018). https://doi.org/10.1051/matecconf/201819305073

Key Financial Indicators in the Production Cooperative Sector of Russia: Analysis and Forecasts Vera G. Kogdenko

Abstract The paper analyzes financial conditions and development of the cooperative production sector of Russia. The empirical base is the financial statements of 1907 enterprises of the cooperative sector of Russia for 2014–2018. The methods of trend and correlation-regression analysis were used. A methodology for financial analysis and forecasting the development of the cooperative sector was developed and presented in the paper. The structure of the sector, cyclicality, and volatility of indicators are evaluated. The behavior of companies in the sector is analyzed in terms of operating, investment, and financial activities. The possibility of creating value by sector companies and the long-term growth rates of key indicators are analyzed. The methodology was tested on the data of sector enterprises. Indicators for the largest enterprises were separately calculated. The results show that the sector is non-cyclical, low concentrated. The most significant operators have a real economy of scale. The sector is heterogeneous, agricultural cooperatives dominate it. The operational efficiency of sector enterprises is declining, and investment and financial activity are low. The largest enterprises in the sector are characterized by higher operational efficiency and investment activity, they create value. Relying on the multivariate regression analysis, the author makes predictions regarding the financial results of enterprises in the sector, which are based on linear, logarithmic, and power-law trends. Also, the author forecasts operating expenses, identifying a moderate increase in revenue and a decrease in the profit of enterprises in the sector due to the pronounced positive economies of scale and increased intra-industry competition due to the monopolization of market infrastructure. The competitiveness of enterprises in the sector can be improved through government support for the formation of digital infrastructure. Keywords Financial analysis


Financial modeling
Cooperative sector

V. G. Kogdenko (&) National Research Nuclear University “Moscow Engineering Physics Institute” (MEPHI), Moscow, Russia e-mail: [email protected]; [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_91

847

848

V. G. Kogdenko

1 Introduction The importance of cooperation, one of the most promising forms of integration of small and medium-sized businesses, is that, in the context of digitalization, it becomes a popular form of organizing a market economy and contributes to the development of regional and national markets. The purpose of this paper is to substantiate the analysis and algorithmic forecasting of the activities of cooperative manufacturing organizations, determine the criteria for assessing their financial condition, justify the values of performance indicators, identify trends in the development of the sector, and forecast its development. The study tested a hypothesis explaining the causes of stagnation in the development of the cooperative manufacturing sector.

2 Materials and Methods The study was carried out based on the information resource Spark-Interfax (Spark-Interfax, n.d.). The empirical base of the study included 1,907 cooperative manufacturing organizations and financial statements for the period of 2014–2018. The sample included organizations with revenues of 10 million rubles or more, including agricultural and non-agricultural production cooperatives and artels. The sample did not include data on enterprises with revenues of less than 10 million rubles since the purpose of the study was to evaluate the most developed part of the cooperative manufacturing sector. The research algorithm was based on the Harvard industry analysis paradigm formulated by E. Mason and D. Bain (Bain 1951). The study thus implemented a consistent analysis of the basic conditions and structure of the sector; the behavior of industry companies in terms of their operating, investment, and financial activities; and a comprehensive assessment of the companies’ effectiveness in creating value. The calculation algorithms were based on the well-known approaches of foreign scholars (Bernstein 2002; Pike and Nila 2006; Damodaran 2018, pp. 300–326). The industry analysis methods were developed in the works of V. V. Kovalev and E. A. Voronova (Kovalev and Voronova 2019, pp. 50–82), I. N. Rykova and D. Yu. Daburova (Rykova and Daburova 2019, pp. 93–106), I. N. Gallay (Gallay 2016). The methodological basis was formed by statistical analysis, forecasting, and financial modeling. Trend and correlation-regression analyses were used in the research.

Key Financial Indicators in the Production Cooperative Sector …

849

3 Results In the initial stage, as part of the assessment of the basic conditions of the sector, the following results were obtained. For most of the companies (67.54%), their age ranges from 20 to 30 years. Only 1.63% of companies have been operating for less than five years. Thus, we can state a low degree of activity in creating new enterprises. Private companies dominate in the studied sector (99.48%). According to the organizational and legal forms, agricultural production cooperatives (71.32%) and agricultural artels (16.10%) predominate. The structure by type of activity is dominated by cooperatives engaged in growing crops (42.11%) and breeding animals (29.94%). Thus, the dominant component of the cooperative sector is agricultural enterprises. The sample consists mainly of microenterprises (76.09%) and small enterprises (22.50%). Since the selected companies belong to the primary sector of the economy, the main forces of competition, according to the M. Porter model, can be considered the bargaining power of buyers, as well as intra-industry competition from more significant market players (Porter 2006, pp. 434–448). Another significant characteristic of the cooperative sector is that it is non-cyclical: fluctuations in sales are not significant; the growth of the total revenue of the sector is slightly higher than the GDP growth in 2015–2016 and is almost equal to it in 2017–2018. The volatility of the financial results of enterprises in the sector during the study period (2014–2018) is not high—the median of the coefficient of revenue variation for the sample is 17.98%; for net profit, it is 57.44%. A negative trend in the revenues of enterprises in the sector should be noted: The median growth rate steadily decreased from 15.83% in 2015 to 1.92% in 2018. The sector’s concentration level is shallow—the three largest cooperatives accounted for 7.03% of sales in 2014 and 8.53% in 2018, which indicates a highly competitive environment and a slight increase in the degree of concentration. The incentive to increase the degree of sector concentration is the positive effect of scale. Thus, the average net profit margin of sales of the three largest cooperatives was 20.04%, with a median of the indicator for the entire sector of 7.38% in 2018. In the course of the study, indicators of summary reporting for the sample were calculated: at the end of 2018, total assets amounted to 389.2 billion rubles, and consolidated revenue was 227.7 billion rubles. The calculated indicators of total revenue allowed us to estimate the contribution of the studied total to the country’s GDP—0.25% in 2018. The indicators of company behavior in terms of operating, investing, and financing activities for the entire sample are presented in Table 1. The analysis of the operating activities of sector organizations showed that the operating profitability of sales has decreased from 12.22% in 2015 to 4.77% in 2018, which is a sign of a decrease in the efficiency of sector enterprises in managing operating expenses. Also, a decrease in efficiency in terms of asset management is evidenced by a decrease in the return on invested capital, which dropped from 0.67 in 2015 to 0.63 in 2018. An increase in the working capital consolidation ration from 60 to 64 kopecks per ruble of revenue indicates a decrease in the efficiency of working capital management. It is worth noting the positive

850

V. G. Kogdenko

Table 1 The results of calculations for the entire sample Indicator Operating activities Net return on sales, % The ratio of working capital to revenue, % Return on invested capital Investment activities The ratio of capital expenditures to revenue The growth rate of non-current assets, % Financial activities The ratio of borrowed capital to invested Debt ratio Efficiency assessment Return on equity, % Return on invested capital, % Source Calculated by the author

2014

2015

2016

2017

2018

13.70 61.31 0.64

16.17 59.56 0.67

13.87 60.12 0.66

9.83 63.51 0.64

7.38 63.53 0.63

0.10 x

0.09 3.44

0.10 5.40

0.10 3.81

0.08 0.36

0.20 1.73

0.16 1.33

0.14 1.25

0.14 1.46

0.13 1.18

11.21 10.64

13.05 12.14

10.95 10.77

8.09 7.91

5.76 6.43

result from the non-operational activities of the industry’s enterprises, for which the median value as a percentage of revenue was approximately 2%, a decrease of 1 percentage point compared to 2015. Since, at the preliminary stage of the study, it was revealed that positive economies of scale characterize the sector, the financial performance indicators of the seven largest enterprises in the sector were further investigated. These enterprises are as follows: Vologda Dairy Plant, a production cooperative; Zvenigovsky, an agricultural production cooperative; a fishery collective farm named after V. I. Lenin; Kazminsky, an agricultural production cooperative collective farm; an agricultural production cooperative collective farm named after Gorin; Luch, a production cooperative chemical plant; Usolsky pig farm, an agricultural production cooperative. The results of the calculations are presented in Table 2. The results of calculations for the largest enterprises in the sector show that their operating activities are more efficient than the sector average. Thus, in 2018, the net sales margin was 18.30%, while the median for the sector did not exceed 8%; although, at the same time, it should be noted that for the largest enterprises in the sector, there is a noticeable trend toward a decrease in operational-efficiency indicators. The return on invested capital is also higher for the largest enterprises: in 2018, it reached 1.12; the management of working capital can also be considered more effective since the ratio of working capital to revenue was 60.52%, which is 3% lower than the median in the sector. Turning to the assessment of the investment activity of enterprises in the sector, it should be noted that the indicator of enterprises’ investment activity in the sector relative to revenue (CAPEX/Revenue) amounted to 8.37%, which had decreased from 10.49% in 2014. Concerning net profit, the values of capital expenditures in 2018 amounted to 78.14%, which can be estimated as the average level of

Key Financial Indicators in the Production Cooperative Sector …

851

Table 2 The results of calculations for the largest enterprises in the sample Indicator Operating activities Net return on sales, % The ratio of working capital to revenue, % Return on invested capital Investment activities The ratio of capital expenditures to revenue The growth rate of non-current assets, % Financial activities The ratio of borrowed capital to invested Debt ratio Efficiency assessment Return on equity, % Return on invested capital, % Source Calculated by the author

2014

2015

2016

2017

2018

19.28 44.29 1.36

22.58 47.46 1.34

20.92 52.43 1.27

18.41 60.51 1.17

18.30 60.52 1.12

0.06 x

0.05 9.57

0.08 22.14

0.07 7.44

0.11 13.26

0.10 0.34

0.07 0.13

0.05 0.49

0.04 1.63

0.04 0.25

21.54 21.33

26.48 24.24

23.24 22.33

18.23 17.92

16.80 16.09

investment activity. At the same time, the growth rate of non-current assets slowed down to 0.36% in 2018, while the value of the indicator reached 5.40% in 2016. For the largest enterprises in the sector, indicators of investment activity relative to revenue are slightly higher, and net profit is slightly lower due to the higher efficiency of the largest enterprises. The growth rate of noncurrent assets of the largest enterprises is higher, which confirms the conclusion about their higher investment activity. Thus, in 2018, this rate reached 13.26%. The higher investment activity of the largest enterprises will increase their efficiency in the future; it will also increase their separation from small enterprises in the sector. In the financial activities of the sector enterprises, several trends were identified. The level of debt is low; the share of borrowed capital in the invested capital declined from 0.20 to 0.13 during the study period. The debt ratio, which shows how many years the company needs to repay the existing borrowed capital, is not high; it amounted to 1.18 years in 2018, a decrease from 1.73 years in 2014. The distribution policy of enterprises in the sector is extremely conservative; 5% of companies pay out profits. The percentage of payments relative to net profit is low. In 2018, it amounted to 8.88%. The largest cooperatives have a lower level of financial activity; only three cooperatives attract borrowed capital. The level of their debt load has decreased from 0.10 to 0.04 of the invested capital. As for payments to participants, they are carried out by 2 enterprises out of 7; the payment amounts are in the range from 17% to 31% of net profit. Thus, it is possible to evaluate the financial activities of enterprises in the sector as extremely inactive; enterprises mainly rely on equity, which is replenished by the capitalization of profits. The low financial activity does not allow significant investments necessary to improve the efficiency of enterprises in the sector.

852

V. G. Kogdenko

A comprehensive assessment of the performance of enterprises in the cooperative sector showed that the return on equity decreased to 5.76%, and the return on invested capital decreased to 6.43%, which is not enough to create value and increase the welfare of owners. A comparison of two indicators of profitability allows us to assess the effect of financial leverage: it was positive in 2014–2017, and in 2018, it became negative. This explains the policy of companies to reduce the debt burden, which becomes irrational when it is impossible to earn a profit on assets whose is higher than the rate on borrowed capital. Regarding the dynamics of the sector, we can conclude that long-term growth in revenue and assets (compound annual growth rate, or CAGR) for 2014–2018 was 7.86% and 7.49%, respectively, while net profit for the study period decreased (CAGR 1.38%). For the largest enterprises in the sector, it can be noted that their average profitability is significantly higher than the median in the sector and exceeds 16%. According to these indicators, they are quite creditworthy and successful in creating value. Since organizations do not practically attract borrowed capital, they have a return on equity ratio that is almost equal to the return on investment. Thus, there is no effect of financial leverage. Regarding their growth rate, higher values can be noted (CAGR of assets at 13.57%; CAGR of revenue at 9.07%), profit did not increase significantly, and there was no real profit growth in the study period. In order to provide a more meaningful assessment of the cooperative sector, a comparative assessment of its effectiveness relative to the corporate sector was made during the study. For this, one of the agricultural holdings of Russia—PAO “Cherkizovo”—was chosen; the calculations are presented in Table 3. Table 3 The results of the calculations for PAO “Cherkizovo” Indicator Operating activities The ratio of working capital to revenue, % Return on invested capital Investment activities The ratio of capital expenditures to revenue The growth rate of non-current assets, % Financial activities The ratio of borrowed capital to invested The cash ratio of debt Efficiency assessment Return on equity, % Return on invested capital, % Source Calculated by the author

2014

2015

2016

2017

2018

16.38 1.18

27.45 0.82

21.97 0.89

16.79 0.88

19.36 0.79

0.14 x

0.13 18.92

0.13 8.68

0.17 18.20

0.15 15.23

0.39 1.97

0.44 8.26

0.42 4.12

0.49 3.84

0.53 4.85

37.33 22.88

11.33 7.52

3.49 5.70

10.70 9.06

19.70 11.76

Key Financial Indicators in the Production Cooperative Sector …

853

According to the calculations, the operational efficiency of the PAO is lower than the efficiency of large enterprises in the cooperative sector; for example, the net sales margin wass 11.67% in 2018, while for the largest cooperatives, it was 18.30%. However, the investment and financial activity of a representative of the corporate sector of the economy is noticeably higher, which provides this business with a higher return on equity—19.70% (due to the effect of financial leverage), as well as increased efficiency in the long run. It should be noted that the return on invested capital indicates that the size of agribusinesses creates value. In general, a comparative assessment shows that large cooperatives have the potential to compete effectively with the largest companies in the industry. However, they need to attract financial resources and intensify investment activity. A forecast of the sector’s indicators is provided for the entire sector and separately for the largest enterprises based on summary indicators. Revenue and financial results from other operations were forecasted using the construction of logarithmic and power-law trends, operating expenses were estimated based on a multivariate regression model, and other non-operational financial results were predicted based on a linear trend. The forecasting algorithms are presented in Table 4. c S , TR c B —forecast revenues of the The following notation is used in the table: TR c S , TC c B— sector and largest enterprises, respectively; t is the number of the year; TC c S, forecast operating expenses of the sector and largest enterprises, respectively; FR c B —non-operational forecast result of the sector and largest enterprises, respecFR tively. The results are presented in Table 5. As shown in the forecast, the sector will continue to grow. However, negative trends in the dynamics of efficiency will lead to a decrease in the profit indicators of enterprises in the sector as a whole and for the largest enterprises. The reasons for this situation are the conditions of fierce competition for relatively small cooperatives with large agricultural holdings, retail chains, processing, and supply companies with significant market power.

Table 4 Forecasting models Models for sector enterprises Revenue model Operating expenses model

c S ¼ 39801  LN ðtÞ þ 163496 TR c S ¼ 13508 þ 0; 154  TR c S þ 101304  t TC

Non-operational financial result model

c S ¼ 4398; 9  t0;2331 FR Models for the largest enterprises in the sector Revenue model c B ¼ 20042  t0;2838 TR Operating expenses model c B ¼ 1391 þ 0; 377  TR c S þ 6791  t TC Non-operational financial result model Source Developed by the author

c B ¼ 208; 86  t  617 FR

854

V. G. Kogdenko

Table 5 The forecast of indicators of enterprises in the sector, million rubles Indicator

2018

Sample forecast Consolidated revenue 227 737 Summary non-operating result 6 085 Net profit 28 262 Forecast for the largest enterprises of the sample Consolidated revenue 31 397 Summary non-operating result 513 Net profit 6 147 Source Developed by the author

2019 (forecast)

2020 (forecast)

234 810 6 401 21 844

240 945 6 679 14 100

33 326 636 6 000

34 816 845 5 776

4 Discussion The study showed that the significant positive economies of scale and the monopolization of agricultural infrastructure are the reasons for the low dynamics of the cooperative agricultural sector and a decrease in its efficiency. The directions for solving the problem are as follows: supporting institutions for the development of cooperation, namely, “financial aid funds, information and consulting network, specialized centers for the training and professional development of cooperative personnel” (Petrikov 2017, pp. 3–29), creating a distribution network, providing access to loans at a reduced rate, and compensation reduction of market prices and insurance payments, as well as “the provision of grants in the form of subsidies from the federal budget for the implementation of promising innovative projects in the agricultural sector complex” (Ushachev et al. 2016), in particular, “government subsidies for the implementation of precision agriculture technologies” (Shustikov 2018). It seems that the main direction of state policy in terms of supporting the cooperative sector of the economy should be to ensure the introduction of digital technologies and the formation of digital infrastructure. This can ensure the explosive growth of the sector, as confirmed by expert estimates and practice. According to I. Kozubenko, director of the Department of Development and Management of State Information Resources of the Agro-Industrial Complex of the Ministry of Agriculture of Russia, “comprehensive digitalization will allow farmers to reduce costs by 23%” (Davletshin and Trofimov 2018). Goldman Sachs experts believe that the use of digital technology will increase global agricultural productivity by 70% by 2050. Thus, the effectiveness of using uncrewed aerial vehicles, which monitor the status of crops and the quality of fieldwork in inventory, artificial intelligence, and the systematization of large databases (Davletshin and Trofimov 2018) has already been confirmed. It should be noted that the vast potential for increasing the efficiency of the cooperative sector is that “digitalization eliminates a lot of unnecessary intermediaries, which now account for up to 80% of the retail price of the product” (Davletshin and Trofimov 2018).

Key Financial Indicators in the Production Cooperative Sector …

855

5 Conclusion The study of the financial condition of the cooperative production sector of the Russian economy allowed us to conclude its insufficient long-term competitiveness and effectiveness due to the pronounced positive economies of scale as well as the monopolization of market infrastructure. This is confirmed by a comparative analysis of indicators of operational activity efficiency, investment, and financial activity of the sector as a whole and its largest enterprises, as well as by a comparison with representatives of the corporate sector of the economy. Forecast calculations confirm the negative trends in the lag in the development of cooperatives relative to representatives of the corporate sector of the economy. The competitiveness of small forms of business organization can be improved by introducing digital technologies; only the innovative behavior of market entities, initiated and supported by the state, can ensure the progressive development of the cooperative sector of the economy.

References Bain, J.: Relation of profit rate to industry concentration. Quart. J. Econ. 65, 293–324 (1951) Bernstein, L.A.: Analysis of financial statements: theory, practice, and interpretation. Finance and Statistics, Moscow, Russia (2002) Damodaran, A.: Investment Valuation: Tools and Methods for Valuing Any Assets. Alpina Publisher, Moscow (2018) Davletshin, I., Trofimov, A.: Digital redistribution. Benefits and risks of digitalization of agriculture (2018). https://www.agroinvestor.ru/technologies/article/30405-tsifrovoy-peredel/ Gollay, I.N.: Comprehensive analysis of industry markets as a decision-making tool aimed at introducing an innovative product to the market. Econ. Anal.: Theory Pract. 4, 20–35 (2016) Kovalev, V.V., Voronova, E.A.: Logic and criteria for assessing the financial condition of a leasing company. Bull. St. Petersburg Univ. Econ. 35(1), 50–82 (2019). https://doi.org/10. 21638/spbu05.2019.103 Petrikov, A.V.: Agricultural cooperation in Russia: problems and solutions. Econ. Sci. Fundam. Appl.Res. Cooper. Sect. Econ. 4, 3–29 (2017) Pike, R., Neil, B.: Corporate Finance and Investing. Peter, St. Petersburg (2006) Porter, E.M.: Competitive strategy: Methodology for analyzing industries and competitors. Alpina BusinessBux, Moscow (2006) Rykova, I.N., Daburov, D.Yu.: Improving the tools for assessing the financial potential of the electricity industry. Corp. Financ. 1, 93–106 (2019). https://doi.org/10.17323/j.jcfr.2073-0438. 13.1.2019.93-106 Shustikov, V.: Digital technology comes to agriculture (2018). https://sk.ru/news/b/pressreleases/ archive/2018/02/21/cifrovye-tehnologii-prihodyat-v-selskoe-hozyaystvo.aspx Spark: Official website. (n.d.). http://www.spark-interfax.ru Ushachev, I.G., Sandu, I.S., Demishkevich, G.M.: Methodological approaches to the development of innovation and investment in the agricultural sector. Scientific Advisor, Moscow (2016)

Approaches to Solving the Existing Problems in Green Logistics Ljudmila Yu. Alexandrova , Olga F. Kireeva , Elena V. Krasilnikova , Alevtina Yu. Munshi , and Stanislav V. Timofeev

Abstract The article substantiates the relevance of environmental business practices, research on consumer cooperation as a logistics facility, solving the problems of green logistics based on functional and systemic approaches. A comparative analysis was carried out in order to identify the specifics of environmental business practices and study their impact on the effectiveness of solving environmental problems. A comparative analysis of the experience in companies practicing environmentally oriented logistics management was carried out. The authors conduct a comparative analysis of the possibilities and limitations in using eco-technologies. Also, a comparative analysis of various approaches to solving the problems of green logistics by methods of theoretical and empirical research, systemic and statistical analysis was carried out. The authors analyze these approaches on the basis of indicators, such as environmental policy, information transparency of the enterprise, management system, environmental activities, specifics of the implementation of logistics and communication processes. They made it possible to determine the socio-ecological and economic guidelines of green logistics, the specifics of the application of “green” technologies at all stages of the logistics process. Green logistics is seen as a scientific and practical activity for the safe strategic management of the supply chain in order to minimize environmental risks and optimize resource consumption. The article substantiates the need to L. Yu. Alexandrova (&)
O. F. Kireeva
S. V. Timofeev Cheboksary Cooperative Institute (Branch) of the Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] O. F. Kireeva e-mail: [email protected] S. V. Timofeev e-mail: [email protected] E. V. Krasilnikova
A. Yu. Munshi Russian Customs Academy, Lyubertsy, Russia e-mail: [email protected] A. Yu. Munshi e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_92

857

858

L. Yu. Alexandrova et al.

integrate the groups of practices used in creating environmentally sustainable chains: environmental management, “green” procurement and consideration of environmental criteria for selecting suppliers, eco-design, cooperation with customers. Also, the article substantiates the need for state regulation in the field of environmental safety, which helps prevent malfunctions in the functioning of “green” supply chains.







Keywords Green logistics Greening logistics activities Eco-technologies Green decisions Customer focus Systemic and functional approaches










1 Introduction Currently, more and more attention is paid to environmental issues and the efficient use of natural resources. The scale of the negative impact on nature threatens the ecological balance and poses a threat to the ecosystem of the world as a whole. Unfortunately, our country is no exception. The environmental situation in the Russian Federation is recognized as dysfunctional. The data of Sect. 2 of the Environmental Safety Strategy of the Russian Federation for the period up to 2025, adopted by Decree of the President of the Russian Federation of April 19, 2017 No. 176, attest to this). The poor environmental situation in Russia is manifested in the following facts: high levels of air pollution in cities; pollution of surface and groundwater, degradation of aquatic ecosystems, low quality of drinking water; deterioration of land and soil (the total area of contaminated land in circulation is about 75 million hectares). Also, the unfavorable environmental situation in Russia is manifested in the annual increase in the amount of production and consumption waste disposed at landfills and dumps, etc. According to experts, the deterioration of the environmental situation in the country leads to annual economic losses amounting to 4–6% of Russia’s GDP. The introduction of environmental and resource-saving technologies in the Russian Federation will have a minimum economic effect of $500 million per year. In the transportation sector, the economic effect will be up to $400 million; in the agricultural sector, the economic effect will be more than $500 million. These effects make relevant the study of various approaches to solving the problems of green logistics. Also, they make it necessary to take into account environmental requirements more broadly, both in the economy as a whole and in the logistics activities of enterprises, including consumer cooperation, as logistics facilities.

Approaches to Solving the Existing Problems …

859

2 Materials and Methods In the practice of entrepreneurial structures, the implementation of logistic functions, with a correct and careful attitude to the environment, begins to acquire great importance. This is due to the fact that the movement of material flows along the market chain through the implementation of procurement, transport, and storage operations leads to a need to solve environmental problems. Also, the complexity of the logistics processes and the geographic “disunity” of chain links make it necessary to solve environmental problems. The problems entailed by the negative impact of logistic efforts on the environment (disturbance of groundwater ecosystems, deterioration of air, soil, water, etc.) and the associated deterioration in human health were solved using the following. The solution to these problems was facilitated by a comparative analysis of the functional and systemic approaches of green logistics, methods of theoretical and empirical research, and systemic and statistical analysis. Studies of both domestic (Abramova et al. 2014; Bugayan et al. 2017; Kizim and Kabertay 2013; Osintsev and Rakhmangulov 2018; and Sagomonova and Chichinadze 2017) and foreign (Vijayvargy et al. 2017; Ghadimi et al. 2016; and Żak 2015) scientists are devoted to the problems of the environmental component of supply-chain management. An analysis of the results of their research allows us to note the lack of unified approaches to solving the problems of green logistics and greening professional activities. Since the environmental aspects of the activity began to appear as part of the development of the green economy, in our opinion, it is advisable to use the term “green logistics”. It represents the science of the effective management of material and associated flows while minimizing the negative impact on the environment. Minimization of negative environmental impact is carried out through the use of resource-saving technologies and eco-friendly transportation, warehousing, and storage of goods. As an activity for the safe, strategic management of the supply chain, it provides for the use of environmentally friendly technologies and equipment at all stages of flow (from the purchase of raw materials to the sale of finished products). The purpose of using environmentally friendly technologies is to minimize environmental risks, optimize resource consumption, and increase the consumer value of products for consumers. Green logistics ensures the movement of the material until it is “turned” into a product with subsequent collection, sorting, transportation of waste and its bringing to disposal, to safe storage in the environment. Green logistics involves the integration of environmental and socio-economic aspects at all stages of supply chain management. Its economic component is responsible for optimizing logistics costs; the social component forms the conditions for the safe production, distribution, and use of products. The environmental component contributes to the improvement of the environmental situation while maintaining product quality. The use of energy and resource-saving technologies,

860

L. Yu. Alexandrova et al.

along with the integration of the designated components of the management of end-to-end logistics flows, form the contour of green logistics. Requirements for introducing a complex of socio-ecological-economic guidelines into the process of company management underlie the concept of supply chain sustainability and the Triple Criterion for logistics management. As we see from Fig. 1, the stability of the supply chain is ensured by the integration of components, a comprehensive review of all the issues studied. Also, the stability of the supply chain is ensured by the presence of the dominant role of a complex (not simple) and whole (non-constituent elements) object or phenomenon. Thus, the basis for the management of stream processes is a system analysis that allows us to consider any research object as an integrated logistics system even when it consists of separate components. The distribution network of consumer cooperation is distinguished by a well-functioning system of promoting goods to retail enterprises, and the synchronization of goods flows. Consumer cooperation, as a logistics facility, is distinguished by the fulfillment of a dual function: commercial and social.

3 Results An analysis of the experience of foreign companies practicing environmentally-oriented logistics management shows that the coherence of environmental and economic factors leads to positive results. For example, the introduction of eco-activities by a Japanese company, K Line, led to a 1% reduction in harmful emissions into the atmosphere. When machines with hybrid engines are used by UPS express delivery operators, gas emissions will be reduced by 671 tons per year. Deutsche Bahn Schenker Rail, a German carrier, offers a way to transport cargo that completely eliminates carbon emissions. The experience of foreign companies is shown in Table 1. The result of this effective activity was a systematic approach to solving the problems of green logistics and is manifested in the following: coordination of environmentally friendly logistics processes and characteristics, resource

Social component

Environmental component Rational use of natural resources. Ecomanagement. Minimizing eco-risks

Improving the standard of living. Education development. Lack of discrimination

SUSTAINABILITY

Economic component Profit. R&D Cost reduction. The economic growth

Social and economic management

Fig. 1 Components of the sustainability of the supply chain. Source (Żak 2015, p. 253)

Approaches to Solving the Existing Problems …

861

Table 1 Experience of foreign companies practicing environmentally oriented logistics management Company Name

Country

Monoprix

France

Franprix Amazon

USA

United Parcel Service (UPS) Itella

Finland

Unilever Kawasaki Kisen Kaisha (K Line)

Environmental activities

Netherlands, UK Japan

Deutsche Bahn Germany Schenker Rail Source Compiled by the authors

Transportation of goods by rail to the logistics platform. Delivery of goods by natural gas vehicles. Use of electric vehicles Delivery of goods by river transport The use of packaging consisting of 100% recyclable materials using a minimum of packaging material Hybrid engines consuming gallons of fuel annually by 35% less Monitoring resource consumption to find opportunities to reduce consumption (switching to LED lamps). Separate waste collection by type. Vehicle exhaust control Emission reduction due to multimodal transport. Reduction in road transport Installation on ships of a computer system that optimizes engine performance based on weather monitoring Electricity for electric locomotives from renewable energy sources, due to additional fees from the client

requirements at the beginning and end of the cycle, synchronization of environmentally friendly logistics flows integration of greening efforts of the company to contact audiences, and integration of supply, production, and distribution. Also, a systematic approach to solving the problems of green logistics included the elimination of inconsistencies between the goals and indicators (including environmental) of the logistics system, as well as the structure and dynamics of functional cycles that link the enterprise with its consumers and suppliers into a single environmentally sustainable supply chain. This approach also involved promoting eco-products by adding value through the purchase of goods/services at the right place and time, in the right quantity and quality, and with minimal cost, as well as constructive solutions to logistical problems. As part of a systematic approach to solving the problems of green logistics, constructiveness should occupy a special place in the study of environmentally friendly end-to-end management of logistics flows. The system of green logistics provides for compliance with the principles of the implementation of eco-technologies and solutions, as well as harmonization of relations with contact audiences and the parameters of material flows in the supply chain. Also, constructiveness provides for an environmental audit—a reflection of resource-saving options within corporate environmental management standards.

862

L. Yu. Alexandrova et al.

The use of resource-saving technologies in logistics can reduce the stock of materials (40–60%), accelerate the turnover of working capital (20–40%), and reduce the cost of loading and unloading and storage (15–30%). On the other hand, it leads to an increase in transportation costs (by 1.5–2 times). This is because the application of the principles and rules of green logistics in companies is limited by a number of factors: the high cost of implementing resource-saving technologies, the time-delayed result of greening activities, and the lack of proven methods for applying “green” technologies at the enterprise. Also, the use of green logistics in companies is limited by the lack of practice in the formation of return flows and established traditions of waste-sorting and the reuse of materials (Table 2). Due to the opportunities available and the desire of consumers to use the eco-products of the manufacturer with a “green” reputation, at present, there is an increase in Russian companies making “green decisions”. For example, Russian Railways is engaged in environmental activities, decides on the protection of atmospheric air and water resources, protection against noise, waste management, and technical re-equipment. Unfortunately, for many domestic companies, the main task remains to ensure economic efficiency, and the introduction of “green” technologies is considered unprofitable. The reason for this is the inconsistency and fragmentation of logistics, unresolved differences between the functional areas and the respective units, that is, a functional approach. It is characterized by the image character of environmental programs (Table 3). Thus, the analysis of approaches to solving the problems of green logistics can be carried out according to the following indicators: environmental policy of the Table 2 Opportunities and limitations of using “green” logistics technologies Technology

Opportunities

Limitations

The use of multi-turn packaging, energy-saving and environmentally friendly materials in the construction of warehouses

Decrease in expenses for utilization, purchase of containers. Reduction of toxic fumes during the operation of warehouse buildings, energy costs of warehouses Reducing emissions of fuel combustion products into the atmosphere Exception waste emissions. Additional income from their sale for recycling Minimization of emissions of fuel combustion products

Quick deterioration of containers due to exposure to chemicals. The high cost of building specialized warehouses

Increased vehicle carrying capacity Providing recycling processes Transition to environmentally friendly modes of transport Shortened transportation routes

Minimization of emissions of fuel combustion products, transportation costs Source (Krupenkina 2018, pp. 745–750)

The carrying capacity of a vehicle is determined by safety standards A small number of firms engaged in the processing of toxic waste Restriction of the network of railway and water transport routes Extensive geography of industrial facilities in Russia

Approaches to Solving the Existing Problems …

863

Table 3 Comparative characteristics of the functional and systemic approaches to solving the problems of green logistics Indicators

Functional approach

Systems approach

Environmental policy of the enterprise

Policy making in the field of environmental safety. Partial implementation of it. Image character of environmental programs

Management System, environmental management

Compliance with environmental legislation, internal audit, conducting an environmental impact assessment of the company

Business focus and enterprise interests

Eco-oriented business. Balance of interests of the company, state, society as a whole Uncontrolled reduction in the consumption of natural resources with their partial recovery Inadequate consumer information, official publication of the minimum possible income indicators Transition to environmental standards in the design of offices that reduce the burden on the environment. Resource saving Situationality and fragmentation. Continuity of logistics operations and functions without regard to customer needs. Low level of attention to customers and fragmented work with them

Development and implementation of environmental strategies and policies. Their modification. Implementation of corrective actions for identified non-conformities Development of environmental programs (together with contact audiences) and internal reports, high environmental responsibility Socio-environmental-oriented business. Balance of interests of a company, state, society, target audiences, consumers Energy and resource saving, rational use of resources

Priority areas of eco-activity

Information transparency of the enterprise

Approaches to “green office”

The nature, specifics of the implementation of logistics and communication processes

Product value for consumers. Their expectations

Not high enough. Product safety, economic and ethical requirements for it, functional suitability

Customer service

Service without regard to contact history and customer profile

Openness, wide availability of information for consumers (providing certificates for products, etc.) Maintaining a green office. Environmental education staff. Long-term customer relationship Complexity and integration. Multichannel integration of both business processes and communications with consumers. The active and interactive nature of personal communication with customers High with an uptrend. Fulfillment by the company of obligations stipulated by laws, documents, environmental requirements Personalized service, the provision of online services (continued)

864

L. Yu. Alexandrova et al.

Table 3 (continued) Indicators Effect. Result

Functional approach

Ecological and economic, episodic. Economic benefits, maximizing profits, reducing the eco-load on the environment Source Compiled by the authors

Systems approach Socio-ecological, long-term. Integration of economic benefits, socio-environmental aspects

enterprise, the nature of the implementation of logistics processes, results, etc. Coordination of eco-events by independent links of the logistics system, sharing a common responsibility within the framework of the objective function, the transition from a functional to a systematic approach creates favorable opportunities for the effective solution of green logistics problems.

4 Discussion Each company chooses its own approach to the formation of “green” supply chains (GSCM). Despite this, several groups of practices are highlighted that are used to create environmentally sustainable chains: environmental management, “green” procurement, eco-design, cooperation with customers, and renewed investment (Vijayvargy et al. 2017). The internal environmental management of the company consists of the formation of GSCM as a strategy supported by senior and middle management. The practices of this group include the following: overall quality management, ISO 14000 certification, conducting an internal audit and assessing the company’s environmental impact, developing environmental programs and internal sustainability reports. “Green” procurement involves the introduction of environmental management in the procurement management process. This is done to purchase raw materials of appropriate quality that meet the environmental requirements of the customer company. Customers focused on compliance with eco-standards, analyze the environmental activities of suppliers, their eco-competence and reputation, the safety of sources of raw materials (Fig. 2). Each of the identified eco-criteria for evaluating suppliers includes a number of specific indicators and measures (Table 4). An analysis of the environmental criteria for evaluating suppliers showed that companies in the light, automotive, and pharmaceutical industries pay particular attention to supplier pollution control and environmental management. Least popular are “green” reputation and eco-friendly suppliers. Eco-design is understood as the actions of the company at the product development stage, aimed at minimizing its negative impact on the environment

Approaches to Solving the Existing Problems …

865

Fig. 2 Environmental criteria for evaluating suppliers by enterprises in the light, automotive and pharmaceutical industries, %. Source (Ghadimi et al. 2016)

Table 4 Environmental criteria for evaluating suppliers Criteria group

Criteria

Environmental competencies

Volumes of use of environmentally friendly materials. The use of “green” approaches and technologies in production. Availability of processing facilities Eco-design Development of eco-design products in terms of material and energy consumption. The ability of a supplier’s eco-product to recycle, reuse its components, repair, and safe disposal. Eco packaging “Green” reputation Image on the market. Market share. The level of customer loyalty. The quality of relationships with stakeholders. Availability of environmental training for employees. Product labeling. Audit of suppliers’ internal environmental management system Environmental control The volume of emissions of harmful substances into the atmosphere, wastewater discharge. Volumes of municipal solid waste (MSW), greenhouse gas emissions, hazardous materials used in production. The level of resource consumption in production Internal environmental The presence of environmental certificates (including ISO 14000). management Implementation of environmental standards in organizational and production processes. Compliance with environmental laws. Environmental audit programs. Cross-functional cooperation. Total quality management Source (Ghadimi et al. 2016)

throughout the life cycle and not affecting its cost. The development of environmental programs at all stages of the supply chain implies the strengthening of environmental efficiency through active joint work with customers. Also, the development of environmental programs involves the strengthening of environmental efficiency through the resumption of investments, including profitable ways

866

L. Yu. Alexandrova et al.

to restore or utilize production reserves to save funds invested in their acquisition. Thus, a systematic environmental approach to doing business and solving its problems creates opportunities for lean and profitable restoration, repair, disposal of waste materials, and excess reserves. The integration of identified environmental safety practices and government regulations will prevent supply chain interruptions. Legal regulation remains the main engine for promoting and developing green logistics. Its traditional tools cover restrictive measures that limit various activities or prohibit the production/use of certain products. These tools include the use of efficient vehicle models and components (energy-efficient air conditioners and tires, lighting, and lubricants), restricting access to vehicles, and the complete closure of certain geographical areas for certain categories of vehicles. Also, traditional tools include encouraging the use of low-emission transport alternatives, speed limits as an instrument of climate policy, and lever of influence on road safety. Economic instruments are aimed at establishing “monetary” incentives, such as carbon taxes for burning fossil fuels; promotion of low-carbon technologies, etc. Legal regulations force manufacturers and suppliers to be liable for the goods after their sale and in the process of providing after-sales service support, for return and disposal of packaging, and damage to the environment as a whole. In the case of packaging materials that are not recyclable, individual companies resort to a policy based on high environmental responsibility and constructive eco-solutions. The diversity of environmental practices and problems in the activities of consumer cooperatives also raises the need for legal regulation designed to encourage their environmental activities. The external (state structures, public organizations) and internal environment (organizational structures) influence the process of achieving competitive advantage by reducing the negative impact of the environment.

5 Conclusion Reducing the environmental impact of a firm is possible through the greening of all its functional areas (procurement, production, distribution, transport, information, logistics). Moreover, it can also be achieved by greening the entire product distribution system, which can ensure the company’s access to domestic and foreign markets where corporate social responsibility is a consumer preference. The application of a systematic approach to the study and solution of green logistics problems is a marketing tool for creating a positive image for an organization. Moreover, the application of a systematic approach is a factor in customer retention and the basis for the formation of a customer-oriented business. This has a positive effect on the investment attractiveness of the industry and the interest of potential investors. Consistency and customer focus is a part of the company’s market behavior aimed at protecting the environment and the client. Today, the average client has

Approaches to Solving the Existing Problems …

867

become more environmentally aware and is forcing manufacturers and suppliers to make decisions. Thus, in the current state of green logistics and its focus, consumers and companies set the goals for its development at the level of specific participants in the supply chain. Green logistics focuses on partnerships with suppliers and consumers, lean manufacturing and transport and storage processes, loading and unloading, waste management, and the organization of reverse flows. Green logistics is associated with end-to-end management of material flows, both in the direction of the consumer market and in the opposite direction. Therefore, green logistics and highlighting the features of functional and systemic approaches to solving its problems, representing the novelty of this work, suggest the following. They suggest the practical implementation of the principles of reverse, marketing, integrated logistics, and environmental management. The development of companies’ experience in improving the environmental friendliness of logistics activities, the development of the logistics business makes the next aspect a priority. The priority is to focus on achieving the maximum balance between the benefits of the company and the costs of organizing logistics. This is achieved by taking into account the characteristics of the economic environment and its environmental component. Acknowledgements The authors of the article are grateful to their parents and colleagues for valuable advice and recommendations on the design of the article.

References Abramova, T.S., Kuskova, E.S., Karpova, N.P.: Ecological directions of logistics development. Probl. Econ. Manag. 6(34), 21–23 (2014) Bugayan, S.A., Ignatov, K.D., Ivanov, N.D.: Green logistics in Russia: difficulties and prospects. J. “U” Econ. Manag. Financ. 2(8), 102–109 (2017) Ghadimi, P., Azadnia, A.H., Heavey, C., Dolgui, A., Can, B.: A review on the buyer-supplier dyad relationships in sustainable procurement context: past, present and future. Int. J. Prod. Res. 54 (5), 1443–1462 (2016) Kizim, A.A., Kabertay, D.A.: Modern trends of “green” logistics in the context of globalization. Logistics 1, 46–49 (2013) Krupenkina, V.S.: “Green” logistics in the oil and gas industry of Russia: opportunities and limitations. In: Collection of Articles Based on Materials of the XXXVI Student International Scientific-Practical Conference: “Scientific Community of Students. Interdisciplinary Research”, vol. 1, no. 36, pp. 745–750. SibAK, Novosibirsk (2018) Osintsev, N.A., Rakhmangulov, A.N.: “Green” logistics in Russia and abroad: a review of best practices. Vest. Rostovskogo Gosudarstvennogo Univ. Putey Soobshcheniya 3(71), 120–134 (2018) Sagomonova, E.F., Chichinadze, E.M.: Directions for the application of green technologies in logistics. In: Albekov, A.U. (ed.) Materials of the International Scientific-Practical Conference. XIII South Russian Logistics Forum “Innovative Achievements of Green Logistics: International Experience and Russian Practice”, pp. 306–310. RSEU, Rostov-on-Don (2017)

868

L. Yu. Alexandrova et al.

Vijayvargy, L., Thakkar, J., Agarwal, G.: Green supply chain management practices and performance: the role of firm-size for emerging economies. J. Manuf. Technol. Manag. 28(3), 299–323 (2017) Żak, A.: Triple bottom line concept in theory and practice. In: Rojek-Nowosielska, M. (ed.) Social Responsibility of Organizations: Directions of Changes, pp. 251–264. Publishing House of Wrocław University of Economics, Wroclaw (2015)

Formation of Integrated Marketing Communications in the Cooperative Economy Sector Sergey A. Mamontov , Vladimir V. Saliy , Daria V. Glebova , and Irina A. Schmidt

Abstract In modern Russian conditions for the functioning of the market, in the cooperative sector of the economy, to ensure its sustainable development, the following becomes relevant. For organizations, the problem of an integrated approach to planning communications aimed at the interaction of organizations with the goal of successfully promoting firms and its products becomes relevant. To achieve greater effectiveness of modern management, the relationship between market entities must be built using marketing communications. As a result of which, a communication space conducive to the development of the organization is formed. The purpose of the study is to form integrated marketing communications in order to promote cooperative organizations and their goods and services. The authors presented an expanded structure of marketing communications. This structure allows you to create a communication space in which the market interests of market entities can most harmoniously and widely combine.




Keywords Marketing communications Interaction marketing Communication space Value Service Staff











Cooperation


S. A. Mamontov
V. V. Saliy
I. A. Schmidt (&) Siberian University of Consumer Cooperation, Novosibirsk, Russia e-mail: [email protected] S. A. Mamontov e-mail: [email protected] V. V. Saliy e-mail: [email protected] D. V. Glebova Novosibirsk State Pedagogical University, Novosibirsk, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_93

869

870

S. A. Mamontov et al.

1 Introduction Cooperation, as a sector of the economy, arose during the formation of the market associated with the process of capital reproduction. It arose as a form of resolving contradictions in this particular area. Cooperation most fully expresses the desire for the self-regulation of consumption. The cooperative sector acts as a socioeconomic organization, the mechanism of which fits into market relations, reproduces them and adapts them to the conditions of a market economy. In such conditions of functioning, a communication space is formed in which cooperative organizations interact and build strong ties for their development. The cooperative sector of the economy helps reduce unemployment and has a fairly high share of employment, and the cooperative sector acts as a social stabilizer. Thus, the cooperative sector has socioeconomic significance, and its development contributes to the social orientation of the economy. The reorientation of organizations from classical marketing to interaction marketing has led to the need to rethink the role of marketing communications in the activities of cooperative organizations. The level of prices for services and goods ceases to be the only factor in trade transactions. New paradigms, namely communication, competence, reputation, trust and expectations, come to the fore. These intangible components shift the focus from traditional marketing to the development of interaction marketing based on personal contacts and relationships. The emergence of new communication channels based on IT technologies (Internet, mobile communications, etc.) (Naumov 2014), and the development of digital marketing (Golubkov 2018; Zemlyanskaya et al. 2019), contribute to the development of relationships between subjects of the cooperative sector. The impact of digitalization has led marketing to become more focused. This allows one to quickly establish feedback with the consumer, which exceeds all consumers’ expectations. The role of integrated marketing communications changes. Integration is supported by consolidation, i.e., focus on the continuity of work with the customer (Reid et al. 2005). With consolidated marketing, consumer information is accumulated, and this knowledge goes to all points of contact with digital channels (Altukhov et al. 2019). The cooperative sector of the economy has its own cooperative ideology, culture, mentality, principles and values. Within organizations, relationships between employees and shareholders are unique and specific. They are based on voluntary membership, democratic principles of management and economic independence. They are built on a common interest, which is mutually beneficial conditions. This contributes to the development of internal communications, which has a beneficial effect on the formation of a common culture of cooperative organizations. Such a chain of development requires systematizing communications and streamlining the actions of market entities. Thus, consumer relationship studies are shifting towards a focus on the relationships among market entities as a method of forming a space for communication.

Formation of Integrated Marketing Communications …

871

2 Materials and Methods When conducting scientific research, the following techniques were used: web analytics, comparison method, principles of system analysis and synthesis. The works of various scientists were studied to understand the problems of forming integrated marketing communications. In general, we can say that the specifics of marketing communications and the concept of promotion have already been considered by scientists in various industries. For example, A. V. Khristoforov and I. V. Khristoforova consider the features of the formation of a complex of marketing communications, taking into account the specifics of the service sector. The authors focus on the complex marketing communications as part of unequal complex promotion. They also introduce additional elements that provide the consumer with the most important information for making a decision (Khristoforov et al. 2017). In some cases, research authors identify the concepts of “promotion” and “marketing communications.” They note that “the terms ‘marketing communications’ and ‘product promotion’ can be used in certain conditions as equivalent and identical to each other” (Prokudina and Malakhova 2014). A. M. Vetitnev notes that the concept of “marketing communications” is broader than the promotion complex and offers the following definitions: “Marketing communications is the process of effectively communicating information about a product or idea to a target audience. The complex of marketing communications is considered as measures (means) used to achieve the goals of marketing communication”. Also, it is explained that “the promotion complex is considered as part of the marketing complex, which combines a set of diverse methods and tools. These methods and tools allow you to more successfully bring the product to the market, stimulate sales and form a circle of customers” (Vetitnev 2008). In the field of consumer cooperation, A. A. Chalova considers marketing communications the management strategies of consumer cooperation organizations. She says that of all groups of marketing functions, the communication group is less clearly defined (Chalova 2011) and the tools of marketing communications in the activities of consumer cooperation organizations need to be improved (Chalova 2014). E. E. Tarasova explores the commercial activities of consumer cooperation in general, including the communication component (Tarasova 2004). Yu. V. Kuzminova considers marketing communications as a way to promote goods and services in the cooperative sector of the economy. She states that at the stage of innovative transformations in an organization, personal marketing communications increase the effectiveness of promoting goods and services (Kuzminova 2014). However, the issues of the formation and development of integrated marketing communications in the cooperative sector of the economy remain insufficiently explored. Thus, the foregoing determined the relevance of the research topic and necessitated the further development of theoretical foundations and practical recommendations for the development of communication, the purpose of which is the successful functioning of cooperative organizations in modern conditions.

872

S. A. Mamontov et al.

3 Research Results In the cooperative sector, the communication space is an environment in which the interaction between market entities (organizations, consumers) proceeds through integrated marketing communications in order to successfully promote organizations and their products. In developing the concept of relationship marketing, we can highlight the features that contribute to the formation of communication space in the cooperative sector: • • • • •

Behavior of organizations in relation to each other; Democracy in relationships; Focus on building long-term relationships; Formation of customer loyalty and retention based on expectations; The influence of factors of a psychological nature, which contributes to the formation of motivation for cooperation; • Orientation to the culture and values of the organization; • The development of modern information technology.

In the formation of the communication space as a result of the interaction of market entities, it is necessary to accumulate information about consumers and disseminate it through various communication channels. These channels allow you to automatically scan consumer preferences each time you interact with them (Mai and Olsen 2015). In this regard, it is necessary to expand the structure of marketing communications in the cooperative sector of the economy. As prerequisites for the development of communication activities, we can note the following. First, in a broad sense, marketing communications are an important link in the system of interaction between the subjects of the communication process. The result of marketing communications is the promotion of organizations and their products and services. Therefore, the structural element of the promotion process is marketing communications, which is not the only element in the structure of communications. Second, it is advisable to pay attention not only to external communications carried out by the leadership of cooperative organizations but also to internal communications made between employees of organizations to accumulate data on consumers. Thirdly, in addition to the main communications of marketing (advertising, sales promotion, direct marketing, personal sales, etc.), other communications also affect promotion, such as communications of the service, as well as rumors of the consumers themselves. In the framework of this study, marketing communications are considered a complex system of market interaction with public circles related to the movement of goods, the exchange of information, technology, knowledge and experience (Rossiter and Percy 2000, p. 7). Therefore, in the cooperative sector, the structure of marketing communications includes not only traditional external communications

Formation of Integrated Marketing Communications …

873

(advertising, sales promotion, public relations, personal sales, etc.) (Chalova 2014) but internal communications (training personnel in service and product characteristics, transfer of information about consumers) and additional communications carried out during the operation phase of the goods related to the service. Personnel qualifications, work experience, market knowledge, communication form and professional competence are dominant in the formation of relationships with consumers. Together, external, internal and additional communications are used and integrated, forming a communication space for the promotion of organizations and their goods and services (Luxton et al. 2015). Due to intense competition, the consumer increasingly prefers those organizations that are able to satisfy his/her needs during the purchase of goods and its operation. But the consumer also prefers organizations that are able to determine their expectations from the consumption or operation of a product or service. The consumer, him/herself, began to place an increasing emphasis on receiving services from one organization in a “full package” (from product information to expectations that they would be interested in). And for organizations, the emphasis has shifted from needs to the consumer’s internal expectations. Due to their characteristics, as well as modern development, marketing communications contribute to the fact that organizations are able to determine these expectations. They satisfy the needs at all stages of the purchase (from determining needs to determining expectations). Properly planned communications based on democratization help cooperative organizations establish and maintain relations with market entities. Organizations among themselves are not considered as a separate link with their functions and goals, but as business partners in order to meet the needs and determine consumer expectations. Consumer expectations should coincide with the result, namely with the quality of the goods and the provision of service and information. Only in this case, cooperative organizations will succeed in their development. In interaction marketing, the consumer does not concentrate on assessing the value of the product, but on assessing the entire process of interaction with the product. Relations themselves become a value, concluded in relationships with a circle of entities entering into a relationship chain (Shmidt 2018). In the interaction of cooperative organizations, the following lines of relationships are built: consumer—organization, organization 1—organization 2, and business partners—consumer. Its own format of relationships corresponds to each line of relations, which determines the formation of value objects and the use of appropriate marketing communications (Table 1). Business partners are organized with the following common goal: the promotion of organizations and their products as a result of the formation of long-term relationships and the exchange of resources and information. The communication space unites participants, channels and means of communication aimed at establishing and maintaining relationships between organizations and consumers in the framework of achieving long-term marketing goals. It becomes obvious that cooperative organizations are the basic functional structure of this communication space, without which it is impossible to create an effective system of promotion and customer service. The relations formed at the same time

874

S. A. Mamontov et al.

Table 1 Created values in the process of interaction of subjects in the communication space Relationship line

Relationship format

The subject value

Marketing communications

1 Organization —Consumer

2 Single deals, long-term relationships Cooperation

3 Product value, service value (repair and maintenance) The value of information (experience, competence)

4 Basic, additional communications

Long-term relationships

Personnel value + information value (experience, competence)

Organization — Organization Business partners— Consumer

Sales promotion, public relations, internal communications Integrated marketing communications

are based on the achievement of economic benefits and competitive advantages of cooperative organizations. Thus, in the cooperative sector of the economy, the formation of a communication space allows the most harmonious and widespread combination of market interests of market entities, such as consumers, trade enterprises and industrial organizations. Thus, it allows one to determine the structure of integrated marketing communications (Fig. 1). As a result, each communication carried out is of value to cooperative organizations and their goods, which contributes to the promotion of organizations and goods. Promotion is through well-planned and integrated communications. Promotion should be considered as an activity affecting several motives for the purchase of goods or services (needs, interests and attitudes). The motives for the purchase of goods and services in the organizations of the cooperative sector may be a profit motive that is enacted when searching for a more profitable purchase option and a recognition motive that is associated with the formation of one’s status, increasing prestige and image. The motive of convenience, which is manifested in the desire to facilitate and simplify actions, can also be a motive for the purchase of goods and services in organizations of the cooperative sector. Also, the following motives may be the motives for the purchase of goods and services in organizations of the cooperative sector: the motive of assistance, or complicity, which is the desire to do something for the environment where close colleagues appear, and the motive of self-realization, manifested in the need to achieve personal goals in life and attitudes. The motive is defined as an “objectified” need; it gives meaning to individual consumer actions, his/her goals, and the conditions for their achievement. In turn, organizations take the best possible steps to serve the customer. At the same time, using marketing communications, the organization is able to influence the needs of the target market, motivating it from the right side.

Formation of Integrated Marketing Communications …

875

Advertising Sales Promotion Public Relations Personal Sales Internet Marketing Exhibition Activities Event Marketing Merchandising

External communications of a cooperative organization

CONSUMER Additional communications

Internal communications of market entities

ORGANIZATION

Service communications Free communications (rumors)

Staff communications

Fig. 1 The structure of integrated marketing communications in the cooperative sector of the economy

Back in the 2000s, Professor Ale Smidts first proposed an innovative addition to traditional marketing and called it neuromarketing. Smidts defined neuromarketing as the ability to connect to the human brain at the subconscious level and generate trust that could produce expected actions. An effective tool is in the hands of manufacturers, which helps to better understand the needs of consumers. It is neuromarketing that causes the brain to trigger the desired action. It uses stimuli that affect eyesight, touch, smell, memory, taste buds, and social skills. Factors affecting economic choice may be music, words, or substances that can act on brain activity in the direction that the producer needs (Bodina 2019). The main objective of incentives is to bring to a conscious level latent (latent) needs that will motivate consumers to buy. In the context of marketing understanding, motivation is a set of internal processes that give the consumer’s behavior an “energy impulse” and a general orientation in the selection and purchase of goods and services. To form a motivation to buy a particular product means to create a need for it at the expense of any values. When making a choice of goods and services, the consumer is irrational. The human subconscious plays a big role. But in fact, this is a manifestation of our

876

S. A. Mamontov et al.

implicit values, which appeared on the basis of emotions (Kruglov 2007). These values govern human behavior in the social environment.

4 Conclusion In the development of the concept of marketing interaction in the cooperative sector of the economy, with the aim of developing cooperative organizations, a communication space is formed due to the relationship between market entities. It allows one to most harmoniously and precisely combine the market interests of market participants, thereby determining the structure of integrated marketing communications. The built relationships are based on democratic principles of cooperation, the social orientation of the sector, as well as on the mutual benefit of organizations and consumers.

References Altukhov, A.I., Bogoviz, A.V., Kuznetsov, I.M.: Creation of an information system—a necessary condition of rational organization of agricultural production. In: Advances in Intelligent Systems and Computing, vol. 726, pp. 800–809 (2019) Bodina, Yu.N.: Neuromarketing as an innovative technique for promoting a product on the market. In: Kondrakova, Yu.N. (ed.) Abstracts of the International Annual Scientific-Practical Conference “New in Science and Education” of the Hebrew University, pp. 14–16. MAKS Press, Moscow (2019) Chalova, A.A.: Marketing communications management strategy for consumer cooperative organizations. Belgorod Univ. Cooper. Econ. Law 4, 212–219 (2011) Chalova, A.A.: The need to improve marketing communications tools in order to increase the efficiency of consumer cooperation organizations. Terra Econ. 12(2-2), 58–63 (2014) Golubkov, E.P.: The use of digital technology in marketing. Mark. Russ. Abroad 2(124), 3–12 (2018) Khristoforov, A.V., Khristoforova, I.V., Suglobov, A.E.: Marketing communications in the service sector: application specifics and innovative approaches. RIOR: INFRA-M, Moscow (2017) Kruglov, V.G.: Implicit and explicit values in the general analysis scheme. Bull. St. Petersburg Univ. 6(2-1), 139–150 (2007) Kuzminova, Yu.V.: The use of personal marketing communications at the stage of innovative transformations of an organization. Fundam. Issledovaniya 11-1, 140–145 (2014) Luxton, S., Reid, M., Mavondo, F.: Integrated marketing communication capability and brand performance. J. Advert. 44(1), 37–46 (2015) Mai, H.T.X., Olsen, S.O.: Consumer participation in virtual communities: the role of personal values and personality. J. Mark. Commun. 21(2), 144–164 (2015) Naumov, V.N.: Interaction marketing as a toolkit for managing a sales system. In: Bagiev, G. L., Popova, Yu.F. (eds.) Interaction Marketing: New Directions of Research and Tools. Syktyvkar State University Publishing House, Syktyvkar (2014) Prokudina, O.A., Malakhova, N.L.: The study of the conceptual and terminological apparatus of the definitions of “promotion” and “communication”. Molod. Uchenyy 1(04), 44–47 (2014) Reid, M., Luxton, S., Mavondo, F.: The relationship between integrated marketing communication, market orientation, and brand orientation. J. Advert. 34(4), 11–23 (2005)

Formation of Integrated Marketing Communications …

877

Rossiter, J.R., Percy, L.: Advertising and Promotion of Goods. Piter, St. Petersburg (2000) Shmidt, I.A.: Application of the relationship portfolio in marketing activities in the private housing market. Izv. Ural State Econ. Univ. 19(2), 111–123 (2018) Tarasova, E.E.: The study of commercial activities of consumer cooperation. Kooperativ. obrazovaniye, Belgorod (2004) Vetitnev, A.M.: Health resort marketing. “Akademiya” Publishing Center, Moscow (2008) Zemlyanskaya, N.B., Komonov, D.A., Sazonova, M.V.: Internet resource monitoring system as a digital marketing tool. Univ. Herald 2, 20–23 (2019)

Risk Mapping Methodology for Agricultural Cooperative Sector Enterprises Tatiana A. Panteleeva , Artur A. Panasuk , Leonid V. Matunin , Ludmila E. Dubanevich, and Elena G. Kozlova

Abstract The paper focuses on the methodology for creating a risk map applicable to agricultural cooperative enterprises. The primary purpose of the risk map for agricultural cooperation is to visually display on the map the relative location of each specific risk in relation to other significant risks in the context of determining the boundary of the admissible (critical) significance of the risk. The linear risk map is the best way to solve this issue. The paper determines that, as a result of the process of a qualitative risk assessment, it is possible to create a classified list of the most significant risks of business processes. These risks are visualized, allowing the organization to transform business processes as efficiently as possible to adapt to the influencing factors. Keyword Economic security


Risks
Agricultural cooperation

T. A. Panteleeva (&)
A. A. Panasuk
L. V. Matunin Institute of World Civilizations, Moscow, Russia e-mail: [email protected] A. A. Panasuk e-mail: [email protected] L. V. Matunin e-mail: [email protected] L. E. Dubanevich Moscow Institute of Economics, Moscow, Russia e-mail: [email protected] E. G. Kozlova Moscow State Regional University, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_94

879

880

T. A. Panteleeva et al.

1 Introduction One of the essential conditions for ensuring the stable functioning of an economic system is to study the risk of international instability at specific historical moments, the uncertainties of the domestic political situation in a country, as well as the state of economic and political ties and relations with other countries, self-proclaimed territories, and territories under the auspices of the UN. It is necessary to mention the risks of losses and wastages that arise when a sovereign entity (country) leaves an international (intercountry) alliance. The indicated losses and wastages are likely to be borne by both parties—the sovereign entity that leaves the alliance and the countries that remain in the alliance. Brexit can be seen as an example: The procedure itself was painful, both psychologically and financially, and with a rather high degree of certainty, it can be assumed that the costs of the partial (or full) collapse of the European Union were not incorporated in the forecasted calculations of the Union’s budget expenditures. In this case, there will be considerable expenses. The state budget will have to be redrawn, and the costs of this process will add difficulties in the form of losses and wastages to the sovereign entity (country) and, accordingly, all of the objects of the economies of the EU countries. There are many similar examples from the field of international economics. The so-called sovereign fund of the country most often serves as a source of financing to mitigate the “unprofitable” situation on a national scale. In Russia, as in many other countries, a similar fund exists; it is called the country’s foreign exchange reserves. The recent trade wars between various countries are worth a special mention, and the confrontation between the United States and China is probably the most well-known one. Western countries imposed sanctions against Russia to weaken its economy after the return of Crimea in 2014. With the help of counter-sanctions and the support of the government, the country’s agricultural cooperation received a new impetus for development. In the context of fierce competition, strategic management of the organization’s profitability through the stabilization of production and the consolidation of market positions is of great importance (Levshin and Ponomarev 2009). The determining factor is the study of the laws of the market mechanism that forms transformation processes both within the country’s economy as a whole and in its sectors (Babich et al. 2012).

2 Materials and Methods Market relations cover various aspects of the company’s activities that cannot be characterized by a single indicator (Vrazhnova et al. 2019). The primary method of risk research in manufacturing industries is the use of heuristic methods, including pairwise comparison (Beaudoin and Swartz 2018; Dudin et al. 2015). This method,

Risk Mapping Methodology for Agricultural Cooperative Sector Enterprises

881

which allows adapting the conditions for assessing the risks to the transformation of market processes, is characterized by the presence of conditions of limited statistical and hard-to-measure factors (Beaudoin and Swartz 2018). In order to systematize the known risks in agricultural cooperation, it is recommended to build a risk map using the following methodology. In the process of assessing the risks of enterprises in the cooperative sector, it is possible to apply a rating assessment of the probability of risk occurrence and determine the degree of significance of the consequences if the risk occurs (Table 1). A characteristic of the insignificant materiality of risk consequences during the implementation of a risk event (score 1) is a neglecting indicator of its significance, which allows neglecting the investigated risk. A characteristic of moderate materiality (score 2) is the insignificance of risk consequences in the context of easily removable consequences. A characteristic of high materiality (rating 3) is a significant indicator of the risk consequences, in the context of a sufficient impact on the production process with negligible costs to eliminate the risk consequences. Critical materiality (score 4) is defined as a high indicator at which a strong influence is exerted on the processes within an organization at high costs to eliminate risk consequences. A characteristic of the catastrophic materiality of risk (score 5) is the presence of unavoidable risk consequences. The results of a qualitative assessment carried out using a simple expert survey should be a weighted average estimate of the probability of the occurrence of a risk event (risk realization) and a weighted average assessment of the materiality of the consequences when the risk has occurred. The calculation of the weighted average ratings is carried out by the head of the expert group, by adding up the corresponding ratings received from experts and dividing the total by the number of experts participating in the survey.

Table 1 Risk rating Probability (rating)

Description

Specification

Materiality (rating)

Description

5

Significant probability Probably

High probability that the event will occur An adequate probability that the event will occur The event may occur Low probability that the event will occur The event will occur only in exceptional cases

5

Catastrophic

4

Critical

3 2

Great Moderate

1

Insignificant

4 3 2

Possible Insignificant probability 1 Minimum probability Source Developed by the authors

882

T. A. Panteleeva et al.

In practice, some researchers use various ratings, for example, from one to three or from one to ten, simplifying the process of qualitative assessment or complicating it and increasing the degree of accuracy of the assessment itself, since each market has specific conditions for the formation of its development (Andreasson et al. 2016). The impact on market conditions is also indirect (Pilnik et al. 2014). After determining the weighted average values of the probability of occurrence of each of the risk events and the materiality of the consequences when they occur, the value of the significance of each risk is calculated by summing the average materiality and the average probability of occurrence of the risk. According to the results of calculating the significance of risks, we can compile a table by placing risks according to the degree of importance for the researcher, starting with the most significant ones. After calculating the significance of the risks of the economic system and forming a table of the significance of the risks, it is necessary to draw up a so-called risk map to illustrate the ranking of risks and select the risks most significant for the system.

3 Results As a result, we compile a table of foreign policy risks affecting agricultural cooperation in the country (Table 2). At its core, such a table is a ranked list of significant risks. The maximum significance of the risk is no higher than ten. Table 2 Risk relevance table No. 1. 2.

Name of risk

Economic war Military actions, civil unrest, and social unrest 3. Nationalization of enterprises 4. Introduction of tax legislation 5. Changes in currency legislation 6. Development of regulations prohibiting organizations with the dominance of foreign investment from participating in exchange transactions 7. Change in arbitration practice 8. Development of regulatory acts defining a ban on reinvestment 9. Development of regulatory acts restricting the right of investors to enter the governing bodies of the enterprises to which they are investing Source Developed by the authors

Probability

Materiality

Relevance

5 4

5 5

10 9

4 4 3 2

4 3 3 3

8 7 6 5

2 1

2 2

4 3

1

1

2

Risk Mapping Methodology for Agricultural Cooperative Sector Enterprises

883

Probability

Risk mapping is carried out based on indicators of the probability of risk realization and the significance of the consequences of its implementation (Table 2). The risk map should also reflect the value of the indicator of the significance of each risk. Usually, companies use a matrix risk map, a general view of which is shown in Fig. 1. The numbers along the coordinate axes are the rating values of probability and materiality, and the numbers on the risk map at the intersections of the coordinate lines materiality-probability are the values for the significance of the risks. The bold, broken line is the so-called critical border of risk tolerance, whose location on the risk map should be determined by the executive body of the company. On the matrix map of risks, each risk is placed in a specific separate box, which allows us to set specific priorities (focusing on a significance indicator) and shows the position of each risk relative to others. It is believed that all risks that fall above the critical limit of risk tolerance are subject to mandatory additional management and new risks should not be applied to risks below this boundary. The experts decided subjectively, using some criteria, that the critical limit of risk tolerance should be drawn in the coordinates (4–5–4–5–6–5–4–5–4). The general picture of the location of risks on the proposed risk map is not informative enough to illustrate the significance of risks for the company and the choice of appropriate risk management methods. For example, risks with the materiality of 1 and 2 may have the probability of 3 and be in the same “box”, located on the critical border of risk tolerance.

5

6

7

8

9

10

4

5

6

7

8

9

3

4

5

6

7

8

2

3

4

5

6

7

1

2

3

4

5

6

0

1

3

4

5

Fig. 1 Risk matrix card Source: Developed by the authors

2 Materiality

884

T. A. Panteleeva et al.

The significance of the risk with the materiality of 2 is higher and amounts to 5, against the significance of 4 for risk with the materiality of 1, but based on the methodology for constructing a matrix risk map, the development of new risk management methods is not required for these risks. Also, risks located, for example, at different points on the critical border of risk tolerance, have different significance levels (from 4 to 6). This makes the process of selecting priority risks for priority management from those that are significant for the company insufficiently precise. It also makes it challenging to choose universal methods of risk management, resulting in increased costs for risk management processes. In order to determine the significance of risks based on the results of their qualitative (rating) assessment and the building of a risk map, it is necessary to use the theory of solving multicriteria problems of choosing effective solutions. This theory is aimed at realizing the goals of multicriteria optimization. The formation of areas for further improvement of each criterion is recommended. However, a simultaneous increase in all criteria almost always seems utopian. The solution of the following inequality characterizes this theory: C  A þ B; at that A  0 and B  0

ð1Þ

Figure 2 shows the triangle ABO; any point inside it satisfies this non-strict inequality. Side OA of the triangle is equal to side OB (isosceles triangle). All boundaries are included in the range of permissible values, and along the line A-B, there is a limit value of C. Based on Fig. 2, the values of A and B cannot simultaneously have maximum values, since it is necessary to observe the conditions of inequality—when increasing one indicator, it is necessary to reduce another, provided that the sum of A and B is less than C. Therefore, when solving multi-criteria problems, we are talking not about optimal solutions but about effective ones. Effective decisions are those decisions that cannot be improved (accept the maximum value) at once by all criteria.

Fig. 2 The ratio between the values of A and B Source: Developed by the authors

Аi A Boundary C

О

В

Вi

Risk Mapping Methodology for Agricultural Cooperative Sector Enterprises

885

As indicator A, we understand the values of the probability of risk realization, and as indicator B, we understand the significance of the consequences of its implementation. The sum of these two indicators will be equal to the rating assessment of the significance of the risk (indicator C), and indicators A and B cannot be more than five. The application of this methodology should be reflected in the regulation on the organization of the risks of the cooperative enterprise and implemented in practice. The theory of solving multicriteria problems of choosing effective solutions can be illustrated by the example of a linear risk map with a new compilation methodology (taking into account rating ratings) (Fig. 3). The rating significance of risks relative to each other can be illustrated more clearly than when applying the traditional matrix risk map (Fig. 1). By setting the permissible (maximum possible) values of the probability of risk realization and the materiality of the risk consequences during its implementation, it is possible to precisely determine the value of the admissible (critical) materiality of risks. For example, we determine that, in order to fulfill the inequality conditions (Formula 1), the allowed probability value must be equal to four (the probability that the event will occur is high) at zero materiality. The admissible value of materiality must be equal to four (critical materiality) at zero probabilities. In this case, the permissible (critical) value of materiality will be equal to four, and a critical limit of risk tolerance can be established along the line 4–4. If the risks fall on this border, all of them will have the same value of materiality equal to four.

Fig. 3 Linear risk map. Source: Developed by the authors

886

T. A. Panteleeva et al.

Thus, it is always possible to reasonably justify the criteria for selecting an acceptable (critical) value of risk materiality for determining the location of the critical risk tolerance limit on the linear risk map.

4 Discussion The methodology for constructing a linear risk map allows, predicting when applying risk management methods, a decrease or increase in the probability of risk occurrence while determining the possible value of the materiality of the risk consequences during its implementation so that the value of the materiality of this risk (the sum of the probability and materiality) does not exceed the value permissible (critical) materiality, and vice versa. This is necessary when modeling risk situations in order to select universal risk management methods and develop measures to respond to risks. Therefore, we can always choose a more effective and less costly method of risk management aimed either at reducing the probability of risk realization (with an optimal increase in materiality) or at reducing materiality (the amount of damage) when realizing a risk (with an optimal increase in probability). The application of risk management methods aimed at simultaneously reducing the likelihood and materiality of the consequences, in most cases, is irrational (unnecessary) and very costly. In the above example, all risks within the triangle 4–0–4 will have a value of less than the permissible (critical) value and will be acceptable for the business processes (functional activities) of the cooperative enterprise. For any probability and materiality values, if the risk appears on the linear risk map above the critical limit of risk tolerance (line 4–4), then the value of the materiality of this risk will be higher than the value of the permissible (critical) materiality, and the risk itself must necessarily be subject to additional management. If the probability is above four, the risk will have an admissible (critical) significance value at any materiality value. If the probability of significance is higher than four, then it will also exceed the value of admissible (critical) significance at any value of probability. If we use the linear risk map and the above example of external risks for agricultural cooperation, we can establish that the risk with materiality 1 and probability 3 may not be managed. However, for the risk with materiality 2 and probability 3, which will be above the critical limit of risk tolerance, we must choose an additional management method.

Risk Mapping Methodology for Agricultural Cooperative Sector Enterprises

887

5 Conclusion The primary purpose of the foreign policy risk map for agricultural cooperation is to illustrate the relative location of a particular risk on the map in relation to other significant risks, as well as in relation to the border of the permissible (critical) significance of the risk. A linear risk map is the best way to solve this problem. Given the above reasoning, a linear risk map should be used for risk management. For a correct understanding of this risk management methodology, here are some definitions for future use: Catastrophic risks are risks that cannot be avoided, which, in the short term, do not allow the company to continue its activities (they lead to bankruptcy). Critical risks are risks that can cause significant material damage to the company; the risk consequences are difficult to avoid, which may prevent the company from continuing its activities. Great risks are risks that may cause certain material damage to the company; the risk consequences can be avoided, and the company can continue its activities. Moderate risks are risks that do not have a significant impact on the company’s activities, and the risk consequences of their manifestation are easily avoided. Minor risks are risks whose negative impact on the activities of the company are negligible. On a linear risk map (Fig. 3), risks that fall into the zone above line 8–8 are considered catastrophic, requiring decisions on additional risk management at the board level. Risks that fall into the zone from line 8–8 to line 6–6 will be considered critical. Those risks that fall into the zone from line 6–6 to line 4–4 are considered great risks requiring additional management at the level of the company’s executive bodies. Risks falling into the zone from line 4–4 to line 2–2 are moderate risks managed at the management level, and risks falling into the zone below line 2–2 will be considered insignificant risks that are managed in the ordinary course of business company. Following the specified threshold values (acceptable (critical) value of the significance of the risk), the executive bodies of the company distinguish a group of significant risks that are large, critical, or catastrophic. As a result of the process of qualitative risk assessment, a risk map to illustrate the significance of risks and a classified list of the most significant risks of business processes, which management should have paid prior attention to, is obtained.

References Andreasson, P., Bekiros, S., Duc, K.N., Uddin, G.S.: Impact of speculation and economic uncertainty on commodity markets. Int. Rev. Financ. Anal. 43, 115–127 (2016) Babich, T.N., Kozeva, I.A., Kuzbozhev, E.N.: Forecasting and planning in the setting of a market. Infra-M, Moscow, Russia (2012)

888

T. A. Panteleeva et al.

Beaudoin, D., Swartz, T.: A computationally intensive ranking system for paired comparison data. Oper. Res. Perspect. 5, 105–112 (2018) Dudin, M.N., Kucuri, G.N., Fedorova, I.Ju., Dzusova, S.S., Namitulina, A.Z.: The innovative business model canvas in the system of effective budgeting. Asian Soc. Sci. 11(7), 290–296 (2015) Levshin, M.F., Ponomarev, V.V.: Conditions in global commodity markets. Infra-M, Moscow, Russia (2009) Pilnik, N.B., Gushchina, A.A., Svintitskii, N.V.: The mechanism underlying the process that shapes market conditions in entrepreneurship. Fundam. Study 9(5), 1071–1076 (2014) Vrazhnova, M.N., Panteleeva, T.A., Vysotskaya, N.V., Chekadanova, M.V., Reznik, E.A., Freydina, I.A.: The economic security of companies within the petroleum machine-building sector in a climate of changing market conditions: Modeling risks. Int. J. Recent Technol. Eng. 8(2), 4425–4429 (2019)

International Cooperation in the Fight Against Environmental Crime: A Modern Mechanism for Combating Illegal Trade in Wildlife Mariana V. Arkhipova , Elena G. Bormotova , Elena A. Yakushevskaya , Yuri O. Golovin , and Valentina S. Arsentyeva

Abstract A vivid example of international cooperation is the combination of efforts in the fight against environmental crime. According to the International Criminal Police Organization, illegal trade in wildlife has moved up to rank 2 in terms of profitability after drug trafficking. To combat the illegal movement of objects of wild fauna and flora, the interaction of all countries is necessary. This article discusses the international mechanism to combat the illegal movement of objects of wild flora and fauna, which consists of the legal component, international organizations and joint operations, as well as projects. The main normative legal act is the Convention on International Trade in Endangered Species of Wild Fauna and Flora. The CITES Conference of the Parties to the Convention was established to ensure the application of this act. The CITES Conference of the Parties to the Convention should be seen as a cooperation in efforts to combat the illegal trade in wild species of flora and fauna. It is important to develop integration processes at the level of the Eurasian Economic Union. It is necessary to improve interaction with government bodies and organizations, including through international cooperation. It is worth noting that the EAEU is considering the formation, maintenance and use of a database of issued licenses, permits and conclusions in the field of foreign trade in goods through integration and cooperation. M. V. Arkhipova (&)
E. G. Bormotova
E. A. Yakushevskaya
Y. O. Golovin
V. S. Arsentyeva Kaliningrad Branch of the Russian University of Cooperation, Kaliningrad, Russia e-mail: [email protected] E. G. Bormotova e-mail: [email protected] E. A. Yakushevskaya e-mail: [email protected] Y. O. Golovin e-mail: [email protected] V. S. Arsentyeva e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_95

889

890

M. V. Arkhipova et al.







Keyword Eurasian integration CITES convention Specimens of wild fauna and flora United processes International cooperation







1 Introduction In anticipation of the 25th anniversary of Eurasian integration and the 5th anniversary of the Treaty on the Eurasian Economic Union (May 29, 2014), the following should be noted. Being a fairly young integration association, the EAEU is actively and successfully developing. For such a short period, it has taken the position of a full-fledged subject of the world economy. We can confidently state that the creation of the EAEU gave an additional impetus to the economic cooperation of the Member States on a fundamentally new basis, and contributed to the improvement of conditions for access to foreign markets. Further improvement of the functioning and disclosure of the integration potential of the EAEU requires the adoption of new decisions on the development of integration, the expansion of areas of economic cooperation. These decisions should be based on scientific, technological, and geoeconomic challenges. One of the components of the successful functioning of the EAEU is the comprehensive development of economic relations with external partners. The declaration on the further development of integration processes within the framework of the Eurasian Economic Union was signed by the heads of state of the Union on December 6, 2018, in St. Petersburg (Supreme Eurasian Economic Council 2018). It takes this as a basis for developing the formation of the EAEU, as well. Moreover, the EAEU is considered one of the most significant centers for the development of the modern world, open for mutually beneficial and equal cooperation with external partners by building new formats of interaction. New formats of interaction are being built through the intensification of cooperation with regional integration associations and international organizations and participation in the implementation of global initiatives. A vivid example of international cooperation is the combination of efforts in the fight against environmental crime. In the activities of the EAEU member states, in this direction, the coordinating role belongs to the Federal Customs Service of the Russian Federation. In the public declaration of the goals and objectives of the Federal Customs Service of the Russian Federation for 2019, ensuring economic security in the field of foreign economic activity is presented by a number of tasks. One of them is the development of interactions between the customs authorities of the Russian Federation and the law enforcement agencies of the customs services of the EAEU, the CIS, BRIC, the APEC, foreign countries and international law enforcement organizations. Based on the results of activities for six months of 2019, six international special customs operations were organized and carried out with the customs services of non-CIS countries. These operations are aimed at identifying and suppressing individual customs offenses on the passenger air and road transportation channels, combating the illegal movement of wild flora and fauna objects, and countering drug smuggling.

International Cooperation in the Fight Against Environmental Crime …

891

Environmental crime is a serious and growing international problem that can take many forms. One of these forms is the illegal trade in objects of wild flora and fauna. According to the World Wide Fund for Nature (WWF) and the International Criminal Police Organization (Interpol), the illegal wildlife trade is second in profitability after the drug trade, outstripping even the illegal arms trade. This causes enormous losses for the global economy, as well as irreparable environmental damage. To solve this problem, the efforts of all countries to develop a single international strategy to combat this type of offense are necessary. The implementation of new forms and methods of cooperation and integration using modern technical means and information technologies will be required to achieve such an ambitious goal.

2 Materials and Methods All data used in the scientific research was obtained from publicly available sources including the regulatory framework, statistical collections, newsletters, and so on. Statistical data of the EAEU member states and the World Customs Organization, fundamental scientific work, and open sources of information were used as a basis.

3 Results Currently, the mechanism of the international fight against the illegal movement of objects of wild flora and fauna consists of several elements. One of the main elements is the legal regulation of the movement of such objects. States sign various conventions, agreements, and covenants and undertake to fulfill their obligations. The Convention on International Trade in Endangered Species of Wild Fauna and Flora (hereinafter, CITES Convention) is a prime example. The signatories to this convention undertake all possible measures to prevent the extinction of species of flora and fauna as a result of their illegal trade (International Union for Conservation of Nature and Natural Resources [IUCN] 1973). However, participation in the convention is voluntary. Of course, the CITES Convention is considered the basic international legal act governing the trade in objects of wild flora and fauna. The Lusaka Agreement on Cooperative Enforcement Operations Directed at Illegal Trade in Wild Fauna and Flora can serve as an example of regional cooperation (Ministerial Meeting African States 1994). This agreement was signed in Lusaka, Zambia, in 1994. This agreement was adopted to facilitate the cooperation of environmental agencies in African countries, to establish uniform measures to combat persons who commit crimes against wildlife, and more.

892

M. V. Arkhipova et al.

The presence of legislation in the field of environmental protection determines the existence of bodies that monitor the implementation of such legal acts (Arsentyeva 2017). Regulatory functions can also be realized through the cooperative efforts of several countries, organizations and associations, subject to a number of principles: the balance of interests of all participants in integration processes, legality, equality, accessibility, adequacy, relevance, innovativeness, etc. (Bormotova and Lipatova 2014). The creation of international organizations, commissions, working groups and committees is another component of the international fight against the illegal movement of wild flora and fauna. In particular, on the basis of the CITES Convention, the so-called Conference of the Parties has been created, the structure of which is shown in Fig. 1. The Conference of the Parties convenes at least once every two years, and its activities are aimed at discussing issues related to the implementation of the Convention. The Animal Committee and the Plant Committee were created to provide scientific advice within their expertise. Each of the committees consists of six people from six main geographical regions (Africa, Asia, Europe, North America, Central and South America, the Caribbean and Oceania), as well as one specialist in the nomenclature of the studied objects. The standing committee provides supporting guidance, along with the secretariat, regarding the implementation of the Convention and oversees the management of the secretariat’s budget. In addition to these key roles, he coordinates and oversees, where necessary, the work of other committees and working groups and performs the tasks assigned by the Conference of the Parties and others. The CITES Secretariat is managed by the United Nations Environment Program (hereinafter, UNEP) and is located in Geneva, Switzerland. The main responsibilities of the secretariat are to ensure the operation of the convention (creating reports on the results of activities, notifying Parties of the convening of the Conference, organizing meetings, etc.). Another international organization whose activities are aimed at preventing the illegal movement of objects of wild flora and fauna is WWF. The World Wide Fund

Fig. 1 Structure of the conference of the parties to CITES. Source: Compiled by the authors

International Cooperation in the Fight Against Environmental Crime …

893

for Nature and the International Union for Conservation of Nature (IUCN) have developed a joint TRAFFIC program. This program was created in 1976. It aims to monitor trade in wild species of fauna and flora around the world. The IUCN operates a Species Survival Commission, one of the directions of which is the restriction and prohibition of trade in rare species of flora and fauna. Interpol plays a huge role in stopping the illegal movement of objects of wild flora and fauna. The International Criminal Police Organization is the founder of many projects and operations aimed at protecting the environment, including the suppression of the illegal trade of wild animals and plants. For example, the “Predator” project was created to develop focused, organized and coordinated efforts to prevent, first of all, the illegal trade of Asian big cats (tigers, leopards and others), as well as other species of wildlife at the regional, national and transnational levels. In the period from 2010 to 2015, this project was involved in nine intelligence operations involving nearly 50 countries. This led to more than 100 tigers and leopards, 56 tiger and leopard skins, hundreds of kilograms of feline bones, 12.8 tons of ivory, and almost 11 tons of meat and lizard skins being discovered and seized. Also, more than 2,500 turtles and many other wild animals, including bears, rhinos, red pandas, reptiles and protected species of birds and plants, were identified and seized (International Criminal Police Organization). The “Wisdom” project aims to combat illegal ivory trade. Similar projects have been created to combat illegal activities related to forests and plants, as well as to identify fishing crimes. An International Consortium for Combating Wildlife Crime (hereinafter, ICCWC) has been created on the basis of Interpol. The composition of this association is presented in Fig. 2. The United Nations Office on Drugs and Crime (UNODC) is a UN unit dedicated to combatting the illicit trafficking of drugs and weapons, organized crime, human trafficking and international terrorism (UNODC, 2019). The illegal trade of wild animals and plants is a profitable business that entails the creation of global criminal networks and organizations. In this regard, UNODC plays an important role in strengthening the capacity of states to investigate, prosecute and convict crimes against protected species of wild flora and fauna. At the same time, it

Fig. 2 Composition of the international wildlife crime consortium. Source: Compiled by the authors

894

M. V. Arkhipova et al.

Fig. 3 The percentage of the effectiveness of the methods for detecting illegally moving objects of wild flora and fauna by the customs services of the WCO member countries. Source: Illicit Trade Report (2015–2017)

complements other international legal resources that are related to environmental protection, such as the CITES Convention. A promising example of improving integration processes in the coordination of efforts to develop international cooperation and world trade is the mechanism for the creation and functioning of “SINGLE WINDOW” (UN/CEFACT 2005). The World Customs Organization (WCO), within the framework of the ICCWC, is called upon to ensure the coordinated work of the customs services of the WCO member countries to prevent the illegal movement of objects of wild flora and fauna. For example, according to the WCO report on illegal trade for 2015–2017, the current (operational, actual) control has become the most effective method for detecting illegally moved wildlife. Given that such information is law enforcement closed, more recent data are not available in open sources. The ratio of the effectiveness of the methods for detecting illegally moving objects of wild flora and fauna is presented in Fig. 3. Consortium is a powerful alliance for the effective fight against crime in the field of wildlife. Only thanks to work that takes into account various aspects related to crimes in the wild, we can achieve the preservation of its diversity of species.

4 Discussion Thus, the international mechanism to combat the illegal movement of objects of wild flora and fauna includes several main elements: legal regulation in the form of international legal norms, international organizations, committees, working groups, joint operations and projects.

International Cooperation in the Fight Against Environmental Crime …

895

EAEU member countries have implemented the provisions of the above normative legal acts into national legislation. In addition, at the EAEU level, the Decision of the Board of the Eurasian Economic Commission of April 21, 2015 No. 30 “On Non-Tariff Regulation Measures” was adopted (Eurasian Economic Commission 2015). This decision includes provisions on the export from the EAEU customs territory of rare and endangered species of wild animals and wild plants, included in the red books of the EAEU Member States. The CITES certificate is a generally accepted permitting document for countries that have signed the CITES Convention. In Russia, CITES certificates for the export of specimens of wild fauna and flora are issued by Rosprirodnadzor (the specially authorized body). However, for the first time, customs officials are confronted with CITES certificates when importing this category of goods during the actual movement of objects of wild fauna and flora. It would be logical to create a unified database of CITES certificates in the EAEU member countries. It would be logical if the national authorized bodies of the countries that signed the CITES Convention would take on the functions of first loading the issued certificates into a single database in electronic form in a time mode close to real. When controlling the movement of an object of wild fauna and flora, interested regulatory authorities of all countries of the world could have access to the necessary information from a single database. Formalization, unification and “digitization” of permits issued by authorized bodies of some countries and subject to verification and control when transporting goods across the border in other countries are necessary (e.g. CITES certificate, veterinary or phytosanitary certificates and others). The implementation of interstate exchange can also have a positive impact on the practical possibilities of interagency cooperation, not only when crossing the customs border but also with subsequent control of goods. Also, the implementation of interstate exchange can have a positive impact on the practical possibilities of interagency cooperation in the circulation of goods within the country (for example, on the interaction of customs authorities with state bodies that carry out veterinary and phytosanitary quarantine control [supervision]).

5 Conclusion Three elements of the international mechanism create a fairly effective system to combat the illegal movement of objects of wild flora and fauna. Also, the issues discussed indicate the presence of problems during customs control and customs operations in relation to objects of wild fauna and flora. It is proposed to create a unified database of issued permits at the EAEU level. It is worth noting that the EAEU is considering the formation, maintenance, and use of a database of issued licenses, permits, and conclusions (permits) in the field of foreign trade in goods. It is advisable to implement such work through the formation of a

896

M. V. Arkhipova et al.

single common process in the integrated information system of the EAEU foreign and mutual trade. The solution to this issue should be considered in light of Goals 4 and 6 of the public declaration of goals and objectives for 2019. Goal 6 involves improving information interaction with government bodies and organizations, including through international cooperation. Goal 4 is the implementation of the Comprehensive Program for the Development of the FCS of Russia for the period lasting until 2020 in order to promote the development of foreign economic activity and expand the use of electronic-digital technologies in customs (Federal Customs Service 2017; Federal Customs Service 2019).

References Arsentyeva, V.S.: International environmental agreements containing trade provisions and the role of customs authorities in their implementation. In: Sergeev, I.V., Kostik, E.E. (eds.) The Collection of Materials of the Creative Competition (Essay) of the First (Intra-University) Stage of the All-Russian Student Olympiad in the Specialty “Customs”, pp. 14–17. RIO of the Russian Customs Academy, Moscow (2017) Bormotova, E.G., Lipatova, N.G.: Interagency information interaction to ensure the implementation of control functions by customs authorities. RIO of the Russian Customs Academy, Moscow (2014) Eurasian Economic Commission: Decision of the Board of the Eurasian Economic Commission “on non-tariff regulation measures” (21 April 2015, No. 30), Moscow, Russia (2015) Federal Customs Service: Order of the FCS of Russia on approval of the comprehensive program for the development of the FCS of Russia for the period until 2020 (27 June 2017, No. 1065), Moscow, Russia (2017) Federal Customs Service: Public declaration of the goals and objectives of the federal customs service for 2019, Moscow, Russia (2019) International Consortium on Combatting Wildlife Crime. https://www.interpol.int/en/Crime-areas/ Environmental-crime/International-Consortium-on-Combating-Wildlife-Crime International Union for Conservation of Nature and Natural Resources, IUCN: Convention on International Trade in Endangered Species of Wild Fauna and Flora, Washington, DC (1973) INTERPOL. The International Criminal Police Organization: Official website (n.d.). www. interpol.int/en Ministerial Meeting African States: Lusaka agreement on cooperative enforcement operations directed at illegal trade in wild Fauna and Flora, September 1994, Lusaka, Zambia (1994) Supreme Eurasian Economic Council: Declaration on further development of integration processes in the framework of the EAEU, Saint-Petersburg, Russia (2018) UN/CEFACT: Recommendation No. 33: Recommendation and guidelines for the establishment of a “single window” mechanism to improve the effective exchange of information between trade organizations and government bodies, New York, NY; Geneva, Switzerland (2005) United Nations Office on Drugs and Crime: Official website (n.d.). https://www.unodc.org/unodc/ index.html World Customs Organization:. Illicit Trade Report 2015, Brussels, Belgium (2016). http://www. wcoomd.org/-/media/wco/public/global/pdf/topics/enforcement-and-compliance/activities-andprogrammes/illicit-trade-report/itr_2015_en.pdf?db=web

International Cooperation in the Fight Against Environmental Crime …

897

World Customs Organization: Illicit Trade Report 2016, Brussels, Belgium (2017). http://www. wcoomd.org/-/media/wco/public/global/pdf/topics/enforcement-and-compliance/activities-andprogrammes/illicit-trade-report/itr_2016_en.pdf?db=web World Customs Organization: Illicit Trade Report 2017, Brussels, Belgium (2018). http://www. wcoomd.org/-/media/wco/public/global/pdf/topics/enforcement-and-compliance/activities-andprogrammes/illicit-trade-report/itr_2017_en.pdf?db=web

University Interactions as a Form of Cooperation: Risks and Benefits Andrey A. Selyutin , Elizaveta V. Limarova , and Elena E. Sokolova

Abstract The educational system is a favorable ground for the competition of educational organizations, both at the interregional level and on domestic markets. We believe that the tension associated with this issue is partly due to a lack of understanding of the substantial identity of individual universities, the desire of the administration to get momentary benefits without taking into account the strategic development of the university as a whole and, partly, by focusing on specific educational programs. The proposal of network forms of interaction may, in our opinion, be the way out of this deadlock. First, constructive interaction with other educational organizations will help to realize their capabilities, take a fresh look at the policy of forming a pool of educational programs. Second, this will attract a broader range of specialists and create a truly unique product that has no analogs. The network form of sales of educational products will reduce the degree of tension between universities, caused by competition. Keywords Network form of interaction


Network university
Competition

1 Introduction According to many modern scholars, the university of the future should be an open system that actively interacts with business and government institutions (for example, as presented in the model of the “triple helix” developed by Itzkowitz (2011, pp. 5–10)), which contributes to the positive dynamic development of A. A. Selyutin Chelyabinsk State University, Chelyabinsk, Russia e-mail: [email protected] E. V. Limarova (&)
E. E. Sokolova Russian State Social University, Moscow, Russia e-mail: [email protected] E. E. Sokolova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_96

899

900

A. A. Selyutin et al.

human capital. A successful university of the future formulates and solves the tasks that lead it to its main goal: positioning itself as the center of an intellectual network that generates knowledge and forms competencies to increase the competitiveness of the economy. For this purpose, in world practice, there exist various types of regional and international cooperation between universities and governmental and non-governmental organizations. They can be implemented in the form of academic exchanges, joint research projects, and interaction between universities and local communities. We see Network University as the most optimal structure for meeting the challenges of the time, most suitable for implementing the idea of the university of the future and corresponding to the transition to a knowledge economy. In 2016, in the framework of the conference “Do we have a chance to get into the global future of education?”, held by the Agency for Strategic Initiatives and the Moscow School of Management “Skolkovo,” critical directions of the development of the modern educational paradigm were announced. One of these areas is the digitalization and penetration of information and communication technologies, which implies the protocols of network interaction and their distribution in business, education, and public life, which, in our opinion, confirms the relevance of the idea of Network University. The idea of creating a “University for a billion” was also proposed. The “University for a billion” is a global educational platform combining the highest quality knowledge and skills programs and global content, which also fully corresponds to the objectives of the Network University (Mackay 2016). According to many modern scholars, the main difference between a network university and traditional ones is that to transmit knowledge, one does not need to be in a particular place or building; it is necessary just to have any gadget on hand (Bogoviz et al. 2019; Bogoviz et al. 2020; Lee 2012). Knowledge loses its sacredness, as does the role of a teacher. The task of a network university is not to accumulate the knowledge already known, but to set a student a task, solving which he will acquire new competencies, including the skills of independent knowledge generation (Konstantinov and Filonovich 2007). Therefore, we believe that the network of educational space is very promising and in demand, as it can provide anyone with access to an unlimited range of knowledge sources and options for combining these sources. As noted by O. V. Akulova and O. V. Kharitonova, the network form of interaction helps organizations to overcome autonomy and closeness, and, conversely, to develop the interaction of social partners and build effective vertical and horizontal connections both within the organization itself (between its structural divisions) and between professional teams working on common problems (Akulova and Kharitonova 2013, p. 45).

2 Materials and Methods The research of network interaction typically exists along three vectors:

University Interactions as a Form of Cooperation …

901

1) a description of the aspects of the global network interaction of countries during the creation of a single educational space, designed as a separate educational institution (for example, the University of the Shanghai Cooperation Organization, the CIS Network University, or the BRICS Network University) (Furyaeva 2016, pp. 63–64). 2) network interaction of universities for creating individual educational programs (Kon et al. 2014, pp. 79–89; Medvedev and Skripnichenko 2011, pp. 239–242). 3) the consideration of good practices of network technologies to perform various indicators, such as an increase in the number of international students, the organization of practical training, the involvement of employers in the educational process, the development of distance educational technologies, etc. (Bazanova 2010, pp. 64–71; Lobov et al. 2015, pp. 9–14). An example of successful network interaction is the centers for collective use, for example, for expensive equipment or industrial premises. Resource centers are another form of network interaction. One of their tasks is to organize intranet interaction among network units (Morozova et al. 2016, pp. 66–69). An example is the Resource Center for Space Engineering, where all participants of the intranet are external organizations in relation to the resource center. In this research, we used comparative analysis to assess the educational components of educational institutions and identify potential conflict zones as well as the methods for questionnaires and interviews to determine the general psychological background of the identified bifurcation points. The next step was to monitor the readiness of organizations for network interaction, including a survey of principal figures of the faculty, a grid of internal stresses and external calls, and the assessment of educational resources (material and technical).

3 Results We see a positive trend in network interactions regarding foreign experience, including the fact that one of the fundamental principles of the Bologna system is “promoting the European philosophy of higher education, especially in the field of curriculum development, inter-institutional cooperation, mobility schemes, and joint training programs, practical training, and research” (Shestak et al. 2013). However, in the analysis of the research material, we identified potential risks of networking among organizations, as well as measures to reduce them: • Since network interactions are formed on a voluntary-contractual basis, problems with the management of this process will inevitably arise (e.g., who takes responsibility for making critical decisions, who analyzes disputed issues, etc.). Measures: the monitoring of network interaction; the creation of innovative management mechanisms. • Another potential issue is the mental unpreparedness of the participants of network interaction (both teachers and students) to this form of acquiring and

902

•

•

•

•

• •

A. A. Selyutin et al.

transferring knowledge. Measures: the development of technology for the formation of new professional stereotypes of teachers and other participants in network interaction; individual psychological counseling. Another challenge is the unavailability of the administrative apparatus of educational organizations to the network form of interaction (e.g., accounting, educational, and methodological departments, department of quality control of education, department of technical means of training, legal department). Measures: stage-by-stage development of a model of network interaction with each department involved in the preparation (development of options for the development of situations). Yet another challenge is the methodological mismatch of approaches and principles of modeling the educational process in network interaction. The result may be the early expulsion of students. Measures: the methodological consultation of the teaching staff and the development of a unified methodological base; attaching tutors to a student group to help overcome difficult learning situations. The formalization of network interaction. The connection of participants in the network process with reality is lost. The result is a backlog from the labor market, a slowdown in the development of the knowledge economy. Measures: the inclusion of employers in the educational process, practice-oriented training with a possible educational platform on the territory of employers. Strengthening competition in the system of vocational education, changing the conditions for the performance of vocational education (including increased workload). Measures: the development of an effective contract model that takes into account the nuances of the network educational process. The detection of flaws in the network interaction model already at the stage of its implementation. Measures: compensating for deficiencies by offering an individual educational trajectory. The inconsistency of the selected model of network interaction with the potential of network participants (insufficient qualification of field practice, insufficient technical equipment, administrative and management problems, etc.). Measures: preliminary control of the presence of required components for each participant in network interaction for the normal functioning of the educational process: material and technical resources of participants, including the availability of necessary equipment, electronic library, information systems, and unlimited access to the global network, etc.; educational and methodological resources, including copyright courses, patent developments, and the exclusive rights of participants in the affiliate network to them, the availability of educational technologies; business reputation, business relations, experience in educational, scientific, and innovative activities.

We also get an idea of the possible calls and stresses of the network form of interaction from Table 1.

University Interactions as a Form of Cooperation …

903

Table 1 Strategic matrix Strategic challenges Growing digital literacy Strategic tensions

Training personalization

Increasing amount of information

Mixing formal and non-formal learning

The protracted conflict between the methods and content of training, the needs and capabilities of students Financing (the instability of flows) Personnel quality (the lack of professionally important competencies at teaching staff) High competition between Russian providers and foreign providers of non-formal education. The problem of interaction between structural divisions and partners The quality of the enrollment (different levels of training). The accessibility of education (the difficulty of an objective (continued)

904

A. A. Selyutin et al.

Table 1 (continued) Strategic challenges Growing digital literacy

Training personalization

Increasing amount of information

Mixing formal and non-formal learning

assessment of the level of preparation of an applicant) Source Compiled by the authors

4 Discussion Most universities have an issue of imbalance. They prefer to either earn money to the detriment of research or attract highly rated specialists to the detriment of methodologists and practitioners. The network university bridges the gap between research and business universities, offering a choice between a teachers-researchers and a teachers-practitioners basis. Such a university will have several competitive advantages, such as: • Combining the most relevant and demanded educational resources of the best universities and research organizations, including human resources, for the training of high-quality professionals per the requirements of domestic and international labor markets; • An increase in the number of students, including international students; • The creation of systemic support for leading universities and research organizations in loading free educational capacities with paid students and graduate students; • The use of testing schemes for inter-university and interdisciplinary training, with the right to choose a set of disciplines (individual educational trajectories). The network interaction form also meets the realities of the current education system, since the educational policy of a modern educational institution is built in such a way that students have to master a large volume of information on their own. Such a format for mastering knowledge is laid down in educational standards and dictated by reality itself since a graduate is often put in situations of uncertainty where he or she is forced to independently master the necessary knowledge array in the workplace. Therefore, a developed self-learning skill is necessary for the successful adaptation of a student to society (socialization) and the professional environment.

University Interactions as a Form of Cooperation …

905

5 Conclusion The knowledge society, rate of production, and consumption of information have significantly increased in our modern society. The same situation is observed in the field of knowledge: “… in 2013, the share of publications of Russian researchers in world scientific journals began to increase. In 2013–2014, this share amounted to 2.11%; at the beginning of 2016, this value raised to 2.28%. In absolute terms, the number of papers by Russian researchers is steadily growing. Thus, in 2013, the number of peer-reviewed papers was 29,010 units, in 2014,—30,044 units, and, in 2015,—31,542 units” (Ministry of Science and Higher Education of the Russian Federation, n.d.). This can lead to the fact that the processes of generation, storage, and transfer of knowledge will soon undergo significant changes. In the education system, this can be expressed in the fact that the knowledge that students receive within 2 or 4 years will lose its relevance at the time of graduation. In this case, the set of competencies of the future specialist should include such abilities, skills, and attainments that will allow them to overcome the rapid obsolescence of knowledge and allow them to engage in social and professional activities successfully. Thus, according to T. V. Klimenko, dynamic processes in science, production, and economics inevitably lead not only to the obsolescence of knowledge but also to the depreciation of individual skills, which is very significant for employers. Therefore, not only knowledge itself becomes essential, but also the employee’s inherent capabilities to independently learn new knowledge and form new skills (Klimenko 2010, p. 98). That is, a high-quality modern educational product should be created, taking into account the challenges of modern society. The primary global trend that defines the concept of the educational program is the shift in focus from the content, methods, and organization of training to people or human capital as the main driver of economic development. One striking example is the massification of education, which is the desire to meet the needs of various segments of the population in the framework of the implementation of the Decree of the Government of the Russian Federation, “On approval of the rules for the provision of grants in the form of subsidies from the federal budget to higher education institutions for the implementation of the federal project ‘New opportunities for each’ of the national project ‘Education’” (April 29, 2019 No. 525). Thus, higher education is being transformed from elitist into a framework of skills and competencies that ensure the qualifications of future graduates in the labor market, tailored to specific social needs. The answer to this challenge was the fragmentation of educational programs in areas depending on the objectives of training, namely continuing education in a graduate or post-graduate school or acquiring additional practical skills. Depending on the objectives of the program, the requirements for candidates, as well as the results of training (creative project, state exam, or dissertation), may vary. For the same purpose, almost all programs should be designed for a flexible curriculum and involve different forms of training, including accelerated ones. The programs should reflect the challenges of modern society: internationalization, the need to

906

A. A. Selyutin et al.

interact with different cultures, and the development of digital technologies. All of the above factors cannot but affect the context of education, namely the role of the teacher, methodology, and the new assessment system, which can be successfully implemented in a network university.

References Akulova, O.V., Kharitonova, O.V.: Network master’s programs: innovative experience of Herzen University. Universum: Bull. Herzen Univ. 1, 43–50 (2013) Bazanova, E.M.: The problems of creating master’s innovative educational programs using online resources. Bull. Moscow State Linguist. Univ. 591, 64–71 (2010) Bogoviz, A.V., Alekseev, A., Akopova, E., Przhedetskaya, N., Ragulina, J.: Formation of remote education as a means of restoration of Russian recessive regions’ economy. Int. J. Educ. Manag. 33(3), 438–445 (2019) Bogoviz, A.V., Shvakov, E.E., Tretyakova, O.G., Zakharov, M.Y., Abramov, A.N.: Globalization of Education in the conditions of formation of the global knowledge economy: regularities and tendencies. In: Lecture Notes in Networks and Systems, vol. 73, pp. 993–1000 (2020) Furyaeva, T.V.: Network model of higher vocational, social education: a new look at training. Soc. Work 3, 63–64 (2016) Itskowitz, G.: Triple helix model. Innovations 4(150), 5–10 (2011) Klimenko, T.V.: The strategic competency-based approach in managing the human resources of a company as a mechanism to ensure their long-term competitiveness. Transp. Bus. Russ. 3, 96– 98 (2010) Kon, E.L., Matushkin, N.N., Freiman, V.I., Yuzhakov, A.A.: Design and implementation of network master’s programs in promising areas of science, engineering, and technology. Distance Virtual Learn. 8(86), 79–89 (2014) Konstantinov, G.N., Filonovich, S.R.: What is an entrepreneurial university? Educ. Stud. 1, 49–62 (2007) Lee, M.: Regional cooperation in higher education in Asia and the Pacific. Asian Educ. Dev. Stud. 1(1), 18–23 (2012) Lobov, N.V., Karmanov, V.V., Kryukov, A.Yu.: The experience in designing an educational master’s program with online participation based on federal state educational standards of higher education. High. Educ. Today 2, 9–14 (2015) Mackay, E.: Global educational ecosystem: OECD rate (based on the Global Education Leaders Partnership). Proceedings from Routes and strategies for moving into new education models “Do we have a chance to get into the global future of education?”. ASI, Moscow (2016). https://leader-id.ru/event/1952/ Medvedev, I.V., Skripnichenko, V.I.: The problem of the formation of network interaction of educational institutions. Bull. Tomsk State Pedagog. Univ. 13, 239–242 (2011) Ministry of Science and Higher Education of the Russian Federation. Official website (n.d.). https://www.minobrnauki.gov.ru/ru/documents/docs/index.php Morozova, N.V., Bryazgin, A.S., Vostryakov, A.M.: Resource center as a network form of implementation of educational programs of open-source software. Interact. Sci. 1, 66–69 (2016) Shestak, V.P., Vesna, E.B., Platonov, V.N.: Network education: the best domestic and foreign practices (2013). http://www.science-education.ru/ru/article/view?id=10981

Outsourcing in the Cooperative Sector of the Economy Lili Z. Buranbaeva , Diyaz U. Ishnazarov , Alfiya R. Nurova , Zulfiya S. Sabirova , and Buranbay R. Yuldybaev

Abstract The aim of the study is to identify the role and necessity of applying the latest technologies in various areas of production and economic activity of business entities, basing on public-private partnership mechanisms, including outsourcing. The authors revealed that recently, outsourcing, with its inherent disadvantages and advantages, is gaining public popularity. Outsourcing gets practical application in the cooperative sector of the economy, in particular in the industrial, logistics and credit activities of cooperative enterprises, as well as in the field of inventory management. VMI-model of outsourcing for implementation in consumer cooperation organizations considered. This model is necessary when consumer cooperation organizations organize inventory management. In order to optimize production processes in the cooperation system, the use of subcontracting, as a type of outsourcing, is possible. The novelty of the study lies in the study of the introduction of one of the new elements of management technologies, namely, outsourcing. It is based on the transfer of authority to carry out work and responsibility for the quality of their execution.










Keywords Cooperation Public private partnership Outsourcing Outsourcer IT outsourcing Outsourcing service Industrial outsourcing Credit cooperative Production cooperative Subcontracting Subcontractor




















L. Z. Buranbaeva (&)
D. U. Ishnazarov
A. R. Nurova
Z. S. Sabirova
B. R. Yuldybaev Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] D. U. Ishnazarov e-mail: [email protected] A. R. Nurova e-mail: Alfi[email protected] Z. S. Sabirova e-mail: Sab.zulfi[email protected] B. R. Yuldybaev e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_97

907

908

L. Z. Buranbaeva et al.

1 Introduction The development of Russian cooperation requires a rational approach to the implementation of its business processes. Cooperatives are often associated with the use or development of the latest technology. In this regard, the introduction of public-private partnerships is possible. It requires cooperating on concluded concession agreements between state authorities and service businesses. Public-private partnership is part of the formation of innovative projects in the cooperative sector of the economy. In recent years, outsourcing has gained popularity as one of the mechanisms of public-private partnership.

2 Materials and Methods This study is based on the work of domestic economists on the disclosure of the theoretical aspects of the outsourcing activities of cooperatives. Also, the work of domestic economists on identifying the pros and cons of outsourcing as a means of implementing business processes forms an additional information base for this study. System analysis, generalization, synthesis and modeling determine the methodological base of the research.

3 Results Cooperation is an interaction in which independent specialized enterprises organize direct long-term production relations in order to carry out joint production. One of the forms of industrial and economic relations is relations based on industrial cooperation. Outsourcing is considered a form of intra-industry production cooperation. The essence of outsourcing is that the external organization performs the non-core, auxiliary functions (production, service, information, accounting, financial, etc.) of the company. The goal of this is to reduce operating costs through long-term collaboration. At the same time, an external organization must have the technical and/or managerial resources to perform certain functions in a particular area (production, service, information support, etc.). In practice, thanks to the implementation of outsourcing, the company has the ability to direct efforts and resources to the implementation of core functions, transferring other functions to the outsourcer. The contractor represented by the outsourcing company (the outsourcer) performs the following functions: • Maintenance, repair and maintenance of buildings and structures;

Outsourcing in the Cooperative Sector of the Economy

909

• Accounting for the consumption of electricity, heat, and cold and hot water; • Accounting for the use of communication services, Internet, telecommunications, service and emergency systems; • Maintenance, operation and repair of technical systems, buildings and structures; and • Installation and maintenance of security and fire alarm systems, ventilation and air conditioning, sewage and water supply, etc. Outsourcing appeared first in the USA, and subsequently in Israel and Europe. The owners of foreign companies use the services of providers to the tune of more than 80% (Kurbatov 2012). In the global outsourcing services market, the Russian Federation is in the 24th position. This direction of business development is still fairly new to the public, but the implementation and organization of outsourcing are observed in the activities of companies specializing in manufacturing, telecommunications, legal, and accounting services. Thanks to outsourcing, state and municipal organizations are able to optimize their expenditures, and as practice shows, these organizations do not use the services of their subordinate institutions. Instead, the organizations go for the services of non-governmental/municipal institutions and (or) representatives of small and medium-sized businesses. In the Russian Federation, outsourcing was first introduced in the Perm region. In 2000, state and municipal organizations in this region that operate in the social sphere began to transfer part of their functions to entrepreneurs. The functions include catering, maintenance, accounting and reporting, cleaning of premises and territories, security, etc. (Zubarev et al. 2007). A little later, in this region, the project Business for Agribusiness was developed and implemented to improve business processes through outsourcing. The involvement of outsourcing specialists in the agro-industrial complex and the creation of conditions for increasing the demand for the specialists’ services were indicated as tasks in the project. The project provided the opportunity to reimburse the costs of agricultural producers for the payment of outsourcing services through subsidies. The choice of an outsourcer should be based on an analysis of the possibilities of fulfilling an order, the level of qualification of its employees, a quality control system and other customer requirements. Any innovation has advantages and disadvantages. There are always both supporters and those who are critical of the implementation of outsourcing. Many recipients of outsourcing services talk about advantages of outsourcing, such as saving financial resources and improving the quality of services through the use of more advanced personnel and technological resources of outsourcers. They also point to how it facilitates the work of heads of institutions and creates new jobs in business. Organizational buyers of outsourcing services do not have the economic effect of their use. This is due to the fact that the cost of services is reduced due to price dumping at the expense of quality.

910

L. Z. Buranbaeva et al.

Outsourcing benefits include the following: • • • •

The ability to concentrate resources on core activities; Reduction of costs by delegating non-core functions; Improvement in quality of service by attracting highly qualified specialists; Reduction of risks associated with performing secondary functions and/or transferring them to outsourcing; • Outsourcer responsibility for the quality of work; • Gaining access to resources not available to the customer of outsourcing services (for example, to the latest technologies). The disadvantages of outsourcing are significant staff turnover, risks of violation of property safety and security (including commercial information) and lack of legislative framework. Also, the disadvantages of outsourcing include a decrease in the quality of information in the case of outsourcer dishonesty, an increase or delay in the resolution of problems in emergency situations, etc. Outsourcing, as a progressive form of industrial cooperation, plays a significant role in innovative development and consumer cooperation. Production cooperation (operational outsourcing in the trading activities of consumer cooperatives) has been developed in logistics in the transportation of goods. An increase in the demand for outsourcing logistics services from representatives of consumer cooperatives is associated with the inability to transport goods independently. In this connection, consumer cooperation enterprises delegate part of the transport traffic to outsourcers (regional carriers and private individuals). Outsourcing can also be seen as an effective way to manage the inventory of consumer cooperation organizations. It is known that in the system of consumer cooperation, retail trade occupies the largest share. In this connection, inventory management is a priority for retailers. However, most of them have a complete inventory management system that is either absent or imperfect. Therefore, the introduction of outsourcing into the system of consumer cooperation is a way out of this situation. This is due to the fact that outsourcing allows one to maintain a certain level of inventory, reduce inventory intensity, and accelerate the turnover of resources invested in inventory. Also, outsourcing allows one to optimize the volume of movement (receipt and disposal) of goods and their storage and transportation as well as provide after-sales service and efficient pricing. According to T. V. Verkhovenko, the implementation of outsourcing in the consumer cooperation system is possible through the use of the VMI (vendormanagedinventori) model, called “supplier inventory by the supplier’s hands”. The essence of this model is to conclude an agreement, according to which the supplier is responsible for the formation of inventories. Otherwise, the supplier receives money not for the supply of goods but for its actual consumption (Verkhovenko 2008). The VMI model has positive characteristics both for the customer (organization of consumer cooperation) and for the outsourcer. So, the customer has a permanent supplier in the presence of long-term cooperation agreements and low inventory costs. Based on long-term partnerships with a customer-buyer (organization of consumer cooperation), an outsourcer, having information about their preferences

Outsourcing in the Cooperative Sector of the Economy

911

and demand for goods, can improve the processes of production and sale of inventories. Consequently, the delegation of authority between the customer and the outsourcer allows the latter to manage inventory more efficiently. At the same time, the customer switches to other specialized work. One of the directions of the outsourcing services market is IT outsourcing. IT outsourcing is an outsourcing based on information technology, providing for the transfer of functions for the development, implementation and maintenance of information systems. It exists independently and serves as the basis for other forms of outsourcing. According to the Gartner Research analytical company, today, the share of expenses for services of external companies in the budget structure for the development and implementation of information technologies is 14%. This is comparable to the cost of batch software (17%) and hardware (21%). According to a CIO Research study, more than 2/3 of the companies surveyed actively use IT service outsourcing. In Russian practice, IT outsourcing is also developing credit cooperatives. It is known that professional outsourcers have more experience and knowledge in information technology and have a higher motivational component in order to maintain the image of the service company. Also, to solve more complex problems, the involvement of a whole team of specialists is possible. The listed advantages of IT outsourcing increase its popularity; demand for services of specialists in this field is constantly growing. Taking into account the wishes of their customer companies, IT outsourcing companies can develop customized software for their clients, which guarantees the security of information technology infrastructure. So, for credit cooperatives interested in the active development of consumer lending services, the formation of their own terminal networks based on IT outsourcing is, of course, a competitive advantage. The introduction of payment terminals allows significant automation of the process of servicing potential and existing shareholders, reducing the costs of cooperatives for the construction of cash nodes and the wages of staff. Also, the introduction of payment terminals can reduce the cost of cooperatives’ rent for their structural units (branches), including those located outside the premises of credit cooperatives (in shopping and entertainment centers). The creation and further implementation of terminals of both general and narrowly targeted use are possible. For example, the terminal installed in the office allows customers to pay off obligatory payments of loans, replenish deposits, transfer money between shareholders, fill out loan applications, etc. It was revealed that the economic effect of the introduction of payment terminals on the basis of IT outsourcing by a credit cooperative is similar to the costs of creating and maintaining a branch (office) of a cooperative. The enlargement and monopolization of enterprises belonging to different industries and having different volumes of production create the prerequisites for the development of industrial outsourcing.

912

L. Z. Buranbaeva et al.

The use of subcontracting as a type of outsourcing is possible in order to optimize production processes in the cooperation system. Subcontracting involves the placement by one enterprise of an order to create a new type of product or to organize an entire technological process in another enterprise. At the same time, the customer reduces its non-production costs for the maintenance of unused equipment, and the contractor ensures the efficiency of the production cycle. In addition, the subcontractor has a chance to increase productivity and capacity utilization. The enterprises of the cooperative sector of the economy can act as a subcontractor, providing logistics services to larger enterprises.

4 Discussion of the Results Outsourcing as a progressive form of cooperation has advantages and disadvantages in contrast to other mechanisms similar in properties and features. However, the outsourcing services market, of course, has every chance of development. As practice shows, many cooperative enterprises use the services of outsourcers, for example, in management and information activities. Of course, customers-buyers of outsourcing services can bear the risks associated with the bad faith of outsourcers. Losses from risks can be avoided by properly setting up the relationship between the customer and the contractor, and, above all, by concluding agreements. The Russian system of cooperation has deepened its interactions with the research and development sector based on a created and developing innovative infrastructure. At the same time, it has diversified areas of activity, accrued many years of relations with government and the population, has developed high human potential, and created its own training system. Thus, the Russian cooperation system has every opportunity to realize its innovative potential and expand the main types of innovations created on the basis of outsourcing (Nagovitsina and Aletdinova 2015). In conclusion, it is advisable to determine the following practical factors that ensure the success of cooperatives from the use of outsourcing services: • Leaders should not consider outsourcing as fashionable but a universal and mandatory management tool. The implementation of outsourcing should not be dictated by the founders but by the cooperatives themselves. • When a customer chooses outsourcing services, the presence of a competitive market for the suppliers of these services is required. In this case, in the case of their dishonesty, the customer can use appropriate measures of influence against them or attract new services. • There should be a formation of a clear and complete assignment for an outsourcer based on an agreement. At the same time, close attention should be paid to the quality indicators of the service performed by him/her, including force majeure circumstances. The onset of these circumstances may adversely affect performance;

Outsourcing in the Cooperative Sector of the Economy

913

• When purchasing an outsourcing service, the customer must consider not only its price but also the quality (staff qualifications, industry experience, the availability of modern technical equipment, etc.); • The customer must constantly monitor the work of the outsourcer in order to prevent a decrease in the quality of the services provided.

5 Conclusion In conclusion, we need to note the following: • Outsourcing is more beneficial for small companies in order to save on the content of their own services; • Maintaining full-time employees is much more expensive than outsourcing; • The quality of outsourcing services depends on the professional level of the outsourcing staff; • Additional time and cost savings are possible; • The efforts and time of the leaders of outsourcing services purchasing companies are concentrated on the performance of core functions; • Termination of the contract with the outsourcer is possible in any case. If the enterprises of the consumer cooperation system apply the theoretical and practical aspects of outsourcing, this could become an effective management tool (Khorev 2008).

References Khorev, M.A.: Outsourcing is a new system-organizational approach to the revival of industrial cooperation. Fundam. Res. 12, 37–40 (2008) Kurbatov, A.Kh.: Outsourcing: history, methodology, practice. INFRA-M, Moscow (2012) Nagovitsina, L.P., Aletdinova, A.A.: Innovative development of Russian consumer cooperation. Herald Belgorod Univ. Cooper. Econ. Law 3, 119–128 (2015) Verkhovenko, T.V.: Outsourcing as a tool for effective inventory management of consumer cooperation organizations. Herald Belgorod Univ. Cooper. Econ. Law 3, 211–214 (2008) Zubarev, A.Yu., Biktaev, Sh.A, Gavrilin, S.A.: Implementation of outsourcing mechanisms in the regional healthcare system of the Perm Territory. Menedzher Zdravookhraneniya 12, 44–47 (2007)

Cooperative Education Strategies Irina I. Kondrashkina , Roman R. Khairov , Svetlana M. Soldatkina , and Olga V. Knyazeva

Abstract The article presents the results of the Consumer Cooperation Forums of the Russian Federation on the problem of education, as centers for the creation of innovations. The relevance of this topic is due to the general trend in the development of higher education in Russia, namely, overcoming the lag and the development of new technologies in key areas of the country’s economy. The educational institution must comply with the socio-economic changes in the regions in which it is located. Also, an educational institution should build its activities taking into account world sociocultural and educational trends in the training of specialists capable of promptly mastering innovations in the field of professional activity. Information was collected and processed based on the information system of the Association of Educational Organizations of the Consumer Cooperation System. The results include the implementation of key projects that contribute to the development and strengthening of the position of educational organizations of PCs in the regions, in accordance with roadmaps.




Keywords Cooperative education Norms of the future gies Entrepreneurial education Expert consulting








Development strate-

I. I. Kondrashkina (&)
R. R. Khairov
S. M. Soldatkina Saransk Cooperative Institute (Branch) of the Russian University of Cooperation, Saransk, Russia e-mail: [email protected] R. R. Khairov e-mail: [email protected] S. M. Soldatkina e-mail: [email protected] O. V. Knyazeva Kolomna Institute (Branch) of Moscow Polytechnic University, Kolomna, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_98

915

916

I. I. Kondrashkina et al.

1 Introduction Cooperative education has advantages in the form of a single cooperative environment, which allows one to use the opportunities for each. Confidence in educational cooperative organizations is declining due to the fact that they do not prepare for real professional life. Universities care more about their reputation than what a student needs. Today, there are a number of barriers (norms) in cooperative education that inhibit its innovative development and objectively reduce the role of consumer cooperation in general. Such barriers include the following: • Students lack practical skills in understanding the basics of consumer cooperation in the development of educational programs; • There is no single vector of development between all levels of cooperative educational organizations; • There is a gap in the interaction between business representatives and educational organizations; • There is no conjugation of the sectoral component of the content of educational programs between the levels of higher education and secondary vocational education; the system of targeted training orders from the consumer cooperation system is weak. The main customer of training is not a consumer cooperation system; • The lack of a single vector of development between all levels of cooperative educational organizations; • Weak professional level of teaching staff in the field of digitalization; • Lack of industry experts in evaluating educational programs; • Education is static: In accordance with Federal State Educational Standard, the teacher is traditional in technology and methodology; • There is a limitation to the opportunities for non-governmental organizations to participate in the implementation of federal and regional educational projects, etc. First of all, this involves the development of the norm of the future in cooperative education and solutions. These problems were discussed in the pedagogical and entrepreneurial community as well as at the cooperative forums New Cooperation (Ulyanovsk, February 8–9, 2018) and International Forum of Enterprises and Organizations of Consumer Cooperation “Bread, you are the world” (Kaluga, September 19–21, 2019). Based on the results of the discussions, we can highlight the top 3 norms of the present and the future (Table 1). Implementing the norms of the future involves describing barriers and proposing solutions (Bogoviz 2019). The first norm is conducting classes of all types on the sites of consumer cooperation enterprises while softening the rules of legislation in the field of education. The main barrier is the lack of clear motivation in working with students. The solution is obvious and involves the creation of motivational programs to engage youths in a cooperative environment through the promotion of best practices and the creation of cooperative youth communities. The second norm

Cooperative Education Strategies

917

Table 1 Top 3 norms of the present - norms of the future, 2019 No

Norm of the present

Norm of the future

1

Lack of practical skills in understanding Classes of all types are held at the sites of the basics of consumer cooperation among consumer cooperation enterprises; students in the development of educational education legislation are relaxed programs 2 The lack of a single vector of development A single interaction platform, built on between all levels of cooperative the basis of modern digital technologies, educational organizations is used for communications 3 The lack of a single vector of development There are joint platforms for students between all levels of cooperative between the employer and educational educational organizations organizations Source (International forum of enterprises and organizations of consumer cooperation “Bread, you are the world”, 2019)

is a single interaction platform for communication, built on the basis of modern digital technologies. The main barrier is the low level of competence of participants in the educational process and the lack of technology in educational organizations. Suggested solutions include developing systems and sequential training. The third norm is joint platforms for students between the employer and educational organizations. The main barrier manifests in the employment of business representatives who have low motivation. The solution is to offer business models and models of cooperation to business representatives. This proves that cooperative education should become a driver for the development of consumer cooperation with a focus on the international market.

2 Materials and Methods Strategic prospects for cooperative education are an organic part of implementing the national project of education. The national project aims to make Russia one of the top-10 countries in terms of general education quality. Improving the competitiveness of Russian universities, as one of nine national projects, ensures continuity with other priority projects, such as making universities centers for creating innovation, creating an environment that welcomes modern digital education in the Russian Federation, and exporting Russian education (Presidium of the Council under the President of the Russian Federation for Strategic Development and National Projects 2018). Creating conditions for implementing individual learning paths is a challenge for a cooperative education system. This conclusion is confirmed by changes in the global market. Global market changes include the following: • As of today, 25% of professions require non-routine skills and competencies; • By 2025, 30% of the population will need entrepreneurial competencies; • More than 50% of human professions can replace algorithms.

918

I. I. Kondrashkina et al.

The main ideas and strategic guidelines for the development of cooperative education are taken from the Report on the Global Agenda for Future Education (Skoltech. Skolkovo Institute of Science and Technology 2016). New formats of education in industrialized countrie that are part of the International Cooperative Alliance determine the agenda and model for future cooperative education. Different influential organizations offer different lists of key skills. These include “21st Century Skills”, “Key Skills”, “New Literacy”, and “Flexible Skills”. Which of them need to be developed? And how? Such questions need urgent answers in order to clarify what exactly a school should teach in order to help its graduates become successful in the modern world. The answers to such questions are sought by a consortium of scientists from various institutes, various foundations backed by large corporations, and the global community of employers. The Charitable Fund of Sberbank and the Higher School of Economics Institute of Education’s “Contribution to the Future” offers a simple and concise form that is presented in the fundamental report “Universal competencies and new literacy: from slogans to reality”. This report is designed for teachers who are ready to build their classes based on modern realities and those who shape educational policies (from ministers to school principals). All these documents determine the methodological base and conceptual approaches of the formation of an education strategy. The materials presented in the article were discussed at the strategic session “Youth Cooperation. The Impact of Cooperative Education on the Development of Consumer Cooperation”, which was held as part of the International Forum “Bread, you are the world”. During the discussions, an appeal to the grand jury on the launch and implementation of priority strategic decisions in cooperative education was prepared.

3 Results In this article, we presented the main trends (fundamental decisions) from which the future of cooperative education will grow. Currently, there are a number of problems that contribute to the fact that the system works by inertia and exploits an existing resource without developing and creating new value. There is no clear positioning of the system as a whole and the majority of OOPK for applicants, the state, and partners. There are practically no educational programs that are modern in content, methods, and formats and, at the same time, capable of guaranteeing the creation of a job for a graduate. Who will create such programs, and who will implement them? A small proportion of young teachers and scientists will create and implement them. Employers note inadequate knowledge of modern educational technologies. Science is weakly connected with modern cooperation, educational programs and staffing partners. At the same time, the results of scientific activity are low. There is no systematic substantive partnership with employers and professional communities. They are not integrated into the educational process. As an

Cooperative Education Strategies

919

exception, the system receives state orders (budget places) or other state support, including funding for science. These problems made it possible to formulate the following results, which can be considered strategic decisions to change cooperative education. 1. Entrepreneurship, as the unifying basis of education, includes the following: • Applied cooperative entrepreneurial universities and secondary special educational institutions: These types of educational institutions represent a massive but unique type of customer (cooperations and small and medium-sized businesses, including new industries and self-employed professionals). Therefore, key competencies include the following: specialty (“I know my business”) plus entrepreneurship, self-education, team and communications. Further education programs are becoming a priority as they provide flexibility and speed of updating—that is, what a modern customer requires. • Combining methodological, human and marketing resources plus coordinated joint activities in the market; joint development and replication of programs common to all OOPK in the following modern formats: modern cooperation, entrepreneurship, and a digit for small business; • The development of advanced OOPK should be completed and replicated in regions where there is a need, working with personnel partners offering specialized applied courses. OOPK communication should continue through integrated programs extending from a secondary special educational institution to university and on to additional professional education (“the student remains in the system”). A common marketing and sales system that includes a single industry-specific cooperative online education platform. 2. The second result is the formation of modern teachers who create modern programs. This suggests further developments. • The Joint Methodological Center for Cooperative Education (based on universities) includes relevant competency matrices, the development of basic techniques, and teacher training. • Personnel partners formulate the terms of reference, participate in development with the support of methodologists, and take teachers for internships. Those teachers who are already creating successful programs receive support in finalizing and replicating. Everyone gets the opportunity to undergo an industry retraining program. The focus is on the competence of a teacher at an entrepreneurial applied university/secondary special educational institution. • Open competitions update personnel with the active participation of external candidates involved in the entrepreneurial model of education.

920

I. I. Kondrashkina et al.

• Modern programs require a focus on practical applications. The competency matrix is updated every semester/cycle, and an external assessment of learning outcomes takes place. Entrepreneurial and professional experience is part of the program. Student involvement (discussions, teams and projects), self-study (research), and reflection (goal setting and values) are included. 3. Orientation in applied science and expert consulting includes the following: • Conduct research on trends and current status of key customers (cooperation, small and medium-sized businesses). Provide expert consulting for the state and organizations. Conduct applied research in professional fields (trade, market, business processes, hospitality), including emerging industries. Provide expert consulting services for businesses. • Provide support for the development of new scientific schools and research laboratories in the form of joint research centers of cooperative universities. Conduct reputational research in the field of sustainable development economics in conjunction with ongoing applied research. Provide expertise for science partnerships. The role is not so much a knowledge creator as a generator of research hypotheses and a moderator of scientific discussion—a popularizer of results. Create partnerships and communities, including through magazines and conferences, that connect science and practice. • Have educational programs (especially graduate programs) be participants in research projects, and identify and support young researchers. 4. Personnel partners, as part of an educational organization, include the following: Restore ties with cooperation. • Create centers of competence on the basis of educational organizations, which includes translating applied science data and training methods into cooperation products. Preparation and implementation of support programs for priority cooperative projects in the regions (logistics centers, fast food, farming, etc.). • Professional community development. OOPK participation in the life of professional communities based on their own expertise (research, experience and staff partnerships) and the transition from relations with employers on the model of “customer/executor” to the model of partnership, joint determination of needs and pooling resources. • Participation of a staffing partner in managing the development of OOPK (identifying priority programs, supporting the formation of partnerships, etc.), • Tools for integrating a partner into the educational process, analysis of best practices, development of new options and replication of the entire system of internship models, exams, program development and other formats for effective interaction with a personnel partner.

Cooperative Education Strategies

921

5. Partnership with the state involves the following: • Professional community development and positioning the system as a tool for implementing state priorities. The key customer complies with the priorities for the development of entrepreneurship and territories (cooperation and small business). • The education model corresponds to the priorities of the development of education and increasing labor productivity (flexible programs, employer participation and lifelong learning). • The value basis of cooperation is cooperation, justice and partnership with the state. The importance and value of the system for each of the priorities is confirmed by a set of applied research (“we know what is happening and what the needs are”) and a portfolio of effective educational programs (“we know how to prepare frames”).

4 Discussion These strategic initiatives can be taken into account in the formation of the educational policy of educational organizations, the implementation of the educational process, participation in competitions, and grants. During joint meetings of representatives of educational communities, norms of the future are proposed. Particularly interesting ones are presented in this article. A single communications platform built on the basis of modern digital technologies is used. Classes of all types on the sites of consumer cooperatives are held. Joint platforms for students between the employer and educational organizations are held. Each student is a shareholder. The teacher is fluent in modern information technology and foreign languages. Leadership approaches and career practices are implemented in education. Open schemes for the application of cooperation in practice and the visual presentation of “stylish, fashionable, youth” are used. Students have the opportunity to earn as part of the educational process. The educational system has an institute of professional mentoring. A large number of variations of tools for the implementation and management of projects are created. Cooperative learning implies gaining experience by students as a result of interaction in groups. Periodically, trainings in groups on team interaction are held, which allows us to understand the essence of cooperation. The development of soft skills is included in the educational process; development of project thinking is carried out. Priority is given to practice before theory. Students can build their own curriculum under the law. In practice, students are forced into cooperation. Support for projects based on cooperatives and the joining of these projects to cooperatives is carried out. Development of student expectations is carried out through an individual student development path. There is a single cooperative educational system aimed at solving the key challenges facing the cooperative movement. In the most successful cases, several innovations are usually used at once.

922

I. I. Kondrashkina et al.

5 Conclusion Resources for change and movement arise when cooperation appears. By consolidating forces and taking responsibility, business, education, technology and teachers together can do more than individually. This collaboration, moving towards solving a global problem, solves the tasks of each student separately and the educational organization as a whole. In the next two to three years, the main guidelines (projects) for cooperative education will include the following: • Unified Digital Communication Educational Platform, including for distance learning; • Building different tracks of relationships with staff partners. This includes conducting practice-oriented classes, a platform for organizing basic departments; • Preparation of a cooperative team for participation in WS as an opportunity to maintain the interest of young people in cooperation; • Professional retraining of teachers in the field of information technologies in education. Acknowledgements This article was written based on the proposals of the ASOOPK (March 2019) and presented at the International forum of enterprises and organizations of consumer cooperation “Bread, you are the world” (September 19–21, 2019).

References Bogoviz, A.V.: Industry 4.0 as a new vector of growth and development of knowledge economy. Stud. Syst. Decis. Control 169, 85–91 (2019) Presidium of the Council under the President of the Russian Federation for strategic development and national projects: Passport of the National Project “Education” (24 December 2018, No. 16), Moscow, Russia (2018) Skoltech. Skolkovo Institute of Science and Technology: The future of education: a global agenda (2016). https://kcdod.khb.ru/files/documents/15006_budushchee_obrazovaniya.pdf

Theoretical and Methodological Approaches to Customs and Logistic Management of Transboundary Processes Valentina Yu. Dianova , Nasrullah A. Adamov , Ziya E. Suleymanov , Natalia B. Morozova , and Tamara A. Penchukova

Abstract The paper focuses on the problem of developing a mechanism for customs and logistics management of cross-border processes that meet current geopolitical and economic conditions. A theoretical analysis of the essence of a systematic approach to economic systems is carried out, and its application to the development of customs and logistics business management is justified. The strategic directions and tasks of improving customs and logistics systems are identified. The main problem areas of customs and logistics activities are identified and systematized. An integrated approach to a sustainable optimization of the management system for customs and logistics activities is proposed. The factors stimulation the growth of customs and logistics activities and barriers to the development of customs and logistics are identified. A model for integrated management of customs and logistics activities has been developed on the basis of the systematized hierarchical structure of customs and logistics systems. It provides for building a flexible connection of internal regulation tools for their activities with state governance mechanisms in this area and considers possible risks. The authors systemize the main risks of participants in customs and logistics activities. It served as the basis for the proposal of methodological approaches to risk management in V. Yu. Dianova
N. A. Adamov
N. B. Morozova
T. A. Penchukova (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] V. Yu. Dianova e-mail: [email protected] N. A. Adamov e-mail: [email protected] N. B. Morozova e-mail: [email protected] Z. E. Suleymanov Institute of Research of Merchandising and Environment of the Wholesale Market, Moscow, Russia e-mail: offi[email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_99

923

924

V. Yu. Dianova et al.

the customs and logistics. The authors argue that the introduction of customs and logistics innovations is a new reserve of leadership for participants in cross-border processes. The research conducted clearly shows that the strategic development of a multi-level system of organizing customs and logistics activities should be based on the achievement of a balance of interests of all its participants and the consideration of the innovative trends of the transforming economy.








Keyword Systematic approach Customs and logistics activities Customs and logistics business management Management mechanism Risks Innovation







1 Introduction Improving the efficiency of mechanisms for managing customs and logistics at all levels of management is a very relevant and multifaceted problem in the Russian economy and the economy of many post-socialist countries. The competitiveness of their national economies, to a large extent, depends on the quality of the solution to this problem. This paper conducts theoretical analysis and develops methodological approaches to the management of customs and logical processes in transboundary territories. Achieving this goal was based on an analysis of the applicability of a systematic approach to the development of customs and logistics business management, which allowed us to identify problem areas of customs and logistics activities and to propose a model for integrated management of customs and logistics activities. Special attention is paid to the systematization of methodological approaches to risk management in the customs and logistics sphere. The work is relevant in the development of theoretical and methodological approaches to improving the customs and logistics management of cross-border processes in Russia in view of modern geopolitical and economic realities.

2 Materials and Methods The theoretical basis of the study was scientific work in the field of system-target analysis of control systems (S. Filin, M. Brook, A. Fedorova, A. S. Ellaryan, I. V. Chernyshev, T. L. Bezrukova), as well as in a wide range of problems of customs and logistics activities. The conclusions are based on a generalization of conceptual approaches to the logistics management of international scholars, such as B. M. Beamon, T. M. Ware, S. T. Ponis, E. Koronis, P. M. Swafford, S. Ghosh, N. Murthy, et al. The analysis of the conceptual aspects of the formation of customs and logistics systems as well as the management of logistics processes are based on the works of domestic scholars, namely, N. A. Adamov, A. N. Bryntsev, T. A. Kozenkova, and R. V. Fedorenko. For the risk management methodology in the

Theoretical and Methodological Approaches to Customs ...

925

development of the customs sphere, the works of Russian scholars such as G. Alimusaeva, N. P. Stafeeva, et al. were used. Furthermore, the organization of customs and logistics management of cross-border processes remains unexplored. Their relevance is growing in the context of economic globalization and the expansion of integration between Russian and international companies. Formalization and generalization of the research results were carried out using scientific methods of cognition, which includes the dialectical method, the analogy method, the system analysis method, the modeling method, and the data visualization method.

3 Results 3.1

Systematic Approach to the Development of Customs and Logistic Business Management

All phenomena, processes, and relationships can be considered as systems with their own structure. Thus, commodity distribution and its customs support, like any other process, can also be considered as a system. The concept of a system is treated as a set of elements that, in the process of interaction with each other, form certain integrity. This integrity, as a critical characteristic of the system, leads to the development of specific integrative properties that are not presented in separate elements. Based on the provisions of the systematic approach, we can put forward and substantiate the following theses: (1) all objects, including custom structures, can be considered as open systems that actively interact with the external environment; and (2) elements of the system must be considered in their development and interconnection. Among the most typical properties of logistic entities, the following are most often distinguished: systematicity, optimality, and synergy. Systematicity assumes the integrity of material, informational, and financial flows that are subject to logistical impact within the boundaries of a managed system. Synergism, as one of the properties of logistics systems, is expressed in excess of the efficiency of the entire system in comparison with the total efficiency of its parts. Optimization decisions made within the framework of logistics systems allow maintaining management stability and improving the ability to choose an adequate and effective solution (Adamov and Ellaryan 2013). Logistic approaches involve the regulation of all cross-border flow processes in their unity, taking into account the entire system of interdependencies. Strategically, the logistics-oriented modernization of business processes in the customs sphere can be interpreted as a systematic multi-level optimization of the complex of works related to the passage of cross-border processes (Izmailova et al. 2018a, b). We consider this statement true for almost all national business systems.

926

V. Yu. Dianova et al.

The strategic objectives of the development of logistics in the customs sphere can be formulated in two major areas: providing favorable conditions for the logistics of the business entities participating in foreign economic activity and logistic-oriented optimization of customs authorities.

3.2

Problematic Zones of Customs and Logistic Activities

The effectiveness of customs and logistics activities is determined by the effectiveness of the efforts of state bodies to create rational conditions for organizing cross-border trade flows, the performance of direct participants in foreign trade activities – exporters and importers (initiators of cross-border operations), and the ability of customs and logistics providers (entities of customs and logistics infrastructure, including customs brokers and freight forwarders) to fully comply with the requests of the initiators of cross-border operations and the requirements of the law (Gnezdova et al. 2017). Given the above, we can identify the main problem areas of customs and logistics activities: the organization of logistics-oriented macroeconomic regulation of cross-border business processes; the use by participants of cross-border processes of their intra-company potential for conducting foreign trade operations while ensuring control over the implementation of legislative requirements; forms and methods of the business partnership of initiators of cross-border processes with customs authorities and customs and logistics providers. Based on the systematization of problem areas in customs and logistics, the effectiveness of customs and logistics activities can be presented as a function of indicators that determine the effectiveness of work in the context of the identified problem zones: Ecla ¼ f ðRmr; Rip; RepeÞ; where: Ecla is the efficiency of customs and logistics activities; Rmr is the degree of rationality and logistic focus of the methods of macroeconomic regulation of cross-border business processes; Rip is the effectiveness of using intra-firm potential by participants in cross-border processes; Repe is the effectiveness of the partnership of exporters and importers with customs authorities, customs, and logistics providers. In order to ensure sustainable optimization of the management system of customs and logistics activities, it is necessary to use an integrated approach, which means managerial impact in the context of three main interconnected blocks:

Theoretical and Methodological Approaches to Customs ...

927

1. The block of macroeconomic regulation, providing favorable conditions (necessary parameters of the external environment) for the dynamic development of customs and logistics activities, determining the priority areas of this development. 2. The block of intra-company management of developing the potential of participants in cross-border processes, providing an increase in the degree of rationality of their activities on an innovative basis, taking into account the logistical coordination of intra-company business processes with the prevention of inconsistency of end-to-end material, information, and financial flows. 3. The block of inter-company business partnerships (the development of effective economic relations) in the customs sector, logistically promoting synergies between exporters and importers with customs authorities and customs and logistics providers, taking into account the criteria for partnership effectiveness, customs stability coefficients, customs risk profiles and instruments for reconciling interests. Solving the problems of the customs and logistics sphere, typical for all its problem areas, requires a significant modernization of tools and mechanisms. Prospects for the development of the customs and logistics sphere are determined by the dynamics of macroeconomic indicators (GDP, foreign trade turnover). The prerequisites for the growth of the scope of customs and logistics activities include: – The state policy aimed at supporting the development of the infrastructure complex; – increased interest of exporters and importers in outsourcing customs and logistics functions to concentrate efforts on a key business; – the expansion of globalization and the complexity of cross-border supply chains; – the development of integration of national economies in the global business with an increase in the share of highly profitable goods in export-import processes and the expansion of the logistics infrastructure typical for international transport corridors; Factors of inhibition of the development of the customs and logistics sphere include outdated fixed assets, a high level of differentiation of regions according to the degree of infrastructure support, insufficient development of intercompany and inter-organizational coordination of associated business processes, insufficient use of end-to-end logistics-oriented technologies in multimodal and intermodal cross-border cargo transportation, and the lack of qualified specialists in the field of customs logistics and others.

928

3.3

V. Yu. Dianova et al.

Modeling of Integrated Management of Customs and Logistic Activities Based on a Systematic Approach

A conceptually important task in the development of the customs and logistics sphere is the systematization and conjugation of the directions, goals, and instruments of its multi-level regulation. A logistic-oriented model of integrated management of all participants’ associated activities in cross-border business processes can be developed based on the solution of this problem. Based on the fact that the condition for the successful organization of foreign economic activity is integration in a single complex of customs authorities, enterprises participating in foreign economic activity, and objects of near-customs infrastructure (Fedorenko 2014), which is the hierarchical structure of customs and logistics systems, are presented in Table 1. The formation of favorable conditions for an efficient customs and logistics business is a multi-component process that requires, on the one hand, the development of legislative provisions, customs procedures, tax, financial and credit, and other instruments for regulating the economic environment where exporters and importers (initiators of cross-border processes), customs authorities, and customs and logistics providers operate. On the other hand, it is necessary to optimize the activities of cross-border participants in economic management themselves, to set logistics of associated customs-terminal, transport, and information and communication subsystems of the customs sphere.

Table 1 The hierarchical structure of customs and logistics systems Scientific direction

Coverage scale

Level of Customs and Logistics System

Structural elements

Micrologistics

Separate business structures

Micro-scale

Mesologistics

Large corporations, industries, regional clusters National economy

Meso-scale

Divisions of business structures (departments of foreign trade activities), customs posts Regional customs administrations, local customs, links of customs infrastructure

Groups of countries, international associations World business system

Interstate level

Macrologistics

Intralogistics

Global logistics

Macro-scale

Mega-scale

Federal Customs Service (FCS in Russia, State Customs Committee in Azerbaijan) Customs unions of independent countries

World customs organization

Theoretical and Methodological Approaches to Customs ...

929

The development of the potential of the subjects of customs and logistics activities is required at the same time as a flexible connection of the instruments of intra-company regulation of their activities with the mechanisms of state administration. From this methodological position, we can formulate the following conceptual conclusion: the dynamic development of customs and logistics structures, considered in the unity of their properties as objects and management entities, is possible only based on the optimization of three closely interconnected blocks of structural and functional elements that make up a complex hierarchical regulatory system of customs and logistics activities (elements of macroeconomic regulation; elements of internal management; complex controls intercompany interaction).

3.4

Methodological Approaches to Risk Management in the Customs and Logistics Sphere

When developing an integrated system of customs and logistics management, it must be borne in mind that it involves many risks. The tasks of improving the quality of customs services, reducing the financial and time costs of initiators of cross-border processes and their logistics partners, and searching for new models of economic behavior require the adoption of logistically-oriented decisions, with results that may vary due to environmental turbulence (Adamov 2011). Applying new combinations of management factors (effective technologies and equipment, qualified personnel, modernized methods of economic partnership), using innovative technologies in customs and logistics activities, and taking risks for these reasons, participants in cross-border processes are counting on improving the quality of their functioning and generating additional income. Without detailing the types of risks of cross-border processes, we note that risk and management are interrelated elements of the customs and logistics system. At the same time, management can become a source of risk. Some measures to transform the economy of several states operating in the post-Soviet space (Troshina et al. 2013) proved this. The insufficient rationality of individual adjustments to national macroeconomic management systems served as a prerequisite for increasing risks in commercial activities, which led to a large number of unprofitable business structures, including exporters and importers. Under these conditions, it is necessary to find new reserves of leadership for participants in cross-border processes, one of which is the introduction of customs and logistics innovations, even though they are considered among the sources of risks (Filin et al. 2002). In general terms, the risk of innovation can be represented as the probability of losses when investing in the development of new business processes and technologies, which, contrary to expectations, will not bring the desired effect. The process of risk management contains several stages (Alimusaev 2014): the identification of perceived risks, risk analysis, the selection of risk management methods, the application of selected methods, and decision-making in conditions of

930

V. Yu. Dianova et al.

risk; response to the occurrence of a risk event; development and implementation of risk reduction measures; and control, analysis, and assessment of actions to reduce risks and develop solutions. Thus, the methodological approaches to risk management of customs and logistics activities involve the consistent solution of several main tasks: the justification of the goals of risk management; the determination of the possible consequences of working in a risky situation—deviations from the desired result with the specification of the risk level (the extent and probability of deviations) and making decisions on the style of economic behavior in a risk situation—choosing a risk management strategy (avoiding risk; reducing the likelihood and magnitude of adverse consequences by mobilizing all reserves of strength and adapting to risk; transferring risk); the development of tools and methods for the implementation of made decisions and their use in monitoring of the level of risk; and the analysis of the results of work on risk management.

4 Discussion Many experts note the need for systematic management of cross-border processes. Thus, Russian scholars Zubakov and Protsenko (2010) note that the lack of a prevailing ideology for modernizing the foreign economic market, disparate departmental innovations cause equally fragmented, contradictory objections and comments from various subjects of foreign economic activity. The idea of combining them is missing. At the same time, the use of a systematic and integrated approach to the regulation of business processes inherent in logistics can ensure a steady increase in the efficiency of an extensive range of customs (near-customs) structures and their partners participating in foreign economic activity (Ponmaarov and Holcomb 2009). Consequently, the strategic development of a multi-level system of organizing customs and logistics activities should be carried out by taking into account the balance of interests of all the participants together with modern trends in the transforming economy, one of which is the course towards innovative development (Izmailova et al. 2018a, b). Therefore, in the current conditions of increasing global competition, participants in customs and logistics are doomed to innovation-oriented development, even though the innovation sector is considered one of the riskiest. The analysis of prospects for the development of innovations in the Russian customs and logistics sphere suggests that the impact of sanctions may shortly become more noticeable due to leading American and European companies’ closure of access to certain development tools (Bryntsev et al. 2018). In such a situation, organizations involved in customs and logistics must have a thoroughly justified strategy and tactics for their economic behavior in order to ensure their dynamic development, despite the risks.

Theoretical and Methodological Approaches to Customs ...

931

5 Conclusion Using a systematic approach to the economy, it can be argued that the holistic mechanism of state management of the national economy with its functional and regional blocks should be considered as a complexly organized system with many hierarchical levels. Moreover, each level acts as an open system that is dependent on the parameters of the external environment. A holistic multi-level system for managing the national economy includes subsystems of macro-, meso-, and microeconomic impacts. In order to organize the management of customs and logistics processes on a truly systemic basis, it is necessary to clarify the full composition of subjects and objects of management in their interconnections with a detailed classification of the entire set of their goals and performance criteria. Also, it is necessary to link the entire set of management goals and objectives with methods, tools, and means of achieving goals and various types of management resources. This should be the subject of in-depth studies conducted by scholars, analysts, and experts from the practical customs and logistics sphere.

References Adamov, N.A.: Logistic management of financial flows of the organization. Siberian Financ. School 6(89), 144–147 (2011) Adamov, N.A., Ellaryan, A.: Conceptual aspects of the development of the national transport and logistics system. RISK Resour. Inf. Procurement Compet. 3, 40–41 (2013) Alimusaev, G.: Logistic support of management in conditions of risk, economic sanctions, and environmental uncertainty. RISK Resour. Inf. Procure. Compet. 4, 13–16 (2014) Bryntsev, A.N., Kosenkova, T.A., Adamov, N.A.: The features of the development of logistics in the digital economy. RISK Resour. Inf. Procure. Compet. 4, 11–14 (2018) Fedorenko, R.V.: A multi-level approach to the formation of customs and logistics systems. Bull. SUSU. Ser. Econ. Manage. 8(3), 176–180 (2014) Filin, S., Brook, M., Fedorova, A.: Overcoming risk dependence. system-target analysis of the main methods, mechanisms, and tools for managing investment and innovation activities risks. RISK Resour. Inf. Procure. Compet. 1, 56–65 (2002) Gnezdova, Y.V., Glekova, V.V., Adamov, N.A., Bryntsev, A.N., Kozenkova, T.A.: Development prospects of the transport infrastructure of Russia in the conditions of development of the market of transport and logistic services. Eur. Res. Stud. J. 20(4A), 619–631 (2017) Izmailova, M.A., Adamov, N.A., Brykin, A.V., Siniaev, V.V., Luchitskaya, L.B.: Assessing the state of logistics and ways to improve logistics management in the corporate sector of the Russian economy. J. Appl. Econ. Sci. 13(2(56)), 414–424 (2018a) Izmailova, M.A., Grishina, V.T., Alimusaev, G.M., Kameneva, E.A., Morgunov, V.I.: The contemporary approach to the strategic management of logistics processes in integrated corporate structures. Int. J. Civ. Eng. Tech. (IJCIET), 9(13), 11–27 (2018b) Ponmaarov, S.Y., Holcomb, M.C.: Understanding the concept of supply chain resilience. Int. J. Logist. Manage. 20(1), 124–143 (2009)

932

V. Yu. Dianova et al.

Troshina, E.P., Udalova, N.M., Terekhova, E.V., et al.: Socio-economic Problems of the Modern Russian Economy: A Collective Monograph, vol. 2. Institute for the Study of Product Distribution and Wholesale Market, Moscow (2013) Zubakov, G., Protsenko, I.: Problems of informatization of customs segments of logistics of foreign economic activity. RISK Resour. Inf. Procure. Compet. 4, 265 (2010)

Innovative Capabilities of Food Industry Enterprises Ludmila V. Marabaeva , Elena G. Kuznetsova , and Roman R. Hairov

Abstract The article focuses the importance of assessing the innovative capabilities of enterprises to identify their strategic reserves and the ability of active innovative development. Analyzing the existing approaches, the key directions for innovative development and the features of assessing the innovative capabilities of Russian food industry enterprises are identified. Organizational, informational, and methodological aspects of the assessment of innovative opportunities are considered on a set of practical examples from typical enterprises of the Russian food industry. The authors evaluate the options available for using analytical information generated by various departments of the enterprise in accordance with the requirements of the quality management system. The evaluation of the options existing for using analytical information is done to study the innovative capabilities of the enterprise. Conclusions are made about partial information support for solving this problem on the basic components of the innovative capabilities of the enterprise, which is done within the framework of the QMS information support. Also, the authors argue for the need to take into account industry and production characteristics of food industry enterprises, determining the specifics of their innovative activities. Given the typicality of the identified situation for the Russian food industry enterprises in general, the need for a comprehensive assessment of their innovative capabilities is analyzed. Furthermore, the need for its organizational and methodological support is defined in order to make an informed choice of a long-term development strategy.

L. V. Marabaeva Mordovian State University named after N.P. Ogarev, Saransk, Russia e-mail: [email protected] E. G. Kuznetsova (&)
R. R. Hairov Saransk Cooperative Institute (Branch) of the Russian University of Cooperation, Saransk, Russia e-mail: [email protected]; [email protected] R. R. Hairov e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_100

933

934

L. V. Marabaeva et al.







Keywords Enterprise Innovative opportunities Assessment Innovation potential Innovative activity Innovative climate Innovative position Processes









Analysis



1 Introduction In order for the innovative development of enterprises to proceed at an accelerated pace and with greater efficiency, it is necessary to study their innovative capabilities. These are important for choosing the most promising areas of development. The results of such a study allow us to determine an enterprise’s ability to carry out innovative activities and identify the presence of necessary innovative resources as structural components of innovative potential. Also, the results of the analysis of innovative opportunities make it possible to determine the innovative activity of an enterprise, that is, the degree of intensity of ongoing actions in the field of innovative development and their timeliness. An equally important aspect of the study is to determine the degree of favorableness of the innovation climate, which will either contribute to the innovative development of the enterprise or slow it. This will serve as the basis for the development of a set of measures to use as opportunities, as well as to overcome environmental threats.

2 Materials and Methods The study is based on the systematization of modern research materials in studying and evaluating the innovative capabilities of enterprises in the Russian food industry. The practical part of the study is based on the materials of a real business enterprise. Methods of a comprehensive analysis and assessment and comparisons constituted the methodological basis of the study.

3 Results A comprehensive analysis of all components of the innovative capabilities of the enterprise allows us to identify hidden strategic reserves, as well as to develop measures for their activation and development. These events will help create additional competitive advantages and, accordingly, improve the company’s innovative position relative to competitors. To assess the innovative capabilities of Russian food industry enterprises, it is important to determine their features. The food industry is high-tech. Food industry enterprises operate in conditions of high competition, both from domestic producers and foreign. Therefore, standards of service and product

Innovative Capabilities of Food Industry Enterprises

935

quality, as well as a variety of assortment, are of particular importance. Thus, a high level of competition and a wide range of substitute goods stimulate enterprises to follow the path of innovative development. They encourage enterprises to develop and introduce new or improved types of products, technologies, organizational and marketing innovations, and new sources of raw materials, among others. Experts in this field identify the following main areas of innovative development of modern food industry enterprises: • Organization of development and production of new types of products; • Accelerated modernization of the manufactured product, objects, and means of labor; • Lower production and marketing costs; • Organizational and technical innovations aimed at reducing losses from defect; • Improving the technical characteristics of products, bringing them to the world level; • Simplification of technological processes, components, and operations, and ensuring, on the basis of this, cost savings in automation; • Creation of special environmentally friendly materials for food production and packaging; • Improving the quality control system and certification of raw materials and finished products; • Minimizing heavy physical and hazardous work (automation); • Organization of effective interconnection of the functional units of the enterprise through the use of modern communication methods; • Conducting systematic marketing research, studying market conditions, customers, products, competitors, and marketing innovations (Minko and Shamina 2012; Usacheva 2011). As a result of the study of the specific features of the innovation activity of food industry enterprises, specialists distinguish the following features of the assessment of their innovative capabilities (Mayurnikova and Novoselov 2011): • In the process of analyzing innovative potential, special attention is paid to the existing technical and technological level. Since the possibilities of modernization and the creation of new types of products, improving the level of safety and quality of products depend, to a large extent, on the activity of using production equipment. High energy and resource consumption of production requires appropriate technologies, the maximum possible load of production capacities, the rational use of raw materials, the development of energy-saving programs, etc.; • The importance of analyzing the possibilities of modernizing production and technology is growing; • In the study of innovative opportunities, special attention is paid to assessing the “flexibility” of the existing organizational structure of management since such structures are especially important for the innovative development of the enterprise;

936

L. V. Marabaeva et al.

• There are manual, machine-manual, machine, and automated operations at any enterprise in the food industry. These operations require the direct participation of workers or constant monitoring of the production process. In this regard, it is necessary to explore the possibilities of staff development. Not only the efficiency of production processes but also the possibility of revealing hidden or underutilized innovative opportunities depends on the qualifications, experience, competence, and motivation of staff; • In the process of analyzing the innovative capabilities of the enterprise, it is important to consider that the products of the food industry of the Russian Federation are constantly monitored by the state and must comply with state standards for safety and quality. The company must provide at least a standard level of safety and product quality, as well as constantly improve it. In addition, it is necessary to assess the conformity of products to international safety and quality standards, which is an important condition for entering foreign food markets. It is necessary to monitor the holding of both national and international competitions and exhibitions, a victory in which may involve receiving a cash prize or honors; • It is necessary to analyze in detail the financial resources of the enterprise since an important aspect of successful innovation is not only the creation of innovation but also its implementation in practice, which also requires significant financial investments. The ability of an enterprise to generate sufficient net profit may allow it to realize its innovative capabilities, for example, by creating an innovative enterprise development fund; • It is necessary to analyze the state and level of development of the marketing and distribution network of the enterprise. The focus of production on the direct consumer makes the food industry the most susceptible to market changes, which directly affects the marketing of products. Therefore, industry enterprises strive to develop their own marketing structures and networks; • It is necessary to assess the production capacity of the enterprise, the capacity of equipment loading, taking into account the influence of the factor of the seasonality of production of many types of products, and seasonality of labor use. As a result of this, it is also necessary to take into account the uneven loading of labor throughout the year; • It is necessary to constantly evaluate the raw material base of the enterprise since its availability allows for the reduction of production costs and dependence on suppliers; • The study of the innovative climate of the enterprise is important. To assess the prospects for the development of the food industry, the initial condition is the growth of population incomes. The growth of income stimulates the growth of consumer spending, affects the structure of consumption (in favor of products with higher nutritional value and higher added value). In addition, a favorable innovative climate characterizes the development of the technology market and scientific and technical information. Also, a favorable innovation climate reflects the state of innovation infrastructure that affects the scale and pace of innovation in the industry. The economic and financial components of the innovation

Innovative Capabilities of Food Industry Enterprises

937

climate are also subject to assessment, as they have a significant impact on food industry enterprises. The presence of credit institutions and their willingness to issue loans for innovative development to a high degree determine the innovative capabilities of the enterprise. Also, the presence of investment and venture funds that are ready to invest in the development of the enterprise, to a high degree, determine its innovative capabilities; • An important step in assessing the innovative capabilities of food industry enterprises is to assess their innovative activity. In a competitive environment with a wide range of substitute products, the desire of an enterprise to introduce innovation is a determining factor in attaining a stable position in a competitive market.

4 Discussion We will consider the practical manifestations of assessing the innovative capabilities of the food industry through the example of “Saranskiy Distillers” LLC. “Saranskiy Distillers” LLC is one of the leading manufacturers of alcoholic beverages in Russia, located in the Republic of Mordovia. The application of classic Russian technologies for the production of alcoholic beverages and careful control of the quality of raw materials and products during the entire technological process ensured high quality and wide popularity of the products both locally and beyond. The raw material for the distillery is alcohol, produced exclusively by distilleries located in the Republic of Mordovia. This allows control over the entire production process. In addition to high-quality Mordovian alcohol, the following products are used in the manufacture of beverages: artesian water that undergoes multiple purification processes, environmentally friendly vegetable raw materials grown in Mordovia, juices, spices, and other natural ingredients. The supply of alcoholic beverages is carried out in more than 60 regions of Russia, as well as abroad. The high quality and wide range of products offered allowed the company to earn recognition in various competitions and exhibitions. The company’s alcohol products have over 250 awards from the most prestigious exhibitions. Among them are such awards as 5 medals from the “Green Week” International Exhibition; 4 “Prodexpo Stars”; as well as 4 Grand Prix; 59 gold medals, 52 silver, 35 bronze, and 6 medals from the “Laureate of the All-Russian Exhibition Center”; and 20 signs from the “100 best goods of Russia” Federal Program. Also, the alcohol products of the enterprise received 7 “Novinka goda” marks; 60 marks from the Regional Program “Best Products of Mordovia”; and “Best Vodka OF THE YEAR” in 2011, 2012, 2013. In addition, the company’s alcohol products received grand prix at the 18th “Zolotaya osen” 2016 Russian Agricultural Exhibition in the tasting competition “For the production of high-quality food products,” etc. (Official Website of Saranskiy Distillers, LLC, n.d.).

938

L. V. Marabaeva et al.

Saranskiy Distillers, LLC, has a linear-functioning management structure. This structure is characterized by a number of disadvantages. As a result, it cannot timely respond to changes in the external environment and adapt to them internally. In turn, this slows down the process of innovative development and inhibits the development of innovative opportunities. To create favorable conditions for the implementation of innovative activities in the long term, it is necessary to explore the innovative capabilities of the enterprise. However, in the enterprise under consideration, a comprehensive study of innovative opportunities is not carried out. Accordingly, a comprehensive system of their analysis and assessment is not formed. This circumstance is associated with the lack of the necessary regulatory and methodological support. At the enterprise, there is no set of documents (plans, programs, methods, manuals, etc.) containing a systematic description of the process of researching innovative opportunities, which should subsequently be put into practice. Also, the company does not have a unit responsible for it. In our opinion, this is, to some extent, due to the fact that the enterprise does not implement large-scale innovative projects, but, as a rule, implements innovations with relative novelty. However, part of the information that is needed to analyze the structural components of innovative capabilities is generated by various departments of Saranskiy Distillers, LLC, as part of the quality management system in force since 2005. It is developed in accordance with the requirements of international standards ISO 9001:2008—Quality Management System. The company has already passed several recertification cycles of this system. QMS “Saranskiy Distillers” LLC, based on the process approach, helps to constantly improve production processes. The action of the QMS is aimed at achieving a high level of product quality. Also, the action of the QMS is aimed at achieving a high level of process quality and all activities of the enterprise in accordance with the following principles. The principles include the following: principles of customer orientation, leader leadership, staff involvement, mutually beneficial relationships with suppliers. To achieve these goals, at “Saranskiy Distillers” LLC, there is a functioning quality management and standardization department which is directly subordinate to the director of the enterprise. The department’s activities are aimed at achieving the following goals: to ensure the quality of products; introduction of the latest achievements of science and technology into the production process. Also, the activities of the department are aimed at ensuring compliance of the quality management system and food safety with the requirements of ISO 9001 and ISO 22000. The following QMS processes are defined at the enterprise: • • • • • •

Quality Management System management; Interaction with customers; Design (development) of products; Procurement management; Metrological support of production; Production management;

Innovative Capabilities of Food Industry Enterprises

• • • • • •

939

Storage and shipment of finished products; Process equipment management; Power equipment management; Personnel management; Production environment management; Product inspection and testing

A “Process map” is developed for each process, where its purpose, leadership and participants, suppliers, consumers, main activities, and resources used within the process are determined. As a result, by managing these processes, the company conducts a partial assessment of various structural components of innovative opportunities. For example, in the procurement management process, the procurement department assesses the need for material resources taking into account stocks and the degree of provision of the enterprise with other types of material resources. Also, the supply department evaluates the efficiency of the use of material resources and analyzes suppliers of certain types of resources. Thus, the study of the material and technical component of the innovative potential of the enterprise, as one of the structural components of innovative capabilities, is carried out. In the framework of managing the process of interaction with consumers, the following is studied: sales markets, target consumers, their current needs, as well as patterns of their development. This process is managed by the marketing department. Potential consumers, new markets, hidden customer needs, as well as new products released by competitors, are being studied. In addition, employees of the marketing department conduct not only an analysis of the microenvironment (strategic zones) but also an analysis of the macroenvironment (strategic areas). Analysis of the macroenvironment allows one to identify factors of direct and indirect impact on the activities of the enterprise. This analysis allows one to justify the development opportunities of the enterprise, including innovation, as well as identify threats and develop measures to eliminate them. This information can be used in the study of the innovative climate of the enterprise. The personnel management process is carried out with the participation of the personnel department, where the assessment of the security of the enterprise and its structural divisions with labor resources in general, as well as by categories, professions, and qualifications, is carried out. The personnel department carries out an assessment of the need for additional labor resources, these being indicators of personnel movement (turnover ratio for admission, employee turnover rate, staff replacement ratio, and others). This department evaluates the efficiency of the use of labor resources (average annual output by one worker, average daily output by one employee, and others). Also, an analysis of the need for advanced training, retraining, or training of workers and managers is carried out. Labor costs and the need for additional incentives to ensure productivity and employee initiative are analyzed. Based on the data, decisions on the introduction of additional methods to stimulate the enterprise’s employees’ activity are made. This information can also

940

L. V. Marabaeva et al.

be used in the study of the intellectual component of innovative potential as one of the structural components of innovative opportunities. As part of the production management process, several business units are involved. The main control effect is carried out by the deputy director for production, who oversees all the shops. As part of this process, a comprehensive assessment of the volume, composition, and dynamics of fixed assets (FA update ratio, FA disposal rate, FA growth rate, and others) is carried out. Also, a comprehensive assessment of the technical condition of fixed assets (moral and physical depreciation), technological level, and production capacity of each type of equipment is carried out. The load factor, the progressiveness of the technologies used in the production process, and the efficiency of using the FA (capital productivity and others) are also evaluated. The workers’ competences of servicing equipment are analyzed. As a result, decisions regarding the purchase of new types of equipment, the modernization of fixed assets, the introduction of new production technologies as well as the construction of fixed assets, and so on are made. This information can also be used in the analysis of the intellectual and industrial-technical elements of innovative potential as a structural component of innovative opportunities. As part of the management of the process of metrological support of production, the production and technological laboratory examines the condition (physical and mental wear), equipment, and the progressiveness of existing measuring equipment and instruments. Evaluation of new equipment and tools in the market of measuring instruments as well as new methods for measuring the quality of the composition of raw materials, semi-finished products, and finished products is carried out. The results of this study allow us to identify the possibilities of updating measuring instruments used for technological control of raw materials, semi-finished products, and finished products, as well as the introduction of new measurement methods. This information can be used in the process of researching the production and technical elements of innovative potential, as well as the technological sphere of innovative macroclimate, as structural components of innovative opportunities. Thus, the functions of researching innovative opportunities at “Saranskiy Distillers” LLC are not assigned to a specific structural unit, and a comprehensive system for evaluating them has not been formed. As part of the management of QMS processes, some of the information can be used to analyze the structural components of innovative opportunities and their development. As the study showed, this situation is quite typical for Russian food industry enterprises in general. This necessitates the implementation of a comprehensive assessment of their innovative capabilities and its organizational and methodological support in order to make an informed choice of a long-term development strategy.

Innovative Capabilities of Food Industry Enterprises

941

5 Conclusion Thus, the innovative capabilities of the enterprise are formed on the basis of its innovative potential and innovative activity, as well as the degree to which the innovative climate is favorable. In the process of evaluating the innovative capabilities of the enterprise, an analysis of all structural components is carried out. Moreover, there are various methods for assessing the structural components of innovative opportunities. They are presented in the framework of various techniques with which the integral values for each are calculated, as well as the interpretation of the obtained values. To obtain the most accurate values of the indicators of innovative capabilities of food industry enterprises, it is necessary to take into account their industry and production features since they determine the specifics of innovation. The research of innovative capabilities of the enterprise should result in revealing their hidden, used, or partially used reserves, to ensure their maximum involvement in production and other processes of activity.

References Mayurnikova, L.A., Novoselov, S.V.: Analysis and prospects of innovative development of the food industry in the regional conditions of the Siberian Federal district. Polzunovsky Vestnik 3(2), 23–33 (2011) Minko, I.S., Shamina, L.K.: Transition to the principles of open innovations in the food processing industry. Sci. J. NRU ITMO Ser. Econ. Environ. Manage. 1, 299–304 (2012). http:// economics.open-mechanics.com/articles/458.pdf Saranskiy Distillers LLC. (n.d.). http://www.lvzsaransk.ru/ Usacheva, I.V.: Features of the formation of innovative potential in the chemical industry. Socio Econ. Phenom. Processes 5–6, 227–229 (2011)

Creating a National Brand as a Factor in Growing Russian Exports Helena B. Starodubtseva , Marina B. Medvedeva , Marina S. Arabian , Valentina Yu. Dianova , and Svetlana V. Zybenko

Abstract The paper focuses on the challenge to expand the export of domestic goods. In particular, the case of the umbrella brand called “Made in Russia” is analyzed. This project aims to build a recognizable brand of products both in Russia and abroad, but mainly contributing to their promotion outside the country. The research identifies a total if three brand functions and analyzes how they are reflected in the umbrella brand “Made in Russia.” The authors argue that product promotion implies a sequence and compliance with several functions (discussed in the paper), in addition to a number of effective promotion tools in marketing. The authors conclude with highly valuable recommendations for state authorities and businesses.




Keywords Umbrella brand Image of Russian goods Marketing National communication strategy





Foreign market


H. B. Starodubtseva
M. B. Medvedeva Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] M. B. Medvedeva e-mail: [email protected] M. S. Arabian (&)
V. Yu. Dianova
S. V. Zybenko Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] V. Yu. Dianova e-mail: [email protected] S. V. Zybenko e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_101

943

944

H. B. Starodubtseva et al.

1 Introduction Currently, within the framework of national projects, there is a task to expand the export of domestic goods. To this end, an umbrella brand, “Made in Russia” has been developed. It implies the emergence of recognizable brand products both in Russia and abroad and their promotion outside the country. Several measures are needed to support this project. In our opinion, it is necessary to declare that the products of the Russian economy are also competitive, high-quality, and can be in demand. However, this is more typical for mining products. The products of the manufacturing industry are so far only competitive and are in demand in the market only in specific categories. To address this issue, the project “Made in Russia” is proposed, which assumes the availability of domestic goods on the market. These products must be recognizable, and for this, an umbrella brand, “Made in Russia,” has been developed. At the same time, this brand does not exclude the presence of both regional and local industry-specific trademarks and signs recognizable within Russia and abroad, their promotion in different markets.

2 A National Brand for Increasing Economic Growth The specificity of marketing when promoting a trademark or product in the foreign market is quick recognition for each product category. The trademark should be explicitly associated with the Russian manufacturer. Thus, “Made in Russia” is an umbrella brand that includes a whole variety of recognizable and internationally-patented trademarks. In turn, this implies not only the availability of the production of quality products but also a whole range of activities, including providing the necessary information, providing services for the promotion of goods, and combining the efforts of the state and business to recognize this product as a brand. The created brand should fulfill three functions: • identification or recognition, highlighting, and matching by attributes of goods or services; • differentiation of goods and services, i.e., differences in quality, design, price category, and others; • target, i.e., influence on such market indicators as brand recognition, choice, purchase, consumption, satisfaction, preference, commitment, etc. in order to influence consumer behavior (Domnin 2009). From a business point of view, a brand is nothing more than an actual monopoly. In modern conditions, it can be achieved solely through the implementation of a serious strategy and in-depth promotion of products (Kissan 2014), not just of particular goods and services but for global brands competing for a niche in the market. The confidence in the brand for the younger generation is a confidence in a

Creating a National Brand as a Factor …

945

reasonable price-quality ratio, in the authenticity of the brand itself and, which is also essential, in saving time on purchases, for example, through online orders. Thus, trust in the brand becomes a consumer’s rational expectation, which makes it possible to expand the market for goods, and as a result, the development of production and GDP as a whole. Russia has not paid much attention to this for a long time. It was believed that the high quality of the product would help to find the consumer. Currently, the situation is changing, and it is necessary to expend resources to promote the product. In the framework of the national communication strategy, the role of the brand is to form values aimed at creating and promoting their identity in Russian regions, joint activities of government bodies, state corporations, and public organizations. The task of this organization is to provide the regions with competencies in the registration, protection, and capitalization of regional brands. One more thing is the creation of regional brands for preserving cultural identity (Sadchenkov 2018). The trademark “Made in Russia” marks Russian products for export. In order to promote this brand, 370 million rubles have been allocated from the budget (Rambler. Finance 2017). In order to form preferences among foreign consumers over goods produced in Russia, priority is given to the factor of the dominance of Russian products in the domestic market. This factor is not administratively determined but is formed by the “taste” preferences of the Russian citizens. This reasoning is based on several economic theories that affirm and empirically prove that the effect of preference for domestic products on own market provides additional resources for expanding production and, as a result, deepen international specialization, i.e., expansion of participation in the world economy (Lloyd 1999; Brulhart and Trionfetti 1998; Howse 1999). The potential of Russian products is also being studied by OECD experts (December 2018), which indicates the growth of the image component in world trade. In particular, it is noted that the share of foreign manufacturers of products created in Russia does not exceed 9–11% (in 2016), since the mining industry and related industries, as well as the oil refining industry, do not involve foreign manufacturers (OECD 2018). As noted by the OECD experts, the most active sectors of Russian production in terms of attracting foreign investors and, accordingly, their direct participation in the creation of global value chains (GVCs), is automobile vehicles (30.5%) and rubber and plastic production (25.7%). At the same time, OECD experts note that it is not the sanctions that determine the decrease in the share of foreign manufacturers in the creation of products in Russia, but the decrease in domestic demand. The fall in external demand requires either the search for new markets or the expansion of the product range in Russia. Thus, the mining sector continues to demonstrate a high level of export orientation (77.9%), while other sectors are characterized by a decline, including the production of metals and chemicals. The authors of the OECD study emphasize that, in Russia, serious attention is paid to the decrease in the share of Russian companies in GVCs, which is associated with the development of the domestic market and the formation of national production in the country (OECD 2018).

946

H. B. Starodubtseva et al.

The Swedish experts analyze the negativity of the integration of national manufacturers in GVCs and the increasing dependence of their activities on the import of components, especially in the context of promoting the sanctions policy. In particular, in recent decades, it is indicated that the world production structure has become increasingly fragmented; it is divided into various tasks and distributed geographically. Subcontractors process and improve products, turning them into finished consumer goods in extended supply chains. This means that the trade in commodities (components, raw materials, semi-finished products, etc.) and input services (business services) is becoming increasingly essential and leads to the highest degree of dependence on the foreign policy component in economic activity (Swedish National Board of Trade 2011, p. 5, 26). For example, due to the progressive process of the deindustrialization of Sweden, the competitiveness of the country’s producers has become dependent on imports, and this dependence has begun to grow exponentially (Swedish National Board of Trade 2011, p. 35). As a result, practically all sectors of the Swedish economy became dependent on imports. Currently, even the Swedish information technology sector and the textile industry have become dependent on GVCs, which go beyond the EU. The EU experts draw attention to the fact that globalization of the world economy and, in particular, of the EU urgently requires reducing administrative and bureaucratic barriers to the movement of components and raw materials. Existing barriers to trade procedures, including the ones under the WTO Agreements, indirectly increase the import value. Document processing, insurance, payment procedures, slow processing of customs declarations, corruption, and dishonesty in various permits require time and cost. This can be very serious for companies that rely on imports from various sources around the world and on-time delivery. Therefore, transparent and straightforward trading procedures are a competitive advantage in a world with global production chains (Swedish National Board of Trade 2011, p. 39). Export promotion of goods and services under the GVC dominance in the formation of the national economy’s GDP determines the mono-specialization of the country’s economy. Secondly, they make export promotion exclusively relevant for the raw material component, making national competitiveness dependent on the activities of global multinational companies. In this regard, in the current conditions of the transformation of the world community, the Russian economy should be self-sufficient and depend on foreign trade exclusively within the framework of ensuring economic security and maintaining the level of international competitiveness. Western experts consider the promotion of Russian products for export not as a goal in itself but as a means of ensuring its competitiveness, emphasizing the high potential for the self-sufficiency of the national economy with the right approach to the tools used for its development. In this regard, the promotion of the Russian brand in foreign markets should be considered solely from the perspective of “an integrated system of measures to generate demand in foreign countries.” The following promotional tools are used:

Creating a National Brand as a Factor …

947

• advertising weighed following the mentality of the importing country that introduces the new proposed brand and shows its main advantages against analogs; • the conclusion of commission agreements or the provision of advertising and intermediary services with companies operating in a particular foreign market, taking into account the fact that customer preferences also relate to the place of purchase of goods. Thus, for example, in recent years, more and more foreign buyers (regarding consumer goods) prefer to purchase goods either using online trading networks or in small stores kept by their neighbors to support national companies to save jobs (Oane.ws 2015). In order to promote the product on the market and its conquest, Russian manufacturers should invest in creating brand integrity, concentrating not only on creating a quality product but also on their style (Kissan 2014). Product quality indicators play an essential role. In this regard, the brand Made in Russia can become the very criterion that will be positively perceived by foreign consumers. However, in foreign countries, advertising campaigns, comparative analytical, and practical work on the quality of local goods and Russian products with the umbrella brand Made in Russia should be carried out. The fair and exhibition work should also be focused on the formation of the image of the umbrella brand, including using tools and methods that are not directly related to advertising (NLP, verbal methods, etc.). During a plenary meeting in the State Duma, President V. V. Putin said that producing goods only for Russian consumers is not enough; they need to be promoted to world markets. “Our domestic consumer will use goods and services that are not inferior to world analogs. Russia has already reached such a level of production in some areas that the domestic market is becoming small for this. These areas include the oil and gas industry, metallurgy, petrochemicals, and agriculture. Here, we can distinguish three main areas in which development will expand the representation of Russian manufacturers in foreign markets. The first direction is a cooperation between the state and business in the formation of a single export policy that can create an environment for the emergence of regional and federal brands, in providing Russian businesses with communication and interaction tools through international cooperation channels (Sadchenkov 2018). The methods of promoting goods on the market are represented by a set of measures aimed at increasing the demand for goods or services. One of the essential tasks is the formation of a positive image of the organization, and an increase in consumer interest. At the same time, product promotion implies a sequence and compliance with several functions: • • • •

creating a positive image of the organization; setting reasonable prices for the consumer; product advertising; consolidating the level of brand consolidation in-country markets;

948

• • • •

H. B. Starodubtseva et al.

implementing pricing policy: initially cheaper, then more expensive; stimulating the product marketing process; positive customer reviews (Usolkina 2017); technical service and warranty and after-sales service.

V. V. Putin, at a meeting of the Commission on Military-Technical Cooperation of the Russian Federation with Foreign States (June 24, 2019), emphasized that the critical task in promoting export is the comprehensiveness of the state strategy in terms of ensuring coordinated measures of a political, diplomatic, financial, economic, and technical nature (Presidential Executive Office 2019). Along with export, it is necessary to simultaneously address the issues of modernization of already delivered machinery and equipment, deploying service centers on the territories of customer states, reducing the time for the provision of repair services, and also involving foreign commission agents or scientific and technical contractors in the modernization processes. In order to conquer foreign markets and promote the brand “Made in Russia,” it is advisable to work on creating a positive image of companies and the goods they produce. In particular, the Roscongress Foundation and AO “Russian Export Center” (REC) signed a cooperation agreement aimed at marketing the promotion of Russian exports, business, sports, tourism, and culture. As stated in a joint press release, “the document provides for the consolidation of efforts to develop the national and export umbrella brand “Made in Russia” to promote specific sectors of the economic activity and Russian companies, as well as to increase the number of export-oriented enterprises” (Kuznetsov 2017). Taking into account the need for comprehensive measures to bring Russian manufacturers to world markets, it is advisable to intensify the activities of the Chamber of Commerce and Industry, including in the regions of Russia, which can organize exhibition activities, including at the regional level, to attract foreign contractors and familiarize them with Russian goods and services. For the professional introduction of Russian goods to foreign markets, it is advisable, under the auspices of the REC, to form a network of specialized industry specialization of intermediaries focused exclusively on working in foreign markets. In particular, this is the search for partners, conducting preliminary negotiations with them, drawing up offers and price calculations, organizing advertising, maintaining its relevance depending on the market and mentality of the country, as well as distributing the published catalog of Russian exporters, with its translation into many languages. This document will symbolize that the goods sold on the market under the brand “Made in Russia” will not disappoint the importer and will provide an incentive for the development of demand for this product and its further consolidation in the market. Modern communications can expand the audience for such a directory if it is posted online in an e-form. It should be noted that such catalogs are already being created in the absence of coordination and interaction by separate departments, for example, RECs, the Ministry of Economic Development, regional export centers, and state corporations (Sadchenkov 2018). Therefore, it is

Creating a National Brand as a Factor …

949

necessary to create a single catalog, with the proof of each link of the need to include goods in the catalog. As noted, there should be appropriate advertising that consists not only of relaying information about the product but also in promoting the product. Not only the manufacturer himself can engage in such advertising, but the Chamber of Commerce and Industry, which has connections with foreign colleagues, the media, and journalists, can prepare unobtrusive advertising. An important factor in expanding the range of Russian exports is the interaction with foreign intermediaries in the foreign economic activity of a country. Access to them can be ensured through information support through Russian trade missions abroad. The conclusion of commission agreements with them will make it possible to form consumer preferences with foreign counterparties quickly. For machine-technical products, it is advisable to create technical services for maintaining the delivered products in terms peculiar to the terms of counterparties in a particular market. Consequently, timely or pre-delivery of spare parts and software from Russia for exported supplies is an essential component of success in a particular market. It is also advisable to conclude agreements with foreign technical services for the maintenance of products delivered from Russia. In this case, there is a significant saving on rental premises, taxes, and other expenses associated with the maintenance of the technical services. As international experience testifies, the houses of culture or friendship in countries that are friendly with Russia, play an important role in shaping the image of the country and the products that it manufactures. They acquaint people with the culture, language, and history of the people of Russia and simultaneously carry out advertising campaigns to promote exported products to the host country’s market.

3 Conclusion In connection with the above, we drew the following conclusions: 1. The created umbrella brand, “Made in Russia” should fulfill three functions: • identification or recognition, highlighting, and matching of goods or services; • differentiation, i.e., differences in quality, design, price, and others; • target, i.e., influence on such market indicators as brand recognition, choice, purchase, consumption, satisfaction, preference, commitment, etc., in order to influence consumer behavior. 2. In order to form preferences among foreign consumers over goods produced in Russia, priority is given to the factor of the dominance of Russian products in the domestic market. This factor is not administratively determined but is formed by the “taste” preferences of the Russian citizens.

950

H. B. Starodubtseva et al.

3. The state support policy should be strictly differentiated based on the tasks of priority national projects designated in Russia as targeted strategic directions of development. 4. In order to form the preferences of foreign consumers of products under the umbrella brand “Made in Russia,” it is necessary to reduce the share of Russian producers in the creation of global value chains that negatively affect the image component of the real Russian sector. The Russian economy should be self-sufficient and depend on foreign trade exclusively within the framework of ensuring economic security and maintaining the level of international competitiveness. 5. The promotion of the Russian brand in foreign markets should be considered solely from the perspective of “an integrated system of measures to generate demand in foreign countries.” The promotion tools are as follows: • Advertising weighed following the mentality of the importing country, that introduces the new proposed brand and shows its main advantages against analogs; • The conclusion of commission agreements or the provision of advertising and intermediary services with companies operating in a particular foreign market, taking into account the fact that customer preferences also relate to the place of purchase of goods. 6. Three main areas will expand the representation of Russian manufacturers in foreign markets: 6:1 the cooperation between the state and business in the formation of a single export policy that ensures coordinated measures of a political, diplomatic, financial, economic, and technical nature and can create an environment for the emergence of regional and federal brands. It also includes cooperation in providing Russian business with communication and interaction tools through international cooperation channels; 6:2. the consistent modernization of already delivered engineering products, deploying service centers on the territories of the customer states, reducing the time for the provision of repair services, as well as involving foreign commission agents or scientific and technical contractors in the modernization processes; 6:3. the revitalization of the Chamber of Commerce (including the regions of Russia) in terms of exhibition activities, to attract foreign counterparties and familiarize them with Russian goods and services. 7. For the professional withdrawal of Russian goods to foreign markets, under the aegis of the REC, it is advisable to form a network of industry specialization of specialized intermediaries focused exclusively on work in foreign markets. Their functions include the search for partners, conducting preliminary negotiations with them, drawing up offers and price calculations, organizing advertising, maintaining its relevance depending on the market and mentality of the country, as well as distributing the published Catalog of Russian exporters,

Creating a National Brand as a Factor …

8.

9.

10.

11.

12.

951

with its translation into many languages. This document demonstrates that the goods sold under the brand “Made in Russia” will not disappoint the importer and will provide an incentive to increase the product’s demand and to further consolidate its presence on the market. For domestic producers, the participation in foreign tenders, both commercial and state, is an additional export channel and an effective way to promote the company, its manufactured goods, the work performed, and the services rendered abroad. The Russian export center should assist exporters in finding information about relevant projects/programs and tenders and provide support in submitting the participation applications for competitive procedures. An important factor in expanding the range of Russian export is the interaction with foreign intermediaries in the foreign economic activity of a country. The access can be ensured through the information support received from Russia’s trade missions. The conclusion of commission agreements will allow to quickly survey consumers’ preferences from foreign counterparties. For machine-technical products, it is best to create technical services to ensure the delivered products’ maintenance that will be peculiar to the terms of the counterparties in a particular market. Consequently, timely or pre-delivery of spare parts and software from Russia for exported supplies is an important component in a particular market’s success. It is also advisable to conclude agreements with foreign technical services for the maintenance of products delivered from Russia. In this case, there is a significant saving on rental premises, taxes, and other expenses associated with the maintenance of the technical service. As international experience testifies, the houses of culture or friendship, which are opened in different countries friendly to Russia, play an important tool in shaping the image of the country and manufactured products. They acquaint with the culture, language, and history of the people of Russia and simultaneously carry out advertising campaigns to promote export products to the market of the host country.

References Brulhart, M., Trionfetti, F.: Home-biased demand and international specialisation: a test of trade theories. Nottingham, University of Nottingham, UK (1998) Domnin, V.N.: Brand Preferences as a Key Factor in Influencing Consumer Demand and Market Performance. Brand Manage. 3(46), 130–144 (2009) Kissan, M.: What brand? Research on the preferences of Russian consumers (2014). https://www. shoes-report.ru/articles/rynok/chto-za-brend-issledovaniya-predpochteniy-rossiyskikhpotrebiteley/ Kuznetsov, A.: Brand “Made in Russia” will be promoted around the world (2017). https://narodnovosti.com/ekonomika/?p=brend-sdelano-v-rossii-budut-prodvigat-po-vsemu-miru Lloyd, P.J.: International trade opening and the formation of the global economy: selected essays of P. J. Lloyd. Cheltenham, Elgar, UK (1999)

952

H. B. Starodubtseva et al.

Oane, ws.: The quality and affordable price of children’s products are the preferences of Russian buyers (2015). https://oane.ws/2015/10/20/kachestvo-i-dostupnaya-cena-detskih-tovarovpredpochteniya-rossiyskih-pokupateley.html OECD: Trade-in value added: Russian federation (2018). http://www.oecd.org/sti/ind/tiva-2018guide-to-country-notes.pdf Presidential Executive Office: Meeting of the commission on military-technical cooperation of Russia with the foreign states (2019). http://kremlin.ru/events/president/news/60812#sel=7:1: zgj,7:22:jUe Rambler.Finance: News of economics and finance (2017). https://finance.rambler.ru/economics/ 37028654/?utm_content=rfinance&utm_medium=read_more&utm_source=copylink Sadchenkov, M.D.: National brand “Made in Russia”—a “soft power” in the economic development of the state (2018). https://madeinrussia.ru/ru/news/1387 Swedish National Board of Trade: Made in Sweden, 1st edn. Stockholm, Sweden (2011) Trebilcock, M.J., Howse, R.: The Regulation of International Trade. Routledge, New York (1999) Usolkina, A.: Seven effective methods of promoting a product on the market (2017). http://bbcont. ru/business/7-effektivnyh-metodov-prodvizheniya-tovara-na-rynok.html

Marketing Research on Consumer Demand in the Confectionery Market of the Krasnodar Region (Russia) Adelia R. Muratova , Dmitry D. Kushnir , Ekaterina E. Grishenko , Margarita A. Shumilina , and Svetlana A. Galaktionova Abstract The paper analyzes the state of the Russian market of the confectionery industry and consumer preferences to develop recommendations aimed at forming and stimulating the demand from the residents of the Krasnodar region. The study used empirical methods (observation, comparison, measurement), as well as a method of sociological research (survey). The results of the study have a practical orientation, which allows enterprises in the field of confectionery production to improve their activities by increasing their efficiency and fully satisfying the needs of the population in the confectionery products. The authors propose to expand the range of products; to improve logistics processes; reasonably approach the choice of consumer product formulations; improve the quality of confectionery; to establish information support for buyers; to active use the marketing technologies to influence consumers, especially in conditions of seasonal fluctuations in demand; to use social networks to promote targeted advertising. The totality of the proposed recommendations determines the novelty of the study, as well as its practical application. Keywords Market Customer


Confectionery
Marketing
Quality
Customer demand


A. R. Muratova Kuban State University, Krasnodar, Russia e-mail: [email protected] D. D. Kushnir (&)
M. A. Shumilina
S. A. Galaktionova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] M. A. Shumilina e-mail: [email protected] S. A. Galaktionova e-mail: [email protected] E. E. Grishenko STES-VLADIMIR Company, Vladimir, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_102

953

954

A. R. Muratova et al.

1 Introduction The Russian confectionery market is a rapidly developing sector of the economy with very high export potential. In terms of growth rates, it was one of the leading markets in Russia until 2015. However, the fall in the ruble’s exchange rate in 2015 led to a fall in the real incomes of the population. It caused a decrease in the consumption of sweets both in Russia, in general, and in the Krasnodar region in particular. First of all, the consumption of imported confectionery products, primarily chocolate and flour, was reduced. Exports of Russian confectionery (waffles, rolls, biscuits, etc.) remained practically unchanged but fell significantly in value terms. In 2014, the export of Russian confectioneries amounted to more than $1 billion. A sharp increase in prices for basic raw products and materials (cocoa products, sugar, butter, etc.), which led to a reduction in the consumption of cakes, pastries, and chocolate, has been one of the leading trends in the Russian confectionery market until recently. Nowadays, we can say that the industry has overcome most of the consequences of the crisis. Export has recovered and is growing. For example, export sales of confectionery products in the first half of 2019 increased by 22.6%, which amounts to about $551 million; the consumption of sweets in the domestic market is recovering as well. According to the Federal State Statistics Service, the average Russian, in 2018, consumed confectionery for 7450 rubles, which is 5% more than in 2017. The consumption of chocolate and chocolate products increased by 0.1 kg —from 5 kg, in 2017 to 5.1 kg in 2018. The growth in the consumption of flour confectionery products of long-term storage also amounted to 0.1 kg—from 9.6 to 9.7 kg per capita. The consumption of sugar confectionery remained unchanged— about 7.9 kg per capita, while the consumption of cakes and pastries decreased by 0.1 kg—from 2 to 1.9 kg (Ponomareva 2019). This situation was caused by an improvement in the economic situation of the country, albeit an insignificant one. Also, most enterprises of the confectionery industry purchased imported equipment, which allowed for the increase of the assortment and improvement of the quality of confectionery. However, the average consumption of confectionery in Russia in the first half of 2019 decreased by 1.6% to 24.2 kg per person in terms of a year (Confectionery Market Research Center 2019). That is, the situation of 2015–2017 is repeated; therefore, in such a difficult time, manufacturers made adjustments to the production process. The following actions were taken to keep sales at the same level and optimize costs: – the weight and size of packages and confectionery are decreased; – new confectionery products appeared on the market. Mini-formats are produced instead of standard chocolate bars. – confectionery manufacturers are more likely to position chocolates as a gift (Tobolin 2018).

Marketing Research on Consumer Demand …

955

The features of the Russian confectionery market include: – limited period of product sales; – complex logistics due to the large coverage area and the insufficient quality of transport infrastructure; – the dependence of manufacturers on the quality of the supplied raw materials; – self-cooking, and home baking; – a variety of local raw materials for fillers, due to differences in natural and climatic conditions, resulting in unique berries, fruits, etc.; – the competition is high in market segments with low prices, but it is almost absent in the premium division; – in the baking portion, the leading players are small businesses, despite the production capacities of large confectioneries and factories. The manufacturers in the confectionery market use several typical patterns of behavior, such as: – the production of confectionery and their sale through manufacturers’ own distribution networks (or through counterparties)—the revenue is maximum, but both costs and financial risks are high; – custom-made production (“white label”)—implementation costs are reduced, but direct communication with the consumer is absent, which makes it challenging to respond to the requests of the customer; – the production and sale of products through a franchise network help to minimize sales costs. However, there are reputational risks associated with the action of the franchisee (Miroshnichenko 2017). Nowadays, every head of the enterprise wants not only to produce high-quality goods but also to sell them successfully. Therefore, in order to further increase sales volumes and the competitiveness of confectionery products, it is necessary to conduct marketing research in order to identify the demand of certain groups of consumers for specific types of products and their subsequent attraction to purchase. The “war” for the consumer in the confectionery market is becoming more robust and more aggressive (Kushnir and Vasilevskaya 2007).

2 Materials and Methods The study used such empirical methods as observation, comparison, and measurement, as well as one of the methods of sociological research—a survey aimed at identifying the causes of changes in consumer demand for confectionery. For this, a field marketing study was conducted, based on a survey of about 750 respondents (various social groups)—residents of the Krasnodar region. The factors affecting the consumer demand for confectionery, as well as the conditions for consumption growth, were identified. Also, Rosstat data were used to identify the dynamics of the consumption of confectionery at various time intervals, export-import indicators, etc.

956

A. R. Muratova et al.

Fig. 1 Consumer satisfaction with the assortment of confectionery. Source Calculated by the authors

Not completely, 22% No, 8%

Yes, 70%

3 Results In general, we can safely say that, nowadays, consumers are satisfied with the range of offered confectionery, as evidenced by the data presented in Fig. 1. Considering the question of the preferred confectionery consumed by the residents of the region, it was found that consumers prefer the group of flour confectionery products the most (waffles, cakes, cookies, cakes, biscuits, etc.)—40%. The group of sugary products (caramel, marshmallows, sweets, marmalade, pastille, toffee, dragees, etc.) is not far behind—37% of the number of respondents, while chocolate products (bars, chocolate sweets, chocolate) occupy the third position— 23% (Fig. 2). The main manufacturers of confectionery are not only confectionery factories, large bakeries, and factories, but also small businesses. The following companies are the most significant representatives of the culinary sphere for the residents of the Krasnodar region: Pirogov, Al-Khatib, Boulanger, Kubanochka. Culinary chain Patrick & Marie, which always offers fresh pastries and first-class treats for every taste, is the most popular in the region. Despite a sufficient number of confectionery manufacturers and a wide range of manufactured goods for every taste and budget, the supply of high-quality products to the population is one of the fundamental problems of market development. After all, the consumption of a quality product is one of the conditions for the population’s health. Not only the consumer but also the state is interested in this, which could reduce the costs of subsequent treatment of citizens.

Flour products, 40%

Chocolate products, 23%

Sugary products, 37% Fig. 2 The pattern of consumption of confectionery. Source Calculated by the authors

Marketing Research on Consumer Demand …

957

Low calorie Packaging Healthiness Appearance Smell Freshness Taste 0%

10%

20%

30%

40%

Fig. 3 The structure of the answers to the question “In your understanding, what is a quality product?” Source Calculated by the authors

To the question “In your understanding, what is a quality product?” the majority of the respondents identified two main criteria: taste and freshness (38% and 35%, respectively) of the product (Fig. 3). From here, it follows that the main factor in determining the quality of a product is the gastronomic preferences of customers. When analyzing the reasons for the acquisition of confectionery, it was found that the main ones are taste (46%) and habit (30%), and the health benefits play the least role (7%; Fig. 4). To the question “How often do you buy confectionery?” 34% of the respondents answered that they purchase confectionery daily, 22% said once a week, 30% said several times a week, and 14% said several times a month (Fig. 5). According to the results, we can conclude that confectionery products are in high demand among the population. To the question “How do you assess the quality of confectionery in the Krasnodar region?” 52% of the respondents rated the quality of confectionery products as high, 29% as medium, 19% as low (Fig. 6).

46%

7%

Taste

17%

Health benefits

30%

Gift

Habbit

Fig. 4 Reasons for purchasing confectionery. Source Calculated by the authors

958

A. R. Muratova et al.

Several times a month Several times a week Once a week Everyday 0%

10%

20%

30%

40%

Fig. 5 The answer to the question, “How often do you buy confectionery?”

Law

16%

Medium

33%

High

43%

Fig. 6 The assessment of confectionery quality

Thus, if we take into account the opinion of the majority, it turns out that in the Krasnodar region, consumers assess the quality of the manufactured confectionery products as high. To the question, “Have you encountered poor-quality confectionery products and have you applied to regulatory authorities,” the following results were obtained: 64% of respondents did not experience low-quality products, 36% encountered this problem, of which, only 9% turned to control organs. The conditions for the growth of consumption of confectionery products were determined, considering the opinions of respondents (Fig. 7).

If a price is reduced

33%

If the taste is improved 16% 43%

8% 10%

If the calorie content of products is reduced If the package is available If the usefulness of products increases

Fig. 7 Factors that increase the consumption of confectionery

Marketing Research on Consumer Demand …

959

The primary condition for the growth in the consumption of confectionery products, consumers called—a decrease in prices (43%), 33%—an improvement in taste; 16%—reduction in caloric content of products; 8%—presence of packaging; 10%—increase in the usefulness of the product. A specific feature of the confectionery market is its seasonality, which was established as a result of the study. In particular, in the summer period, there is an increased demand for the production of flour confectionery products in the autumn-winter period for chocolate and chocolate products. At the same time, increased demand falls at the end of the year; during this period, boxed confectionery products purchased for the holidays are very popular. Maximum sales are observed on New Year’s holidays. The period of the sharp decline in sales is the first quarter of the year.

4 Discussion Having studied the results of marketing research of the confectionery market of the Krasnodar Territory, taking into account its current situation, we can recommend the following set of measures to form and stimulate the demand of the population for the products of confectionery enterprises: 1. It is necessary to expand the range of products paying attention to the usefulness and calorie content of products (since 8% of the population are not satisfied with the existing assortment at all, and 22% are only partially satisfied); 2. The products must be delivered fresh and tasty to the retail chains. For this, it is necessary to select the product recipe corresponding to the taste preferences of the population, while competent logistics are required to determine the speed of getting the product fresh to the counter; 3. It is necessary to improve the quality of confectionery, which determines the consumer demand of the population; 4. Inform customers in a timely manner about the quality, properties, and advantages of the produced confectionery, which is achieved through various marketing communications tools. After all, the producers should remember that, in a market economy, we cannot sell what we want, but only what the buyer wants, otherwise we cannot achieve success in the market; 5. When promoting products in the absence of a trademark from the manufacturer, or when it is not strong, the focus should be not on the manufacturer of the product but on its quality and useful properties; 6. It is necessary to use tools to influence the buyer more actively, such as persuasion and propaganda because it is these tools that the potential buyer trusts more than advertising; 7. In order to attract buyers’ attention to a particular product, it is possible to organize raffles of inexpensive but practical prize gifts, for example, by placing raffle tickets in a package;

960

A. R. Muratova et al.

8. Since the demand for confectionery products is subject to seasonal fluctuations, it is necessary to use the marketing tools in the promotion of the product most competently, especially during a period of decline in consumer demand; 9. It is necessary to use social networks to promote targeted advertising, especially in the premium segment of confectionery products.

5 Conclusion In this period, under the current situation, the decline in demand for confectionery products, especially in comparison with the crisis year of 2015, was felt most strongly by foreign manufacturers due to a several-fold increase in the price of their products for several objective reasons, the main reason being the weakening of the ruble. As a result, there was a decrease in the profitability of production. Therefore, many manufacturers were forced to take the path of convergence of production processes to maintain their market position. The study made it possible to establish the dependence of the demand for confectionery on the season of the year, which allows us to plan a set of measures aimed at increasing consumer demand, especially during periods of decline. As for the evaluation of customers, they, as before, use the impulse approach in choosing sweets, but, as market analysis shows, they pay more attention to the price of products. Price has become a significant factor in influencing purchasing decisions. At the same time, for the most part, consumers are satisfied with the available assortment of confectionery, among which flour and sugar confectionery products are most demanded. Starting from the majority of opinions, in the Krasnodar region, consumers assess the quality of confectionery products as high. The products of the culinary chain Patrick & Marie are the most popular among the residents. At the same time, supplying the population with quality products is one of the fundamental problems of market development. Also, we should keep in mind that in the early 2000s, the concept of quality products became identical to the concept of “Russian.” To sum it up, one may argue that in the context of fierce competition in the confectionery market, there are many difficulties that manufacturers encounter, such as variability in the consumers’ preferences, frequent changes in legislation, instability of prices for raw materials and supplies, reduction of the population’s incomes, which is reflected in the reduction of consumption, and more. At the same time, enterprises have to survive by reducing the cost of recipes, optimizing costs, and expanding the range of their products. The current trend is the production of healthy sweet products, which occupy higher positions in the manufacturers’ product lines. Given the latest research conducted by the INFOLine news agency, the domestic market will not grow at the same pace as several years ago, so manufacturers should consider exporting.

Marketing Research on Consumer Demand …

961

Because a rather large amount of confectionery is sold through large retail chains, starting with 2020, an organic shelf will appear in these networks. Products on these shelves will be 30–40% more expensive than the usual products. Therefore, it is worthwhile to start developing organic products today so that, next year, these shelves will not have products sourced from the competition. Thus, according to the study’s results, the confectionery market in both Russia and the Krasnodar region is relatively stable in terms of consumption, and the products satisfy consumers’ sophisticated tastes. The products from Krasnodar’s manufacturers can compete with leading Russian and foreign companies that produce confectionery. Moreover, in order to survive, each company must choose its path that will ensure its prosperity.

References Confectionery Market Research Center: Russian consumers lose their appetite for sweets due to rising prices (2019). http://cikr.ru/news/?ELEMENT_ID=606 Kushnir, D.D., Vasilevska, O.A.: Marketing research of consumer demand of residents of the Kuban for the products of bakeries. Fundam. Appl. Res. Coop. Sector Econ. 4, 133–139 (2007) Miroshnichenko, D.: Overview of the Russian confectionery market (2017). https://www. openbusiness.ru/biz/business/obzor-rossiyskogo-rynka-konditerskikh-izdeliy/ Ponomareva, E.: Overview of the Russian confectionery market (2019). https://t-laboratory.ru/ 2019/05/14/obzor-rossijskogo-rynka-konditerskih-izdelij/ Tobolin, A.: Overview of the Russian confectionery market: Changes and trends (2018). https:// koloro.ru/blog/brending-i-marketing/obzor-rynka-konditerskikh-izdeliy-rossii-izmeneniya-i-tendentsii.html

The New IFRS Leaseholder Accounting Model Lyudmila A. Kryatova , Olga S. Ezopova-Sorokina , Roza N. Nurgalieva , Renata I. Amirova , and Lyudmila A. Furgina

Abstract The paper analyzes critical practical aspects in the application of IFRS 16 “Leases.” The authors describe the main elements of a new model for recognizing leased assets and lease obligations for all types of leases in the financial statements of companies. The authors also argue that the changes made to the international standard for lease accounting can have a severe impact on business processes and financial statements of leaseholders. Under the new rules, the companies must reflect the lease on their balance sheet and provide interested external users with much more data related to rent than they previously provided. The research is also applicable for cooperative enterprises.




Keywords Lease contract Leaseholder Discount of rental payments IFRS





Rental asset
Lease obligation


L. A. Kryatova (&)
O. S. Ezopova-Sorokina
L. A. Furgina Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] O. S. Ezopova-Sorokina e-mail: [email protected] L. A. Furgina e-mail: [email protected] R. N. Nurgalieva Karaganda Economic University of Kazpotrebsoyuz, Karaganda, Kazakhstan e-mail: [email protected] R. I. Amirova Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_103

963

964

L. A. Kryatova et al.

1 Introduction In modern conditions of the development of a market economy, many companies use various lease agreements at the initial stage of establishing a business. This allows them to obtain the necessary property, equipment, and other long-term assets for use in the business process without a significant cash outflow. Before the new IFRS 16 “Leases” comes into force on January 1, 2019, companies compiling financial statements following international standards took into account lease transactions following IAS 17 “Leases.” The need to adopt this lease standard was because companies often used the lease as a way to finance the acquisition of long-term assets, but did not reflect either the assets controlled by the company or the obligations associated with the lease in the statement of financial position. Under IAS 17, all leases were divided into two types: finance leases that are associated with the acquisition of long-term assets, and operating leases that are not associated with such an acquisition. In the case of finance leases, the leaseholder should have recognized a controlled asset and a liability for lease payments in the statement of financial position. In an operating lease situation, the leaseholder charged the amount of the lease payments to expenses on a straight-line basis over the lease term. The lessor’s accounting records recognized rental income evenly (monthly), i.e., accounting with the lessor was a mirror image of accounting with the lessee. However, the practice of applying IAS 17 has shown that even when leasing the long-term assets most necessary for a business, leaseholders had formal opportunities to classify such contracts as operating leases. Thus, the existing procedure for accounting for leases allowed leaseholders not to reflect either asset received for use or liabilities to the lessor related to the receipt of these assets in the statement of financial position. This state of affairs could not satisfy users of financial statements.

2 Materials and Methods The study used the scientific works of foreign and domestic experts in the field of modern accounting and international financial reporting standards as research materials. To solve the research goal, general and unique methods of scientific knowledge were used: monographic, analysis, synthesis, induction, deduction, comparison, and a method of generalizing information, with the help of which the most important aspects of this study are highlighted.

The New IFRS Leaseholder Accounting Model

965

3 Results and Discussion IFRS 16 “Leases” applies to all leases and subleases that provide the right to use the leased asset for a certain period in exchange for compensation (Plotnikov 2017). Separate lease agreements, which are listed in paragraph 3 of IFRS 16, are excluded from the scope of the standard. The new lease standard does not distinguish between operating and finance leases for leaseholders, i.e., both the leased asset (the right to use the leased object during the lease term) and the lease obligation (the leaseholder’s obligation to pay the rent) must be recognized in the financial statements of the company for all types of leases (with rare exceptions). An analysis of a lease should begin with a determination of whether the contract or its components meet the definition of a lease. Compliance means that a company gains control over the use of an identified asset over some time in exchange for consideration. The standard provides the following criteria to which lease agreements must comply. • the leaseholder has the right to receive almost all economic benefits from the use of the leased asset throughout the entire period of its use; • the leaseholder has the right to determine how to use the leased asset; • the lessor does not have a significant opportunity to replace the asset with an alternative; • the entire asset or its productive part is rent (Ostrenko 2016). When using the new model for accounting for a lease, the leaseholder must recognize the asset representing the right of enjoyment and the lease liability based on discounted payments that must be made under the lease, taking into account the lease term following the new IFRS 16 (Alekseeva 2017). In determining the lease term, it may be necessary to apply professional judgment, which was not previously required for operating leases since it did not affect the recognition of expenses. Exceptions to this rule are short-term leases (for a period not exceeding 12 months) and leases with a low underlying asset cost. However, if there is an option to purchase the underlying asset, the lease cannot be considered short-term. In this situation, the leaseholder must decide to account for lease payments as an expense, either on a straight-line basis over the lease term or using another systematic approach if it better reflects the structure of the leaseholder’s benefits. For the underlying asset that has not yet been used, it is necessary to determine the low cost and fix it in the accounting policies of the organization in the form of an absolute amount. For example, the company’s accounting policy stipulates that an asset with a low value cannot exceed $6,000. The company leases previously used office equipment worth $2,000 for three years. If the company purchased similar new equipment, it would cost $4,000. The company also rents a used car for two years, whose market value is $5,000, and the cost of a similar new car is $10,000.

966

L. A. Kryatova et al.

In this situation, the company’s expenses can, on a linear basis, take into account only rental payments for equipment. Car rental must be recognized in the statement of financial position as an asset (right to lease) and a lease liability since a new car, as a rule, cannot have a low cost. Therefore, car rental does not meet the criteria of the standard for its classification as a rental of low-cost assets. For Russian companies, in some cases, leasing is the only way to obtain a physical asset for use that cannot be purchased due to a lack of necessary funds. However, companies are often forced to conclude short-term (up to one year) lease agreements in order to exclude the effect of the law on mandatory registration of lease rights to real estate. At the end of the lease term under such an agreement, the lessor and the leaseholder, as a rule, conclude a new short-term agreement (usually for 11 months), which again avoids registration. If we try to apply the requirements of the international standard for leasing to such practice, the question arises as to whether the conclusion of short-term lease agreements for real estate will allow: first, to avoid the requirements of mandatory recognition in the statements of an asset (rental right) and liability; and, second, to attribute rental payments to expenses by the linear method. This question can be answered only after a through analysis of the lease terms for the availability of legally protected rights and obligations in it for extending or concluding a new lease on similar conditions. If such rights and obligations of the leaseholder and the lessor are not fixed in the lease’s content, then such a contract for IFRS 16 can be considered as short-term. When signing lease agreements, serious companies, as a rule, are not ready to risk the stability of their business. Therefore, such companies enter into an additional agreement to the first short-term lease agreement, as additional insurance against the existing risks of termination of the lease. These agreements contain an option for a possible extension of the lease by the leaseholder. Following paragraph B2 of IFRS 16, a lease and an agreement are treated as a single contract. After that, paragraph 18 of IFRS 16 is applied. According to it, the organization must determine the lease term, taking into account options for extending the lease and own intentions to use it. Thus, following the requirements of IFRS 16, the bulk of such short-term contracts may turn out to be long-term, which will require recognition of the asset in the form of a right of enjoyment and a lease obligation in the financial statements of the leaseholder. At the commencement date, the leaseholder shall measure the asset in the form of a right of enjoyment at its original cost, which includes: • initial assessment of a liability; • lease payments at the start of the lease excluding the received incentive payments; • leaseholder’s initial costs associated with the lease; • estimated costs of dismantling, restoration, or relocation of the underlying asset under the terms of the lease (costs are estimated following IAS 37 “Provisions, Contingent Liabilities, and Contingent Assets”).

The New IFRS Leaseholder Accounting Model

967

The leaseholder shall evaluate the obligation at the start date of the lease based on discounted payments that must be made, taking into account the lease term determined following the new standard. The rental payments include: • fixed payments; • the estimated value of variable payments, which depend on a particular index or rate (for example, on the LIBOR rate or the level of change in consumer prices) at the start of the lease; • the strike price of the purchase option, if there is sufficient confidence that the leaseholder will use this right; • any amounts guaranteed to the lessor by the leaseholder; • fines or the exercise price of the option for early termination of the lease, if it is expected that the leaseholder will use this right. Future incentive payments to the leaseholder from the lessor should be excluded from rental payments. Following IFRS 16, incentive payments from the lessor are included in the original cost of the asset (rental right). This approach in the new lease standard eliminates the need for the leaseholder to keep separate records of incentive payments and, accordingly, to separate them in the statement of financial position into long-term and short-term parts. Lease payments must be discounted using the interest rate laid down in the lease. If the determination of such a rate causes specific difficulties, then the leaseholder must use the rate at which he could receive borrowed funds (Plotnikov 2017). The interest rate outlined in the lease is the interest rate at which the present value of the lease payments and the unguaranteed residual value is equal to the sum of the fair value of the underlying asset and the initial direct costs of the lessor. The non-guaranteed liquidation value is a part of the liquidation value of the underlying asset, which sale to a third party is not guaranteed by the lessor or is guaranteed only by a person associated with the lessor. This is the expected selling price of the underlying asset at the end of the lease—the future value of the asset. An essential condition for the unguaranteed residual value is the absence of third-party guarantees that the lessor will be able to sell the underlying asset at this price (i.e., it is expected that the underlying asset may be sold at this price in the future, but this is not guaranteed). When determining the interest rate, the lessor may have a question related to the assessment of the lessor’s direct initial costs. In this situation, the direct costs of the lessor must be estimated by the leaseholder based on open information. For example, the landlord is required to pay a certain fee or commission to the registration authority when registering the contract. Interest rates calculated by the leaseholder and the lessor may differ, since the lessor, when concluding a lease, unlike the leaseholder, will have full information about his direct costs associated with this agreement. Let us consider the procedure for calculating the interest rate liad down in the lease on the example of a specific situation.

968

L. A. Kryatova et al.

On January 1, 2019, the company rented a warehouse for three years. The fair value of the premises is 1,200 euros. It is expected that the unguaranteed residual value of the premises as of December 31, 2021, will amount to 1,100 euros. The direct costs of the lessor related to the legal execution of the lease amounted to 7,000 euros. Under the terms of the lease, the company is obliged to make three payments of 100,000 euros at the end of each rental year. It is necessary to calculate the interest rate laid down in the lease agreement (with an accuracy of 0.1%) and the lease liability, which the leaseholder must recognize in the financial statements as of January 1, 2019, as well as interest expenses for each year of the lease. The total sum is calculated by putting together the fair value of the underlying asset (1,200 euros) and the initial costs of the lessor (7,000 euros), which is equal to 1,207 dollars. Since annuity payments are used in this situation, the interest rate in this example is 5.5% (calculated in Excel using the BET function (3; −100; 1207; −1100). Lease payments for the entire rental period are presented in Table 1. Under a lease agreement, the leaseholder’s obligation, as of January 1, 2019, will be equal to the sum of future payments at a rate of 5.5% per annum—270,000 euros [(100/1.055 + 100/1.0552 + 100/1.0553) = (94.79 + 89.85 + 85.16)]. The change in the lease liability over the lease term and the leaseholder’s interest on the lease are shown in Table 2. After initial recognition, the lease liability is amortized using the interest rate on the lease (Morozova 2012). In this case, the leaseholder recognizes the following in the profit or loss of the current reporting period: interest on the lease obligation; variable lease payments not included in the measurement of the liability in the period in which the condition for making such payments occurs. The interest rate inherent in the lease is an estimate. Therefore, if the lease term and the contract are modified, the interest rate may change. At the same time, the revaluation of the obligation adjusts the recognized asset under the lease agreement (lease right).

Table 1 Annual lease payments, thousand euros Year

The beginning of the year

Interest 5.5%

Payments

The end of the year

2019 1,207 66 (100) 1,173 2020 1,173 65 (100) 1,138 2021 1,138 62 (1,200)* 0 *The sum of the last payment of 100 thousand dollars and the unguaranteed residual value of 1100 thousand dollars Source Developed by the authors

The New IFRS Leaseholder Accounting Model

969

Table 2 Lease obligations, thousand euros Year

The beginning of the year

2019 270 2020 185 2021 95 Source Developed by the authors

Interest 5.5%

Payments

The end of the year

15 10 5

(100) (100) (100)

185 95 0

4 Conclusion The study showed that following the new IFRS 16 lease standard, almost all leases should be accounted for in the order that was previously provided only for finance leases, i.e., leaseholders exclude almost all off-balance lease accounting. Lease accounting for lessors remains virtually unchanged compared to IAS 17, but lessors may feel the impact of the new standard due to changes in leaseholder’s needs and behavior that will affect their business models and rental products. The analysis of the content of the new lease standard made it possible to single out the following basic rules that leaseholders should consider when preparing financial statements: 1. recognize an asset and a lease liability at the inception of the lease; 2. assess lease liabilities based on an assessment of the lease term under the contract, taking into account optional lease periods if the company has reasonable assurance that the lease can be extended (not terminated) in the future; 3. include contingent rental payments or variable lease payments in the measurement of rental assets and liabilities, depending on indexation or rate, or if they are fixed payments; 4. revise variable lease payments depending on the index or rate in case of a reevaluation of the lease obligation or for other reasons (for example, when revising the lease term), as well as when cash flows change as a result of a change in the indicative index or rate (i.e., upon entry of adjustments to lease payments into force); 5. review the lease term only upon the occurrence of a significant event or a significant change in circumstances controlled by the lessee. According to the authors, the changes made to the lease accounting rules can have a serious impact on the business processes and the financial statements of leaseholders, since, under the new rules, they will have to reflect the lease on their balance sheet and provide interested external users with much more data related to the lease than they previously did.

970

L. A. Kryatova et al.

References Alekseeva, G.I.: Accounting for a lease following international financial reporting standards: current status and prospects for Russian organizations. Account. Anal. Audit 2, 78–86 (2017) Morozova, T.V.: International financial reporting standards. Moscow University for Industry and Finance “Synergy”, Moscow, Russia (2012) Ostrenko, E.V.: The overview of changes to IFRSs brought into effect on the territory of the Russian Federation by order of the Ministry of Finance No. 111n. Corp. Financ. Reporting Int. Stand. 7, 23–35 (2016) Plotnikov, V.S.: On the theoretical aspects of the international standard IFRS 16 “Leases”. Int. Account. 20(1), 2–15 (2017)

Economic Influence of Global Climatic Change on Food Security in Russia Nasrullah A. Adamov , Ludmila P. Chijova , Arsen A. Tilov , Nataliya O. Kurdukova , and Tamara A. Penchukova

Abstract The paper focuses on the problem of the impact of global climate change on the state of the economy, ecology, and social sphere. The critical impact of climatic disturbances on agriculture is analyzed. The relevance of solving the problem of crop exposure to climatic and other natural disasters increases many times because of the key role that agriculture plays in ensuring the food security of the country. The analysis of global climate change trends is carried out; their direct and indirect consequences are specified. The complexity of studying and predicting climatic disturbances is emphasized. The primary sources of uncertainty in constructing climate models and determining the degree of climate influence on the economic prospects of regional development are identified. The relationship between the dynamics and structure of economic growth on the dynamics of anthropogenic emissions is established. The results of the analysis of the effects of greenhouse gas emissions and extreme events on crop yields and gross harvest of crops in Russia and its regions are discussed. The authors argue for the urgent need to take measures to combat climate change at all levels of the economic system.







Keywords Climate change Food security Greenhouse gas emissions Economic growth Productivity Cereal production










N. A. Adamov
L. P. Chijova
T. A. Penchukova (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] N. A. Adamov e-mail: [email protected] L. P. Chijova e-mail: [email protected] A. A. Tilov State University of Management, Moscow, Russia e-mail: [email protected] N. O. Kurdukova Moscow Region University of Technology, Korolev, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_104

971

972

N. A. Adamov et al.

1 Introduction The issue of assessing and measuring the impact of global climate change on the economy is crucial since the accuracy of various economic forecasts and long-term planning strongly depends on it. Researchers publish various results of their studies on this problem. It should be noted that the problem of the combined impact of global climate change on various segments of the economy (agriculture, insurance, hydropower, utilities, fisheries, forestry, tourism, shipping, logistics, freshwater supply, etc.) are uncertain and highly debatable. However, agriculture, of all sectors of the economy, is the most dependent on global climate change, which is a key factor in ensuring the country’s food security. The purpose of this paper is to justify and assess the impact of climate change on agriculture, considered a key factor in ensuring the country’s food security. Special attention is paid to establishing the relationship between the dynamics and structure of economic growth on the dynamics of greenhouse gas emissions, as well as determining the effects of greenhouse gas emissions and extreme events on crop yields and the gross harvest of grain crops. The relevance of the paper is in the development of theoretical and methodological approaches to solving the problem of increasing the stability of grain production and the level of food security in the federal districts of the Russian Federation.

2 Materials and Methods The study is based on the works of scholars dedicated to the assessment and analysis of the influence of global climate change on the economy. One of the first scholars to reveal the relationship between macroeconomic indicators and global temperature changes was Nobel laureate, U. Nordhaus. His ideas are similar to those of other scholars, both foreign (A. J. Challinor, F. Ewert, S. Arnold, E. Simelton, E. Fraser, et al.) and domestic (N. A. Adamov, V. M. Kattsov, N. V. Kobysheva, V. P. Meleshko, O. V. Potasheva, E. A. Prokopyev, G. T. Shkiperova, et al.), who also analyzed the impact of climate change on the growth rate of macroeconomic indicators. In the course of the study, the authors used general scientific methods of cognition (the dialectic method, the method of analysis and synthesis) and special methods of empirical knowledge (methods of scientific modeling, analysis of economic and statistical indicators, regression analysis, comparative analysis, and expert estimates).

Economic Influence of Global Climatic Change on Food Security

973

3 Results 3.1

Global Climate Change and its Impact

In recent years, global climate change has become increasingly noticeable, having both direct and indirect impacts on the environment, the economy, and the social sphere. Among the sectors of the economy, the agricultural sector is the most vulnerable to climate change since it is primarily affected by temperature. The results of these changes are manifested in different ways in different geographical points. According to researchers (Challinoret et al. 2009), global warming of 1–2°C will lead to a positive effect for the “northern countries” (Russia, Canada, Scandinavian countries, etc.). However, when it reaches a higher level, the cumulative consequences will be negative for all states (Nordhaus 2015). The study of the aggregate economic impact of global climate change poses serious problems associated with the need to analyze and assess the situation in various sectors of the economy, in different regions, and at different times. According to studies (Adamov 2014; Veselovsky et al. 2019), as a result of global warming, market conditions will worsen. For a reliable assessment of the influence of this factor, it is also necessary to make a fair assessment of the adaptive potential of various economic segments in a particular region. Some scholars (Polyanskaya and Polyanskiy 2014) have concluded that some segments of the economy will benefit from climate change. However, most researchers (Barucha and Pretty 2010; Wijk 2014) believe that, under the influence of global warming, there will be a decrease in global per capita consumption by about 5%. According to research data, about 80% of the experts interviewed in the field of economics agree that global climate change will seriously hinder further growth of the global economy (Smyth 2015). Thus, according to most economists, if the emissions of carbon dioxide are not reduced, this will negatively affect economic growth and may lead to irreparable economic consequences. According to studies (Batjes 1996), in Peru, climate change forecast provides an opportunity to save about $700 million. In Australia, in the construction of roads, forecasts estimate that costs will decrease by more than $30 million. In China, when creating a steel plant, the forecasts of climate data made it possible to save more than $20 million. The use of climate information and hydrometeorological forecasts in Canada can save $50–$100 million annually. In New Zealand, the same information can reduce the cost of generating electricity by $2 million. In the United States, forecasts with a confidence of 60% make it possible to save $180 million annually in the agricultural, forestry, and fishing industries. If forecasting accuracy is increased to 77%, the savings could increase to $310 million. Currently, the process of global warming as one of the manifestations of climate change is explained by natural fluctuations as the result of human activities.

974

3.2

N. A. Adamov et al.

The Impact of Anthropogenic Factors on Climate Change

Scholars study the problem of the impact of climate change on the Russian economy as well as the impact of economic growth on the climate change. Russian and foreign scholars consider that the greenhouse effect’s strengthening caused by an increase in the greenhouse gas emissions (mainly carbon dioxide and methane) and air emissions of pollutants (particulate matter, carbon monoxide, etc.) is one of the reasons for climate change (Surovtsev and Chastikova 2013; Burney et al. 2010; Cai 2012). Thus, according to BP, in 2017, the total carbon dioxide emissions in the world reached 33.4 billion tons, which is 1.3% higher than in 2016 (BP 2019). This is mainly caused by the increase in the emissions from developing countries. In 2017, China continued to have the largest CO2 emissions in the world (27.6% of the total), followed by the United States (15.2%), India (7.0%), Russia (4.6%), and Japan (3.5%) (Fig. 1). The analysis of another air pollutant, greenhouse gas, allowed us to identify several main sources of emissions in Russia (Federal State Statistics Service 2018) (Table 1). The primary source of greenhouse gas emissions is energy. Its share increased from 81.5% in 1990 to 82.7% in 2015. However, by 2016, it had slightly decreased and reached 82.3%. The share of burning coal, peat, oil products, and gas amounted to 65.1% of total emissions in the energy sector in 2015. In 2016, fuel combustion

Fig. 1 CO2 emissions by leading countries and regions of the world, billion tons of CO2, 1985– 2017

Economic Influence of Global Climatic Change on Food Security

975

Table 1 The dynamics of greenhouse gas emissions in the Russian Federation in 1990–2016, billion tons of CO2-eq The volume of emissions, billion tons

Share %

Growth %

1990

1990

2016

2000/ 1990

2016/ 2000

2016/ 1990

2000

2005

2008

2016

Energetics

3.05

1.81

2.04

2.15

2.18

81.5

82.3

−40.4

19.9

−28.6

Industry

0.28

0.20

0.21

0.21

0.22

7.6

8.3

−30.8

11.3

−22.9

Agriculture

0.32

0.16

0.14

0.14

0.13

8.7

5.1

−52.0

−11.3

−58.9

Waste

0.08

0.08

0,09

0.09

0.12

2.2

4.4

2.6

39.0

42.6

Total without LULUCF

3.73

2.25

2,47

2.59

2.64

100

100

−39.8

17.6

−29.2

LULUCF

0.16

−0.40

−0.50

−0.58

−0.63

−52.5

8.8

−48.4

Total with LULUCF

3.89

1.85

1.98

2.01

2.01

accounted for 65.2% of all greenhouse gas emissions in the energy sector, and 18.1% and 11.9% in the transport and industrial sectors, respectively. The next source of pollution is the industry. Its emissions account for about 8% of the total number. In agriculture, greenhouse gas emissions are due to waste incineration, grass felling, the use of synthetic fertilizers (13% of greenhouse gas emissions in agriculture), domestic fermentation of farm animals (this is one of the primary sources in the industry, giving more than 40% of emissions), liming the soil, making urea, etc. The distribution of anthropogenic emissions occurs in those areas where there are substantial deforestation and irresponsible drainage of peat bogs. Over the analyzed period, the share of agriculture in greenhouse gas emissions decreased from 8.7 to 5.1%. Along with the release of greenhouse gases, its absorption is also being investigated. Since the mid-nineties, deforestation in Russia has significantly decreased. Despite the growth of forest fires, the share of absorption from the total anthropogenic emissions has increased from 15.4 to 19.6% in 2000–2015. Russia and the United States are ahead of many countries in the absorption of greenhouse gases. Trends of economic development significantly affect the dynamics of anthropogenic emissions. The distribution of emissions in the study period is uneven. Thus, the reduction of greenhouse gas emissions from 1990 to 1998 is caused by the restructuring of the economy, a decrease in the role of extractive industries and the military-industrial complex, and accelerated development of the services sector (which is confirmed by a significant increase in the share of production of services in gross value added from 34.9 to 57.2% (in 2016, this share was already 62,8%)) (Analytical Center under the Government of the Russian Federation, 2017). Figure 2 shows that the growth of the gross domestic product in 2000–2007 was accompanied by a slight increase in greenhouse gas emissions (average annual growth rate was 1.3%). In 2008–2009, the volume of the gross domestic product had been declining; since 2010, it has been steadily growing.

976

N. A. Adamov et al.

140 120 100 80

GDP dynamics

60 40 20 0

Dynamics of greenhouse gas emissions Dynamics of air emissions

Fig. 2 The dynamics of gross domestic product, air pollutant emissions, and greenhouse gas emissions, in the Russian Federation in 1990–2016

When studying the dependence of the dynamics of greenhouse gas emissions on the dynamics of economic development based on the regression analysis, the authors obtained a regression coefficient of 0.928, which indicates that with an increase (decrease) in the gross domestic product by 1% compared with the previous year, greenhouse gas emissions increase (decrease) by 0.928%. The resulting determination coefficient of 98.8% shows that the dynamics (growth rate) of greenhouse gas emissions (by 98.8%) depend on the dynamics (growth rate) of gross domestic product at comparable prices, as well as on the change in other factors (by 1.2%). The validity of these results was confirmed via analysis of variance; at a significance level of 5%, Ftab is equal to 4.45. It is generally accepted that the regression equation is suitable for practical use if Fcalc is at least four times larger than Ftab. This means that it is possible to assert the existence of a dependence of the dynamics of anthropogenic emissions on the growth rate of the gross domestic product with a high degree of probability (95%) (Shkiperova et al. 2015).

3.3

The Impact of Climate Change on the Country’s Food Security

A set of factors determines the country’s food security. The most important one is the stable food supply for the population. This, in turn, is influenced by the development trends of agricultural production, the degree of dependence on the world food market, pricing, and the ratio of prices for agricultural and industrial products and agricultural services (Kirwan and Damian 2013). In many regions of Russia, climatic and weather conditions determine crop yields and their quality. Climatic changes are considered from two sides: a slow, long-term change in temperature and extreme events. Scholars (Chugunkova et al. 2018) consider global warming, different types of production and economic activity, and technological accidents as the causes of these phenomena. Climate change can have both a positive impact on agriculture (yield growth, estimated

Economic Influence of Global Climatic Change on Food Security

977

growth of the growing season) and negative effects (droughts, hail, severe frosts, floods, etc., leading to lower yields and loss of crops). Global warming is accompanied by an increase in the average temperature of the atmosphere. According to the Federal Service for Hydrometeorology and Environmental Monitoring, in 2018, the warming continues in Russia. Moreover, its growth rate exceeds the average worldwide. From 1976 to 2018, the average increase in annual temperature in Russia amounted to 0.47°C per 10 years, which is 2.5 times higher than the rate of increase in global temperature. Agricultural production is influenced not only by temperature anomalies but also by the significant unevenness of such natural and climatic disasters as heavy rains, floods, a flurry, hail, dust storms, etc. In the main grain-producing regions (Central, Volga, Southern, North Caucasian federal districts), there was a deficit of precipitation of 15% of their norm.

Table 2 The dynamics of energy capacities in Russian agricultural organizations in 2000–2017 Indicator

2000

2010

2015

2016

2017

2017 in % to 2000

Power capacity in total, million hp - per worker, hp - per 100 ha of sown area, hp Accounted for: - tractors per 1000 ha of arable land, pcs. - combine harvesters per 1000 ha of crops, pcs.

240.0

109.6

94.2

92.3

90.2

37.6

51.3 329 7

66.9 227 4

74.3 197 3

77.1 200 3

74.5 198 3

145.2 60.2 42.9

5

3

2

2

2

40.0

160 140 120 100 80 60 40 20 0 2017

2016

2012

2014

2008

2010

2006

2002

2004

2000

1998

1994

1996

1992

1990

Cereals and legumes Gross harvest of grain and legumes

Fig. 3 The dynamics of gross harvest, the yield of grain and leguminous crops in the Russian Federation for 1990–2017 (million tons)

978

N. A. Adamov et al.

According to scholars, by 2050, wheat production could be reduced by 23–27% due to global warming since wheat is the most sensitive to temperature increase. The confirmation of these forecasts is the drought in Russia, which influenced almost all main Russian subjects involved in grain production. The economic damage from the drought of 2010 amounted to 113.2 billion rubles. In 2012, as a result of adverse climatic conditions in 20 regions of the country, 23.3 million tons of grain and legumes were not produced; the damage reached 182.3 billion rubles. In 2012, grain production saw the most significant decrease in the Ural (53.3%), Siberian (38.4%), North Caucasian (34.1%), and Volga (31.6%) federal districts (Table 3). The next indicator that affects the efficiency of agricultural production is the energy and technical equipment of agricultural enterprises, with which agricultural producers can partially negate the negative effects of climate change. For 17 years, the total energy capacity of agricultural organizations decreased by almost 150 million hp. That is, for 2000–2017, more than 60% of the capacity of agricultural production in the country was lost (BP 2019). The supply of tractors and combine harvesters was significantly reduced, which led to an increase in a load of arable land on one tractor and the crops on one combine (Table 2). The dynamics of gross harvest and productivity of grain and leguminous crops (Federal State Statistics Service 2018) are shown in Figs. 3 and 4. Various factors influence the change in grain production and yield. However, we are interested in the effect of climate-related changes in gross yield and the determination of the climatic contribution to these indicators. The calculated standard deviations and variation coefficients of the harvest of grain crops show that the most stable grain production is observed in the Siberian and Volga Federal Districts (the standard deviation from the average trend was 15.1% and 23.1%, respectively). The most significant value of the coefficient of variation was recorded in the Central District (37.1%) (Fig. 5).

150 97.1

100

94.2

65.4

92.4

105.2

120.7

135.5

70.9

61

50 0 2000 CFD NWFD

2009 SFD NCFD

2010

2011 VFD UFD

2012

2013 SFO FEFD

2014

2016

2017

Russia

Fig. 4 The dynamics of the gross harvest of grain and leguminous crops and indicators of its sustainability in farms of all categories in Russia in 2000–2017 (million tons)

Economic Influence of Global Climatic Change on Food Security

979

Table 3 The ratio of the maximum and minimum values of the yield of grain and leguminous crops in Russia for 2000–2017 The ratio of maximum and minimum yields, in coefficients 2000 2009 2010 2011 2012 2013 2014 2015 By all regions of 7.46 11.5 Russia By federal 2.46 2.45 districts By regions of federal districts: Central 2.48 2.45 North-west 2.55 2.46 South 2.66 2.55 North-caucasus 2.76 2.56 Volga 2.64 2.58 Ural 1.59 1.83 Siberian 3.2 2.47 Far-easter 2.75 4.55

2016

2017

7.40

11.52

6.34

5.27

4.36

4.29

6.82

7.65

3.22

2.45

2.52

2.44

2.64

2.63

2.77

3.71

1.95 2.94 3.88 2.40 2.51 2.15 2.15 2.49

2.46 3.76 3.08 2.04 2.47 1.69 2.35 4.96

2.55 3.59 2.90 2.76 2.62 2.72 2.55 3.46

3.35 4.00 3.67 2.94 2.33 2.02 2.65 2.66

2.78 5.36 3.25 3.08 1.74 2.20 2.92 2.44

2.56 5.31 3.24 2.35 2.28 1.44 2.86 3.77

3.60 2.53 2.36 2.33 2.37 1.30 2.71 2.61

3.52 1.99 2.31 2.54 1.99 1.39 2.67 4.4

45 40 35 30 25 20 15 10 5 0 2000 CFD NWFD

2009

2010

SFD NCFD

2011

2012 VFD UFD

2013

2014 SFD FEFD

2016

2017 Russia

Fig. 5 The dynamics and variation of the yield of grain and leguminous crops of all categories in Russia for 2000–2017 (c/ha)

After comparing the maximum and minimum grain yields in all regions of Russia, we see that the gap between them almost did not change during 2000–2017. It remains very significant and exceeds seven times. The calculated data reflects yield development trends for all regions, and federal districts, the regions of federal districts are given in Table 3.

980

N. A. Adamov et al.

The largest gap between the maximum and minimum productivity indicators are seen in the Far Eastern (4.4 times) and Central (3.5 times) federal districts. It confirms the above conclusions about unstable grain production under the influences of changing climatic conditions in these regions. Thus, the variation indicator allowed us to analyze the impact of a changing climate on the dynamics of productivity and gross grain harvest to evaluate the territorial differentiation of the stability of grain production, and hence the level of food security in federal districts.

4 Discussion The emissions of greenhouse gases and pollutants into the atmosphere of key industrial powers determine the scale of the overall dynamics of emissions in the world. Russia is currently preparing to ratify the Paris Agreement on the Prevention of Climate Change. Against the backdrop of the unresolved global problem of stabilizing CO2 emissions, Russia remains the only major CO2 emitter in the world that shows a significant reduction in emissions compared to 1990 (Izmaylova et al. 2018). High concentrations of CO2 and greenhouse gases in the atmosphere remain the main sources of global climate change, which have a critical impact on planetary agriculture, recognized as a key factor in food security. The impact of negative changes on food production and distribution can lead to increased poverty and inequality, which, in turn, will negatively affect livelihoods and the quality of food, including those already suffering from food insecurities (Maye and Kirwan 2013). Over the past decade, more than 1.9 billion people have been affected by natural disasters in developing regions, which caused damage of nearly half a trillion US dollars-worth (Santeramo 2015). In this connection, the agricultural sector absorbs approximately 22% of the total economic damage caused by these natural disasters, which undoubtedly affects the sector’s potential to maintain food security.

5 Conclusion Amid the already tense situation with the resources necessary for sustainable food security, the challenges to food security are enormous. One of them is climate change, which is associated not only with a slow change in average annual temperature but also with extreme repeating hydrometeorological phenomena, which are sources of risk for agriculture and food security of the country. The adaptation of agricultural production, including grain, to climate change is now increasingly urgent. In this regard, the need to study the impact of climate change on the dynamics of productivity and gross harvest of grain crops as a prerequisite for the development of food security issues in individual regions and Russia is growing.

Economic Influence of Global Climatic Change on Food Security

981

This justifies the urgency of measures to combat climate change at all levels of the economic system. At the same time, in many countries, the material, organizational, social, and human potential to address the challenges of climate change and food security is insufficient. Investments in human capital, especially in education and health infrastructure, are also critical.

References Adamov, N.A. (ed.).:The current state and characteristics of the national economy in the context of globalization: A collective monograph. Research institute of the movement of goods and wholesale markets conjuncture, Moscow, Russia (2014) Analytical Center under the Government of the Russian Federation: Ecology and economics: reducing air pollution in a country. Bulletin of current trends in the Russian economy, vol. 28, pp. 2–19 (2017) Barucha, Z., Pretty, J.: The roles and values of wild foods in agricultural systems. Philos. Trans. Roy. Soc. B Biol. Sci. 365, 2913–2926 (2010). https://doi.org/10.1098/rstb.2010.0123 Batjes, N.H.: Total carbon and nitrogen in the soils of the world. Eur. J. Soil Sci. 47(2), 151–163 (1996) BP: Statistical review of world energy (2019). https://www.bp.com/en/global/corporate/energyeconomics/statistical-review-of-world-energy.html Burney, J.A., Davis, S.J., Lobell, D.B.: Greenhouse gas mitigation by agricultural intensification. Proc. Natl. Acad. Sci. U.S.A. 107(26), 12052–12057 (2010) Cai, Z.: Greenhouse gas budget for terrestrial ecosystems in China. Sci. China Earth Sci. 55(2), 173–182 (2012) Challinor, A.J., Ewert, F., Arnold, S., Simelton, E., Fraser, E.: Crops and climate change: progress, trends, and challenges in simulating impacts and informing adaptation. J. Exp. Bot. 60(10), 2775–2789 (2009). https://doi.org/10.1093/jxb/erp062 Chugunkova, A.V., Pyzhev, A.I., Pyzheva, Y.: The impact of global climate change on the economy of forestry and agriculture: risks and opportunities. Actual Probl. Econ. Law 12(3), 523–537 (2018) Federal State Statistics Service: Russian statistical yearbook. Moscow, Russia (2018) Izmaylova, M.A., Adamov, N.A., Brykin, A.V., Siniaev, V.V., Luchitskaya, L.B.: Assessing the state of logistics and ways to improve the logistics management in the corporate sector of the Russian economy. J. Appl. Econ. Sci. 13(2(56)), 414–424 (2018) Kirwan, J.J., Damian, M.: Food security framings within the UK and the integration of local food systems. J. Rural Stud. 29, 91–100 (2013) Maye, D., Kirwan, J.: Food security: a fractured consensus. J. Rural Stud. 29, 1–6 (2013) Nordhaus, W.D.: A New Solution: The Climate Club. Climate Shock: The Economic Consequences of a Hotter Planet by Gernot Wagner and Martin L. Princeton University Press, Princeton (2015) Polyanskaya, N.A., Polyanskiy, M.V.: The impact of climate change on grain production in the Russian Federation. Modern problems of science and education (2014). http://www.scienceeducation.ru/ru/article/view?id=14886 Santeramo, F.G.: On the composite indicators for food security: decisions matter! Food Rev. Int. 31(1), 63–73 (2015) Shkiperova, G.T., Potasheva, O.V., Prokopyev, E.A.: Factor analysis of the impact of climate change on the economy of Russian regions. In: Proceedings of the Karelian Scientific Center of the Russian Academy of Sciences, vol. 3, pp. 61–68 (2015) Smyth, S.J., Phillips, P.W.B., Kerr, W.A.: Food security and the evaluation of risk. Global Food Secur. 4, 16–23 (2015)

982

N. A. Adamov et al.

Surovtsev, V.N., Chastikova, E.N.: The impact of climate change on the socio-economic development of agriculture and rural areas. Int. Agric. J. 5–6, 17–22 (2013) Veselovsky, M.Y., Izmailova, M.A., Adamov, N.A., Morozova, N.B., Suleymanov, Z.E.: Strategic management of customs-logistics activities: innovation, integration, and regional aspects. Int. J. Civ. Eng. Technol. 10(2), 1794–1801 (2019) Wijk van Mark, T.: From global economic modeling to household-level analyses of food security and sustainability: How big is the gap, and can we bridge it? Food Policy 49(2), 378–388 (2014)

Technical Regulations to Protect Consumer Markets from Dangerous and Substandard Products Evgeniya A. Sysoeva , Elena G. Kuznetsova , Roman R. Hairov , and Petr V. Manin

Abstract On September 25, 2015, the UN General Assembly adopted the Declaration “Transforming our world: the 2030 Agenda for Sustainable Development”, which sets the goals for sustainable development. Technical regulations are one of the real tools for implementing several sustainable development goals, eliminating technical barriers to trade, and eliminating the presence on the consumer market of the Eurasian Economic Union of substandard, counterfeit, counterfeit, and dangerous products, including imported products. The paper assesses the development process and the implementation of technical regulations for the period from 2010 to the present. The total number of technical regulations in force in the member countries of the Eurasian Economic Union is analyzed. The content and typical structure of technical regulations are shown. Suggestions are made on the need for a periodic assessment of the scientific and technical level of existing technical regulations. Recommendations on the creation of a unified system of reporting on hazardous products, including products that have not passed a mandatory compliance assessment, are offered.




Keywords Consumer market Technical regulations Conformity assessment Eurasian Economic Union





Standards
Production


E. A. Sysoeva National Research Mordovia State University, Saransk, Russia e-mail: [email protected] E. G. Kuznetsova (&)
R. R. Hairov
P. V. Manin Saransk Cooperative Institute (Branch) of Russian University of Cooperation, Saransk, Russia e-mail: [email protected]; [email protected] R. R. Hairov e-mail: [email protected] P. V. Manin e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_105

983

984

E. A. Sysoeva et al.

1 Introduction The Russian Federation, among 193 countries in the world, has committed itself to ensuring sustainable and progressive economic growth, incorporating social integration, and promoting peace and security in the world when it expressed its commitment to the declaration “Transforming Our World: The 2030 Agenda for Sustainable Development,” which includes the achievement of 17 sustainable development goals (United Nations 2015). Our country has already taken certain steps to implement them. The Federal Law of the Russian Federation “on strategic planning in the Russian Federation” (June 28, 2014, No. 72-FZ) was the regulatory legal basis for the development of long-term documents ensuring the achievement of the goals of sustainable development (Russian Federation 2014). The order of the Government of the Russian Federation of November 11, 2010, No. 1950 (Russian Federation 2010) approved a list of state programs grouped in five blocks: “ensuring national security,” “innovative development and modernization of the economy,” “effective state,” “new quality of life,” and “balanced regional development” (Analytical Center under the Government of the Russian Federation 2016). Effective implementation of government programs can only be subject to the use of an effective mechanism. In our opinion, technical regulations, which are an integral part of daily life, can become a real tool for systematic achievement and implementation of several sustainable development goals. Technical regulations ensure the ongoing development of the country’s economy, the modernization of its regional sector, and the solution to the issue of product safety for human life, health, and the environment. Technical regulations provide the best technical solutions for the design, manufacture, and sale of safe, high-quality, and energy-efficient products and services, and ensure the development of priority sectors of the Russian economy. The Federal Law of the Russian Federation “on technical regulation” (December 27, 2002, No. 184-FZ) (Russian Federation 2002) made fundamental changes in the national system of standardization and established technical regulations as the primary mandatory documents.

2 Materials and Methods The regulatory framework of the study is composed of federal laws and orders of the Government of the Russian Federation, decisions of the Council of the Eurasian Economic Commission, regulatory legal acts of the United Nations, the European Parliament and the Council, and the Customs Union. The main research methods used in this work include the method of comparative and system analysis and the analytical method.

Technical Regulations to Protect Consumer Markets …

985

3 Results Technical regulation (TR) is a document that reflects technical decisions on the design, production, and implementation of a safe and high-quality product or service. It is developed to protect the life or health of citizens, property of individuals or legal entities, state or municipal property, protect the environment, life, or health of animals and plants, and warn misled consumers. Let us consider the role of technical regulations in protecting consumer markets from poor-quality and unsafe products using the example of the Eurasian Economic Union (EAEU). The purpose of the formation of the EAEU was to develop, coordinate, and agree on a single policy for all sectors of the economy. The Union is called upon to ensure the free movement of labor, finance, services, and goods. In 2010, the founders of the Union were the Russian Federation, the Republic of Belarus, and the Republic of Kazakhstan. In 2014, they were joined by Armenia and the Kyrgyz Republic. For the EAEU, technical regulations are the primary tool for creating a single market for goods, services, capital, and labor. A quantitative characteristic of such a market is the turnover of marketable products. Trade turnover between the EAEU countries does not have a particular persistent trend. According to the Eurasian Economic Commission (ECE), in 2016, the mutual turnover amounted to $43 billion, while in 2015, it totaled $45.6 billion. The annual decline was 5.8%. In 2017, according to the data of the analytical center under the Government of the Russian Federation, the trade volumes of the EAEU states returned to growth in dollar terms. The increase in mutual trade remains to this day. The importance of the EAEU trade turnover for the Russian Federation also tends to increase, but its growth rate remains moderate. Raw materials dominate the structure of the trade. Following the regulatory legal acts in force in the territory of the EAEU, the unified requirements and rules for the entry of various types of products onto the Union’s market are applied in the member states. These requirements are established in technical regulations, the most important documents for all EAEU members. The EAEU’s technical regulations contain clear work rules for manufacturers and suppliers of products. The regulations are aimed at protecting the interests of consumers and are designed to replace the whole variety of standardization documents in the field of assessing the compliance of products to specific requirements. The EAEU TRs formulate not only the requirements for product quality and safety but also determines the procedure for assessing the compliance of products to the regulation itself. The analysis of the development of technical regulations showed that the first technical regulations were developed and adopted in the field of railway transport and its infrastructure. The dynamics of approved documents are noteworthy. In total, 24 technical regulations were adopted in 2011, along with seven in 2012. In 2013, three more were added to the list of technical regulations, then one in 2014 and five in 2016. In 2017, four technical regulations were adopted. As of April 1, 2019, the EAEU has adopted 47 technical regulations, of which 41 were enacted. Technical regulations currently apply to 45 of the 66 product groups that demand

986

E. A. Sysoeva et al.

mandatory uniform requirements within the EEU (Council of the Eurasian Economic Commission 2014). The phased introduction of the developed EAEU TRs is ongoing; work is underway to develop several critical technical regulations, which, in the future, will become the basis for the development of free trade in the EAEU. Thus, the Eurasian Economic Commission, together with the countries of the Eurasian Economic Union, is engaged in solving the problem of ensuring the energy efficiency of used household appliances. Achieving the energy efficiency of refrigerators, televisions, office equipment, dishwashers, washing machines, fans, air conditioners, water pumps, and other electrical appliances affects the conservation of energy resources. For this purpose, the technical regulation, EAEU TR “On requirements for the energy efficiency of energy-consuming devices,” has been developed. In August 2019, the developed regulation was adopted by the Council of the Eurasian Economic Commission. The new technical regulation can prevent the actions of unscrupulous entrepreneurs who mislead consumers about the energy efficiency of such devices. Energy-consuming devices will be released to the EAEU consumer market only if they comply with the standards of the specified EAEU TR and other technical regulations that apply to them and undergo a compliance assessment procedure. Also, they must be marked with a particular sign, which means the circulation of products on the EAEU market. The national standards, international norms and rules, regulations, and directives of the European Union are used as the basis for the development of the EAEU TRs. International and European norms and rules are traditionally applied in the development of draft technical regulations if they are recognized as effective for the EAEU and are suitable for achieving the goals pursued by the development of technical regulations. The practice of developing and adopting technical regulations and standards in the EAEU, based on international norms and rules, framework directives, and regulations of the European Union, creates the main prerequisite for the convergence of the technical regulation systems of the European Union and the EAEU. For example, in order to approximate the legislation of the Member States of the European Union, the EAEU TR CU 004/2011 “On the safety of low-voltage equipment” (Council of the Eurasian Economic Commission 2011), which applies to refrigerators, electric stoves, meat grinders, washing machines, vacuum cleaners, air conditioners, electric lamps, printers, scanners, etc., was harmonized with Directive 2006/95/EU (European Parliament and Council 2006) (since April 20, 2016, Directive 2006/95/EU has been replaced by the newly adopted Directive 2014/35/EU). In August 2015, the Eurasian Economic Commission developed and approved a document that regulates the content and structure of the main sections of the technical regulation of the Eurasian Economic Union (Council of the Eurasian Economic Commission 2015). As a rule, a variety of organizations are involved in the development of technical regulations—research institutes, all-union business associations, public consumer organizations, representatives of legislative and executive authorities. Projects of the EAEU TRs are openly published and available for public discussion. All stages of the review of the EAEU TRs are accompanied

Technical Regulations to Protect Consumer Markets …

987

by multiple publications, discussions, expert reviews of the Council of the Eurasian Economic Commission, based on which the corresponding amendments are made or not. The terms of all stages of development, discussion, and approval of the EAEU TRs are strictly regulated. At the stage of putting technical regulations into effect, manufacturers carry out a lot of organizational and technical work in terms of bringing technical documents for products, such as technical specifications, organization standards, etc., following the provisions of the technical regulation put into effect. In addition to the product requirements that are mandatory for the application and enforcement, EAEU TRs contain requirements for the procedure for assessing product compliance with the generally accepted standard method of independent confirmation of compliance, which is used in a specific form in almost all countries as a condition for product access to the consumer market. The compliance assessment of products is carried out by accredited certification bodies to obtain established permits (a declaration of compliance or a certificate of compliance) by applicants (manufacturers), who are the sellers of products.

4 Discussion The Eurasian Economic Union is currently the second most integrated project in the world after the European Union. Its main characteristic is the constant systematic work on expanding the services included in the single union services market. As a result of joint activities, we should recognize the achievement of a single market for safe and quality products. This has become possible with the application of uniform technical regulations. Their application practice indicates that special attention should be paid to updating on time. Therefore, there arose the need for a periodic assessment of the scientific and technical level of the existing EAEU technical regulations, including the assessment for compliance with the current development level of information and communication technologies. For this purpose, it is advisable to create basic structures in the EAEU that would conduct specific EAEU TRs and maintain them at an appropriate level. In order to protect the single consumer goods market, it is advisable to create a system for informing about dangerous products. This system should accumulate information on non-conforming goods identified in the EAEU member countries, which will allow the identification of the most problematic groups of goods, and the development and application of appropriate measures against them. First of all, this should concern the EAEU TRs on products for children and adolescents, on toys, wheeled vehicles, dairy and meat products, as well as on low-voltage equipment. A system of the information base on hazardous products can be developed using the practice of the system created by the Federal Accreditation Service (FSA) to provide information on certificates of compliance contained in a single register to state authorities, legal entities, and individuals. It should be emphasized that a unified system of interagency electronic interaction enables manufacturers of products and

988

E. A. Sysoeva et al.

state control bodies in an automated online mode, through the information resource “Unified Register of Certificates of Conformity” (available on the official website of the FSA) to identify products, entering the consumer market and subject to mandatory compliance assessment, without relevant permits (declarations of compliance or certificates of compliance) and on the measures taken by the state control to such products. Nowadays, the EAEU is solving the problems of creating and functioning a single market with the free movement of goods, which becomes possible only by removing technical barriers to trade and mutual recognition of the results of compliance assessment based on technical harmonization. The priority tasks aimed at improving the protection of the consumer market include the introduction of a mechanism for mutual comparative assessments of national accreditation systems, the clarification of requirements for people authorized by a foreign manufacturer, the improvement of approaches to conducting product compliance assessment and the removal of unscrupulous bodies from the market for such an assessment.

5 Conclusion The introduction of technical regulations promotes the formation of common markets for EAEU products, eliminating technical barriers to trade, and the presence on the EAEU consumer market of substandard, counterfeit, and dangerous products, including imported products, branded with enterprises and firms with a positive reputation, and manufacturers products of consistently high quality. It determines the standards of direct and inevitable responsibility of the manufacturer and seller for production and release in the turnover of dangerous and low-quality products to the consumer market.

References Analytical Center under the Government of the Russian Federation. The report on human development in the Russian Federation “Goals of sustainable development: UN and Russia”. Moscow, Russia (2016). http://ac.gov.ru/files/publication/a/11068.pdf Bogoviz, A.V., Bugai, Y.A., Osipov, V.S.: Import substitution in the agro-industrial complex in the interests of provision of food security: option or necessity? Adv. Intell. Syst. Comput. 622, 37–43 (2018) Council of the Eurasian Economic Commission. Technical regulation of the Customs Union TP TC 004/2011 “On the safety of low-voltage equipment” (August 16, 2011) (2011). http://docs. cntd.ru/document/902299536 Council of the Eurasian Economic Commission. The decision of the Eurasian Economic Commission “On recommendations on the content and standard structure of the technical regulation of the Eurasian Economic Union” (August 21, 2015 No. 50) (2015). http://docs. cntd.ru/document/420297681

Technical Regulations to Protect Consumer Markets …

989

European Parliament and Council. Directive 2006/95/EU “Low voltage equipment” (December 12, 2006) (2006). http://procertificate.ru/standard/directive-2006-95-ec.html Russian Federation. Federal Law “On Technical Regulation” (December 27, 2002 No. 184-FZ), Moscow, Russia (2002). http://docs.cntd.ru/document/901836556 Russian Federation. Order “List of State Programs of the Russian Federation” (November 11, 2010 No. 1950-r), Moscow, Russia (2010). http://docs.cntd.ru/document/902246112 Russian Federation. Federal Law of the Russian Federation “On Strategic Planning in the Russian Federation” (June 28, 2014 No. 172-FZ), Moscow, Russia (2014). https://base.garant.ru/ 70684666/ United Nations. The declaration “Transforming Our World: The 2030 Agenda for Sustainable Development” (September 25, 2015), New York, NY (2015). http://docs.cntd.ru/document/ 420355765

A Comparative Analysis of the Methods Used to Assess Borrower Creditworthiness Nadezhda N. Zhilina , Marina R. Magdeeva , Vladimir G. Ignatev , Ilgiz I. Nurtdinov , and Lubov V. Gusarova Abstract The paper provides a comparative assessment of the existing quantitative and qualitative methods for assessing the borrower creditworthiness. The authors discuss the problematic aspects of applying various valuation approaches to achieve a complete and objective result, allowing one to obtain reliable information about the ability of potential borrowers to bear responsibility for their obligations. The topic under consideration is high value for cooperative enterprises working in Russia and around the world. Keywords Creditworthiness Scoring


Financial stability of a bank
Credit rating


1 Introduction In the current economic environment, the financial sector, as well as its components, such as credit organizations (banks), is becoming a fundamental infrastructural particle and strengthening and diversifying the development of a market N. N. Zhilina
M. R. Magdeeva Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] M. R. Magdeeva e-mail: [email protected] L. V. Gusarova Kazan Innovative University named after V. G. Timiryasov, Kazan, Russia e-mail: [email protected] V. G. Ignatev Kazan National Research Technological University, Kazan, Russia e-mail: [email protected] I. I. Nurtdinov (&) Kazan State Medical University, Kazan, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_106

991

992

N. N. Zhilina et al.

economy (Alexandeova 2016). However, at present, Russian credit organizations with a satisfactory potential and a massive demand of the real sector for credit funds to force an economic crisis enter the stage of stable growth and improve production on the current technological basis almost inactively; they do not fully develop their credit operations as a result of the fact that particularly active managers are forced to apply self-financing toward the investment process (Gordeev 2018). Aligning the macroeconomics in the country, strengthening the banking sector, phasing out interest rates, and strengthening the investment rise of enterprises help to increase the functioning of credit institutions and increase lending to the real sector of the economy. On the other hand, lending, which in most cases brings the leading share of income to credit organizations, provokes a high risk of this activity. Therefore, the problem of economic analysis of the borrower’s creditworthiness in current economic conditions acquires special significance while creating necessary conditions for the implementation of plans for the vigorous development of industry and stable growth rates of the entire economy of the Russian Federation. The analysis of methods for assessing the creditworthiness of a borrower affects all stages of credit relations between credit organizations and borrowers. It is accompanied by a detailed study of the qualitative and quantitative characteristics of the borrower in terms of their impact on the credit rating, the quality of the loan security, and the degree of credit risk. Under current market relation development conditions, the analysis of the borrower’s creditworthiness, which acts as an individual, complex economic analysis node that requires increased attention from both the lender and the borrower, is of particular importance.

2 Materials and Methods In the process of this research, such general scientific research methods as modeling, comparison, analysis, synthesis, and grouping were used. The logical, historical, and integrated approaches to the study of theoretical materials were also used. The research methodology includes the study, generalization, assessment of accumulated knowledge, and experience of domestic and foreign scholars (Asanov and Zhilina 2017, 2018; Makaeva and Sharifyanova 2016; Muan and Osborn 1965). As a result of studying the methods of assessing creditworthiness, systematization and the following grouping were carried out: (1) classification (rating, forecasting, deterministic analysis models, multiple discriminatory analysis); (2) models of complex analysis (CAMPARI, PARSER, evaluation system of analysis, etc.). The study of various approaches to assessing the borrower’s creditworthiness made it possible to select indicators that define various characteristics of the organization’s creditworthiness: profitability, liquidity, fundraising, and turnover. This system makes it possible to predict the liquidity and reality of current assets, and the timeliness of making upcoming payments—thus assessing the overall financial

A Comparative Analysis of the Methods …

993

condition of the organization and its stability, as well as finding the boundaries of the decline in profit in which part of the fixed payments is paid (Buckley 2016). The systematization of approaches and valuation methods made it possible to conduct a comprehensive analysis of creditworthiness; identify problematic aspects in the valuation methodology; and develop recommendations for improvement to predict long-term solvency, taking into account the degree of protection of creditors from nonpayment of interest.

3 Results The assessment of the borrower’s creditworthiness was carried out according to two methods based on MDA: Sberbank model and Altman model. In two cases, we got the same financial condition of Obuvrus LLC, which does not satisfy the requirements of a credit organization. This model makes it possible to predict possible bankruptcies in a year with an accuracy of 95%, or in two years with an accuracy of 83%. This shows the reliability of such a forecast. The Altman model was compiled based on statistics from enterprises of a developed economy. Note that the proposed weights are adapted for Russian enterprises (Table 1). During the next step, we calculate the total number of points, taking into account the significance factors of each indicator, which have the following values: C1 ¼ 0:11; C2 ¼ 0:05; C3 ¼ 0:42; C4 ¼ 0:21; C5 ¼ 0:21 S ¼ 0:11  0:0081 þ 0:05  0:348 þ 0:42  1:456 þ 0:21  0:187 þ 0:21  0:32 ¼ 0:74 0:74 \ 1:05 \ 2:42

Thus, the coefficient S is 0.74, which is less than 2.42 and 1.05, then this borrower can be attributed to the third class; lending is impossible. The Altman model gives the following result: Z ¼ 0:717  0:0055 þ 0:847  0:019 þ 3:107  0:128 þ 0:42  0:235 þ 0:998  0:45 ¼ 0:0039 þ 0:016 þ 0:398 þ 0:099 þ 0:45 ¼ 0:97

Table 1 The categories of indicators for assessing the borrower creditworthiness Coefficient

1st category

C1 0.2 and higher C2 0.8 and higher C3 2.0 and higher C4, except trade 1.0 and higher C4 for trade 0.6 and higher C5 0.15 and higher Source Calculated by the authors

2nd category

3rd category

0.15–0.2 0.5–0.8 1.0–2.0 0.7–1.0 0.4–0.6 Lower than 0.15

Lower than 0.15 Lower than 0.5 Lower than 1.0 Lower than 0.7 Lower than 0.4 Unprofitable

994

N. N. Zhilina et al.

The result of the assessment based on the scoring model for assessing the borrower’s creditworthiness showed the advantage of using this methodology for individuals whose creditworthiness is based not only on quantitative but also on qualitative indicators.

4 Discussion The creditworthiness of the borrower depends on many factors, and it is not an easy task to analyze and calculate each of them. The most significant part of the creditworthiness indicators analyzed in practice is based on data from past periods or at a specific reporting date; all of them are also subject to a distorting effect of inflation. With some factors, it becomes challenging to identify quantify, for example, the reputation and moral character of the borrower. Moreover, many methods and approaches are used to supplement and make the analysis of the borrower’s creditworthiness the most appropriate to reality. E. Reed, an American scholar, put forward the following system of indicators that determine the various characteristics of the organization’s creditworthiness: profitability, liquidity, fundraising, and turnover. This system makes it possible to predict the liquidity and reality of current assets, the timeliness of making upcoming payments, the assessment of the overall financial condition of the organization and its stability, as well as the opportunity to find the boundaries of the decline in profit in which part of the fixed payments is paid (Buckley 2016). J. Siegel, J. Shim, G. Anderson, B. Needles, and D. Coldwell suggested using a group of indicators that characterize liquidity, long-term solvency, profitability, and indicators that are based on market criteria. A distinctive feature of this methodology from the method of E. Reed is that this approach makes it possible to predict long-term solvency, taking into account the degree of protection of creditors from nonpayment of interest. In practice, each credit institution chooses specific coefficients for itself and solves issues related to the methodology for their calculation. This approach makes it possible to characterize the financial condition of the borrower based on a synthesized rating indicator, which is calculated in points and assigned to each coefficient value. Based on these points, the classes are assigned: first-class, second-class, third-class, or insolvent. These classes are taken into account by credit organizations when developing interest rates, loan conditions, loan forms, types of credit lines, etc. A modification of the rating is called credit scoring. This modification was suggested by the American scholar D. Duran in the early 1940s. It is intended for the selection of borrowers for consumer loans. Scoring is a form of testing that gives a forecast of the borrower’s ability to repay a loan. It is aimed at predicting the default risk of borrowers and is based on various mathematical models, such as logistical regressions, Kolmogorov-Smirnov tests, linear discriminant analyses, cluster analyses, etc.

A Comparative Analysis of the Methods …

995

By using scoring, one can analyze the creditworthiness of a potential buyer who hopes to obtain a loan from a bank. According to the results of this analysis, the potential borrower is assigned a certain number of points. The primary method of credit scoring is a customer survey. Points are awarded to a potential borrower for each item in the client’s application for a loan, and the number of documents, phone numbers, and contact persons submitted are considered alongside a credit history from a credit bureau. If a potential client scored fewer points than the threshold value, then a loan is not provided. All parameters of the scoring model and thresholds are set by banks independently, and in different banks, these values are different. Currently, banks themselves are developing credit scoring systems. At the same time, for some banks, the scoring system is more improved and finalized, based on current data. However, when using this model, it is necessary to provide for several problems: (A) the necessity for the careful selection of financial indicators; (B) the importance of threshold values of indicators; (C) the need to justify the significant coefficients for each group of indicators based on the industry of a particular borrower; (D) in the system of calculated coefficients, many factors are not taken into account, for example, the reputation of the borrower, the assessment of manufactured and sold products, etc. There are forecast models for assessing creditworthiness, which is obtained using statistical methods; they are used to assess the quality of potential borrowers. The multiple discriminant analysis (MDA) uses the discriminant function (Z), which takes into account some parameters and factors that characterize the financial condition of the borrower (Huerta de Soto 2017; Sander 2016). Regression coefficients are calculated based on the results of the statistical processing of data on the selection of organizations that went bankrupt or survived for a certain period. If the discriminant function or, in another way, the organization’s Z-score is close to the indicator of the average bankrupt organization, if its position continues to deteriorate, it will become bankrupt. If the managers of the organization and the credit organization make efforts to eliminate financial difficulties, then the organization may not go bankrupt. In this regard, the Z-score serves as a signal to prevent the bankruptcy of the organization. In order to use this model, a wide selection of organizations in various industries is required. This technique is complex in that it is not always possible to find a sufficient number of bankrupt organizations within the industry to calculate the regression coefficient. Altman and Chesser are widespread MDA models that include the following indicators: the ratio of reinvested earnings to total assets; the ratio of own current assets to the number of assets; the ratio of the market value of shares to borrowed capital, the ratio of sales to total assets; and the ratio of gross profit to total assets. Based on the Altman model’s Z-index, an organization is assigned to a particular class. The Altman five-factor model is based on an analysis of 66 organizations; it makes it possible to predict bankruptcy 2–3 years in advance accurately. In Russian

996

N. N. Zhilina et al.

conditions, the construction of such models is quite tricky, since there are no statistical data on the bankruptcy of organizations. The Chesser model makes it possible to predict a borrower’s failure to fulfill the terms of a loan agreement. Nonperformance means not only nonpayment of the loan but also various other deviations that make the relationship between the credit institution and the borrower less profitable in comparison with the original conditions. In this model, the used linear combination of independent variables Z includes the ratio of the net sales amount to the amount of cash and the value of easily traded securities; the ratio of register cash and value of easily traded securities to the number of assets; the ratio of profit before tax to the number of assets; the ratio of working capital to net sales; the ratio of total debt to total assets; the ratio of fixed capital to net assets. The resulting indicator can be considered as an estimate of the probability of failure to fulfill the terms of the loan agreement. Chesser used the data of several credit organizations for 37 unsatisfactory and 37 satisfactory loans and took the indicators of the balance sheets of the borrowers’ organizations for the calculation one year before receiving a loan. Substituting the calculated indicators of the model in the formula for the probability of contract violation, Chesser correctly identified three out of every four studied cases. Nowadays, CAMPARI, PARSER, and the Six C model have become widely used among commercial banks. CAMPARI is a comprehensive model combining qualitative and quantitative indicators of borrower creditworthiness. The analysis of the borrower following this model consists of sequentially extracting the most significant factors that determine the activities of the client from the application and the borrower’s documents. The analysis is carried out in order to identify the potential risk associated with the issuance of a loan to the borrower. The name of this method is formed from the first letters of the following English words: C (Character)—reputation, customer profile. This criterion is aimed at assessing business qualities, the reputation of a potential borrower, and the ability to fulfill his or her obligations to a credit institution A (Ability)—loan repayment option. This criterion aims to assess the stability of the financial position of the borrower M (Means)—return potential. This criterion is aimed at the need to analyze the company’s potential in the context of its profitable activities P (Purpose)—the purpose of the loan. This criterion is needed to evaluate how reasonable and clear the goals of further use of credit funds are. A (Amount)—the amount of credit R (Repayment)—loan repayment terms. This is the client’s ability to repay the loan on time. The amount of loan payments, including interest, is analyzed. Then, sources of repayment are assessed. The repayment schedule and loan term are of great importance.

A Comparative Analysis of the Methods …

997

I (Insurance)—collateral, insurance of the risk of loan repayment. It examines the liquidity of the company and the possible change in the value of the mortgaged property, which, in turn, affects the final result on the provision of a loan. The PARSER model, like the CAMPARI model, maximally focuses on quality indicators. The name is also made up of uppercase English words: P (Person)—the information about the potential borrower, their reputation A (Amount)—the justification of the amount of the requested loan R (Repayment)—the possibilities (conditions) of the loan repayment S (Security)—the assessment of loan security E (Expediency) – the expediency of the loan R (Remuneration)—bank interest (interest rate) Deciphering abbreviations shows a close functional purpose, as well as the similarity of the criteria “CAMPARI” and “PARSER” in assessing the creditworthiness of the borrower. The Six C model is composed of six lending principles, indicated by English words starting with the letter C: Character, Capacity, Cash, Collateral, Conditions, Control. The explanation for each of these principles is given below: Character: The nature of the borrower is considered, as is an analysis of the borrower’s reliability and honesty, the purpose of the loan, the seriousness of the borrower’s intentions, and the borrower’s desire to repay the loan. Capacity: This refers to the borrowing ability and financial capabilities of the borrower and includes an analysis of the borrower’s credit history, which examines the expenses and income of the borrower. Cash: The ability of the borrower to provide sufficient cash flow for the repayment of credit obligations is analyzed. Collateral: Whether the borrower has sufficient capital or other assets to provide the required collateral for the loan is checked. Conditions: The current financial situation of the borrower and economic conditions in the country that might affect the performance of his or her obligations are analyzed. The credit institution should be aware of the latest trends in the industry or of the borrower. Control: This is the last factor in assessing the borrower, which boils down to how much a change in legislation or in the legal or economic circumstances will negatively affect the creditworthiness of the borrower. As a result of the borrower using the Six C model, the credit analyst must express each of the above principles in figures, which will make it possible to make an informed decision on the creditworthiness of the borrower. Many credit organizations apply sophisticated methods for assessing the borrower’s creditworthiness, but these methods are theoretically insufficiently developed; the mathematical apparatus is almost not involved with them. For the classification of loans, we can use the classification and regression tree (CART) models. The main advantages of this nonparametric model are its

998

N. N. Zhilina et al.

widespread use and its easy readability and calculability, but complex statistical methods are used in the construction. The technique developed by specialists of the Association of Russian Banks (ARB) was widely used. This methodology involves an analysis of the borrower’s creditworthiness by the following indicators: solidity—timely settlements on previously received loans, which is management’s responsibility; ability—production of products and their implementation, maintaining competitiveness; profitability— the preference for investing in a given borrower; reality—obtaining the results of projects; validity—specifically of the requested loan amount; repayment—due to the sale of property of the borrowers if their plan is not implemented; and security —for the loan with the legal rights of the borrower. Methods for assessing the creditworthiness of borrowers, used by Russian credit organizations, show the importance of an objective and reliable analysis of the financial condition of potential borrowers. Various methods are used; credit organizations pay attention to both quantitative indicators of credit rating and qualitative, internal, and external factors that affect the business. However, the possibilities of analysis are limited since there is no single regulatory framework for various sectors of the economy. Credit organizations are forced to rely on their information base, giving more attention to the reputation of the borrower, the credit history, and not to the financial capabilities of the borrower.

5 Conclusion The analysis of methods for assessing the creditworthiness of a borrower affects all stages of credit relations between credit organizations and borrowers. It is accompanied by a detailed study of the qualitative and quantitative characteristics of the borrower in terms of their impact on the credit rating, the quality of the loan security, and the degree of credit risk. In the current conditions of the development of market relations, the analysis of the borrower’s creditworthiness is of particular importance. It acts as an individual, independent complex economic analysis node, requiring increased attention from both the lender and the borrower. One of the most important tasks solved within a credit organization’s credit policy framework is the need to develop a system for analyzing the borrower’s creditworthiness and the risk of providing credit funds to the borrower. Assessing various aspects of the borrower’s financial condition, monitoring them during the entire term of the loan agreement, shown in the form of a particular system, can show the borrower’s ability to receive a loan on time and fully repay the debt. The borrower’s creditworthiness is its general financial and legal characteristics, reflected by financial and non-financial indicators, which makes it possible to evaluate its ability in the future fully and on time, according to the loan agreement, pay off the debt obligations to the creditor, and also to disclose the degree of risk for

A Comparative Analysis of the Methods …

999

the credit organization when lending to a specific borrower. The creditworthiness of the borrower depends on many factors, each of which must be studied and evaluated. For an analyst, a very complex and significant problem is the determination of changes in all factors, circumstances, causes, and risks in the future, affecting creditworthiness.

References Alexandrova, Ya.I.: The assessment of the creditworthiness of customers of a commercial bank using the example of PAO “Sberbank.” New Sci. Strat. Dev. Vectors 118(3), 97–99 (2016) Asanov, R.Sh., Zhilina, N.N.: Methods for assessing the creditworthiness of the borrower. Invest. Financ. Manag. Anal. 11(6), 232–246 (2017) Asanov, R.Sh., Zhilina, N.N.: The creditworthiness of the borrower as a factor in the financial stability of a credit institution. Fundamental and applied aspects. Poznaniye, Kazan, Russia (2018) Buckley, A.: Multinational Finance. Financial Times Management (2016) Gordeev, V.: The World Bank has lowered its forecast for economic growth in Russia and the world (2018). https://www.rbc.ru/economics/09/01/2019/5c353d059a7947dfebf839cd/ Huerta de Soto, J.: Money, Bank Credit, and Economic Cycles. Ludwig von Mises Institute, Auburn (2017) Makaeva, A.M., Sharifyanova, Z.F.: Credit scoring as a tool for the effective credit rating of a commercial bank borrower. Innov. Sci. 4–1(16), 203–208 (2016) Muan, A., Osborn, E.F.: Phase Equilibria Among Oxides in Steelmaking. Addison-Wesley Pub Co, Reading (1965) Sander, P.: 101 Things Everyone Should Know About Economics: From Securities and Derivatives to Interest Rates and Hedge Funds, the Basics of Economics and What They Mean for You. Adams Media, London (2016)

Official Economic Abuse in Economic Management as a Criminological and Legal Category Mikhail G. Ivanov , Valery V. Andreev , Arthur G. Bezverkhov , Olesya M. Ivanova , and Alexander P. Kuznetsov

Abstract The recovery of the economy from the crisis is constrained by inertia, departmental interests, corruption, and other abuses. The authors draw attention to the nature and genetics of the development of service-economic abuse as one of the forms of deviant service-management behavior in economics. Legal provisions, concepts, categories, and institutions are interconnected and causally determined by socio-economic relations. Legal categories establish the most significant features of socio-legal phenomena. They can be analyzed in a dialectical relationship, taking into account specific and objectively existing social and economic circumstances. The influence of economic laws on the dynamics of criminogenic processes in the field of economic management are analyzed. Furthermore, criminogenic factors on the formation of criminal law on the dynamics of crime in the field of business and economic relations are indicated.













Keywords Economics Management Law Regulation Official and economic abuse Responsibility




M. G. Ivanov (&) Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] V. V. Andreev
A. P. Kuznetsov Cheboksary Cooperative Institute (Branch) of Russian University of Cooperation, Cheboksary, Russia e-mail: [email protected] A. P. Kuznetsov e-mail: [email protected] A. G. Bezverkhov Samara National Research University named after Academician S.P. Koroleva, Samara, Russia e-mail: [email protected] O. M. Ivanova The Main Investigative Directorate of the Main Directorate of the Ministry of Internal Affairs of Russia for Moscow, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_107

1001

1002

M. G. Ivanov et al.

1 Introduction The development strategy of Russian statehood involves improving the system of public relations; updating the forms and working methods of social, economic, and legal institutions; deepening democracy; and overcoming inertial development. These circumstances make it necessary to analyze the accumulated scientific literature from the point of view of the methods, goals, and objectives demanded by time. The proposed approach will allow us to rethink and move to a qualitatively new level of legal assessment of the legislative regulation problems and legal responsibility for official and economic abuses committed and the development of conceptual provisions on counteracting certain types of abuses (Naryshkin et al. 2015).

2 Materials and Methods The scientific validity and reliability of the main provisions are confirmed by the use of fundamental scientific works of Soviet, Russian, and foreign scholars in the fields of economic, social, and legal sciences; the study of socio-economic indicators and crime statistics; and the empirical basis of the study, characterized by the judicial practice of higher and district courts related to the implementation of criminal responsibility for official and economic abuse.

3 Results In the existing world order, each state has its national legal mechanisms and tools for ensuring the vital functions of economic institutions. Surely, they have their specific national characteristics and functional orientations that differ significantly from one another. The authors consider that the state of the economic law and order is severely affected by socioeconomic processes, whose intensity largely depends on the legal, economic institutions. The sources of these processes are the causal and functional relationships. Political and legal decisions also influence economic relations and the nature of service and management activities (Obolonsky 2000). According to scholars, “it is important not to lose sight of the impact of economic processes on existing civil and criminal laws. It should be remembered that economic laws condition the law; the law depends on the type of economic structure of society” (Bezverkhov 2002). Thus, the state’s activities, in whatever sphere they are carried out, should be the subjects of the law’s requirements, thereby excluding any form of manual control.

Official Economic Abuse in Economic Management …

1003

It is appropriate to quote Vladimir Putin’s statements from a well-known economic forum. President Putin noted, “The most important condition for improving the efficiency of management is to increase the transparency of the business environment.” He also stated, “This year there will be a digital platform, a kind of digital ombudsman. Moreover, such openness can become a guarantee of trust between society, business, and the state. In general, we need to ensure the transformation of the public administration system based on digital technologies in the shortest time possible. Thus, we need to radically increase the effectiveness of all levels of government, the speed, and quality of decision-making” (Putin 2019). In this regard, as a general problem, issues in improving institutions and mechanisms of interaction at various levels of government and business are presented. Further study of legal reality in the field of the protection of economic relations should help to critically interpret the criteria and the extent of their legal regulation, as well as the role of legal norms and criminal law policy in general. Therefore, understanding the logic of the concepts and categories used in this regard is an essential task of the doctrine of law. The legal category, based on the application of specific terms, performs a unifying role, by which its meaning and content are laid. Through the terms, there is an understanding of the essential properties and relationships of legal categories with other objects and phenomena of a social and economic nature. Thus, it can be noted that the legal category is expressed by “word,” which can be considered as the only way to formalize legal requirements adequately (Gubaeva 1996). Therefore, it can be noted that social relations are formed, expressed, and objectified into legal categories only with the help of terms and concepts. We believe that the most general, fundamental, generalizing, and functionally intended concept acts as a legal category. Legal categories establish the most significant features of socio-legal phenomena. The tendency to integrate the application of various legal categories in legislative activity is undeniable. The categories “economy,” “management,” “property,” “property rights,” “investments,” and others, nowadays, are the characteristics of the dialectical conditioning of the legal policy with the existing economic policy of the state. At the same time, legal scholars, as a rule, did not pay attention to the substantive side of the performance of administrative structures in the study of its criminal law and criminological aspects. This, in principle, is understandable since, in the political system, economic activity, as a rule, used to occupy a somewhat subordinate position concerning the functions of exercising state power. Nevertheless, we point out that the vital activity of the society is based on relatively homogeneous socio-economic phenomena caused by causal, functional relationships. It is based on the fact that society establishes specific rules of what is desirable and permissible, as well as possible methods and ways of coexistence of various social groups; institutions to resolve conflict situations and neutralize social tension are proposed. All these techniques and methods should come from the state. The role of the state as a sociopolitical organization is to provide acceptable ways to meet the interests and needs of each member of society. One of the criteria for

1004

M. G. Ivanov et al.

assessing the effectiveness of public administration of socioeconomic relations is the degree to which the government exercises control functions (Obolonsky 2000). Let us note that the concept of “management” is broader in content than the concept of “power,” as it includes activities for the preparation, provision, adoption, and implementation of decisions. Also, the considered institute has the responsibility of providing direct and continuous control over its impact on the economy. Meanwhile, without dwelling on the analysis of various approaches, it seems possible to make a summary: Management, from a functional point of view, can be considered as a set of regulations for the implementation of managerial functions, which are reflected in the social roles characteristic of the management system (the role of the head of the enterprise, the head of the municipality, etc.). Legal and social norms governing this activity represent a specific system, which should provide various forms of managerial activity. Thus, the service-management form of activity should be considered as a technological process of preparing, adopting, and implementing management decisions. Governing bodies, using mechanisms of administrative influence, one way or another, regulate both financial and material resources. The management apparatus does not produce any physical products. However, it creates conditions for the production of material values and predetermines the whole sequence of the reproductive process of economic relations. This means that a person holding an official position in the management system, deciding on the disposal of material resources, unequivocally conducts official and economic activities. Consequently, service management activity in the economic sphere acquires very complex content, which can be described as service and economic activity. We believe that this design, in terms of its semantic load, thoroughly covers the phenomenon under study—service and management activities in the field of economics. In this regard, the introduction of the category “service-economic activity” into the scientific circulation will allow us to consider it as a complex socio-economic phenomenon. This factor, due to its conceptual significance, should be taken into account when forming the policy of legal regulation of economic relations. This is important when building budgetary, financial, and banking relations. This approach allows us to evaluate the official management activities of the state and executive authorities in a significant way. A considerable part of the real system of economic relations is subject to state and legal regulation; another, more significant one, can do with corporate governance institutions without government influence. Therefore, service-economic relations can be divided into two very large groups. The first group is economic relations associated with state regulatory institutions. The second group is those economic relations that are implemented by corporate management relations. Here we must make a derogation and indicate that the proposed classification is rather conditional since, in our opinion, in reality, there are no “pure” phenomena of a socio-legal or socio-economic nature.

Official Economic Abuse in Economic Management …

1005

Nevertheless, we indicate that both groups, in their functional properties, are intended to regulate economic relations. In practical activities, as a rule, they tend to intersect the conjugation of forms and types of service management activities. In this regard, the following points must be indicated: First of all, their coexistence is determined by the specific circumstances and the time of application of institutions and mechanisms of service and management activities. One can also point out that during the period of implementation of official functions, administrative and managerial activity acquires new, economic content. Thus, the issues for discussion by the scientific community on the independence of public relations of a service-economic nature protected by criminal law, and the separation of a particular group of service-economic abuse from the economic crime system on this basis, require the formation of such a criminal law category as “service-economic crime.” The proposed differentiated approach is conceptual; it is necessary for lawmaking. It is also justified by the fact that the exclusion and neutralization of conditions that make it challenging to ensure the supremacy of legitimate laws is the primary goal of ongoing legal reforms. At the same time, we are not alone in the search for optimal approaches to researching abuses of an economic nature and their varieties. In a world of national science, there exists various theories associated with the crime characteristics, identification of the causes, and conditions of its existence. For example, the economic theory of crimes and punishments indicates that crime is considered not as a deviation from the norm, but as its specific manifestation, as a deviation within the normal range (Mandeville 1974). In particular, G. Becker was the first to propose that criminals are essentially as rational as other individuals (Becker 1993). Using the results obtained by the scientific community in this field, applying various logical exercises and drawing on the practice of criminal investigation, we will try to understand the essence of official and economic abuse. Thus, we note that the basis of any official-economic deviant behavior (Ivanov 2016), or an offense, is a situation consisting of opposing parties. At the same time, there is a real confrontation between legitimate and criminal interests. At the same time, not every contradiction leads to an offense, and not every offense leads to a crime. A contradiction develops into an offense only when the corresponding mercenary motivation and the criminal behavior are formed, and when the individuals (a particular social group) are aware of the unlawfulness of satisfying their interests. Criminal service and administrative abuse can be defined as critical clashes between the parties’ socioeconomic interests and goals and their ways of satisfying them. In the context of the study of the official offenses’ characteristics, the authors turn to the moral side of the conflicts, since it reflects the essential internal characteristic (subjective side) of these relations. To a greater extent, in the case of a legal assessment, it is not so much the presence of a contradiction in the official-economic relations that matters but the very decision of the carrier of these relations to resolve the contradiction. Therefore, the subject’s perceiving of a contradictory, conflictual situation, comparing one’s interests with the interests of

1006

M. G. Ivanov et al.

other entities, recognizing the contradiction as an obstacle to satisfying one’s interests, and expressing one’s will to resolve them are elements of the fundamental characteristics of the conflict genetics of service and economic interests and their criminal assessment. This is not enough since the will must be expressed in concrete actions to resolve the contradictions that have arisen, in actions taken by the parties to satisfy their interests. The external side depends on the sequence and orientation of internal processes, the form of realization of contradictions, which ultimately determines the structure of a moral or legal conflict that develops into a crime. Consequently, the basis of any economic offense in terms of content is a contradiction that develops into a conflict of service and economic interests, which carriers are particular individuals—subjects of service and management activities. They can create a particular unlawful situation, purposefully influence the legitimate official management activities in pursuit of their selfish economic interests, harm the official behavior of other subjects of official management activities, and cause any adverse changes in socio-economic relations. Meanwhile, we associate the deviant behavior of subjects of official-economic crimes with the presence of risk (the risk of being exposed, the risk of being held criminally liable). In this regard, the hypothesis is put forward that it is possible to consider the systemic criminal economic activity as a variety of criminal business. If such an assumption is made, then it is possible to apply acceptable methods of economic theory to characterize the economic component of the official-economic crime. In this regard, the hypothesis is that it is possible to consider the systemic criminal economic activity as a variety of criminal business. If such an assumption is made, then it is possible to apply acceptable methods of economic theory to characterize the economic component of the official-economic crime. Based on the characteristics of rational economic behavior, economists distinguish between three types of risk: risk sentiment, risk neutrality, and risk aversion. It is known that the riskier a particular form of economic activity is, the lower the average real income of its subjects and their risk aversion. Based on these provisions and the study of empirical material, one can affirmatively put forward another hypothesis that, when characterizing criminal service-economic activity, one should proceed from the degree of risk presence at one or another hierarchical level of service-management activity. The lower the level of management is, the riskier the commission of official-economic abuse, and the lower the average real income of the subject of official-economic crime. In this case, the following assumption is possible: that if the average expected income of the offender is so low that the behavior of the identity of the offender is irrational, the act is not intentional and is committed by coincidence. At the same time, this thesis is not so flawless; it is probably erroneous since practice shows that the commission of official and economic abuses always requires preliminary preparation and precise understanding. Therefore, the criminal is always rational and chooses the “best” way to satisfy their selfish interests. The criminal expects omissions in law enforcement, a lack of control, etc. Therefore,

Official Economic Abuse in Economic Management …

1007

with some certainty, we can argue that the offender committing a business crime is economically rational. The deformed needs of managerial personnel are adequately reflected in the structure and functions of the corresponding service management institutions. As a result of such a mismatch in the management activity, dysfunctions of the management activity may occur. They are expressed in the ambiguity of the goals of its activity, the uncertainty of its functions, the decline in the social authority of the governing bodies, the discrepancy between the content of the administrative and managerial activity and the nature of social needs, and the transformation of substantive activities into formal ones, i.e., into bureaucratic activities. Consequently, dysfunction of management activity is evident if there is a loss of the organization’s essential nature: depersonalization of activity and responsibility. This means that management, as a social tool of public influence, ceases to function in this part following objective needs and realities and changes its functions depending on the interests and wishes of individual groups (Ivanov 2019). Due to these circumstances, the efforts of service and management activities are increasingly directed to ensuring the implementation of a specific social need. To one degree or another, there is a neglect of positive processes. Moreover, when the subjects of managerial activity take on criminal forms, relying on a commonality of interests, they begin to pursue their specific goals in state power as they are more deeply introduced into this sphere. Thus, based on the study, the following conclusions can be made. The essence of service-economic crimes cannot be considered separately from deviant service-management behavior (Gilinsky 2004). This is a requirement because, first, service-economic crime and deviant service-economic behavior are related both as a part (official economic crime) and the whole (deviant behavior). Therefore, many common signs that reflect the whole are inherent in its parts. Secondly, there may be a genetic connection between deviant service management behavior and an official economic crime since deviant behavior is formed at an earlier stage of abuse, and an official economic crime occurs much later.

4 Discussion The continued study of the nature of service-economic crimes seems more promising for solving complex problems: theoretical (creating a relatively consistent concept for combating service-economic crime); legislative (improvement of legal norms); law enforcement (development and adoption of the framework for the implementation of criminal law policy).

1008

M. G. Ivanov et al.

5 Conclusion Based on the fact that the basic formula for regulating business and economic activity is made up of a combination of legal norms, social and moral requirements, and professional ethics, the transition of the criminal law research paradigm to the intersectoral level means expanding the research context. At the same time, it is an important component of the development strategy of jurisprudence. It is so significant that it fundamentally determines and directs the system of cognition and construction of the entire national legal system.

References Becker, G.: Economic analysis and human behavior. (1993). extension:// mhjfbmdgcfjbbpaeojofohoefgiehjai/index.html Bezverkhov, A.G.: Property Crimes. Samara State University, Samara (2002) Gilinsky, Ya.I.: Devianology. The sociology of crime, narcotism, prostitution, and other “deviations” (2004). http://lawlibrary.ru/izdanie49994.html Gubaeva, T.V.: Literature in law (Dissertation of Doctor of Law). Kazan State University, Kazan, Russia (1996) Ivanov, M.G.: Theoretical and applied aspects of the organization of the prevention of service-economic offenses and ensuring economic security in the field of the cooperative sector of the economy. Fund. Appl. Res. Coop. Sect. Econ. 2, 78–81 (2016) Ivanov, M.G.: General theoretical provisions of the methodology for investigating business crimes. Bull. Russian Univ. Coop. 1(35), 121–125 (2019) Mandeville, B.: A fable about bees (1974). https://studfiles.net/preview/3066979/page:88/ Naryshkin, S.E., Khabrieva, T.Ya., Abramova, A.I.: Scientific Concepts for the Development of Russian Legislation, 7th edn. Jurisprudence, Moscow (2015) Obolonsky, A.V.: Public Service (Integrated Approach). Delo, Moscow (2000) Putin, V.V.: The statement by the President of the Russian Federation at the Plenary meeting of the St. Petersburg International Economic Forum (June 7, 2019) (2019). http://www.kremlin.ru/ events/president/transcripts/60707

Customs and Logistics in the Cross-border Setting: Participants’ Mutual Interests and Coordination Issues Arthur A. Maksaev , Vladimir I. Barilenko , Marina D. Dzhamaldinova , Ekaterina A. Kameneva , and Ziya E. Suleymanov

Abstract The paper focuses on the problem of coordinating the interests of participants in cross-border processes in the field of customs and logistics activities, corresponding to the modern geopolitical and economic realities of Russia. Based on a systematic approach, a theoretical analysis of the process of managing cross-border economic processes is carried out, which is interpreted as managing a whole set of synergetic effects. Based on this, the key task in managing flow processes in cross-border territories is determined. It is the achievement of the synergistic effect of consolidating the interaction of business partners. The principles, factors, and conditions for the effectiveness of joint cross-border activities are determined. The approaches for increasing the synergetic effect of cross-border business partnerships based on the phased coordination of the interests of all participants in the interaction are substantiated. The paper argues that participants of cross-border processes can achieve strategic goals, realize national interests, and derive economic benefits from business partnerships exclusively on a mutually

A. A. Maksaev Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected]; [email protected] V. I. Barilenko
E. A. Kameneva Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] E. A. Kameneva e-mail: [email protected] M. D. Dzhamaldinova Moscow Region University of Technology, Moscow, Russia e-mail: [email protected] Z. E. Suleymanov (&) Institute of Research of Merchandising and Environment of the Wholesale Market, Moscow, Russia e-mail: offi[email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_108

1009

1010

A. A. Maksaev et al.

beneficial basis, taking into account the coordination of interests of all interested parties.







Keywords Logistic interaction Cross-border business processes Coordination of interests Business partnerships Customs management Management of customs and logistics activities










1 Introduction The urgency of the problem of building an effective logistic interaction of participants in cross-border economic processes requires an integrated approach to its solution. This solution should integrate the development of a conceptual framework for managing cross-border economic processes and a systematic approach to building mutually beneficial business partnerships. The interests of all the interacting parties and the scientific substantiation of management decisions at all levels management should be taken into account. The current geopolitical and economic situation of cross-border territories gives several subjects of the Russian Federation a whole list of urgent socio-economic problems that are new for the national economy of Russia (e.g., sanctioned rupture of world economic relations in global and regional markets, a sharp complication of transport communications, and increased crisis phenomena in the cross-border sphere). The purpose of this paper is to conduct a theoretical analysis of the management of customs and logistics activities regulated at the microeconomic level of management as well as to develop methodological approaches to building cross-border interactions based on the mutually beneficial interests of business partners. In order to achieve the synergistic effect of consolidating the interaction among business partners, a systematic approach to analyzing the management of cross-border economic processes was applied. This helped to achieve the goal of the study. One more important task is the structural analysis of customs and logistics activities, regulated at the microeconomic level of management. It allowed us to identify and characterize key participants in customs and logistics processes, the specifics of the tasks they solve, and the tools used. Particular attention was paid to the search for ways to take into account the interests of business partners, which the authors considered as the basic principle of cross-border interactions toward achieving the participants’ strategic goals in solving cross-border business problems.

Customs and Logistics in the Cross-border Setting …

1011

2 Materials and Methods The theoretical and methodological basis of the work is research from international scientists (Beamon, B. M.; Ware, T. M.; Ponis, S. T.; Koronis, E.; Swafford, P. M.; Ghosh, S.; Murthy, N.; Thompson, A. A.; Strickland, A. J.; and others) and Russian scientists (Adamov, N. A.; Brykin, A. V.; Izmaylova, M. A.; Luchitskaya, L. B.; Siniaev, V. V.; Suleymanov, Z. E.; Filippova, E. I.; and others). They set out conceptual approaches to conducting a system-targeted analysis of management systems adapted by the authors to study the management of customs and logistics activities. The results of the structural analysis of customs and logistics activities are based on the works of such domestic scientists as Adamov, N. A.; Alimusaev, G. M.; Garnov, A. P.; Semenov, N. N.; and Shumaev, V. A. Of particular interest were the studies of Russian authors Maloletko, A. N.; Andryushchenko, G. I.; Kaurova, O. V.; Mityushina, E. A.; Shatskii, A. A.; and Suleimanova, Z. E., who focus on the problems of interaction between partners based on meeting mutually beneficial interests on a long list of issues, including social character. At the same time, it should be noted that questions regarding the application of a systematic approach to the management of customs and logistics—which are affected by disturbances in the economic environment due to the influence of geopolitical and economic decisions of a global nature—remain poorly studied. The infringement of the interests of participants in cross-border interactions, which are often caused by foreign policy forces, have unreasonably escaped the attention of both Russian and foreign researchers. This paper eliminates this lack of knowledge. The authors’ use of general scientific methods of cognition in the study (including the dialectical method, the analogy method, and system and structural analysis) allows them to generalize results and formalize conclusions.

3 Results 3.1

A Systematic Approach to Managing Cross-border Business Processes

The most important part of effectively managing cross-border economic processes is enhancing the rationality of the interactions between business partners. It is worth noting that the subjects of interaction in the field of cross-border management should not only include direct participants in export-import operations but should also provide links of the cross-border infrastructure that accompanies these operations, including customs and logistics links, tax authorities, terminal complexes, and other organizations (Adamov 2013). The effective management of flow processes in transboundary territories should be interpreted as the management of a whole set of synergistic effects. In the process of interaction management, it is necessary to maintain the objectively

1012

A. A. Maksaev et al.

necessary level of independence of business partners, as well as the task of the logistic pairing of the activities of all parts of the collective control system of cross-border flows (Table 1; Semenov and Suleymanov 2016). The whole set of processes and relations arising in the regulation of flows in transboundary territories should be interpreted as an integrated system with a specific structure. Various interconnections between the links of the logistical infrastructure of transboundary spaces should be raised to the degree of interaction (Filippova and Adamov 2016). This principle determines the need to harmonize economic, organizational, and technological goals in addition to the interests and capabilities of all links involved in a logistics-oriented business interaction in a cross-border space (Semenov and Garnov 2012). An important prerequisite for the effectiveness of joint cross-border activities is the quality of implementation by the interaction participants of the functions of combining the interests and goals of individual subsystems with common goals. If successful, this can minimize consolidated costs across all associated business units and contribute to the synergistic effect of consolidation. The conditions for effective modernization of customs and logistics activities can be formalized as follows: – the reduction of time spent on customs and logistics operations Ts  Tm [ 0

ð1Þ

where: Ts and Tm are, accordingly, the time costs existing after modernization; – the reduction of financial costs of participants in customs and logistics activities Fs  Fm [ 0

ð2Þ

where: Fs and Fm are, accordingly, the financial costs that exist after modernization; and Table 1 The hierarchical structure of customs and logistics systems Coverage scales

The level of customs and logistics system

Structural elements

Separate business structures

Microscale

Large corporations, industries, regional clusters National economy

Mesoscale

Divisions of business structures (departments of foreign economic activity), customs posts Regional customs departments, local customs, links of customs infrastructure

Macroscale

Groups of countries, Interstate scale international associations World Business Megascale System Source Developed by the authors

Federal Customs Service (FCS in Russia, State Customs Committee in Azerbaijan) Customs unions of independent countries

World Customs Organization

Customs and Logistics in the Cross-border Setting …

1013

– the increase in budget revenues, taking into account the growth in volume of interstate trade Vm  Vs [ 0

ð3Þ

where: Vm and Vs are, accordingly, the existing volumes of budget and the volumes after the update. In all likelihood, the problems of logistically oriented regulation of the associated transboundary processes can be better solved by developing functions of methodological and information-analytical support implemented by a particular coordination unit. Systematic control of all costs, a development forecast, and an assessment of business risks will provide additional opportunities for linking the goals of various subjects of cross-border interaction, increasing the effectiveness of the work of all business links by ensuring higher rhythm and coherence of economic processes in the field of cross-border business (Alimusaev 2014).

3.2

The Description of the Composition of Participants and Tasks of Customs and Logistics Activities, Regulated at the Microeconomic Level of Management

The effectiveness of customs and logistics activities is largely determined by the rationality of the organizational and economic instruments used for its regulation at the microlevel of cross-border management. The use of logistic tools is appropriate and effective in cases where it becomes necessary to solve complex coordination, optimization, and information problems. In general, the effectiveness of customs and logistics activities can be represented as a function of indicators characterizing the effectiveness of work in existing problem areas: Ecla ¼ f ðRmr; Rip; RclpÞ;

ð4Þ

where: Ecla—the efficiency of customs and logistics activities; Rmr—the degree of rationality and logistic focus of the methods of macroeconomic regulation of cross-border business processes; Rip—the effectiveness of using intrafirm potential by participants in cross-border processes; Rclp – the effectiveness of the partnership of exporters and importers with customs authorities, customs, and logistics providers. When describing the composition and characteristics of participants in customs and logistics processes regulated at the microeconomic level, it is necessary to

1014

A. A. Maksaev et al.

highlight the organizations initiating cross-border processes (exporters and importers) and creating the meaning of the initiative of customs activities, the state regulatory authorities (customs and customs posts), and the organizations performing the functions of customs and logistics providers (Ponmaarov and Holcomb 2009). The last of the listed group solve mediation tasks, acting as customs representatives, carriers, managers of customs warehouses, temporary storage warehouses, and duty-free shops. The activities of customs and logistics providers, which form a specific service market in the customs sphere, provide a double effect. Firstly, their involvement by initiators of cross-border processes accelerates the process of crossing the customs border. Secondly, thanks to intermediaries, customs officials have free time to solve their main tasks – customs control and customs clearance. As a result of the rational interaction of all three main groups of participants in customs and logistics processes at the microeconomic level, a synergistic effect is achieved (Beamon and Ware 1998), which ensures the growth of volumes and acceleration of cross-border movement of goods flow with a simultaneous reduction in the costs of participants in this activity. Studying the specifics of the concepts “customs management” and “management of customs and logistics activities,” we can conclude that the borders of the second concept are wider since it implies not only the management of customs authorities (customs management) but also the regulation of initiator activities in cross-border processes (exporters, importers), as well as intermediary structures that facilitate logistic optimization of exporter and importer interactions with customs authorities (Izmaylova et al. 2018a, 2018b). It is reasonable to consider the organizations initiating cross-border processes (we will arbitrarily denote them by the letter “I”) basic participants in customs and logistics activities at the micro-level of foreign trade management. Customs authorities and customs and logistics providers perform very important provision functions, creating conditions for the development of the activities of exporters and importers, taking into account the interests of the state, and solving their financial problems. The system of managing the activities of organizations “I” “at the beginning” can be characterized by parameters such as the composition and size of inventory, information, financial and labor resources, the level of development of the material and technical and technological base, the quality of information about the state, and the trends of changes in the external and internal economic environment. The output parameters of the system are the result of the activities of its structural units interacting with customs authorities and various economic partners, including customs and logistics providers. The functioning results of the system will be determined by the control effect of the entire set of macro- and microeconomic regulators. The output parameters reflect the volumes, terms, and quality of the performed customs procedures, indicators of terminal, transport and forwarding activities, and the profit of organizations “I.” They are characterized by the degree of compliance with the logistics principles of optimizing distribution costs.

Customs and Logistics in the Cross-border Setting …

1015

The level of development of the methods, technologies, and forms of interaction of organizations “I” with customs authorities and logistic-oriented business partners, the sufficiency of the resource potential, and the perfection of tools for in-house business management determine the output parameters of this system (Suleymanov 2017). The fundamental work of Thompson and Strickland (2003) called Strategic Management, argues that “the basis of business management is the development of a strategy, its adaptation to company specifics, and implementation. The company’s strategy is a comprehensive management plan that should strengthen the company’s market position and ensure coordination of efforts, attracting and satisfying consumers, successful competition, and achieving global goals.” The strategy of the organization participating in customs and logistics activities, including strategy “I,” should be considered as a long-term trajectory of its movement, determining rational areas of activity and development directions, defining a system of interaction with other business entities and contributing to the achievement of its long-term goals. It is worth noting that, if the goals of the business reflect the qualitative and quantitative parameters of the work that the organization participating in the customs and logistics activities strives for, the strategy determines the ways and means by which these goals can be achieved in a changing geopolitical and domestic socio-political situation (Izmaylova et al. 2018a, 2018b). To ensure customs and logistics participants function effectively, regulation of their internal company environment (both operational and strategic, based on program approaches) must be carried out, taking external environment changes into account (Sawhney et al. 2006). Constant changes characterize the external environment, the influence of some factors is reduced, and the role of others is enhanced. One part of such changes presents new opportunities for the organization, increasing the degree of favorable working conditions. The other part creates difficulties and limitations. In order to act effectively in a dynamically changing environment, the management of the organization participating in customs and logistics activities must predict risks (Table 2), difficulties and opportunities. In modern conditions, at the microeconomic level of customs and logistics activities, its participants develop many functions that were previously absent. Organizations “I” make decisions previously within the competence of higher management structures; independently formulate their development strategy; attract the necessary funds for its implementation; acquire equipment, technologies and materials; and solve a host of structural issues, including merger, liquidation, creation branches and divisions, joining associations and unions (in RSPP, CCI, and others) (Alimusaev 2014). All these problems cannot be effectively solved without a systematically organized approach to the development of customs and logistics business management.

1016

A. A. Maksaev et al.

Table 2 The systematization of the main risks of participants in customs and logistics activities Risk signs

Types of risks

Origin zone Sphere of origin

External. Internal Risks: customs; initiators of cross-border processes; customs and logistics providers Subjective reasons. Objective reasons Direct losses. Lost profit Minimal losses. The increased level of losses. The critical scale of losses. Catastrophic (unacceptable risk) Local (microeconomic). Regional National. (state). Interstate (global) Permanent. Repeatable. One-time (single) Decision-making. Solution Stages

Reason Possible consequences Risk admissibility (scale of losses) Manifestation Area (coverage area) Frequency (repeatability) Stage of activity at which risk is possible Type of activity

Possibility of risk insurance Forecasting and Evaluation Conditions Source Developed by the authors

3.3

Traditional: customs procedures, the work of terminals, carriers, and customs brokers Innovative: in the context of the above species Insured. Uninsured Highly predictable estimates. Hardly predictable Unpredictable

The Consideration of the Interests of Partners as a Fundamental Principle of Cross-border Interactions

Partnership in transboundary territories should imply the economic interest of the participants in the interaction related to achieving synergy, as well as the observance of social and national interests. At the same time, the mutual interest of partners from different countries in solving cross-border economic problems is a necessity. In an environment of interaction, potential partners should have compatible strategic development goals and opportunities for additional benefits. Cooperation should be based on long-term mutually beneficial relations, allowing strategic goals to be achieved faster and more efficiently, taking into account the rational use of consolidated resources. In some cases, it may be necessary to disclose information to a partner in order to provide more significant long-term advantages (Seth et al. 2005) and increase the overall effectiveness of the cross-border business system that manages the movement of goods. Confidence should be a key factor in such a situation. Business allies must consider each other’s goals, motives, and tasks, interact in a coordinated manner, and share (minimize) possible risks (Maloletko et al. 2017).

Customs and Logistics in the Cross-border Setting …

1017

Speaking about the stability of the logistical infrastructure of cross-border processes (Sheffi and Rice 2005), we note that it is highly advisable to involve financial structures in the interactive system, which will reduce the pressure on fiscal deficits. It is necessary to take into account that the quality of the logistical infrastructure of cross-border flows is determined by the degree of its adequacy to the interests of neighboring states and their organizations involved in export-import operations. The most important tasks facing the management of the logistical infrastructure of cross-border territories are, firstly, the formation of a rational composition of business units and, secondly, ensuring their effective joint functioning (Shumaev 2017) and consistency between different subsystems of common businesses in order to maximize the overall performance. The fundamental task of building a sustainable system of business interactions in cross-border territories involves the coordination of a complex set of interests and goals for all partners while minimizing the potential for conflict development (Ponis and Koronis 2012). The order (algorithm) of coordination should include several consecutive steps. Initially, one should build a holistic model of the interests of participants in cross-border interactions (Swafford et al. 2006). For this, it is necessary to scrupulously characterize the composition of strategic and operational goals (both general and specific for a particular participant). Further, it is necessary to disclose those areas where a conflict of interest may occur. The need to understand potential areas of controversy arises at the stage of preliminary negotiations. Moreover, insufficient attention to the interests of any of the potential participants in the interaction may become a factor in the subsequent rejection of joint activities (Matraeva et al. 2017). It is also essential to determine the degree (scale, consequences) of infringement of business interests. It is advisable to build a ranking system of goals for each of the participants in the interaction. Given that the implementation of collective business projects, including the regulation of the distribution of goods in cross-border territories, will necessarily require some concessions and compromises from partners, clarification of priorities will allow us to draw more informed conclusions about types of concessions that should be considered, and which types should not. At the end of a detailed assessment of conflict of interest factors, it is necessary to select (create) such organizational and economic instruments that could mitigate or prevent the contradictions of cross-border business partnership as much as possible.

4 Discussion The attention that has recently been paid to the problems of cross-border cooperation is primarily due to the processes of globalization of the world economy, the rethinking of the principles of national and global security, and spatial development. Historical experience shows that the stability and security of any state, first of

1018

A. A. Maksaev et al.

all, depend on the security of its state border and the territories adjacent to it. At the same time, on the one hand, attention is focused on the need to develop cross-border cooperation. On the other hand, there is a whole range of security threats, including economic, border, and border space issues. This inconsistency further enhances the theoretical and practical significance of the study of problems and prospects for the development of customs and logistics activities. Their relevance increases many times due to the significant growth in volumes and changes in the essence of all forms of international interaction, both at the national level and in the local participation of adjacent regions in it. Separately, this should be said about the key influence of a combination of factors regarding the relevance of solving problems in the field of customs logistics. These factors should include the development of the world economy and the growth of foreign trade between countries; the growing role of scientific and technological development; the expansion of integration and regionalization processes; the increasing role of transnational corporations; and the liberalization of the economy in many countries (Gnezdova et al. 2017). Most scholars and practitioners agree that, in order to boost the economy of transboundary territories, it is necessary to create a modern logistics infrastructure for streamlining business processes, which should be focused not only on innovation, investment, and development of logistic methods for regulating flow processes in the cross-border sphere but also on the national interests of all participants in cross-border economic processes, the implementation of which will entail an increase in the welfare of their countries.

5 Conclusion In the context of globalization of the economy and a steady trend of business integration, new requirements are being set for managing cross-border economic processes. The increase in the speed and volume of foreign trade operations and the liberalization of world trade have created the prerequisites for the formation of an optimally organized system of interaction for all participants in a logistics-oriented business interaction in a cross-border space. The intensification and expansion of foreign economic relations of cross-border states make it possible to dynamically expand the horizontal ties between business entities of partner countries. The opportunities for improving their interaction significantly increase based on expanding economic independence, the initiative of intermediary structures and transport organizations, improving their contractual relations and mutual economic incentives. It is possible to achieve strategic goals, realize national interests, and obtain additional benefits from a business partnership solely on a mutually beneficial basis and taking into account the coordination of interests of participants in cross-border processes in the field of logistic interaction. The study confirms the relevance, scale, ambiguity, and prospects of solving the problem of finding rationally functioning instruments for managing the customs and logistics sphere and substantiating ways to develop mechanisms for regulating customs and logistics activities at different levels of economic management.

Customs and Logistics in the Cross-border Setting …

1019

References Adamov, N.A.: The optimization of budget revenues through the interaction of tax and customs instruments. Fund. Appl. Res. Coop. Sect. Econ. 6, 73–77 (2013) Alimusaev, G.M.: Logistic support for managing conditions of risk, economic sanctions, and environmental uncertainty. RISC: Resour. Inf. Supply Compet. 4, 13–16 (2014) Beamon, B.M., Ware, T.M.: A process quality model for the analysis, improvement, and control of supply chain systems. Int. J. Phys. Distrib. Logist. Manag. 9/10(28), 704–715 (1998) Filippova, E.I., Adamov, N.A.: Suggestions for improving customs tariff regulation. In: Adamov, N.A. (ed.) Ways to Strengthen the State and Financial System of Russia: Opportunities and Prospects, pp. 68–72. ITKOR, Moscow, Russia (2016) Gnezdova, Y.V., Glekova, V.V., Adamov, N.A., Bryntsev, A.N., Kozenkova, T.A.: Development prospects of the transport infrastructure of Russia in the conditions of development of the market of transport and logistic services. Eur. Res. Stud. J. 4A(20), 619–631 (2017) Izmaylova, M.A., Adamov, N.A., Brykin, A.V., Siniaev, V.V., Luchitskaya, L.B.: Assessing the state of logistics and ways to improve logistics management in the corporate sector of the Russian economy. J. Appl. Econ. Sci. 13(2(56)), 414–424 (2018a) Izmaylova, M.A., Grishina, V.T., Alimusaev, G.M., Kameneva, E.A., Morgunov, V.I.: Contemporary approach to strategic management of logistics processes in integrated corporate structures. Int. J. Civ. Eng. Technol. (IJCIET) 9(13), 11–27 (2018b) Maloletko, A.N., Andryushchenko, G.I., Kaurova, O.V., Mityushina, E.A., Shatskii, A.A.: Current employment patterns in the labor market of the Eurasian economic union. Revista ESPACIOS 38(49), 19–21 (2017) Matraeva, L., Kaurova, O., Maloletko, A., Erokhin, S.: Prospects and problems of adaptation of foreign experience of participation of pension funds in infrastructure and social investment projects in the Russian economy. Man India 21(97), 15–28 (2017) Ponis, S.T., Koronis, E.: Supply chain resilience: definition of concept and its formative elements. J. Appl. Bus. Res. 28(5), 921–930 (2012) Ponmaarov, S.Y., Holcomb, M.C.: Understanding the concept of supply chain resilience. Int. J. Logist. Manag. 20(1), 124–143 (2009) Sawhney, M., Wolcott, R.C., Arroniz, I.: The 12 different ways for companies to innovate. MIT Sloan Manag. Rev. 47(3), 75–81 (2006) Semenov, N.N., Garnov, A.P.: Features and tasks of regional management of the domestic business sphere, taking into account rational foreign approaches. RISC Resour. Inf. Supply Compet. 1, 249–253 (2012) Semenov, N.N., Suleymanov, Z.E.: The coordination of interests in the field of logistics infrastructure for water flows in transboundary territories. Russ. Econ. Online Mag. 3 (2016). http://e-rej.ru/publications/165/ Seth, N., Geshmukh, S.G., Vrat, P.: Service quality model: a review. Int. J. Qual. Reliab. Manag. 22(9), 913–949 (2005) Sheffi, Y., Rice, J.B.: A supply chain view of the resilient enterprise. MIT Sloan Manag. Rev. 47(1), 41–48 (2005) Shumaev, V.A.: International logistics: customs services. RISC Resour. Inf. Supply. Compet. 1, 6– 10 (2017) Suleymanov, Z.E.: Logistic Management of Cross-Border Business Processes: A Monograph. ITKOR, Moscow (2017) Swafford, P.M., Ghosh, S., Murthy, N.: The antecedents of supply chain agility of a firm: scale development and model testing. J. Oper. Manag. 24(2), 170–188 (2006) Thompson Jr, A.A., Strickland, A.J.: Strategic Management: Concepts and Situations for Analysis. “Williams” Publishing House, Moscow (2003)

Universal Labeling of Consumer Goods as a Tool to Combat Illegal Trafficking Marina S. Arabian , Roman V. Danilov , Valentina Yu. Dianova , Elina M. Duguzheva , and Dmitriy S. Usov

Abstract Currently, in the Russian economic realities, the market for counterfeit products is actively developing. Consumers of counterfeit products are numerous. Therefore, the counterfeit market brings significant, sustainable profits, while the latency inherent in this type of production often makes it impossible to determine the actual extent of its implementation. Counterfeiting, nowadays, has gained the status of a familiar phenomenon. However, an analysis of its inherent negative manifestations leads to conclusions about the need to implement advanced control systems aimed at implementing the fight against illegal trafficking. One of these measures is the introduction of a system of labeling goods, a significant initiative aimed at solving several tasks to combat illegal trafficking.










Keywords Universal labeling Illegal traffic Counterfeit products Traceability system

M. S. Arabian (&)
V. Yu.Dianova Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] V. Yu.Dianova e-mail: [email protected] R. V. Danilov
E. M. Duguzheva
D. S. Usov Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] E. M. Duguzheva e-mail: [email protected] D. S. Usov e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_109

1021

1022

M. S. Arabian et al.

1 Introduction The basis for the emergence of the shadow sector in the economy, and the subsequent functioning of criminalistic structures that undermine the stability of the main financial flows through the introduction of unfair competition tools in the economic turnover, can be any economic activity aimed at generating income. Illegal transactions that bypass official registration requirements form the basis for the establishment and development of parallel financial flows that cause significant financial damage to the state budget. The analysis of the market of counterfeit products defines this area of production as very attractive: counterfeiting brands and illegal copying bring significant revenue with a relatively low probability of exposure. Independent business units aimed at obtaining illegal income can form large criminal networks that have a devastating effect on the market as a whole. The negative impact of the counterfeit market extends to the environment since illegally copied goods are often produced and sold using methods that are atypical and far from compliant with environmental standards. Currently, the benefits of conducting illegal economic activities (primarily sustainable incomes) are becoming the basis for illegal activity involvement, even manufacturers of original goods. Another prerequisite for expanding the market for counterfeit goods is the sanctions policies of several states in relation to Russia. This, in turn, determines a decrease in the level of competition in individual industries and various restrictions on several imported goods. The common economic space created by the Eurasian Economic Union also does not contribute to the formation of barriers for expanding the market for counterfeit products. Removing certain customs barriers for member countries only indicates new ways for its development. The implementation of an anti-counterfeiting government policy aims to minimize the destructive impact of the shadow sector on the domestic economy. It must be borne in mind that the fight against illegal trafficking is a systematic process, within the framework of which the whole range of measures aimed at reducing the share of counterfeit products in the total volume of production should be implemented. A simplified system for the elimination of such goods at the expense of the violator, the strengthening of total unscheduled control, and the regulation of customs values are some of the most significant and consistently implemented methods aimed at reducing the counterfeit market. In the aggregate of measures to combat illegal trade, one of the most promising is the creation of a system for universal labeling of goods, which will be fully implemented in Russia until 2024 (News Agency “Clerk.Ru” 2018). Total labeling involves a set of actions, as a result of which the identification of a commodity unit is carried out by applying a recognition tool or a control mark in order to create conditions for complete traceability of goods when they move along the distribution network. The Federal Tax Service conducted the initial implementation of the labeling system in Russia. An experiment on the introduction of mandatory labeling of fur

Universal Labeling of Consumer Goods …

1023

products, conducted under the supervision of the Federal Tax Service in 2016, demonstrated the importance of developing this area of activity in order to combat counterfeit products. This, in turn, was the reason for the spread of obligatory labeling for other goods (alcohol products, medicines, jewelry, goods made of metals and precious stones; Federal Tax Service of Russia 2016). The application of a control (identification) mark on trade units is an uncommon trend in world practice—only a few countries have implemented the policy of introducing a labeling system in current market conditions. At the same time, digital labeling, at the total level, acts as the most effective tool in the fight against illegal distribution. The governments of developed countries support such innovation and implement measures aimed at monitoring the movement of medicinal drugs (MD). Over the past few years, the accounting systems for MD movement have been introduced into production processes, which, as a result, has helped to ensure control over each unit of this product category, from procurement to finished products. As shown by the international experience, the traceability of drug movement within the current sales system is ensured by a series/batch displayed in accompanying documents or on the inside/outside of the package (IT company “Tieto,” 2019). Monitoring the labeling system works with different levels of data: 1. 2. 3. 4.

at at at at

the the the the

level level level level

of of of of

primary packaging (direct contact with drug); secondary packaging (actions on individual units of products); tertiary packaging (factory packaging); and batches.

Tracking the movement of packaging at the primary level has both advantages and disadvantages. In particular, the level of primary packaging can be applied based on a medical institution, which is an advantage of the system at this level. However, the process of labeling of the aforementioned type is associated with increased complexity, the need to use additional equipment, and human resources. The recognition of goods by secondary packaging forms the conditions for the traceability of each commodity unit to the final stage (point of sale), which, in turn, allows us to restore the distribution chain of the commodity units. The identification at the tertiary packaging level is aimed at reducing costs at the stages of receipt and dispatch of commodity units. Products can be traced using the serial number printed on the finished product. Logistics processes are implemented by reading data carriers (RFID tags, barcodes). The main advantage of monitoring goods by the lot number of sales units is the tracking of the finished lot in situations of recall on the market. The disadvantage of this approach is manifested in the impossibility of identifying commodity units in each batch.

1024

M. S. Arabian et al.

2 Universal Labeling of Consumer Goods As testified by international experience in the field of protecting the market from illegal products, the formation of national systems for the implementation of total labeling takes place following some approaches defined at the level of different countries. Systems can be built on the principles of free competition or voluntary principles (Cherepneva 2019). The USA implements a policy in this area involving several digital labeling systems. Product labeling is implemented by different standardization organizations that compete with each other. In EU countries, a labeling system is based on other laws—in particular, the basis of the system is strict centralization, where the state acts as the main regulator. The purpose of this approach is manifested in the need to maintain fair competition since the system is absolutely transparent and is provided exclusively at the state level, which is the main guarantor of the protection of consumers and manufacturers from low-quality products in the market of the falsified product. One more system is implemented in China, where the labeling system, on the contrary, unlike the aforementioned states and Russia, is not mandatory. Therefore, the business independently decides on the need for labeling manufactured and transported goods, which, in turn, indicates the voluntary beginnings of the establishment of the labeling system according to the “Chinese approach”. The labeling of goods is a good practice in business, indicating transparency regarding goods offered to the public. As a result, in China, manufacturers are interested in organizing this system; they make contributions to its development. The speed of achieving the main goal of the national digital labeling system is high, which is confirmed by Russian and international practice. In Russia, the digital labeling system is in line with international development trends in this area, which exist in coordinating information on business processes. A feature of the Russian system of goods traceability is its focus on regulating not only flows but also the prices of the checked goods. A sophisticated approach, similar to its Russian version, is used in South Korea. Labeling is a promising direction since, shortly, we can work out ways to develop the use of RFID and DNA tags and other innovative methods of protecting the market. In various countries, the development and implementation of the labeling systems occurred earlier than in Russia. Initially, identification in drug testing was implemented in Iran (2008) and Turkey (2010), then the process spread to the United States’ system, where the project’s practical implementation was planned for ten years (from 2013 to 2023); Japan and the Philippines introduced the labeling system in 2015. The main objective of the practical implementation of the project of measures for introducing a traceability system in various countries is to prevent the receipt of fake goods in the official supply chain. In Turkey, Argentina, and Brazil, an important planning component is the possibility of implementing the return process

Universal Labeling of Consumer Goods …

1025

for MD as part of the process of moving goods in the opposite direction. One of the significant targets for the use of the labeling system in Iran is the prevention of fraud with subsidies for the acquisition of MD (AO “Kaluga Astral”, n.d.). As for the tools for the recognition (identification) of checked items, it should be borne in mind that one of the most common of them is the Data Matrix identification code, which is a two-dimensional matrix code used for labeling MD, particularly in Colombia, Turkey, Brazil, the USA, the EU countries, and Russia. RFID tags (Argentina) and a linear bar code (Japan) are also used. The regulatory institutions of the labeling process in Russia, the USA, India, Colombia, and the EU countries are represented by state structures that apply international standards for the system of identification of goods in their activities. The labeling of drugs in Russia involves the launch of a program consisting of separate components: the regulatory framework, the organizational (functional) component of the drug labeling system, the interaction of process participants and regulatory authorities, and the state information system for monitoring the movement of medicinal drugs (MMMD) (Mikhailova 2018). Having assessed the importance of the “labeling—combating illegal traffic” relationship, the world’s governments are actively pursuing policies within the framework of this operation. The standards of traceability of commodity units and different countries’ approaches to the problem are similar, but, at all levels, the application is faced with difficulties and complexity. The most important component of the implementation of the labeling and traceability system is government support. In Russia, the decision to introduce a unified system of digital labeling and traceability in a package of actions for monitoring goods was made in December 2017 (Ministry of Industry and Trade of the Russian Federation, n.d.). The goals of the labeling system include the following: 1. to form integrated operational information on the movement of commodity units; 2. to reduce counterfeit in the market; 3. to reduce the degree of influence of the shadow sector of the economy on the social sphere of society (protecting life and health); 4. to increase tax revenues for the state budget; 5. to regulate the environment of free competition in the goods market; and 6. to create business models based on data applications. The peculiarity of the Russian system of continuous labeling is that the codes applied to the tested goods are issued in a single emission center (LLC “Operator— CRPT”—in accordance with the order of the Government of the Russian Federation dated April 04, 2019, No. 620-r). The model of functioning of the labeling system is manifested in the sequential recording of the movement of goods from the manufacturer to the consumer, which is determined by applying a unique code (Data Matrix; another type of coding

1026

M. S. Arabian et al.

depending on the product category), followed by the sale of the product and change in the status of the movement. The implementation scheme of compulsory labeling in Russia involves a series of sequential actions that, together, solve the single task of reducing the share of “gray” goods in the total turnover. These include, in particular, the establishment of a control and identification component in the product traceability system and the formation of an effective system for the concentration of detailed information about a product and its movement from the manufacturer to the end-user (SKB Kontur 2019). In Russia, the implementation of the Unified National System of Digital Labeling and Tracing of Trade Units (Chestny znak) is expressed in the following steps: 1. entering the information on the manufacturers of goods is subject to verification in the corresponding system “IS labeling”; 2. the compilation of a set of signs of marked goods; 3. the registration in GS1 RUS; 4. the creation of Data Matrix Code; 5. identification of sales units with subsequent scanning of the applied code. These steps are modified during the practical implementation in the chain of actions on various types of marked goods. The most important stage in the implementation of the digital labeling and traceability system is the approval of groups of goods to be recorded in the movement system in the total turnover. To carry out this stage, it is necessary to carry out an initial analysis of the main parameters, and the results are based on a decision to assign a particular category of sales units to the labeled group. The analysis takes into account the share of imports by industry, the share of informal turnover, market size, and sensitivity parameters to the introduction of a labeling system in the industry at the level of various countries. In Russian conditions, the labeling system has been actively developed: from December 1, 2019, it is planned to expand the coverage of varieties of marked product units and to extend the coding to light industry products, cameras, car tires, perfumes, as well as all other medicines. The Eurasian Economic Commission is considering proposals for inclusion of other goods (groceries, household appliances, cosmetics, household chemicals, vegetable oils, baby food, prepared meat, fish products, and soft drinks) in the list of eight marked groups. The project of intolerance to unofficial goods in its practical implementation is inextricably linked with the use of digital technologies, as indicated by the development of a single national catalog of goods, where the information necessary to control operations in retail chains and the CRF will be concentrated (MultiCAS Company 2019). The monitoring of the Russian labeling system is carried out by the Center for the Development of Advanced Technologies. The Russian labeling model is coordinated by the Ministry of Industry and Trade of the Russian Federation. The implementation of the regulatory and legal component of this process is entrusted

Universal Labeling of Consumer Goods …

1027

by the Ministry of Finance of the Russian Federation. The regulation of the information environment is provided by the Ministry of Digital Development, Telecommunications, and Mass Communications of the Russian Federation. The introduction and timely implementation of the global labeling system in Russia is an initiative of the legislator aimed at meeting the needs of both producers and consumers since such a measure helps to create a transparent market free from unscrupulous competitors and poor-quality products. The most critical component of the national system of total labeling is the formation of an environment of public control aimed at verifying the goods purchased from the point of view of regulating the legality of production, which is made possible by the practical use of the mobile applications “Chestny znak” and “Verification of Labeling of Goods.” Such a platform for controlling product categories in Russia contributes to the expansion of the legal market, improving consumer safety, protecting brands from counterfeiting, and expanding Russia’s investment activity in connection with an increase in the overall image of the consumer market. Moreover, such a measure will solve several other problems; in particular, state authorities will acquire a new tool in the fight against economic crimes, and the share of tax revenues to the budget will increase. The mandatory digital labeling system provides conditions under which the clarity of cooperation with contractors will increase, the number of transaction costs will be significantly reduced, and business processes will be optimized (Chestny ZNAK—the unified national track and trace digital system n.d.). Despite all the advantages of implementing a global labeling system, one cannot but note the problematic aspects that accompany the implementation of the considered process. The costs associated with the organization of digital labeling are not always justified, both from an economic and operational point of view. In particular, labeling is becoming a barrier restricting the availability of specific categories of commodity units to consumers due to rising prices. Thus, the participants of the market for baby food may suffer from the innovation, as evidenced by data provided by the Rusbrand Association of Baby Food Manufacturers. According to estimates by the association of baby food producers, whose members account for the main share (85%) of the total turnover of this type of product in Russia, the costs of organizing the labeling system will amount to 13.5 billion rubles. It will inevitably affect the formation of additional costs of 500 rubles per child from 0 to 1.5 years, following the menu created for young children by Food and Technology FIC, a Federal State Budgetary Institution (Information agency RBC 2019). The introduction of labeling can also be a wrong move for the production of soft drinks. Thus, according to the president of the Union of Soft Drinks and Mineral Waters (SPBN), Maxim Novikov, the organization of digital labeling will lead to high costs of 30–40 billion rubles for Russian producers of this product category. This, in turn, will affect the formation of the final cost of goods in the direction of its increase. The introduction of the labeling system has also been criticized by individual manufacturers in some industries, taking their inherent features into account.

1028

M. S. Arabian et al.

Manufacturers expressed their disagreement with the decision to apply a special code mark on perfumery products, since the introduced measure may lead to the disappearance of perfumery samplers from the shelves. There is also doubt about the need to apply digital codes to cameras and car tires since the production of these types of products is expensive, and the creation of fake counterparts runs into significant financial constraints. As a result, from a business point of view, the costs associated with labeling cameras and car tires are not feasible. The labeling of medicinal drugs also causes controversy, which is justified for several reasons. The head of Roszdravnadzor voiced the main argument: the level of protection of drugs from counterfeiting is maintained at a high level (only 6,000 out of 270,000 series were identified as counterfeit in 2017), which indicates the absence of need for total labeling for all types of MD. The Confederation of Consumer Societies claims that it is not practical to introduce a system for applying special digital signs for consumer goods. Labeling is necessary only in highly specialized industries. Another area that requires careful consideration when implementing a labeling system in the soft drinks and juice industry is small businesses, which account for 50% of total production. Small representatives of the industry, forced to bear excessive costs associated with the organization of the labeling system, may be on the verge of bankruptcy. Consequently, labeling will lead to the formation of high costs for manufacturers in individual industries and the limited availability of certain goods to consumers due to rising prices, which indicates the imperfection of the system. From the development of small and medium-sized businesses in the domestic trade sector, labeling can help to reduce their competitiveness, which will subsequently lead to their complete disappearance from the market. Therefore, the corresponding niches will be occupied by large retail chains. The labeling system may become a barrier to the implementation of plans for the development of mobile retail outlets in the domestic market (an initiative proposed by the Ministry of Industry and Trade of the Russian Federation) (Shuvalova 2019). However, the introduction of the idea of non-stationary points in Russia at the legislative level will lead to a need to provide appropriate equipment to identify fake products from numerous shops. According to the agency, in Russia, there will be “at least 50 thousand auto shops.” Moreover, the new trading format may become a vulnerable element in the goods verification system since traceability at the level of mobile points of sale will be difficult. The most important problematic aspect of the introduction of the global labeling system in Russia is the jump in prices, which may be a result of additional production costs. However, it should be borne in mind that before being launched, the implemented system passes a series of tests, the results of which allow for determining possible negative consequences. The labeling system was initially tested in relation to fur products. The results of the experiment indicate a slight increase in the price level: with an average unit cost of the product in the amount of 100–125 thousand, the price of a special chip was 100 rubles. The costs vary depending on the variety of marked products.

Universal Labeling of Consumer Goods …

1029

Regarding the implementation of a labeling system in Belarus in relation to consumer goods, it should be noted that this measure had a significant impact on the availability of goods to the population in the direction of its restriction; prices for cheap consumer goods increased by about 20% (Makeyev 2019). Consequently, such an increase can become unbearable for the population, which demonstrates the ambiguity in determining the need or its absence in the mandatory labeling system for mass budget goods. Assessing the importance of the labeling system for goods of various industries, it must be borne in mind that the implementation of digital labeling has some particular characteristics in some fields, such as the light industry. In the manufacturing of shoes, labeling in certain cases should be applied manually since the necessary conditions for the automation of this process have not been met in all cases. As a result, there is a need for additional qualified human resources, which, in turn, represents additional costs in the implementation of production processes. According to Dmitry Yanin, such changes will increase the cost of the most affordable product lines by 10% (Makeyev 2019). Total labeling, aimed at reducing the share of “gray goods” in the total turnover, has an essential component for the analysis of the studied system, which is manifested in cases such as re-grading (an unequal ratio between different types of goods, such as excess of one type and a lack of another). In current conditions, under the influence of mandatory labeling, fraud aimed at reducing the number of tax deductions to the budget is still possible, provided that the introduced system means to increase taxes. The registration of expensive goods as sales units with a low price for subsequent sales in the market price is a re-sorting, which can become one of the most negative aspects of the labeling system. This type of violation can be detected and eliminated. However, operations aimed at the implementation of these functions require a certain amount of time. The analyzed problematic aspects that both the Russian economy as a whole and individual industries may encounter when introducing the mandatory labeling system suggest that the full deployment of the labeling system is a complex, time-consuming process. In order to combat illegal trafficking successfully, it is necessary, first of all, to take measures to prevent the bankruptcy of small- and medium-sized enterprises, adjust the regulatory framework, prevent price increases in various industries, and improve public control tools (mobile applications for regulating goods by customers). The qualitative interaction of all participants in the implemented system determines the level of achievement of the goal of the active implementation of the labeling system.

1030

M. S. Arabian et al.

3 Conclusion In connection with the above, we can formulate the following main conclusions. 1. In the context of the active use of information technology against the backdrop of the development of the market for counterfeit products, innovative measures are required to combat its negative manifestations. The system of continuous (total) labeling helps to eliminate unfair competitors and fake products of low-quality from the market. 2. A feature of the Russian digital labeling system is the complexity determined by the focus on control, both over the movement of goods (from the stage of procurement to the stage of the sale of finished products in retail chains) and its price. 3. The identification tools for units of a particular product category vary depending on the variety of marked goods; in Russia, in particular, the most common in the recognition environment is the two-dimensional Data Matrix code. 4. The project of measures, which reduces the share of illegal production in the total turnover, is implemented through the development of an innovative measure and the formation of a single national catalog of goods for the concentration of all necessary information about marked products in the general register. This allows us to regulate operations in the Fiscal Data Operator and retail chains. 5. The practical implementation of the Russian version of the identification system is entrusted to a single company (LLC “Operator”, a subsidiary of the Center for Advanced Innovative Technologies). Therefore, only one company is authorized to issue codes for marked products. 6. The labeling system is not applicable in all sectors of production since, in some of them, such innovation can lead to high additional costs that affect the final cost of production and, as a result, form the boundaries of the availability of goods from one category or another to consumers. 7. A significant element of the national system for monitoring the circulation of goods is a public control system through which the population, using the specialized mobile applications “Chestny ZNAK” and “Verification of Labeling of Goods,” can directly influence the complex process of verifying goods. If violations are discovered, consumers can report them, which indicates a presence in the goods inspection system at a separate stage formed by consumers. 8. The problematic aspect of the implementation of the labeling system is the possible negative consequences for small and medium-sized businesses: small companies, due to the formation of high costs, can be removed from the market by large trading organizations.

Universal Labeling of Consumer Goods …

1031

References AO “Kaluga Astral”. World experience in drug labeling (n.d.). https://kkt.astral.ru/blog/egais/ mirovoy-opyt-markirovki-lekarstv/ Cherepneva, E.: The law on mandatory labeling: World and Russian realities (2019). https:// infostart.ru/journal/news/uchet-nalogi-pravo/zakon-ob-obyazatelnoy-markirovke-mirovoyopyt-i-rossiyskie-realii_977584/ Chestny ZNAK – the Unified national track & trace digital system (n.d.). https://chestnyznak.ru/ en/ Federal Tax Service of Russia. Labeling of natural fur products has become mandatory (2016). https://www.nalog.ru/rn50/news/activities_fts/6144345/ Galazova, T.E.: Features of minimizing the markets for counterfeit goods as industry markets. Terra Economicus 7(3–2), 123–125 (2009) Information Agency “RBC”. Manufacturers warned of rising prices for baby food and lemonade (2019). https://www.rbc.ru/business/20/05/2019/5ce280799a79471839341bb0 IT company “Tieto”. International experience in introducing a labeling system (2019). https://zen. yandex.ru/media/id/5c5c0b2908e4eb00ac3c0ba2/mejdunarodnyi-opyt-vnedreniia-sistemymarkirovki-5ce3dbbaecf3ff00b3b03904 Makeyev, N.: Total labeling will ruin small trade: The Russians will pay again (2019). https:// www.mk.ru/economics/2019/03/03/totalnaya-markirovka-tovarov-razorit-maluyu-torgovlyuzaplatyat-snova-rossiyane.html Mikhailova, E.: On the system for monitoring the movement of drugs based on labeling (2018). https://d-russia.ru/o-sisteme-monitoringa-dvizheniya-lekarstv-na-osnove-markirovki-k-chemusleduet-podgotovitsya-mo-i-razrabotchikam-mis.html Ministry of Industry and Trade of the Russian Federation. Labeling and traceability of goods (n. d.). http://minpromtorg.gov.ru/activities/markirovka/ Multicas Company. Mandatory labeling of goods in 2019 (2019). https://kassaofd.ru/blog/ objazatelnaja-markirovka-tovarov News Agency, “Clerk.Ru”. Since 2024, all goods will be subject to mandatory labeling (2018). https://www.klerk.ru/buh/news/480599/ Shuvalova, M.: The requirements developed by the Ministry of Industry and Trade of Russia for the placement of non-stationary and mobile retail outlets must be substantially adjusted (2019). https://www.garant.ru/news/1247383/ SKB Kontur. All about the labeling of goods (2019). https://kontur.ru/articles/5365/

Developing International Leasing in Russia: The Case of Mobile Property Leasing Olga A. Repushevskaya , Roman V. Danilov , Yelizaveta S. Frenk , Svetlana V. Zybenko, and Dmitriy S. Usov

Abstract Today, the development trends of the global leasing market are a relevant topic. This is due to the fact that in the context of the globalization of the economy and the active internationalization of international business, leasing is in dynamic development. And investor capital begins to be activated precisely thanks to leasing. Moreover, it is important to note that leasing acts as a very important mechanism for financing investments in production. In particular, leasing of movable property has a fairly wide scope, being one of the most cost-effective ways of organizing entrepreneurial activity. The article analyzes the problems and prospects of the development of international leasing of movable property in the Russian Federation, various aspects of state regulation of leasing. Also, the article analyzes a brief history of the formation of this type of activity.













Keywords Leasing World leasing market Movable property Investment Governmental support Deals Ottawa convention Financial crisis Contract













O. A. Repushevskaya
S. V. Zybenko Russian University of Cooperation, Mytishchi, Russia e-mail: [email protected] S. V. Zybenko e-mail: [email protected] R. V. Danilov
Y. S. Frenk
D. S. Usov (&) Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] R. V. Danilov e-mail: [email protected] Y. S. Frenk e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_110

1033

1034

O. A. Repushevskaya et al.

1 Introduction A leasing transaction is a contractual agreement requiring the lessee (user) to pay the lessor (owner) a certain amount of money for using the asset. Leasing deals act as an alternative source of financing and help mitigate the severity of investment problems. From the point of view of lessors, leasing is a tool for optimizing the sale of leasing assets and a source of additional income. The following main types of leasing are considered in the economic literature. Financial leasing is such a scheme when the lessor transfers the leased asset for a fixed period, as close as possible to the standard life of the fixed asset. Operational leasing provides for multiple uses of the leased asset, while the lease time is shorter than the standard life of this equipment. By type of financing, leasing is divided into urgent (this is a one-time lease of movable and immovable property), renewable (upon expiration of the term, the leasing transaction may be prolonged for a greater number of periods) and general leasing (the lessee has the opportunity to increase the number of leasing assets without entering into a new contract). The classification of leasing based on the composition of participants implies its division into direct, indirect, and separate transactions. In particular, with direct leasing, the owner of the property independently leases the leased asset. In the case of indirect leasing, an intermediary (a leasing company, banks, or insurance companies) acts as a lessor. Separate leasing, also called joint-stock leasing, assumes that several counterparties are involved in the implementation of the leasing transaction. Moreover, it is necessary to separately highlight the sale with a leaseback. In this case, the company owning the asset sells it to the lessor, who not only immediately pays for the asset but also leases it to the seller. Thus, the seller of the asset automatically becomes a tenant. In this case, the asset remains with the seller, and the ownership remains with the lessor, who is the buyer. This arrangement requires that the selling company obtain financing to conduct business with the asset.

2 Leasing in Russia Today, the international leasing of movable property is actively developing as a financial instrument in the global economic arena. Undoubtedly, key aspects to be considered in this process are the unification of national legislation regarding leasing and the standardization of the accounting process for leases in the balance sheets of organizations. The need to standardize the relevant processes is ensured by the internationalization of the modern economy and the increase in the number of leasing transactions for the supply and rental of movable property in a cross-border format.

Developing International Leasing in Russia …

1035

Over the years, international leasing of movable property in the Russian Federation has undergone several stages of development. Now, using it as an insurance and a financial instrument is rapidly gaining popularity (Arutyunyan 2016). In the modern economic system, all documents governing the conduct of leasing operations can be classified into the following three levels: international, regional, and national. At the international level, leasing is governed by the following official documents: UNIDROIT Convention on International Financial Leasing (Ottawa, May 28, 1988) (Konkurin 2010). At the regional level, in the context of the Russian Federation, international leasing is regulated by the Customs Code of the Eurasian Economic Union. In the context of other integration groups, there are also separate legal acts. They allow countries to establish specific rules for regulating leasing processes that are consistent with the degree of integration. At the national level, leasing operations are regulated by many regulatory acts of different levels: Federal Law of February 8, 1998, No. 16-FZ On the Accession of the Russian Federation to the UNIDROIT Convention on International Financial Leasing; Federal Law of October 29, 1998, No. 164-FZ On Financial Leases (leasing) (amendments of October 16, 2017); Civil Code of the Russian Federation; Tax Code of the Russian Federation. On May 28, 1988, the UNIDROIT Convention on International Financial Leasing (Ottawa Convention) was adopted1. It is used in cases where the leasing transaction has a cross-border character; i.e., commercial enterprises of both parties to the leasing agreement are located in different countries. The legitimacy of being under the jurisdiction of the Ottawa Convention can be seen in the following two examples: • All subjects of a financial leasing agreement are residents of different countries, each of which has ratified the Ottawa Convention. For example, a company operating in Finland acquires equipment in Russia and leases it to a production company in Morocco. • The supply agreement and the leasing agreement are governed by the law of the Contracting State. Depending on whether the Contracting State has ratified the Ottawa Convention, its legitimacy will be determined. For example, a company that operates in Nigeria buys equipment in Armenia and leases it to a production company in South Africa. If the sales contract is subject to Armenian law, or the leasing agreement is subject to South African law, the Ottawa Convention will not apply. If the terms of the sales contract and the leasing agreement are subject to Nigerian law, the Convention will apply in any case.

1

UNIDROIT is a specialized intergovernmental organization, establishing in 1926. It was created at the League of Nations to study the necessary methods of modernization, harmonization and coordination of private and, in particular, commercial law between states and groups of states.

1036

O. A. Repushevskaya et al.

However, the Ottawa Convention contains several articles that are not spelled out in the national legislation of the Russian Federation—particularly in the Civil Code. This process of discrepancies in regulatory legal acts of the national and international levels is natural, since the process of unification of laws is organic in the context of dynamic development. First, the provisions of the Ottawa Convention on the rights and obligations of the lessee apply to all lessees—in particular, to those who buy equipment (movable property) in subleasing (there are no such requirements in the Civil Code of the Russian Federation). The calculated amount of lease payments should take into account all depreciation or a substantial part of the cost of equipment. That is, the size of leasing payments should be calculated so that after the last payment, the lessee would immediately transfer the entire residual value of the leased asset and would have the opportunity to receive the goods in the property (White Clarke Group 2019). Law No. 164-FZ mentions that lease payments are the sum of all payments under a lease agreement for its specified period (Russian Federation 1998). The total amount of all lease payments includes costs associated with the acquisition of property, as well as other types of costs associated with the provision of property received. If, after the termination of the contract, the purchase of this property is provided, then the redemption price of the leased asset is included in the amount of leasing payments. All payment obligations are indicated in the financial lease agreement (Russian Federation 1998). Moreover, it is necessary to pay attention to the processes of accounting for leasing transactions and their compliance with international financial reporting standards, according to which unified accounting principles are determined. These accounting principles are determined by the International Accounting Standards Committee (IASC), which was founded in London in 1973 (Komarov 2016). With regard to accounting standards for international leasing processes, it is worth noting that a new lease standard, namely IFRS 16, was introduced to achieve greater transparency. It requires companies to include most of their leased property in the balance sheet from 2019. In Russia, there has been a significant increase in leasing operations and the size of the leasing market both at the national and international levels. Financial conditions are also complicated and demonstrate a significant number of options and tools for potential lessees. According to the Global Leasing Report 2019 issued by the White Clarke Group, the domestic growth of the Russian market for leasing of movable property amounted to 47% in annual terms. Table 1 shows the leading countries in terms of leasing in the world (White Clarke Group 2019).

Developing International Leasing in Russia …

1037

Table 1 The volume of the leasing market in the countries of the world Position

Country

Annual market size (billion dollars)

Percentage (%) of growth by 2017

Percentage (%) of market penetration

1 2 3 4 5 … 11

USA China UK Germany Japan

410.35 265.68 92.45 78.33 60.47

6.9 20.42 5.18 7.29 −2.00

21.6 6.8 32.4 17.2 5.3

20.06

46.68

H/A

Russia

As seen in Table 1, the largest market volume belongs to the United States, both in absolute and relative terms. Considering the global trends in more detail, it is worth noting that in 2017, the 50 largest countries reported an increase in the volume of leasing turnover in business by 16.6%. Their leasing turnover increased from $1,099.77 billion (U.S.) in 2016 to a significant $1,282.73 billion (U.S.) in 2017. More than 95% of the global leasing volume falls on three regions: North America, Europe and Asia. Also, significant leasing market volume falls on China as the leader of the Asian market. China is the second-largest market, with volume growing by more than 20% to $265.68 billion (U.S.). However, the total penetration of leasing is small and amounts to 6.8% compared to 21.6% in the United States and 32.4% in the United Kingdom (which is in third place, with a leasing volume of $92.45 billion (U.S.)). Due to significant economic growth over the past decade, real estate industrial corporations in China have been subject to trends in optimizing fixed asset use. There, leasing acts as one of the key financial instruments. In this rating, Russia is in the 11th position with a total leasing market of $20 billion per annum. Despite the fact that the number of leasing transactions with real estate in the world is quite large, the bulk of leasing contracts is carried out using movable property. Figure 1 shows the dynamics of the development of the Russian leasing market from 2013 to 2018. Regarding the market structure, automobile transport leasing is most widespread in Russia, as for automobile companies, the leasing mechanism is one of the most cost-effective (Vakhitov and Stepanov 2018). In 2018, support for car leasing in Russia was provided not only by state programs but also by the development of services such as car-sharing and the expansion of relevant industrial car fleets. In 2018, despite a decrease in government subsidies to 8 billion rubles, the transport leasing market showed a growth of 19%. Nevertheless, by 2019, it was forecasted that the market for international leasing of movable property in the Russian Federation might have demonstrated a decrease in growth volumes to 15%. This factor is provided by the following prerequisites:

1038

O. A. Repushevskaya et al.

Fig. 1 The dynamics of the development of the leasing market in the Russian Federation

• A decrease in GDP growth (1.4% in 2019) • Maintaining a restraining monetary policy • A decrease in investment activity of potential lessees Accordingly, to stimulate demand in the market, leasing companies need to implement certain economic measures. Such measures include the dumping of non-price competition methods, the development of unique leasing offers, and the desire for a long-term cooperation based on renewable and general types of leasing transactions. Moreover, the average margin level for the leasing market was 4.5–5% in 2018 (Balyasova et al. 2019). Given this, small- and medium-sized businesses in the leasing market must apply the following measures: reduction of advance payments on transactions, creation of express products at higher rates, and orientation on short-term and effective transactions for the lessee in order to ensure marketing attractiveness. Table 2 presents the largest leasing corporations of the Russian Federation in terms of leasing portfolio as of January 1, 2019 (Banki.ru–financial supermarket official website n.d.). The leadership of the State Transport Leasing Company confirms the structure of the leasing market as part of the leadership of the transport industry. Corporations such as Sberbank Leasing and VTB Leasing, also provide a fairly wide range of financial and operational leasing services. The sectors of financial leasing of movable property also find their development in the expansion of rental volumes of equipment and other fixed assets to companies in the real sector. Accordingly, in the modern economy of the Russian Federation, the international leasing of movable property plays a fundamental role and is a source of direct investments. Also, the international leasing of movable property acts as a tool to

Developing International Leasing in Russia …

1039

Table 2 The largest leasing companies in the Russian Federation Position

Company name

The volume of the leasing portfolio as of January 1, 2019 (billion rubles)

1

State Transport Leasing Company Sberbank Leasing VTB–Leasing VEB–Leasing Transfin-M

925,844

2 3 4 5

609,211 575,479 374,076 290,018

reduce companies’ operating expenses and expenditures insofar as the provision and acquisition of fixed assets are concerned. Thus, the management of leasing activities (the leasing of movable property) in an internationalized economy is one of the types of financial services, a form of lending, in which companies resort to modernizing the enterprise by purchasing fixed assets. Much of the leasing market generates daily development tasks, including the processing of new leases, the preparation of reports on terms, the preparation of updates and changes, and the collection of appropriate approvals. Leasing companies often work through interconnected channels. They communicate with the C-suite and investors, partners, landlords, tenants, and sellers. Participation in reconciliations, audits, and other types of supportive activities is common to accounting. As the administration of leases expands, the long-term benefits of rental adherents give companies scalability. Depending on the conditions provided by the participants, a leasing transaction may represent various types of leasing. In developed countries, leasing is the third-largest way of updating fixed assets in total direct investment in fixed assets, and its share in GDP is 5–10%.

3 Conclusion In the current conditions of the development of the Russian Federation, international leasing of movable property provides companies with expenses for the provision and acquisition of fixed assets. As part of international leasing, movable property is imported into the territory of the EAEU and placed under the customs procedure “Temporary Import (Admission).” The temporary import term is two years, and the financial leasing term is five to seven years. Regarding the development of leasing operations, we propose increasing the temporary import period to five years. This will allow companies to develop and modernize production processes more actively while not having to pay interest on installments.

1040

O. A. Repushevskaya et al.

For both developed economies and the Russian market, leasing is one of the most effective mechanisms for updating fixed assets and attracting direct investment in the economy, reducing operating expenses. To solve the problems of modernization and the updating of Russian companies’ fixed assets, it is necessary to remove a number of administrative, customs, and tax barriers. This will create favorable conditions for the development of the financial and industrial sectors of the economy.

References Arutyunyan, A.V.: The mechanism of leasing transactions as an innovative form of support for small and medium enterprises. Mod. Innov. 6(8), 38–44 (2016) Balyasova, K., Korshunov, R., Doronkin, M., Saraev, A.: Leasing market by the end of 2018: At maximum speed (2019). https://www.raexpert.ru/researches/leasing/2018 Banki.ru – financial supermarket official website. Rating of leasing companies in Russia (n.d.). https://www.banki.ru/products/leasing/companies/ Komarov, V.V.: Investments and leasing activities in Russia. Russian Econ. J. 1, 87–90 (2016) Konkurin, A.V.: Return leasing. In: Vestnik of the Moscow State Academy of Business Administration. Economics Series, vol. 4, pp. 129–136 (2010) Leaseurope, the European Federation of Leasing Company Association official website. (n.d.). Leaseurope Index. http://www.leaseurope.org/index.php?page=leaseurope-index Moiseev, V.A., Prokofyev, KYu.: Real estate leasing analytics. Econ. Anal. Theor. Pract. 22, 33– 40 (2014) Russian Federation. Federal Law “On Financial Leases (Leasing)” (29 October 1998 No. 164-FZ), Moscow, Russia (1998) Vakhitov, D.R., Stepanov, V.I.: Formation and Development of the Domestic Leasing Market as a Form of Investment Activity. Brig, Kazan (2018) White Clarke Group. Global Leasing Report 2019 (2019). https://www.whiteclarkegroup.com/ reports

Gamification as a Method of Successful Adaptation of Migrants in European Countries: Socio-psychological and Economic Aspects Oksana I. Mironova , Lydia A. Ruonala , and Oksana V. Ivanova Abstract The European migrant crisis imposed a challenge to the scientific community to study migration processes, the adaptation of migrants and society to each other, as well as to develop the methodology of these processes. This process became a challenge for the social sphere of European states, which are interested in the speedy employment of migrants. The labor influx can have both positive and negative consequences for the economy of the host state. The study aims at distinguishing the socio-psychological factors of successful migrants’ adaptation. The methods of research include theoretical analysis, the method of expert evaluation, and factor analysis. The results confirmed the existing hypothesis that socio-psychological training should take several aspects into account during the work with a traumatic experience through the symbolic space, including a platform for the dialogue between the local population and migrants, linking the client with the meaning forming characteristics of individuals. The authors pay special attention to the prerequisites for adaptation and propose a psychological board game to form a symbolic transition space for cross-cultural dialogue and increase knowledge about the adaptation processes for migrants and the local population.




Keywords Migrants Refugees Gamification Game-practicing





Adaptation
Socio-psychological training


O. I. Mironova Russian State Social University, Moscow, Russia e-mail: [email protected] L. A. Ruonala (&) Moscow Institute of Psychoanalysis, Moscow, Russia e-mail: [email protected] O. V. Ivanova Russian New University, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_111

1041

1042

O. I. Mironova et al.

1 Introduction The adaptation of refugees became particularly relevant since 2015 due to the unprecedented increase in migration flows from North Africa, the Middle East, and South Asia. BBC Russian Service cites data of the border service of the European Union Agency (Frontex)–1 million 800 thousand people arrived at the border and crossed it in 2015. For comparison, in 2014, this figure was 280,000 people (BBC News Russia 2016). The host countries face the need to adapt migrants to become part of the economic system. Psychologists are posed with the task of studying the socio-psychological factors of successful migration and the influence of labor reflux to the locals. Depression and PTSD of refugees do not allow them integrating into society as successful members of economic and social relations. It also forces host countries to push the boundaries for supporting new people in the countries. The main goal of these countries is to help migrants become a functional part of the economic system and increase the country’s GDP. The reaction to the change was also a sharp increase in xenophobia, nationalist and racist sentiments (Henley 2019), and dehumanization of people with different religious believes (BBC News Russia 2016) as a frightening manifestation of the shadow feelings suppressed by a society that arose as a response to the migration crisis but not currently announced and investigated. This reaction may be related to the insufficient understanding of the adaptation of migrants by the local population, as well as by the lack of understanding of the behavior of migrants with PTSD, anxiety disorders, and severe forms of reactive depression (Turrini et al. 2017; Yurtsever et al. 2018; Polyakova et al. 2018). The study aims to identify the social and psychological factors of successful adaptation of refugees and develop a program to improve their adaptation to a new country. The object of the study is adaptation as a socio-psychological phenomenon. The subject of the study is the content of socio-psychological factors of successful adaptation of refugees. The objectives of the study can also be formulated through the allocation of determinants and factors of bilateral adaptation within the migration process: • the description of social, psychological, and cultural characteristics of the adaptation of refugees to the new country; • the adaptation of the local population to changing conditions; • the creation of space for the dialogue between the participants in this process; • the awakening of creative potential for building a new multicultural society. The general hypothesis of the work is that the adaptation is a multi-system process at the personal and social levels, revealed in the bilateral interaction of the individual and society. The private hypothesis is that the adaptation of migrants can be enhanced by creating special socio-psychological training, introducing the local population and migrants to the peculiarities of the ongoing process, and helping to build an external and internal dialogue of the process.

Gamification as a Method of Successful Adaptation …

1043

2 Materials and Methods The key point of injury experience is the collision with heavy affective experience (Garland 2002). Responding to the anxiety of persecution, destruction, physical or emotional fragmentation, fear of loss, or destruction of an external or internal object, the psyche uses primitive defenses in which symbolic work becomes difficult or impossible (Varvin 2018). The most typical dynamics are the regression of one part of the ego to the infantile period and the progression of the other part, that is, a rapid maturation leading to the development of the ability of adaptation to the outside world through the “false self” (Kalsched 2015). The progressing part begins to take care of the regressive part (which comes in dreams as something young, vulnerable, childish, or animal self), which can be called the “true self” or self. The system of preservation assumes the functions of self-regulation and the function of a mediator between the inner and outer world, which the ego carries in a healthy state. In this case, the individual survives by blocking the spontaneous, creative self. Avtonomov (2013) points to the tendency to react like a standard way of solving the internal conflict and the subsequent need for complacency. There are two extremes of this protective mechanism–the outside reaction (the replacement of a symbolic act through the life-action), and inside action (an attempt not to face an unbearable feeling of vulnerability, and helplessness, as a result of which this sense causes a false triumph, counter-dependent behavior, and rejection of the object). In this case, the psyche cannot function at a symbolic level. It is forced to reduce unbearable anxiety and stop complicated grief resorting to primitive protective mechanisms. In turn, the expression of protective mechanisms depends on the level of education and social and cultural traditions. However, the concurrence with the client would result in a loss of therapeutic position and play along with the symptom (Ammon 2018). To move further in the therapeutic process, the therapist must assume the analytical and synthetic function and carry out the process of separation, processing, and symbolization of the received information. Winnicott (2004) wrote about clients who come to therapy with the need to learn how to use an object. They try to attack the object and destroy it. In turn, a psychologist is a stable object that cannot be destroyed; he teaches to use himself as someone who can help and teach new paternalism of behavior, but not to exploit himself, as could happen in the case of playing along with the symptom. Kohut (2002) emphasized the importance of empathy in working with such clients. Until the word has become a symbol, it has nothing to do with creativity and gets stuck in use, unfolding the symptoms of the cargo cult with the therapist or with the social services of the new country, which may not know the difference between the use and exploitation and the role of healthy frustration in the adaptation process. Here is another example from therapeutic practice. Francesetti (2009) concludes that panic attacks are a feature of the historical period filled with uncertainty, fragmentation, and complexity. Individual loneliness

1044

O. I. Mironova et al.

is amplified by social disunity, which creates a crisis of lack of diligence, bringing panic attacks in a symptom of the social level. The cumulative stress faced by a migrant, especially a military one, exacerbates suffering and functional impairment due to subjective feelings of guilt and shame associated with a biased and uncontrolled event (Stotz et al. 2015). Getting into a new environment, the migrant is forced to learn to confront shame to move forward. It is possible to help him by explaining how to speak a new language and how to adapt to the non-verbal language.

3 Results A study of the determinants of successful adaptation of migrants was carried out as part of the study of the factors of successful socio-psychological adaptation of refugees and the development of programs to improve adaptability. At the first stage, the method of expert evaluation was used. A special questionnaire was developed in English and Russian and presented determinants that were found during literature analysis. Factor analysis was carried out in the second stage of the study (SPSS Statistics, the method of principal components with the VARIMAX rotation). The third stage of the research shows the correlation between these factors and the level of adaptation (correlation analysis using the Spearman correlation coefficient was used). During the first stage, we focused on finding the factors influencing adaptation. The survey received responses from 87 people (48 men and 39 women) who moved to a new country for various reasons and considered their experience of adaptation to the new country successful (Tables 1, 2 and 3). Respondents were asked to assess the impact on certain determinants of successful adaptation, obtained based on theoretical analysis, using a point system from 0 to 7, where 0–did not have an impact, 7–clearly had an impact (Table 4). In the second stage of the study, a factor analysis of the data was carried out; three groups of factors contributing to the successful adaptation of migrants were identified. The first group of factors included communication skills, motivation, stress resistance, tolerance of others, and tolerance to frustration. The second group Table 1 Age distribution

Age

Men

Less than 23 0 23–30 9 31–40 15 41–50 9 50–60 5 More than 60 1 Total 39 Source Developed by the authors

Women

Total

0 7 23 15 2 1 48

0 16 38 24 7 2 87

Gamification as a Method of Successful Adaptation …

1045

Table 2 Distribution of educational level Level of education Incomplete secondary or secondary education Vocational school or college University degree Several university degrees Academic degree Total Source Developed by the authors

Men

Women

Total

5 6 17 2 9 39

0 2 23 17 6 48

5 8 40 19 15 87

Table 3 The period of residence in the new country Less than a year More than a year and less than 5 years More than 5 years and less than 10 years More than 10 years and less than 20 years More than 20 years Total: Source Developed by the authors

Table 4 Evaluation of determinants of respondents’ successful adaptation

Men

Women

Total

3 19 5 10 2 39

1 12 14 17 4 48

4 31 19 27 6 87

Men Age 3.18 Personal identity 4.05 Social identity 4.08 Communication skills 5.23 Motivation 5.92 Presence of children 2.38 Family relationships 3.62 Patterns of family behavior 2.92 Gender 1.9 Stress resistance 5.36 Tolerance of others 5.54 Level of education 4.92 Frustration tolerance 4.95 Group values 3.77 Social intelligence 5 Source: Developed by the authors

Women

Total

3.94 4.69 4.33 5.6 6.25 3.23 4.15 4.25 1.98 5.44 5.71 5.87 5.42 3.65 5.21

3.6 4.4 4.22 5.44 6.1 2.85 3.91 3.66 1.94 5.4 5.68 5.43 5.21 3.7 5.11

included gender, age, presence of children, family relationships, and family behavior patterns. The third group included personal identity, social identity, and level of education, group values, and social intelligence (Table 5).

1046 Table 5 Distribution of determinants of group-based successful adaptation

O. I. Mironova et al. Rotated component matrix Components 1 2 Age Personal identity Social identity Communication skills Motivation Presence of children Family relationships Patterns of family behavior Gender Stress resistance Tolerance of others Level of education Frustration tolerance Group values Social intelligence Source Developed by the authors

3

0.54 0.55 0.59 0.56 0.66 0.65 0.76 0.73 0.57 0.73 0.65 0.57 0.78 0.66 0.59

The first group describes the identity of the migrant, the second group describes relations in the migrant’s family, and the third group includes factors that are revealed in interaction with the environment and depend not only on the migrants but also on their environment. That is, the hypothesis that the success of a migrant’s adaptation is influenced by such factors as “Migrant Personality,” “Family Support,” and “Environment Tolerance” was fully confirmed. During the third stage, the authors selected methods to test the influence of selected factors on the adaptation of refugees from places of hostility. We checked the correlation of these factors with the level of adaptation. To compare small samples, we used the correlation analysis. A total of 51 people (20 men and 31 women) were interviewed. We used methods of measuring stress, motivation, relations in the family, personal and social identity, and level of adaptation (Malkina-Pykh 2005; Osnitsky 2004; Shcherbatykh 2012; Adova 2016). To test the hypothesis of a study on the relationship of socio-psychological adaptation factors, adaptation indicators, and the creation of a methodology for enhancing adaptation among refugees, it is necessary to make sure that there is a connection between the indicators on the scales of adaptation factors tests and indicators of the level of adaptation. For this, we carried out a correlation analysis using the Spearman correlation coefficient for estimating small samples (Tables 6, 7 and 8). The results of the correlation analysis show the existence of a relationship between the factors of adaptation of the refugees and the level of adaptation.

Gamification as a Method of Successful Adaptation …

1047

Table 6 Age distribution Age

Men

Less than 23 1 23–30 3 31–40 9 41–50 4 50–60 1 More than 60 2 Total 20 Source Developed by the authors

Women

Total

1 3 17 7 2 1 31

2 6 26 11 3 3 51

Table 7 Distribution of educational level Level of education Incomplete secondary or secondary education Vocational school or college University degree Several university degrees Academic degree Total Source Developed by the authors

Men

Women

Total

6 2 11 0 1 20

5 3 19 2 2 31

9 5 30 2 3 51

Table 8 Correlation analysis results Rogers-Diamond adaptation scale Correlation Significance coefficient value level Level of stress Lifetime motivation index Work motivation index Confidentiality of communication in the family (assessment given to himself/herself) Confidentiality of communication in the family (assessment given to family members) Family understanding (assessment given to himself/ herself) Family understanding (assessment given to family members) Similarities in views Common family symbols Ease of communication in the family Psychotherapeutic communication in the family The scale “my work” The scale of identity “my financial position”

−0.704** 0.258** 0.360** 0.005

0.000 0.005 0.005 0.972

0.270

0.055

0.617**

0.000

0.392**

0.000

−0.070 0.606** 0.362** 0.195 0.121 0.315**

0.627 0.000 0.627 0.171 0.397 0.024 (continued)

1048

O. I. Mironova et al.

Table 8 (continued) Rogers-Diamond adaptation scale Correlation Significance coefficient value level The scale of identity “my inner world” The scale of identity “my health” The scale of identity “my family” The scale of identity “my relationship with others” The scale “my future” The scale “me and the society in which I live” Source Developed by the authors

0.386** 0.269 0.514** 0.588** 0.441** 0.182

0.005 0.056 0.000 0.000 0.001 0.201

For all indicators, except for the stress level, this relationship is direct: the higher the level of personal and social identity, the better the material condition and identity through financial position; the more trustworthy and value-oriented relationships in the family, the higher the adaptation rate. Stress is inversely related to adaptation indicators–the lower the level of stress, the higher the indicators of adaptation.

4 Discussion When solving the problems of integration into society to overcome the effects of military operations and traumatic resettlement in a new country of residence, it is necessary to develop methods of external support, since the internal motivation of military migrants is reduced. Such external factors as social support, organization of space, and time are noted among the conditions of effectiveness of forced contact (Henley 2019). However, external support formed from the perceptions of the local population about what newcomers need may not correspond to reality. Perception is influenced by social, cultural, and historical traditions of communication. For example, for Russians, the expectation of adaptation of migrants is presented by the formula “you do not touch us, we do not touch you,” and for Swedes–inclusion and compatibility (Ruonala (Sideleva) 2019). The adaptation program for refugees should: • follow up with the traumatic experience of the client through a symbolic space; • be a field for the dialogue between the local population and visitors; • answer questions connecting the client with the meaning-forming features of individuals; • have the property of intentionality.

Gamification as a Method of Successful Adaptation …

1049

Psychological games are needed to become the symbol; the interaction in the game is to turn on the following levels: the conscious and unconscious mind of each player, the conscious and unconscious mind of an author, and a leader, and communication between the conscious mind of players and a leader, as well as the unconscious mind of players and a leader among themselves. The approach to the therapeutic process as a joint dream helps to consider what is happening during the session as a process of transformation of cognitive experiences with respect to external objects into internal object relations, which, in turn, become available for psychological work (Mironova et al. 2014).

5 Conclusion Despite the negative experience, one cannot reduce a person to his injury. Trauma is not a privilege and must be seen as a tragedy. Refugees need not pity but tools that can help to break the chain of social exclusion. The local population, experiencing natural compassion for refugees, should be taught the difference between compassion and pity. They should be able to “walk the bridge between the symbolic and real” without identifying with any of the extremes of this complex (Hermans 2015). The experience of inter-group contacts with migrants can be both positive and negative (Kubrin et al. 2019). It affects the local population’s willingness to take the changes seriously and contribute to the formation of new social interactions. This experience influenced the formation of political, economic, and social decisions, such as participation in elections, moving to another district or town (Meleady et al. 2017). The study helps to find the ground for the formation of positive experiences for communication between migrants and the local population in everyday life, help migrants to become successful in their future and current career, and to expand the possibilities of cross-cultural dialogue in the context of bilateral migration processes in modern Europe. It is necessary to increase the literacy of the local population in matters of adaptation, openly discussing the rights and obligations of both parties involved. Culture appears as a result of an excess of mental energy. Therefore, in the work aimed at restoring the integrity of the external and internal mental and socio-cultural processes, the result is mutual cultural enrichment and productive integration into the new society, not only migrants but also the local population.

1050

O. I. Mironova et al.

References Adova, I.: The Tool of a Successful Manager: Diagnostics of the Motivation of Labor Activity and Remuneration of Personnel. NSTU, Novosibirsk (2016) Ammon, G.: Dynamic Psychiatry from the Perspective of Time. Gorodets, Moscow (2018) Avtonomov, D.A.: The problem of anxiety, addiction, and “new” symptoms of modern patients from the perspective of psychoanalysis. J. Pract. Psychol. Psychoanal. 2 (2013) BBC News Russia. European migrant crisis in figures and graphs, 19 February 2016. https://www. bbc.com/russian/international/2016/02/160219_migrant_crisis_charts Francesetti, G. (ed.): Panic Attacks and Postmodernity Gestalt Therapy: Between Clinical and Social Perspectives. Gestalt Journal Press, Dover (2009) Garland, C. (ed.): Understanding Trauma: A Psychoanalytical Approach. Karnac Books, London (2002) Henley, J.: Antisemitism rising sharply across Europe, the latest figures show. The Guardian (2019). https://www.theguardian.com/news/2019/feb/15/antisemitism-rising-sharply-acrosseurope-latest-figures-show Hermans, H.J.M.: Dialogical self in a complex world: the need for bridging theories. Eur. J. Psychol. 11(1), 1–4 (2015). https://doi.org/10.5964/ejop.v11i1.917 Kalsched, D.: The Inner World of Trauma. Archetypal Defenses of the Personal Spirit. Cogito-Center, Moscow (2015) Kohut, H.: The restoration of the self. Cogito-Center, Moscow (2002). http://www.ssc.smr.ru/ media/journals/izvestia_hum/2017/2017_2_38_43.pdf Kubrin, Ch.E., Kim, Y.-A., Hipp, J.R.: Institutional completeness and crime rates in immigrant neighborhoods. J. Res. Crime Delinquency 56(2), 175–212 (2019). https://www. annualreviews.org/doi/10.1146/annurev-criminol-032317-092026?utm_source= landingpage&utm_campaign=top10 Malkina-Pykh, I.G.: Extreme Situations: Guidelines of the Practical Psychologist. “Eksmo” Publishing House, Moscow (2005) Meleady, R., Seger, ChR, Vermue, M.: Examining the role of positive and negative intergroup contact and anti-immigrant prejudice in Brexit. Br. J. Soc. Psychol. 56(4), 799–808 (2017). https://doi.org/10.1111/bjso.12203 Mironova, O.I., Pluzhnikova, N.I., Shagaeva, E.A., Akimova, N.N., Nekrasova, M.V., Zhukova, V.I.: Social and psychological factors in the compelled choice of profession. J. Adv. Res. Law Econ. 5(2), 147–156 (2014). https://doi.org/10.14505/jarle.v5.2(10).10 Osnitsky, A.K.: Determination of characteristics of social adaptation. Psychol. Sch. 1, 43–56 (2004) Polyakova, O.B., Petrova, E.A., Mironova, O.I., Semenov, D.V.: The specificity of psycho somatization of psychologist-leaders with professional deformations (Burnout). Prensa Medica Argentina 105(1) (2018). https://doi.org/10.4172/0032-745X.1000326 Ruonala (Sideleva), L.A.: Influence of perception of the concept “tolerance” by the local population on refugees’ social and psychological adaptation process in Russia and Sweden. In: Proceedings from XLIX 2019: European Research: Innovations in Science, Education and Technology, London, UK, pp. 80–87 (2019) Shcherbatykh, Yu.V.: Psychology of stress and methods of correction: Textbook, 2nd edn. Publishing House “Peter”, St. Petersburg (2012) Stotz, S.J., Elbert, T., Müller, V., Schauer, M.: The relationship between trauma, shame, and guilt: findings from a community-based study of refugee minors in Germany. Eur. J. Psychotraumatol. 6, 25863 (2015). https://doi.org/10.3402/ejpt.v6.25863 Varvin, S.: Refugees, their situation, and treatment needs. Int. J. Appl. Psychanal. Sci. 15(3), 174– 186 (2018). https://doi.org/10.1002/aps.1585 Turrini, G., Purgato, M., Ballette, F., Nosè, M., Ostuzzi, G., Barbui, C.: Common mental disorders in asylum seekers and refugees: umbrella review of prevalence and intervention studies. Int. J. Ment. Health Syst. 11, 51 (2017). https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5571637/

Gamification as a Method of Successful Adaptation …

1051

Winnicott, D.: The use of an object and building relationships through identification. J. Pract. Psychol. Psychoanal. 1 (2004) Yurtsever, A., Konuk, E., Akyüz, T., Zat, Z., Tükel, F., Çetinkaya, M., Savran, C., Shapiro, E.: An eye movement desensitization and reprocessing (EMDR) group intervention for Syrian refugees with post-traumatic stress symptoms: Results of a randomized controlled trial. Front. Psychol. 9 (2018). Article 493. https://doi.org/10.3389/fpsyg.2018.00493

Corporate Volunteering as a Factor in the Development of Safe Civil Behavior Pavel A. Kislyakov , Elena A. Shmeleva , Nataliya V. Belyakova , and Anzhela V. Romanova

Abstract The paper focuses on the development of safe civil behavior among employees. The subject field of safe civil behavior is studied within the impact of corporate volunteering on corporate security. The research hypothesis is that the inclusion of employees in corporate volunteering allows them to form safe civil behavior through the development of group (group motivation for success, a favorable psychological climate) and individual (professional identity, commitment to safety) psychological resources. The standardized psychodiagnostic techniques were used. The sample was made up of employees of two organizations located in the Moscow region. The first organization has a corporate social responsibility program, including corporate volunteering (mentoring and pro-bono volunteering, blood donation, environmental volunteering, charity). The other organization does not have a corporate social responsibility program and experience of corporate volunteering. In the studied samples, statistically significant differences were found in the severity of safe civil behavior indicators. To test the hypothesis about the systemic nature of safe civil behavior as a personality construct, the Pearson correlation analysis was carried out, which made it possible to establish strong correlations between the studied indicators. The study results can be used for the creation of personnel development programs and corporate social responsibility.




Keywords Safety citizenship behavior Prosocial behavior responsibility Corporate security Corporate volunteering








Corporate social

P. A. Kislyakov (&)
E. A. Shmeleva
N. V. Belyakova
A. V. Romanova Russian State Social University, Moscow, Russia e-mail: [email protected] E. A. Shmeleva e-mail: [email protected] N. V. Belyakova e-mail: [email protected] A. V. Romanova e-mail: [email protected] E. A. Shmeleva Ivanovo State University, Ivanovo, Russia © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_112

1053

1054

P. A. Kislyakov et al.

1 Introduction In modern technological, economic, and social conditions, commercial organizations face the complex tasks of modernization and development in a competitive environment. The digital economy and the concept of sustainable development pose new requirements for building industrial relations and personnel management. There is a need to reevaluate approaches to understanding the effectiveness and security (economic, informational, personnel) of an organization, due to the human factor. The modern “crisis society” and uncertainty often provoke a person into social isolation, leads to professional burnout and loss of professional identity (Kudryavtseva et al. 2018; Poghosyan 2019; Shmeleva et al. 2017). The critical element of the modern ideology of corporate security is, first of all, the creation of such conditions in the organization that a person would be committed to it, loyal, able to work effectively, finding personal fulfillment in the professional activity, with maximum professional and personal dedication (Zotova 2009; Busygina 2011; Perelygina 2011; Kislyakov et al. 2017). External and internal threats determine the search for intangible assets (socio-psychological and spiritual resources) that can ensure corporate security. Such a resource can be organizational behavior (organizational citizenship behavior), which has prosocial motives focused on the good of the organization, positive and altruistic forms of employee interaction that go beyond official duties, and do not provide material rewards. Numerous studies conducted since the 1990s revealed the psychological conditions, factors, and mechanisms of the formation of civil behavior. The forms of civil behavior are highlighted. They include helping colleagues, compliance with the organization’s standards, helping to overcome the obstacles that stand in the employee’s way, including politeness and respect towards colleagues, and participating in social events that benefit the organization (Organ 1988; Gulevich 2013). Studies by Curcuruto et al. (2015) and Curcuruto and Griffin (2018) showed that civil (prosocial) behavior within an organization helps ensure occupational safety, prevent work-related injuries, and ensure employee well-being. The concept of “safe citizenship behavior” was introduced into scientific circulation, which is characterized by a willingness to ensure corporate safety and security in the workplace, prosocial behavioral orientation, and organizational involvement. Curcuruto et al. (2013) found that the social climate in the team positively affects safe civil behavior and increases commitment to the organization. Leung et al. (2015) identified the effect of psychological safety on civil (prosocial) behavior. The authors start from the idea that psychological security allows people to establish positive interpersonal relationships and influence socially motivated behavior, i.e., prosocial behavior. Psychological safety generates positive interpersonal relationships that contribute to a sense of community, as well as identification and psychological attachment to the group. The primary mechanism is that positive interpersonal interactions through cooperative interaction, enhancing harmony, interpersonal trust, mutual respect, and social exchange convey the influence of psychological safety on prosocial behavior.

Corporate Volunteering as a Factor in the Development …

1055

We propose to expand the subject field of safe civil behavior to study the prosocial behavior of employees in the form of corporate volunteering. Corporate volunteering is part of a corporate culture based on humanistic values, development of initiatives, and altruism. Corporate volunteering involves non-forced, free participation of employees in various social programs with the support of their company. It can be part of corporate social responsibility, which is part of a strategy to promote its brand or one of the tools to increase work efficiency and motivate staff. Usually, companies have all three goals (Belanovsky 2017). The experience of leading companies indicates that corporate volunteering is a driver of economic and social changes for both the organization and the external society (state and local communities) (Galchenko 2018). Corporate volunteering not only contributes to the development of the organization’s human capital but also affects the image of organizations (Pevnaya and Kuzminchuk 2017). Speaking about the importance of corporate volunteering, Drucker and Maciarello (2010) note: “Management must remember that a company cannot flourish in a dying society… Throughout the world, management has become a social function.” The main areas of corporate volunteering are support for socially vulnerable groups (orphans, elderly, disabled people, etc.), support for people in difficult life situations (refugees, homeless, etc.), protection of the natural environment, participation in the development of the urban environment, support for homeless animals, support for health and healthy lifestyle, blood donation, support for cultural events, etc. A special type of corporate volunteering is mentoring and pro-bono volunteering related to the provision of free professional assistance to socially vulnerable groups (medical, legal, educational, and other services). Corporate volunteering is born at the intersection of the interests of the employee, company, and society. The benefits for company employees from participating in corporate volunteering include: • the formation and development of professional and social skills necessary for life and building a business career; • strengthening the sense of satisfaction with work and company, improving teamwork skills; • the development of creative thinking and an innovative approach to solving problems; • the possibility of self-realization in a new sphere and increased self-confidence; • the expansion of ideas about the processes taking place in the world and society and inclusion in public life, an opportunity to contribute to solving social problems. For the company, corporate volunteering will allow: • to form a positive image of the company in the eyes of employees (including potential ones) and the outside world (primarily the local community); • to develop a corporate culture; increase the loyalty and responsibility of employees;

1056

P. A. Kislyakov et al.

• to rally the team during joint activities to achieve socially significant goals, assistance, and support; • to improve the team’s socio-psychological climate (Leskova 2017; Peterson 2004; Gilder et al. 2015). Numerous studies showed that when implementing volunteer programs of an organization, employees plunge into a new social environment that encourages them to find innovative solutions to their tasks, which develops leadership qualities, stress resistance, creative thinking, negotiation skills, and the ability to quickly adapt to a changing environment (Levochkina and Kostakova 2018). Most often, any type of volunteering has a positive effect on the physical and emotional state of a person, bringing moral satisfaction from being included in public life and making a personal contribution to solving social problems (Schlichter 2010; Raposa et al. 2016). Corporate volunteering is still not widespread in Russia. Thus, according to data from the All-Russian Public Opinion Research Center, about 66% of Russians have not been involved in corporate volunteering. At the same time, corporate volunteering can potentially attract 80% of employees (All-Russian Public Opinion Research Center 2018). Our previous study also showed that Russians do not perceive corporate volunteering as a significant type of prosocial behavior (ranked 18th in the ranking of 29 types of volunteering) (Kislyakov et al. 2019). However, the development of corporate volunteering is actively discussed in the professional community, including the annual International Corporate Volunteering Forum in Moscow, which addresses the issue of the low degree of business involvement in solving social problems. An effective factor in the spread of corporate volunteering practices can be the acquisition of a resource status when it is perceived and evaluated as the desired behavior of employees. It allows them to solve corporate security problems by creating a favorable psychological climate in the organization and developing a positive group motivation, including when addressing significant social problems, as well as the development of spiritual and moral qualities, and psychological stability among employees.

2 Materials and Methods The methodological basis of the study is the provision that the predictors (indicators) of civil behavior are group motivation and professional identity, and the predictors (indicators) of corporate security are the psychological climate of the team and commitment to security. The research hypothesis is that the inclusion of employees in corporate volunteering allows them to form safe civil behavior through the development of group (group motivation for success, favorable psychological climate) and individual (professional identity, commitment to safety) psychological resources.

Corporate Volunteering as a Factor in the Development …

1057

Thus, the following standardized psychodiagnostic methods were selected: “Methods for diagnosing the formation of positive group motivation” (V. A. Rozanova), “Methods for assessing the psychological atmosphere in a team” (A. F. Fidler), “Test for the diagnosis of professional identity” (L. B. Schneider), “Questionnaire for assessing security commitment” (V. P. Tretyakov). The sample consisted of employees of two organizations located in the Moscow region. The first organization provides consulting services in mechanical engineering (designated as “Mashinostroitel”). From this organization, 56 employees participated in the study (36 men and 20 women), aged 23–38, with an average work experience in the organization of 7.5 years. This organization has a corporate social responsibility program, including corporate volunteering. A study of the information presented on the organization’s website showed that from 2017 to 2019, employees took part in the following events: “International Youth Industrial Forum ‘Engineers of the Future’” (mentoring and pro-bono volunteering), career guidance for schoolchildren “A week without turnstiles” (mentoring), Blood Donor Day, the environmental campaign “Our Forest. Plant your tree” (environmental volunteering), patronage of the kindergarten–repair, purchase of toys, and office equipment (charity). The other organization provides services in staff recruitment, including enterprises in the manufacturing industry and the service sector (designated as “Kadrovik”). From this organization, 45 employees took part in the study (18 men and 27 women), aged 25–42 years, with the average work experience in the organization of 8 years. There is no corporate social responsibility program or corporate volunteering experience in this organization.

3 Results and Discussion The study allowed us to identify groups with different levels of group motivation in the samples: the group is sufficiently motivated to achieve success (22% in “Mashinostroitel” and 20% in the “Kadrovik”), the group is weakly motivated to achieve success (45% and 20%, respectively) and the group is not sufficiently motivated to obtain positive results (33% and 60%, respectively). Comparing the results of the two samples on the level of motivation for success, we can conclude that the majority of the “Mashinostroitel” employees are reasonably motivated (average score 96.3), while “Kadrovik,” on the contrary, has more than half employees that are not motivated sufficiently (average score 74.1) (Fig. 1). The analysis of the results of the study of the psychological atmosphere in the teams showed that for the “Mashinostroitel” employees, the average group coefficient of subjective assessment of the psychological atmosphere in the team is 31 (high level), for the “Kadrovik”–41 (average level) (Fig. 2). The study showed that according to the level of formation of the professional identity, the average indicator for a sample of “Mashinostroitel” employees was 62 points (the level of “positive identity”). For the sample of “Kadrovik” employees, it

1058

P. A. Kislyakov et al.

Fig. 1 The average group indicator of motivation to achieve success among employees of the “Mashinostroitel” and “Kadrovik” companies (from 25–the most negative assessment to 175–the most positive). Source Developed by the authors

Fig. 2 The average group indicator of the psychological atmosphere among employees of the “Mashinostroitel” and Kadrovik organizations (from 10–the most positive assessment to 80–the most negative). Source Developed by the authors

was 50 points (level of “moratorium of identity”) (Fig. 3). A positive employee identity is marked with a formed professional orientation, a need for professional group membership, a desire to fulfill professional rights and obligations, and to maintain their professional development. At the same time, among the employees of “Mashinostroitel,” 50% have a positive identity, 38% have a moratorium (crisis) of identity, and 12% have a diffuse (blurred) identity. Among the employees of “Kadrovik,” 27% of employees have a positive identity, 32%–a moratorium of identity, and 41%–diffuse identity. In terms of corporate security commitment, the employees in the “Mashinostroitel” had an average score of 25 points (high level), and in the “Kadrovik”–11 points (average level) (Fig. 4).

Fig. 3 The average group indicator of the formation of professional identity among employees of “Mashinostroitel” and “Kadrovik” organizations (from 0–the most negative assessment to 80–the most positive). Source Developed by the authors

Corporate Volunteering as a Factor in the Development …

1059

Fig. 4 The average group indicator of safety commitment among employees of “Mashinostroitel” and “Kadrovik” (from −50–the most negative rating to +50–the most positive). Source Developed by the authors

Table 1 The comparison of the average group values of indicators of safe civil behavior in the groups “Mashinostroitel” and “Kadrovik.” Indicators

“Mashinostroitel” (N = 56)

Group motivation to achieve 96.3 success Psychological atmosphere 31 Professional identity 62 Security commitment 25 Source Developed by the authors

“Kadrovik” (N = 45)

Significance of differences by the Mann-Whitney U-test U p

74.1

121

0.009

41 50 11

147 132.5 141.5

0.047 0.019 0.034

The Mann-Whitney U test calculation showed that the studied samples have statistically significant differences in the severity of group motivation for achieving success, professional identity, psychological atmosphere, and commitment to safety (Table 1). Thus, employees of the “Mashinostroitel” participating in the corporate volunteering program, to a greater extent than the employees of the “Kadrovik” company, have developed safe civil behavior. To test the hypothesis about the systemic nature of safe civil behavior as a personality construct, we performed a Pearson correlation analysis that allowed us to establish strong correlations between the studied indicators (Table 2) (the “psychological atmosphere” variable has a negative correlation with other variables since it has reverse order measurements).

1060

P. A. Kislyakov et al.

Table 2 Correlations between indicators of safe civil behavior in the “Mashinostroitel” group Indicators Group motivation to achieve success Psychological atmosphere Professional identity Security commitment Note ** p  0.01 Source Developed by

Group motivation to achieve success

Psychological atmosphere

Professional identity

Security Commitment

1 −0.788**

1

0.661**

−0.814**

1

0.665**

−0.792

0.876**

1

the authors

4 Conclusion Thus, the obtained data help to understand that safe civil behavior is a systemic personal environmental construct that generates positive interpersonal relationships contributing to a sense of security and community motivation for success, and identification and psychological attachment to a professional group. Without the initiative of the subjects on the environment, safe civil behavior is impossible, particularly in corporate volunteering. Modern corporations can no longer be managed only based on the principles of economic profit. The critical elements of modern corporate ideology and corporate security are the solution of strategic problems of the development of human capital and the formation of a corporate culture based on the principles of social partnership and social responsibility. To unite the efforts of Russian companies and create opportunities for the broadest possible dissemination of the best corporate volunteering practices in Russia, the National Council for Corporate Volunteering was created. In December 2018, Russia approved the concept for the development of volunteering until 2025, in which corporate volunteering is indicated as one of the priority areas for the development of volunteering as a form of civil (prosocial) behavior. The concept notes the need to facilitate the implementation of corporate volunteering programs, involving the participation of employees in the implementation of socially significant projects and activities. The results of the study of personal indicators of safe civil behavior can be used in the development of personnel development programs and corporate social responsibility. Acknowledgements The reported study was funded by RFBR, according to the research project No. 18-313-20001.

Corporate Volunteering as a Factor in the Development …

1061

References All-Russian Public Opinion Research Center. Corporate volunteering: Realities and growth potential (2018). https://wciom.ru/index.php?id=236&uid=9031 Belanovsky, Yu. S.: Corporate and social volunteering. Brand experience and expert opinions. Omega-L, Moscow (2017) Busygina, I.S.: Corporateness as the basis of organization security. In: Bulletin of Moscow University. Series 14: Psychology, vol. 4, pp. 43–52 (2011) Curcuruto, M., Griffin, M.A.: Prosocial and proactive “safety citizenship behavior” (SCB): the mediating role of affective commitment and psychological ownership. Saf. Sci. 104, 29–38 (2018) Curcuruto, M., Conchie, S.M., Mariani, M.G., Violante, F.S.: The role of prosocial and proactive safety behaviors in predicting safety performance. Saf. Sci. 80, 317–323 (2015) Curcuruto, M., Guglielmi, D., Mariani, M.G.: Organizational citizenship for safety: psycho-social processes of mediation. Psicologia Sociale 8, 229–248 (2013) Drucker, P.F., Maciarello, D.A.: Management (trans. from English). Moscow, Russia: OOO “I. D. Williams” (2010) Galchenko, S.A.: Pro bono is the driver of corporate volunteering development in the region. Econ. Law 8, 121–125 (2018) Gilder, D.D., Schuyt, T.N., Breedjik, M.: Effects of an employee volunteering program on the workforce: the ABNAMRO case. J. Bus. Ethics 61(2), 143–152 (2015) Gulevich, O.A.: Civil behavior in the organization: conditions and consequences. Organ. Psychol. 3(3), 78–96 (2013) Kislyakov, P.A., Shmeleva, E.A., Gowin, O.: Contemporary volunteering in the formation of the prosocial behavior of a person. Obrazovanie i Nauka 21(6), 122–145 (2019) Kislyakov, P., Belyakova, N., Savchenko, D., Polyakov, E., Senkevich, L., Romanova, A.: Indicators of psychological security of a socio-professional group. In: Proceedings from RPTSS 2017: International Conference on Research Paradigms Transformation in Social Sciences. European Proceedings of Social and Behavioural Sciences. Future Academy, Tomsk, Russia (2017) Kudryavtseva, A., Sklemina, D., Vereitinova, T., Dmitrieva, V., Kislyakov, P.: Organizational environment as a factor of psychological well-being. In: Proceedings from RPTSS 2018: International Conference on Research Paradigms Transformation in Social Sciences. European Proceedings of Social and Behavioural Sciences. Future Academy, Tomsk, Russia (2018) Leskova, I.V.: The culture of corporate volunteering in Russian organizations. Soc. Pol. Sociol. 16 (3), 129–136 (2017) Leung, K., Deng, H., Wang, J., Zhou, F.: Beyond risk-taking: effects of psychological safety on cooperative goal, interdependence, and prosocial behavior. Group Organ. Manage. 40(1), 88– 115 (2015) Levochkina, N.A., Kostakova, N.N.: Corporate volunteering in foreign countries: essence and models. In: Proceedings from the XXX International Scientific and Practical Conference: Vector Development of Modern Science. Olimp, Moscow (2018) Organ, D.W.: Organizational Citizenship Behavior: The Good Soldier Syndrome. Lexington Books, Lexington (1988) Perelygina, E.B.: Corporate identity as a factor of corporate security. Psychol. Russia State Art 4, 348–360 (2011) Peterson, D.K.: Recruitment strategies for encouraging participation in corporate volunteer programs. J. Bus. Ethics 49, 371–386 (2004) Pevnaya, M.V., Kuzminchuk, A.A.: The potential for the development of corporate volunteering in modern Russia. Soc. Stud. 1, 1–18 (2017) Poghosyan, V.G.: Methodological aspects of the study of social behavior. Soc. Pol. Sociol. 18(1), 132–139 (2019)

1062

P. A. Kislyakov et al.

Raposa, E.B., Laws, H.B., Ansell, E.B.: Prosocial behavior mitigates the negative effects of stress in everyday life. Clin. Psychol. Sci. 4(4), 691–698 (2016) Schlichter, A.A.: Directions and Mechanisms of Interaction of Socially Responsible Business with the US Nonprofit Sector. IMEMO RAS, Moscow (2010) Shmeleva, E.A., Kislyakov, P.A., Kartashev, V.P., Romanova, A.V., Abramov, A.V.: Innovative activities and socio-psychological security in professional and personal development. In: Proceedings from RRI 2016: International Conference Responsible Research and Innovation. European Proceedings of Social and Behavioural Sciences. Future Academy, Tomsk, Russia (2017) Zotova, O.Yu.: Acmeological interpretation of corporate culture as a factor of the psychological security of an individual in an organization. Soc. Pol. Sociol. 9, 89–93 (2009)

Assessing the Biosafety of the New Probiotic Strain of Bifidobacterium Crudilactis 7-1C Isolated from Camel Milk Bakhytkul U. Baikhozhaeva , Akkenzhe B. Omarova , Talgat D. Ikombaev , Tansholpan A. Altaeva , and Yerkebulan O. Kilibayev

Abstract The cooperative sector of the Russian Economy occupies a significant part of the dairy market, which actualizes the issue of milk production technology for these enterprises. The paper analyzes the biosafety of microorganisms based on the study of the pathogenicity and nature of the adverse effects of the new probiotic strain Bifidobacterium crudilactis 7-1C, first isolated from camel milk. The introduction of biosafety levels for industrial strains is associated with a more general problem–the need to develop a modern regulatory framework for certification and standardization of industrial strains, ensure control over their use in production, and create a mechanism for its implementation, conceptually consistent with world practice in this area. The paper presents the cultural and morphological features of this strain, data on the determination of potentially pathogenic features, in vitro, virulence, allergenic, and irritating effects on the sensitizing effect. According to the existing classification of strains, the new strain Bifidobacterium crudilactis 7-1C belongs to the fourth hazard class.







Keywords Probiotic Biosafety Normative base Bifidobacterium crudilactis Virulence





Pathogenicity


B. U. Baikhozhaeva
T. A. Altaeva
Y. O. Kilibayev L. N. Gumilyov Eurasian National University, Nur-Sultan, Kazakhstan e-mail: [email protected] T. A. Altaeva e-mail: [email protected] Y. O. Kilibayev e-mail: [email protected] A. B. Omarova (&)
T. D. Ikombaev Innovative University of Eurasia, Pavlodar, Kazakhstan e-mail: [email protected] T. D. Ikombaev e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_113

1063

1064

B. U. Baikhozhaeva et al.

1 Introduction Camel milk is widespread in Kazakhstan, where it is known for its medicinal and dietary properties (Faye et al. 2008). However, there are only a few studies on camel milk in terms of composition (Farah 1993; Faye and Esenov 2004; Ramet 1993). Camel milk is considered an antitumor, hypoallergenic drink (Shabo et al. 2005) with anti-diabetic properties (Agrawal et al. 2003). Additionally, camel milk is an important protein source for people living in some of the world’s arid countries. The most common types of bacteria in camel milk are Lactococcus lactis subsp. lactis, Lactobacillus helveticus, Streptococcus salivarius subsp. thermophilus, Lactobacillus casei subsp. casei, Lactobacillus plantarum, and Leuconostoc mesenteroides (Khedid et al. 2009). The strains identified by biochemical methods in Kenyan camel milk, called suusac, were Lactobacillus curvatus, Lactobacillus plantarum, Lactobacillus salivarius, Lactococcus raffinolactis, and Leuconostoc mesenteroides subsp. mesenteroides (Tezira et al. 2005). Bifidobacterium species are one of the most beneficial probiotic organisms that represent one of the most predominant bacteria in the human digestive tract (Hudault et al. 1994). It is known that most bifidobacterium species are nonpathogenic and are widely used as probiotics for humans and animals (Haghighi et al. 2005). It is also believed that they have anticarcinogenic, immunostimulating, and immunomodulating properties. Due to these health-promoting properties, many attempts were made to use these bacteria in foods and nutritional supplements. Many products containing bifidobacterium (fermented milk, lyophilized probiotics/synbiotics, yogurt, and other dairy products) are currently produced and marketed in various countries, especially in Japan, Europe, and the United States. Bifidobacteriums are immobile, non-spore-forming, gram-positive, anaerobic, catalase-negative bacteria. Their cell morphology is usually called irregular. These are V- or Y-shaped rods resembling branches. Bifidobacteriums are found mainly in the digestive tract of humans and animals (Sneath et al. 1986; Okamoto et al. 2007). Some host-specific species are also found in the digestive tract of bees, bumblebees (Killer et al. 2009; Killer et al. 2011), and ruminants (Biavati and Mattarelli 1991). Some taxons (B. crudilactis, B. aquikefiri, and B. mongoliense) were isolated from raw cow’s milk, raw milk cheeses, sheep’s cheeses, kefir, and other traditional fermented milk products (Bunesova et al. 2014; Delcenserieetal et al. 2013; Laureys et al. 2016; Watanabe et al. 2009). There is no data on the isolation and characterization of bifidobacterium from camel milk. The paper presents the results of a study of the safety of a new strain of Bifidobacterium crudilactis 7-1C, first isolated from camel milk by the authors of this work. The problem of the safety of microorganisms used in the biotechnological industry is relevant due to the expansion of the range of strains used. In a broad sense, biosafety includes the prevention of potential hazards of a biological agent, including microorganisms used in biotechnology (Sheina 2012).

Assessing the Biosafety of the New Probiotic Strain …

1065

The National Institute of Health (USA), the European Federation of Biotechnology, and OECD (Organization of Economic Cooperation & Development) developed a classification of microorganisms according to the degree of risk, determined based on the taxonomic position and possible pathogenic properties of the strain. According to this classification, the microorganisms used in biotechnology are divided into four classes—harmless, slightly dangerous, moderately dangerous, and highly dangerous (Sergeuk 2014; Scriabin and Sheina 2004).

2 Materials and Methods The samples of camel milk were obtained from a farm in the Almaty region (Kazakhstan) from a two-humped healthy camel (Camelus bactrianus) by manual milking in sterile screw bottles and stored in cool chambers until sent to the microbiological laboratory. Wilkins-Chalgren agar (Oxoid, UK) with soy peptone (5 g/l, Oxoid), L-cysteine-HCl (0.5 g/l, Sigma-Aldrich), Tween-80 (1 ml/l, Sigma-Aldrich) was used to isolate bifidobacterium. Mupirocin (100 mg/l, Oxoid) and glacial acetic acid (1 ml/l; Sigma-Aldrich) were included in the medium. A freshly collected camel milk sample was serially diluted in Wilkins-Chalgren anaerobic broth (Oxoid, UK) containing soy peptone, L-cysteine-HCl, and Tween-80, and then incubated in selective Wilkins-Chalgren agar under anaerobic conditions (CO2/H2: 90)/10) in anaerobic vessels (Oxoid) for 72 h at 37 °C. Bacterial colonies were collected and transferred to tubes containing Wilkins-Chalgren anaerobic broth. The isolates were cultured for 24 h at 37 °C. Studies of the pathogenicity of the strain were carried out in the laboratory of TOO “NUTRITEST” according to the “Methodological recommendations for the formulation of studies to assess the virulence of producer strains of microorganisms designed to obtain microbiological synthesis products,” “Handbook of microbiological and virological research methods”, MU 5789/1-91 “Methodological guidelines for the experimental substantiation of the MAC of producing microorganisms and their finished formulations in environmental objects.” The testing laboratory of TOO “NUTRITEST” is accredited in the State System of Technical Regulation of the Republic of Kazakhstan for compliance with the requirements of ST RK ISO/IEC 17025-2007 “General requirements for the competence of testing and calibration laboratories.”

1066

B. U. Baikhozhaeva et al.

3 Results The culture and morphological features of Bifidobacterium crudilactis 7-1C are as follows. On the surface of the agar medium, the colonies are round, the edges are even white, soft in texture, convex, not transparent, 1–2 mm in diameter. In a liquid nutrient medium, it has a fresh sour-milk smell, the broth column’s turbidity, and a white precipitate (Fig. 1). In experiments conducted in vitro in a solid nutrient medium with the addition of egg yolk (yolk agar) and blood (blood agar), it was found that the culture of Bifidobacterium crudilactis 7-1C showed no signs of lecithinase and hemolytic activity. The virulence of the strain Bifidobacterium crudilactis 7-1C was studied by the conventional method in 8 groups of animals (12 white mice in each, six females and six males weighing 16–18 g) in concentrations from 103 to 1011 CFU/cm3 (Table 1) (Pivovarov et al. 1992). The results of the experiments showed that with both intraperitoneal and oral administration, all the studied doses of the culture of Bifidobacterium crudilactis 71C did not cause the death of experimental animals. All of them remained active and healthy.

Fig. 1 Morphology of Bifidobacterium crudilactis 7-1C strain cells. Source Developed by the authors

Assessing the Biosafety of the New Probiotic Strain …

1067

Table 1 The results of the study of acute toxicity of Bifidobacterium crudilactis 7-1C with intraperitoneal and oral administration No.

Animals in the experiment

Method of administration

1 12 Intraperitoneally 2 12 Intraperitoneally 3 12 Intraperitoneally 4 12 Intraperitoneally Control 12 Intraperitoneally 5 12 Orally 6 12 Orally 7 12 Orally 8 12 Orally Control 12 Orally Source Developed by the authors

Dose CFU/ ml

Sick animals

Dead animals

Survived animals

103 105 107 109 Saline 105 107 109 1011 Saline

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

12 12 12 12 12 12 12 12 12 12

The autopsy showed that the liver is dark red, the surface is smooth. The “pattern” of the brain and cortex is clear. The lungs in structure and volume are ordinary, and the surface is smooth, easily separated from each other; no adhesions were noted. The dissemination of internal organs takes place only during the first 24 h after the introduction of the culture. The average allergenic dose was established in guinea pigs, which were administered the test culture at doses of 103,104,105,106 CFU/per animal. Saline was used as a control. Accounting for the reaction was carried out after ten days, according to the diameter of the erythema. The average allergenic dose of the studied culture was 9.5 * 105 CFU per animal. Thus, this strain practically does not have an allergenic effect. When the studied culture was introduced into the conjunctiva of the rabbit eye at a dose of 1 * 109 CFU/cm3, a weak positive reaction was observed in the form of an injection of vessels of the sclera and cornea, mucous secretions in the corners of the eyes. On the second day of observation, the above phenomena in all animals were completely stopped, and, in the next five days, deviations from the physiological norm were not observed. Thus, the studied strain of Bifidobacterium crudilactis 7-1C has a mild local irritant effect.

4 Discussion In a broad sense, biological safety includes the prevention of biological agents’ potential dangers, including microorganisms used in biotechnology.

1068

B. U. Baikhozhaeva et al.

At the present stage of development and improvement of the biosafety criteria for biotechnological strains, it was clearly shown that a mandatory and necessary condition for the access of producer strains to industrial use is their avirulence, low invasiveness, lack of toxigenicity, and the ability to disseminate in internal organs. In other words, if a strain qualifies as non-pathogenic, it can be used in the biotechnological industry. The strains of all types of microorganisms proposed for the production of probiotics must be non-virulent, non-toxic, and safe for humans, including, if necessary, immunological safety. Traditional dairy products from Central Asia have a reputation for being both nutritious and healthy. However, the evidence is mostly theoretical. Serious studies of the role of lactic acid bacteria or their metabolic products, anticipated health effects, have recently begun. Shubat and kumiss can be the source of new probiotic bacteria in humans or animals, provided that their technological properties, safety aspects, and ability to survive in the gastrointestinal tract are established.

5 Conclusion This paper studies the pathogenicity of the strain to create a probiotic preparation in dry form. According to the existing classification of strains (Maximum allowable concentration (MAC) of producer microorganisms, bacterial preparations, and their components in the air of the working area, Hygienic standards GN 2.2.6.709-98), the culture of Bifidobacterium crudilactis 7-1C belongs to the fourth hazard class.

References Agrawal, R.P., Swami, S.C., Beniwal, R., Kochar, D.K., Sahani, M.S., Tuteja, F.C., Ghouri, S.K.: Effect of camel milk on glycemic control, risk factors, and diabetes quality of life in type-1 diabetes: a randomized prospective controlled study. J. Camel Pract. Res. 10, 45–50 (2003) Biavati, B., Mattarelli, P.: Bifidobacterium ruminant&m sp. nov. and Bifidobacterium merycicum sp. nov. from the rumens of cattle. Int. J. Syst. Bacterial 41, 163–168 (1991) Bunesova, V., Killer, J., Vlkova, E., Musilova, S., Tomaska, M., Rada, V., Kmet, V.: Isolation and characterization of bifidobacterium from ovene cheese. Int. J. Food Microbiol. 188, 26–30 (2014) Delcenserie, V., Taminiau, B., Gavini, F., De Schaetzen, M., Cleenwerck, I., Theves, I., Mahieu, M., Daube, G.: Detection and Characterization of Bifidobacterium crudilactis and Bifidobacterium mongoliense, able to grow during the manufacturing process of French raw milk cheeses. BMC Microbiol. 13, 239 (2013) Farah, Z.: Composition and characteristics of camel milk. J. Dairy Res. 60, 603–626 (1993) Faye, B., Esenov, P.: Productivity potential of camels. Desertification combat and food safety: the added value of camel producers. In: Proceedings from International Workshop. NATO Sciences Series, Life, and Behavioural Sciences, vol. 362, pp. 127–134. Ashkabad, Turkmenistan (2004)

Assessing the Biosafety of the New Probiotic Strain …

1069

Faye, B., Konusbayeva, G., Messad, S., Loiseau, G.: Discriminant milk components of Bactrian Camel (Camelus Bactrianus), Dromedary (Camelus Dromedarius), and hybrids. Dairy Sci. Technol. 88, 607–617 (2008) Haghighi, H.R., Gong, J., Gyles, C.L., Hayes, M.A., Sanei, B., Parvizi, P., Gisavi, H., Chambers, J.R., Sharif, S.: Modulation of antibody-mediated immune response by probiotics in chickens. Clin. Diagn. Lab. Immunol. 12, 1387–1392 (2005) Hudault, S., Bridonneau, C., Raibaud, P., Chabanet, C., Vial, M.F.: Relationship between intestinal colonization of Bifidobacterium bifidum in infants and the presence of exogenous and endogenous growth-promoting factors in their stools. Pediatr. Res. 35, 696–700 (1994) Khedid, K., Faid, M., Soulaymani, A., Zinedine, A.: Characterization of lactic acid bacteria isolated from one-humped camel milk produced in Morocco. Microbiol. Res. 164(1), 81–91 (2009) Killer, J., Kopečný, J., Mrázek, J., Koppová, I., Havlík, J., Benada, O., Kott, T.: Bifidobacterium actinocoloniiforme sp. nov. and Bifidobacterium bohemicum sp. nov., from the bumblebee digestive tract. Int. J. Syst. Evol. Microbiol. 6, 1315–1321 (2011) Killer, J., Kopečný, J., Mrázek, J., Rada, V., Benada, O., Koppová, I., Havlík, J., Straka, J.: Bifidobacterium bombi sp. nov., from the bumblebee digestive tract. Int. J. Syst. Evol. Microbiol. 59, 2020–2024 (2009) Laureys, D., Cnockaert, M., De Vuyst, L., Vandamme, P.: Bifidobacterium aquikefiri sp. nov., isolated from water kefir. Int. J. Syst. Evol. Microbiol. 66, 1281–1286 (2016) Okamoto, M., Benno, Y., Lejny, K., Maeda, N.: Metascardovia criceti gen. nov., sp. nov., from hamster dental plaque. Microbiol. Immunol. 51, 747–754 (2007) Pivovarov, Yu.P., Myalina, L.I., Korolik, V.V.: Criteria for assessing the pathogenic properties of producer strains proposed for use in the microbiological synthesis industry. Moscow, Russia (1992) Ramet, J.P.: La technologie des fromages au lait de dromadaire (Camelus dromedarius). Etude FAO production et sante´ animals, vol 113, p. 118 (1993) Scriabin, E.G., Sheina, N.I.: Experimental evaluation of the immunotropic activity of industrial microorganisms. Russ. J. Immunol. 9, 123 (2004) Sergeuk, N.P.: The scientific basis for hazard assessment and hygienic regulation of industrial microorganisms (Dissertation of Doctor of Medical Sciences). Federal Scientific Center for Hygiene, named after F. F. Erisman, Moscow, Russia (2014) Shabo, Y., Barzel, R., Margoulis, M., Yagil, R.: Camel milk for food allergies in children. Immunol. Allergy 7, 796–798 (2005) Sheina, N.I.: Criteria for assessing the biosafety of microorganisms used in the biotechnology industry. Bull. Orenburg State Univ. 142(6), 165–170 (2012) Sneath, P.H., Mair, N.S., Sharp, M.E., Holt, J.G., Scardovi, V.: Genus Bifidobacterium Bergey’s Manual of Systematic Bacteriology, vol. 2, pp. 1418–1434. Williams and Willkins, Baltimore (1986) Tezira, A., Samuel, K., John, W.: Enumeration and identification of microflora in suusac, a Kenyan traditional fermented camel milk product. LWT - Food Sci. Technol. 38(2), 125–130 (2005) Watanabe, K., Makino, H., Sasamoto, M., Kudo, Y., Fujimoto, J., Demberel, S.: Bifidobacterium mongoliense sp. nov., from airag, a traditional fermented mare’s milk product from Mongolia. Int. J. Syst. Evol. Microbiol. 59, 1535–1540 (2009)

Understanding the Labor Efficiency in Agricultural Production Cooperatives Anatoly E. Shamin , Olga A. Frolova , Elena A. Agafonova , Natalia V. Yashkova , and Nadezhda S. Kulkova

Abstract Agricultural production cooperatives are one of the effective forms of management. Nevertheless, their effectiveness was rejected for many years. Agricultural production cooperatives are owned by its members. A rational motivation system is required to stimulate them to work effectively and productively. The paper uses the abstract logical method, the grouping method, and the method of dynamic series. Various aspects of the distribution of income in the APC are considered; their advantages are substantiated. The effective organization of the labor activity of cooperative members was studied. The human factor is one of the factors determining the success of an organization in a competitive market environment. The basic principle of income distribution in cooperatives is the principle of equitable distribution. The norm of fair distribution of income between members of cooperatives is laid down in several federal regulations that govern membership in cooperatives–personal labor participation. The paper further disseminated the experience of optimizing labor remuneration in labor cooperatives. The study confirms that the efficient organization of labor increases profits and creates some financial stability in the APC. Keywords Agricultural production cooperative efficiency Salary





Economic growth
Labor

A. E. Shamin
O. A. Frolova
E. A. Agafonova
N. V. Yashkova (&)
N. S. Kulkova Nizhny Novgorod State Engineering-Economic University, Knyaginino, Russia e-mail: [email protected] A. E. Shamin e-mail: [email protected] E. A. Agafonova e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_114

1071

1072

A. E. Shamin et al.

1 Introduction For many years after the transition of the Russian economy to market conditions, APCs were criticized and even persecuted as an inefficient form of management in a market economy.

2 Materials and Methods The paper uses the abstract logical method, the grouping method, and the method of dynamic series. Various aspects of the distribution of income in the APC are considered, and their advantages are substantiated.

3 Results Uzun (2003), in his report, concludes that the inefficient use of APC’s resources is based on six indicators of marketable products/value added per average annual employee, 100 hectares of arable land, and 1 million rubles in production assets in 1995 and 2001. The professor makes the same conclusion in his later works (Uzun 2005). However, nowadays, APCs do not just exist but work efficiently, refuting all previously stigmatized stamps. Minina (2019) notes that “agricultural cooperatives now constitute probably one of the most numerous categories of cooperatives. However, it is also necessary to keep in mind special socio-economic circumstances (the massive transformation of collective and state farms into production cooperatives during the agrarian reform) due to which large organizations still prevail among APCs, which is not typical for cooperatives.” One cannot agree with the latter statement. This paper analyzes the activities of the APC by categories (micro-enterprises, small, medium, and large) following the criterion for the number of their employees based on the Federal Law “On the Development of Small and Medium-Sized Enterprises in the Russian Federation” (Subparagraph 2 of Paragraph 1.1 of the Article 4) (Russian Federation 2007). In addition, the APCs still belong to people living and working in the countryside, which means that they have no motive to leave these rural territories. In this paper, we describe our observations of agricultural organizations in the Nizhny Novgorod region over five years. Collective farms (now the APC) existed since Soviet times. Their beneficiaries are members of the work collective (members of the APC), former employees, and their heirs (associate members of the APC). All the profit earned by these farms belongs to them: members receive wages and annual bonuses (depending on their labor participation), dividends on their additional shares, and cooperative payments.

Understanding the Labor Efficiency …

1073

Associate members receive dividends on their shares (Russian Federation 1995). In addition, the general meeting of the APC can decide (and traditionally decides) to allocate part of the profit to social benefits: vouchers for sanatorium-resort treatment to employees of the APC and members of their families, improvement of rural territories, charities (assistance to schools, kindergartens, veterans, and churches). As a rule, members of the APC buy products (works, services–for example, plowing the garden) at lower prices than they are sold to other people; sometimes, they even get it free of charge. All the above, as a whole, constitute significant economic benefits for people living in rural areas and being members (associate members) of the APC. The psychological point is no less important. The members of the APC are more confident in the future, as they have the right to initiate any issue at the general meeting as the owners of the APC. The strategy of the state national policy of the Russian Federation for the period up to 2025 provides for the creation of additional socio-economic, political, and cultural conditions for improving the social well-being of citizens elevated to the priority of the state national policy of Russia (Subparagraph “D” of Paragraph 3 of the Strategy) (Presidential Executive Office 2012). Different scholars emphasize the significance of this task. Mikhaleva (2013), among the priority tasks of the Strategy, highlights the consistent overcoming of social justice in the distribution of income, corruption, stimulating the development of the national economy, and the well-being of people (Kovryakova 2017). Belokrylova (2008) also notes the importance of pursuing a “socially fair and cost-effective policy of income distribution,” since “the priority of economic factors in the social sphere is fundamentally important for strengthening the state, state support of social guarantees, the development of mechanisms of collective responsibility and democratic decision-making, for ensuring social partnership.” The forecast of the Russian Federation’s socio-economic development for the period until 2024, developed by the Ministry of Economic Development of Russia (2018), provides for “sustainable economic growth, which is based primarily on expanding the productive potential of the economy increasing labor productivity. At the same time, an effective labor market will ensure wage growth in real terms at a level not lower than the growth rate of labor productivity.” A fair distribution of the organization’s income among the members of the labor collective as the main principle of activity appears precisely in the agricultural cooperation (Article 2 of the Law) (Russian Federation, 1995). A similar norm appears in the Law “On Production Cooperatives” (Article 12 of the Law) (Russian Federation 1996), with the only difference being that members of the APC can only be members of the labor collective working in the APC in the main place (Paragraph 1 of Article 13 of the Law) (Russian Federation 1995). The members of the production cooperative can also be other people who made a share contribution to the production cooperative (Article 7 of the Law) (Russian Federation 1996). The Law “On Cooperation in the USSR” (USSR 1988) enshrined the main tasks of cooperation, including security from the income of cooperation (Paragraph 3 of Article 4):

1074

– – – –

A. E. Shamin et al.

improving the living standards of members of cooperatives and their families; solving social problems; creating opportunities for highly productive work; ensuring the protection of property interests and the social rights of its members.

Modern scholars (Egorov et al. 2016) note that “an approach, suggesting that the human factor is one of the determining factors in the success of an organization in a competitive market, is gaining ground.” Shebanova (2011) notes that “in further improving social and labor relations, the Federation of Independent Trade Unions of Russia will rely on the principles of social partnership, which ensure respect for human rights, a mutually acceptable combination of the interests of employees, employers, and the state for achieving decent economic and social development of the country.” V. Kiryanova notes that the share of labor costs in the cost of sold goods ranges from 35% to 50% and depends on several factors: the form of management, specialization, the financial and economic condition of the agricultural enterprise (Kiryanova 2011a, b). In the APC, in the structure of revenue, labor costs account for a significant proportion (up to 40%), but over the years, they decrease not at the expense of the average monthly wage. We analyzed the example of 6 districts of the Nizhny Novgorod region over five years (2009–2013), where agricultural enterprises and agricultural organizations of any other legal form operate. The results of the analysis are presented in Fig. 1, 2, 3, 4 and 5. In general, in the Nizhny Novgorod region, the situation looks as follows: As shown in Fig. 2, 3, and 4, the smaller the enterprise, the greater the gap between the APC and other agricultural organizations. APCs most fairly distribute income from their activities in favor of the labor collective.

Fig. 1 The growth dynamics of the specific gravity of the payroll fund in the APC and other agricultural organizations (in %) Source Developed by the authors

Understanding the Labor Efficiency …

1075

Fig. 2 The growth dynamics of the share of payroll funds in the APC and other agricultural enterprises in the category of medium enterprises (in %) Source Developed by the authors

Fig. 3 The growth dynamics of the share of payroll funds in the APC and other agricultural enterprises in small enterprises (in %) Source Developed by the authors

Fig. 4 The growth dynamics of the share of payroll funds in the APC and other agricultural enterprises in the category of microenterprises (in %) Source Developed by the authors

1076

A. E. Shamin et al.

Fig. 5 The growth dynamics of the average monthly wage in the APC and other agricultural enterprises (in rub.) Source Developed by the authors

One can indicate the above facts as the reason for the coming fall of the APC. However, in the APC, the growth rate of labor productivity prevails over the growth of payroll. The President of Russia, in the Address to the Federal Assembly in 2019 (Presidential Executive Office 2019), outlined the priority for the development of the economy as “the outstripping growth rate of labor productivity, primarily based on new technologies and digitalization, the formation of competitive industries, and, as a result, an increase in non-resource exports by more than 1.5 times in six years.” He also noted that “the key long-term factor for sustainable agricultural growth should be the improvement of the quality of life of people who work in rural areas.” In this regard, he drew the government’s attention to the fact that it is necessary to adopt a new program for the development of rural territories already this year, which should start working from January 1, 2020. In connection with what the President said, we believe that the form of farming in the APC deserves a closer study by scientists as the most acceptable for ordinary people with the most equitable distribution of income in favor of rural residents. The Ministry of Agriculture of the Russian Federation (2008), in its methodological recommendations, provided for the construction of labor remuneration in agricultural enterprises on the principles, including outstripping the growth rate of labor productivity over wage growth. We decided to compare the growth rate of labor productivity with the growth rate of the wage fund in revenue. We divided agricultural organizations by the coefficient of outstripping the growth rate of labor productivity over the growth rate of the share of the wage fund in revenue into five groups (Fig. 6).

Understanding the Labor Efficiency …

1077

17 APC и 15 agricultural enterprises

17 APC и 3 agricultrual enterprises

APC "Medyana" (1.028), APC of the Order of the Red Banner of Labor "Kuibyshev Collec ve Farm" (1.053), APC "Madaevsky" (1.071), APC "Krasny pakahr" (1.128), APC "Voshod" (1.14), APC "Oborona strany" (1.149), OOO "Pesochnoye" (1.249), APC named a er S. M. Budeny (1.319), APC "Kamensky" (1.352)

APC "Krasnaya Gora" (1.405), APC "Berezniki" (1.571), APC "Niva" (1.676), APC "Shagaevsky" (1.777)

APC "Deyanovsky" (К=2.319)

Fig. 6 Grouping of APCs and other agricultural enterprises according to the coefficient of outstripping the growth rates of labor productivity over the growth rate of the share of the wage fund in revenue Source Developed by the authors

4 Conclusion APCs increase profits by reserving one part of the profit in the reserve fund and another—in the indivisible fund, which creates a safety bag for the future, proving to everyone that the income distribution in the APC is the most equitable, and the economic efficiency of their activities is not inferior to the same agricultural holdings. First of all, this confirms that it is necessary to develop cooperative forms of organized agricultural production. This will be possible through the attraction of resources to the countryside, primarily labor resources. Furthermore, it is necessary to develop industrial and consumer cooperation in rural areas. As T. Kutaeva notes, “… this can only be achieved if the cooperative organizations are competitive, and innovation processes are introduced and developed to achieve their financial stability” (Kutaeva et al. 2017). Currently, among the whole variety of forms of economic entities, one of the effective forms of production is the peasant (farmer) economy. They make a significant contribution to the preservation of the rural lifestyle and the production of agricultural products. As noted by O. A. Zubrenkova, “for the effective development of agriculture in Russia, in particular peasant farms, it is necessary to take into account the positive experience in the development of foreign farming and its cooperation” (Mansurov et al. 2017).

1078

A. E. Shamin et al.

References Belokrylova, E.A.: Comment to the Law of the Russian Federation “On Security” (article-by-article). Justicinform, Moscow (2008) Egorov, S.A., Ignatenko, A.S., Kozyreva, A.B.: Intersectoral Coordination of Legal Regulation of Labor in Corporate Organizations. Buki Vedi, Moscow (2016) Kiryanova, V.: Composition and budgeting for wages. Agribus. Econ. Equip. Technol. 2, 30–35 (2011a) Kiryanova, V.: Composition and budgeting for wages. Ration. Remun. Agric. 1, 19–24 (2011) Kovryakova, E.V.: Fundamentals of state national strategy: constitutional aspect. Lex Russica 1, 50–61 (2017) Kutaeva, T.N., Gorshkova, D.S., Shamin, E.A.: Features of the development of consumer cooperation at the present stage. Bull. Nizhny Novgorod State Univ. Eng. Econ. 5(72), 113– 120 (2017) Mansurov, A.P., Zubrenkova, O.A., Fedotova, O.I.: International experience in the development of peasant (farmer) farms. Bull. Nizhny Novgorod State Univ. Eng. Econ. 9(76), 135–146 (2017) Mikhaleva, N.A.: Constitutional foundations of the state national strategy of Russia. In: Fadeev, V. I. (ed.) Problems of the Constitutional Development of the Russian Federation, p. 213. Moscow, Russia (2013) Minina, E.L.: Agricultural cooperatives in the system of Russian legislation on cooperation. J. Russian Law 4, 49–60 (2019) Ministry of Economic Development of Russia. Forecast of the socio-economic development of the Russian Federation for the period until 2024. Bulletin of Pricing and Estimated Rationing, vol. 11 (2018) Presidential Executive Office. The decree On the Strategy of the state national policy of the Russian Federation for the period until 2025 (19 December 2012 No. 1666). Moscow, Russia (2012) Presidential Executive Office. Presidential Address to Federal Assembly (2019). http://en.kremlin. ru/events/president/news/59863 Russian Federation. Federal Law On agricultural cooperation (08 December 1995 No. 193). Moscow, Russia (1995) Russian Federation. Federal Law On production cooperatives (08 May 1996 No. 41). Moscow, Russia (1996) Russian Federation. Federal Law On the development of small and medium-sized enterprises in the Russian Federation (24 July 2007 No. 209). Moscow, Russia (2007) Russian Federation. Guidelines for the accounting of labor costs and its payment in agricultural organizations. (22 October 2008). Moscow, Russia (2008) Shebanova, A.I.: Decent work: signs, content, and guarantees of its provision. In: Labor law in Russia and Abroad, vol. 3, pp. 2–6 (2011) USSR. Law On Cooperation in the USSR (26 May 1988 No. 8998-XI). Vedomosti of the Supreme Soviet of the USSR, vol. 22, p. 355 (1988) Uzun, V.Ya.: Agricultural structure in Russia: adaptation to the market and efficiency. Bull. Center Agri-Food Econ. 2, 5–14 (2003) Uzun, V.Ya.: Development trends and efficiency of large and small businesses in agriculture in Russia. Voprosy Ekonomiki 6, 109–118 (2005)

Developing a Recipe for Gluten-Free Snacks Galina N. Dubtsova , Irina U. Kusova , George G. Dubtsov , and Irina V. Vitol

Abstract A flour composite mixture [FCM] is used for the production of gluten-free snacks. This mixture uses rice, pea, and chickpea flour and provides a product with a high biological value. To improve the taste and aromatic characteristics and increase antioxidant properties, asafoetida spice is included in the recipe, which contains a significant amount of phenolic acids, terpenes, and can be classified as phenolic antioxidants. Frying oils (palm, rapeseed, sunflower, and sunflower with a high content of oleic acid) were used for frying snacks. The oxidative stability of the oils was evaluated by the induction period. Taking it into account, a high oleic oil with an induction period of 9.2 was chosen for frying products. Asafoetida was added in an amount of 0.2% to increase the oil’s oxidative stability; it increased the induction period by 1.5 times. Keywords Flour composite mixtures Gluten-Free snacks Asafoetida





Biological value
Induction period


G. N. Dubtsova (&)
I. U. Kusova
G. G. Dubtsov
I. V. Vitol Moscow State University of Food Production (MGUPP), Moscow, Russia e-mail: [email protected] I. U. Kusova e-mail: [email protected] G. G. Dubtsov e-mail: [email protected] I. V. Vitol e-mail: [email protected] I. V. Vitol All-Russian Scientific and Research Institute for Grain and Products of its Processing–Branch of V. M. Gorbatov Federal Research Center for Food Systems of RAS, Moscow, Russia © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_115

1079

1080

G. N. Dubtsova et al.

1 Introduction Snack production is one of the fastest-growing food industries. According to expert estimates, the global snack market will reach $138.2 billion by 2020, with an average annual growth of 7.9% (Petysh 2017). The consumer is offered a variety of snack products, both gastronomic and sweet, which can be used as a breakfast cereal or snack. That is a mixture of cereal products, nuts, fruits, and various types of syrups, formed as small bars or small cookies. Despite the wide range, there are not enough products intended for specialized nutrition among snacks. Specialized food products intended for a specific group of consumers are becoming more popular. Such food products include dietary, therapeutic, and dietary preventive products. Products marked as “gluten-free,” intended primarily for consumers with celiac disease, are becoming more popular. Celiac disease is a chronic disease associated with indigestion caused by damage to the small intestine’s villi by foods containing specific proteins—gluten and related cereal proteins (avenine, hordein, etc.). According to available data, the number of such population varies from 0.5% to 1.0% of the total population (Revnova 2008). Following TR TS 027/2012 “On the safety of certain types of specialized food products, including dietary, therapeutic, and preventive dietetic food,” gluten-free products must consist or be made of one or more components that do not contain wheat, rye, barley, oats, or their crossbred options and (or) must consist or be made in a special way(to reduce gluten level) from one or more components that are obtained from wheat, rye, barley, oats, or their crossbred varieties, where the level of gluten in ready-to-eat products does not exceed 20 mg/kg. Currently, gluten-free products are in demand among consumers who adhere to healthy food as a fashion trend that came to us from the US and Europe, where 10% —20% of the population follow this diet. This segment of products entered the Russian market relatively recently, while Europe and North America are saturated with such products. This work aims to create technology and expand the range of gluten-free snack products.

2 Materials and Methods Rice, chickpea, pea flour in specific proportions, and butter, as recommended in the diet of people adhering to a gluten-free diet, were selected as prescription ingredients for snacks (Sapone et al. 2012). Salt and spices (sesame, caraway, cumin, and asafoetida) were introduced into the recipe as additional components to improve the taste. Water was added in an amount that provides a moisture content of 27%— 32% of the semi-finished product. A feature of this product is that asafoetida spice is introduced into the recipe. Asafoetida (Ferulaassa-foetida) is a perennial herb of the genus Ferula of the

Developing a Recipe for Gluten-Free Snacks

1081

parsley family. The spice is received from the milky juice of the roots of asafetida. Spice is popular in Indian cooking. It has a wide range of effects on the human body, including helping digest legumes. It also prevents the development of flatulence. This is especially important since bean flour is rich in oligosaccharides hard to digest. Snacks were formed by thermostatic extrusion, which provides a deep biochemical transformation of the protein and carbohydrate component of grain raw materials, which contributes to their assimilation into the body (Bogatyrev and Yuryev 1994; Korolev et al. 2017). During the experiment, such technological parameters as the temperature of the working chamber, the frequency of the screws’ rotation, the pressure in the matrix, etc. were controlled. After molding, the snacks were deep-fried. The formed snacks were placed for 5—10 s in deep-frying oil heated to 170 ± 5 °C in separate portions. The portions of the fried product were laid out on a perforated surface to drain excess oil. The deep-frying oil is added to the container as its level decreases. When frying, the oil temperature and the degree of its oxidation are controlled by peroxide number. The work used generally accepted methods of analyzing the chemical composition of different types of flour, vegetable oils, and the induction time, according to GOST 31758-2012 (ISO 6886:2006) (All-Russian Research Institute of Certification 2009). To compose gluten-free snack recipes, calculate the biological value and the coefficient of difference in amino acid composition, we used Microsoft Office Excel 2007. The time of oil induction was measured on a Rancimat-743 instrument.

3 Results The recipes for flour composite mixtures, which included rice, pea, chickpea, or mung bean flour, were prepared using Microsoft Office Excel 2007. The characteristics of the chemical composition of the used samples are given in Table 1. Table 1 The chemical composition of flour samples

Content in 100 g

Flour Rice

Pea

Water, g 14.0 14.0 Protein, g 7.0 21.02 Fats, g 0.5 2.0 Carbohydrates, 78.0 49.0 g Source Calculated by the authors

Chickpea

Mung beans

14.0 22.02 7.0 58.0

14.0 23.5 2.0 46.0

1082

G. N. Dubtsova et al.

A feature of rice flour is its low protein content and high starchy polysaccharide content. Pea flour is high in protein. Chickpea, mung bean, and pea flour contain dietary fiber, have a valuable vitamin and mineral composition, and the lipids of these leguminous crops contain saturated and unsaturated fatty acids. The composition of composite flour mixtures was determined, which became the basis for the development of new types of gluten-free snacks (Table 2). To optimize the composition of the FCM for each recipe, amino acid scores (AS) were calculated for irreplaceable amino acids. A limiting amino acid was determined, the coefficient of difference in amino acid scores (CDAS) and biological value (BV) was calculated, and the recipe with the highest biological value was selected (Table 3). Five recipes were selected that provide the highest biological value out of the 12 recipes reviewed. Since the studied FCM recipes had almost the same biological value, recipe three was chosen for further studies. The following composition characterized the dry asafoetida used in work: flavonoids in rutin—349.83 mg/100 g, hydroxycinnamic acid, mg/g: chlorogenic— 30.0, ferulic—17.0, caftar—1.0. The composition of the spice includes a set of aromatic substances (64 substances), including aliphatic alcohols, oxo compounds (aldehyles and ketones—aromatic and heterocyclic), aliphatic and aromatic carboxylic acids, esters, terpenes, phenol derivatives, heterocyclic aromatic compounds (derivatives of furan and thiophene). The characteristics of the oil samples used for fritter processing are shown in Table 4. To select the oil for frying, studies to determine the stability of vegetable oils to oxidation were conducted on the Ransimat device (All-Russian Research Institute of Certification 2009; Stele 2006). The results are shown in Table 5.

Table 2 The recipes of flour composite mixtures for gluten-free snacks Recipe number 1 2 3 4 5 6 7 8 9 10 11 12 Source Calculated by

The name of components and its content in the mixture, % Rice flour Pea flour Chickpea flour Mung bean flour 50 50 60 60 60 60 60 60 55 55 55 55 the authors

25 25 20 20 15 15 25 25 25 25 20 20

25 0 20 0 25 0 15 0 20 0 25 0

0 25 0 20 0 25 0 15 0 20 0 25

Developing a Recipe for Gluten-Free Snacks

1083

Table 3 The characterization of flour composite recipes for gluten-free snacks Recipe

The name of components and its content in the mixture, %

Rice flour Pea flour Chickpea flour 3 Rice flour Pea flour Chickpea flour 5 Rice flour Pea flour Chickpea flour 9 Rice flour Pea flour Chickpea flour 11 Rice flour Pea flour Chickpea flour Source Calculated by the authors 1

50 25 25 60 20 20 60 15 25 55 25 20 55 20 25

Amino Acid Scor

CDAS

BV

0.9330 (on methionine + cystine)

0.280

0.720

0.9213 (on threonine)

0.251

0.749

0.9234 (on threonine)

0.252

0.748

0.9229 (on threonine)

0.254

0.746

0.9271 (on threonine)

0.255

0.745

Table 4 The characteristics of samples of vegetable oils Indicator

Palm oil

Sunflower oil

Sunflower Oil with High Oleic Acid

Rapeseed oil

Peroxide Value, meq/kg Acid number, mgKOH/g Anisidine number, Conv. units Mass fraction of fat, % Mass fraction of moisture and volatiles, % Taste and smell

0.6

1.0

1.5

1.2

0.2

0.6

0.3

0.5

0.55

3.8

0.9

1.1

99.96

99.90

99.90

99.85

0.04

0.1

0.1

0.1

Pure

Flavorless, non-specific

Color Transparency

Light yellow Transparent in a molten state Source Calculated by the authors

Transparent without sediment

Peculiar to deodorized oil, without odor and taste Yellow

1084

G. N. Dubtsova et al.

Table 5 The oxidation resistance of oils Indicator

Palm oil

Sunflower oil

Induction period 17.1 9.2 Shelf life at 4 °C, 69,795 36,126 h Source Calculated by the authors

Table 6 The effect of asafoetida on the oxidative stability of the oil

Indicator

Sunflower Oil with High Oleic Acid

Rapeseed oil

2.26 8,979

2.6 10,612

The amount of asafetida, % Control 0.02 0.1

Induction period, h 5.29 Source Calculated by the authors

7.80

7.98

0.2 8.22

As a result of the studies, it was found that palm oil was the most resistant to oxidation, with an induction period of 17.1 h, which is two times more stable than sunflower oil with a high content of oleic acid, 7.6 times higher than ordinary sunflower oil, and six times higher than rapeseed oil. Therefore, for deep frying, the best oils are palm oil and refined, bleached, and deodorized sunflower oil with a high content of oleic acid. High-oleic sunflower oil, according to STO 33356775-001-2008, was used in the work. Many natural spices have antioxidant properties and prevent the rancidity of fats. The spice asafoetida contains a significant amount of ferulic acid in its composition and can be attributed to phenolic antioxidants. High oleic sunflower oil was used to model the dynamics of lipid oxidation. The studied asafoetida additive was added in an amount of 0.02, 0.1, and 0.2%. Oil samples were thermostated at 120 °C to determine the induction period (Table 6). The introduction of asafoetida significantly increases the inhibition of the oxidation process, providing oxidative stability of the oil and increasing the shelf life of the product.

4 Discussion During frying, the products absorb 15%—18% of deep fat, depending on the product’s mass and shape. The shelf life of the products is three months, since after this period in the products: the acid number of fat—0.74 mgKOH/g; peroxide value— 17.9 meq/kg; anisidine number—16.77 conv. units. Following TR TS 024/2011, “Technical regulations for oil and fat products,” the permissible level of acid number for this oil is 0.6 mgKOH/g, and the peroxide value is 10.0 meq/kg. The nutritional value of the product is as follows: 100 g of the product contains protein—7 g., digestible carbohydrates—43 g., fats—18 g. The energy value is 370 kcal.

Developing a Recipe for Gluten-Free Snacks

1085

Following TR TS 022/2011 “Food products in terms of their labeling” for food products containing grain components, after indicating the composition of the product, it is allowed to place the inscription “|Gluten-free” if grain components containing gluten were not used, or gluten was removed.

5 Conclusion Thus, a set of promising ingredients was established for creating a formulation of gluten-free snacks; the directions for the development of further research are outlined, the implementation of which will expand the assortment line of this type of snack products.

References All-Russian Research Institute of Certification. GOST R 53160-2008 (ISO 6886-2006). Animal and vegetable fats and oils. Method for determining oxidation stability (accelerated oxidation test). Standartinform, Moscow, Russia (2009) Bogatyrev, A.N., Yuryev, V.P. (eds.): Thermoplastic Extrusion: Scientific Foundations, Technology, Equipment. Stupen, Moscow (1994) Korolev, A.A., Kornev, L.Ya., Koptyaev, I.S., Fazullina, O.F.: The influence of technological parameters of multicomponent grain mixtures on the extrusion process. In: Martirosyan, V.V. (ed.) Science as the Main Factor of an Innovative Breakthrough in the Food Industry, pp. 98– 100. Buki Vedi, Moscow (2017) Petysh, Y.S.: Snacks are relevant. Confection. Bakery 3–4, 46–49 (2017) Revnova, M.O. (ed.). Celiac disease in children. Russian Med. J. 18, 1209 (2008) Sapone, A., Bai, J.C., Ciacci, C., Dolinsek, J., Green, P.H., Hadjivassiliou, M., Kaukinen, K., Rostami, K., Sanders, D. S., Schumann, M., Ullrich, R., Villalta, D., Volta, U., Catassi, C., Fasano, A.: The spectrum of gluten-related disorders: Consensus on new nomenclature and classification. BMC Med. 10, 13 (2012) Stele, R. (ed.). Food Shelf Life: Calculation and Testing. Profession, St. Petersburg (2006)

Specialized Bakery Products for Dietary Nutrition Alfred R. Bogdanov , Georgy G. Dubtsov , Galina N. Dubtsova , Irina U. Kusova , and Ily K. Vadovsky

Abstract Bakery products in the amount of 100 g are included in the low-calorie therapeutic diet for overweight patients. To increase the nutritional density of the products, a vitamin-mineral premix containing resistant starch was used. The presence of dietary fiber in the premix was confirmed by exposure to digestive enzymes in vitro. Premix, in an amount of 0.2%, was introduced when mixing dough for bakery products. The introduction of the premix did not adversely affect the organoleptic characteristics of the products. It provided a significant increase in the content of vitamins B1, B2, PP, and such minerals as Se, Fe, Zn, and I. The verification of the clinical efficacy and tolerability of a specialized bakery product for dietary nutrition in patients with overweight and cardiovascular diseases showed that the use of the product in a basic diet had a beneficial effect on anthropometric data, body composition parameters, and energy metabolism. The obtained results indicate the advisability of using a specialized bakery product for dietary (therapeutic and prophylactic) nutrition, as well as a means of prophylaxis and adjunctive therapy for cardiovascular diseases of the body.




Keywords Specialized products Bakery products premix Nutrition for overweight people





Vitamin and mineral

A. R. Bogdanov Federal Research Centre of Nutrition, Biotechnology, and Food Safety, Moscow, Russia e-mail: [email protected] G. G. Dubtsov (&)
G. N. Dubtsova
I. U. Kusova
I. K. Vadovsky Moscow State University of Food Production (MGUPP), Moscow, Russia e-mail: [email protected] G. N. Dubtsova e-mail: [email protected] I. U. Kusova e-mail: [email protected] I. K. Vadovsky e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_116

1087

1088

A. R. Bogdanov et al.

1 Introduction Following the definition of the Technical Regulation of the Customs Union TR TS 021/2011 “On Food Safety,” dietary prophylactic food products are “specialized food products designed to correct carbohydrate, fat, protein, vitamin, and other types of metabolism, in which the content is changed, or the ratio of individual substances is relative to their natural content.” In turn, “food products for dietary therapeutic nutrition” are products “with certain nutritional and energy value, physical and organoleptic properties that are intended for use in therapeutic diets” (Customs Union 2011). The bakery industry produces specialized dietary products (GOST 25832-89). However, the production volume of dietary bakery does not meet the required level (Kosovan and Shaposhnikov 2018), (Kantselson et al. 2018). Bakery products are included in the existing norms of medical nutrition as a necessary component in an amount of 0.1 kg for a low-calorie diet and up to 0.4 kg for a high-calorie diet; in a standard diet, it is 0.3 kg (Ministry of Health of the Russian Federation 2013). Medical organizations, forming patients rations, as a rule, include bread products of industrial production in the diet. However, given the insignificant production volumes of diet bread, these are ordinary mass varieties, which, in essence, are sources of “empty calories” due to low nutritional density, i.e., the relatively low content of vitamins and essential minerals. At the same time, the catering departments of a significant part of hospitals have specialized flour workshops and equipment for the development of specialized bakery products for certain groups of patients, purposefully shaping their composition, taking into account medical indicators. The most effective and economically affordable way to optimize the diet is to use premixes concentrating on biologically active substances in an inert carrier, for example, flour or starch, and their subsequent enrichment of mass daily food products. The study aims to develop a production technology in the catering department of a medical institution for specialized bakery products for clinical nutrition using a vitamin-mineral premix.

2 Materials and Methods In the production of premix, iron sulfate and zinc sulfate were used, as well as the selecor C (dimethyldipyrazolylselinide) as the source of organic selenium, the bioiod as the source of iodine (Medbiopharm), and the vitamins produced by ICN (Switzerland): B1 (thiamine chloride hydrochloride), B2 (riboflavin), PP (a nicotinic acid) B6, C (ascorbic acid). Resistant starch from high amylose corn (Hi-maiz) manufactured in the USA was used as an additive. The content of dietary fiber in the resistant starch sample and products was determined by the enzymatic-gravimetric method. The content of vitamins and individual minerals was set following the guidelines Skurikhina and Tutellan (1998).

Specialized Bakery Products for Dietary Nutrition

1089

The therapeutic effectiveness of a diet with enriched products was determined by the methods adopted in medical practice. Baking raw materials (high-grade flour, baking yeast, salt, and water) corresponding to the existing regulatory documentation were used to produce specialized bakery products.

3 Results The premix contains the following components: vitamins B1, B2, B6, PP; mineral elements Fe, Zn, I, Se, and resistant starch as a carrier. The decisive factor in determining the dosage of premix is the maximum content of the enriching component in the finished product, which can vary from 10 to 50% of the daily norm of a particular nutrient, i.e., in 200 g of products (average daily rate of consumption of bread products). Ascorbic acid was introduced into the premix as a technological auxiliary. The distribution of ascorbic acid in the mixture during the preparation of the premix by mixing shows the mixture uniformity. When determining the final composition of the premix, the following was taken into account: – premix should be considered as an additive, not a component of the formulation. Therefore, its input amount should be less than 1% by weight of the formulation components; – the premix dosage should not be less than 0.1% because the use of less amount makes it difficult to dose the micro-component and ensure uniform distribution in the finished product; – the premix is not lent to influence the organoleptic properties of the final product; – the premix should not have a significant impact on the parameters and organization of the technological process, complicating it; – the premix should have a universal application, i.e., can be used to produce various food products, primarily bulk (for example, bakeries). Taking into account the above factors, the composition of the premix was determined (Table 1). Resistant corn starch was used as a filler in the development of premix, which is conducted into products and contributes to an increase in dietary fiber content. Resistant starches have a particular metabolic pathway in a living organism, at which the rate of their breakdown into enzymes in the oral cavity, stomach, and small intestine is extremely low. Some resistant starches undergo fermentation in the large intestine, forming metabolites that have a beneficial effect on the composition of microorganisms in the intestinal mucosa and on the whole organism. This effect allows us to attribute resistant starches to effective prebiotics. Another

1090

A. R. Bogdanov et al.

Table 1 The composition of the premix for food fortification

Indicator Carrier, % no more Mass fraction of vitamins, g/100 Vitamin B1 Vitamin B2 Vitamin B6 Vitamin PP Vitamin C Mass fraction of minerals. g/100 Se Fe Zn I Source Calculated by the authors

Indicator value 77.3 ± 0.06 g 0.244 0.30 0.33 2.88 19.2

± ± ± ± ±

0.04 0.05 0.055 0.045 3.0

0.009 1.31 1.57 0.02

± ± ± ±

0.0018 0.22 0.26 0.004

g

part of resistant starch is excreted from the body in an almost unchanged form, which corresponds to the effect of dietary fiber. The combined performance of these two critical functions by resistant starch allows us to consider them as promising food ingredients that contribute to improving human health, improving immunity, and recommend as a food supplement. Resistant starch in the amount of 5, 10, and 20% by weight of flour was used in the preparation of bread products by the usual method (Puchkova 2004). In the obtained products, the content of dietary fiber was determined. The results were compared with the calculated data (Table 2). The studies showed that with certain changes in technology (increasing the humidity of the dough and lengthening the duration of the proofing), it is possible to produce dietary bakery products using Hi-maize—starch. At the same time, the product’s organoleptic characteristics do not differ from the ordinary products of premium wheat flour. Such products are marked with a low glycemic index (Table 3). Table 2 The content of dietary fiber in samples of raw materials and bakery products Sample

Estimated quantity, %

The actual amount determined by the enzymatic gravimetric method, %

Hi-maize— 60–70* 58.50 starch Bakery products: Control 2.16 4.16 With the introduction of resistant starch, %: 10.0 8.36 8.52 20.0 12.4 13.14 *According to the supplier Source Calculated by the authors

Specialized Bakery Products for Dietary Nutrition

1091

Table 3 The effect of resistant starch on the degree of lowering the glycemic index of bakery products, % (the glycemic index of bread from premium flour is accepted for 100%) Product

The glycemic index level, in % to control

High-grade flour bread (control) 100 With the addition of resistant starch, % by weight of flour: 5 96 10 74 20 53 Wholemeal bread 84 Source Calculated by the authors

Resistant starch was introduced into the vitamin-mineral premix as a carrier. When determining the amount of premix for inclusion in the composition of fortified products, we considered the fact that when consuming 0.2 kg of bread products, the need for essential components will be provided by 20–30% (Table 4). Under the conditions of the clinic’s catering department, in the production of such bakery products as loaves made from wheat flour (the type of flour most poor in vitamins and minerals), the premix was introduced in an amount of 0.3% by weight of the flour during kneading of the direct dough, which was then subjected to cutting, proofing, and baking. The study was organized as random, parallel, and controlled. Forty patients with overweight and diseases of the cardiovascular system (IHD and hypertension) under stable conditions were divided into two representative groups of 20 people: the leading group and the comparison group. All patients received a low-calorie

Table 4 The total demand for individual micronutrients and their content in enriched and unenriched products, mg/100 g Vitamins and minerals

The daily requirement for individual micronutrients, mg

1.5 B1 1.8 B2 2.0 B6 PP 20.0 C 90.0 Se (selenium) 0.05 Fe (iron) 10.0 Zn (zinc) 25.0 I (iodine) 0.15 Source Calculated by the authors

The actual content of micronutrients in the products, mg/100 g Enriched with Unenriched premix 0.33 0.4 0.46 3.95 – 0.02 2.89 1.06 0.01

0.11 0.03 0.14 0.9 – – 2.0 0.7 0.001

1092 Table 5 Organoleptic evaluation of enriched products

A. R. Bogdanov et al. Indicator

Points on a 5-point scale

Appearance Smell Color Taste Consistency

4.90 5.00 4.90 5.00 4.94

± ± ± ± ±

0.04 0.00 0.05 0.04 0.05

hyponatrium antiatherogenic diet reduced in calorie content for 14 days, containing 101 g of protein, 72.5 g of fat, and 188 g of carbohydrate with an energy value of 1,812 kcal. During the entire study, the patients of the leading group received a specialized bakery product in addition to dietary (medical and preventive) nutrition. The patients in the comparison group received only a low-calorie hyponatrium antiatherogenic diet—Ap. As shown in Table 5, the overwhelming number of patients gives the highest score to the quality of the bakery product. Its good organoleptic properties were noted. The vast majority of patients noted pleasant taste and smell. None of the participants in the study noted any unpleasant “aftertaste.” Over the entire period of clinical testing, not a single case of intolerance or dyspeptic symptoms was noted. After the end of the clinical trials, all patients who took part in the experiment expressed a desire to continue taking this product at home.

4 Discussion The inclusion of a bakery product as an addition to the basic diet contributed to a statistically significant decrease in total cholesterol from 5.56 ± 0.25 to 4.62 ± 0.19 mmol/L (by 17%, p < 0.05), and a decrease in triglycerides—from 1.66 ± 0.16 to 1.30 ± 0.12 mmol/L (by 22%), LDL cholesterol—from 3.23 ± 0.22 to 2.69 ± 0.18 mmol/L (by 17%), atherogenic coefficient 2.85 ± 0.28 to 2.59 ± 0.20 (9%). In patients of the comparison group, the decrease in total cholesterol was from 5.85 ± 0.22 to 5.09 ± 0.19 mmol/L (by 13%, p < 0.05), and the level of triglycerides from 1.62 ± 0.13 to 1.54 ± 0.14 mmol/L (by 5%), LDL cholesterol —from 3.83 ± 0.20 to 3.29 ± 0.15 mmol/L (by 14%, p < 0.05), coefficient atherogenicity—from 3.74 ± 0.27 to 3.44 ± 0.23 (by 8%). The presented data indicate the presence of a moderately expressed, but significant hypolipidemic effect of diet therapy with the inclusion of a bakery product in patients with coronary artery disease and hypertension against the background of traditional medication. When analyzing the indicators of anthropometry in dynamics, it was found that in both observed groups of patients, against the background of diet therapy, a

Specialized Bakery Products for Dietary Nutrition

1093

satisfactory reduction in body weight was observed, more pronounced in patients of the leading group. Thus, in patients receiving a basic diet with the inclusion of a bakery product, body weight, as a result of a course of diet therapy, decreased from 101.2 ± 3.89 to 95.8 ± 3.81 kg (by 5%), and in patients receiving a basic diet from 97,4 ± 2.23 to 95.6 ± 2.06 kg (2%). In general, it should be noted that the presented data on the dynamics of anthropometry and bioimpedance analysis indicate a significant positive effect of the course of diet therapy on body weight, OT/OB index, and the amount of body fat in patients in both observed groups, slightly more pronounced in the leading group of patients receiving basic diet therapy enriched with a specialized bakery product.

5 Conclusion The obtained data showed that the products have excellent organoleptic properties, well-tolerated, do not cause allergic reactions, dyspepsia, or any other side effects. The inclusion of the developed products in the basic diet enhances its hypolipidemic effect manifested by a more significant decrease in blood serum levels of total cholesterol, triglycerides, LDL cholesterol, VLDL cholesterol, and the value of the atherogenic coefficient than in patients of the comparison group. The use of the product against the background of the basic diet has a beneficial effect on anthropometric data, body composition, and energy metabolism. The obtained results indicate the advisability of using a specialized product for dietary (therapeutic and prophylactic) nutrition, as well as a means of prophylaxis and adjuvant therapy for cardiovascular diseases of the body. Following the instructions of GOST R-540-59, vitamin and mineral premix should be attributed to functional ingredients (Classes B1 and B2) that maintain the activity of the cardiovascular system, and, therefore, food products obtained with their use can be classified as a functional product.

References AOAC International: Official Methods of Analysis of Association Official Analytical Chemistry, Rockville, MD (1984) Customs Union: Technical Regulation “On Food Safety” TR TS 021/2011 (2011) Katznelson, Yu.A., Krikheli, M.O., Kislev, M.V., Litvinov, E.N.: Small and medium baking in the market of the Russian Federation. Confectionery Bakery 7–8, 42–43 (2018) Kosovan, A.P., Shaposhnikov, I.I.: The development of the Russian bakery products market in the context of globalization. Bakery Russia 1, 4–8 (2018)

1094

A. R. Bogdanov et al.

Ministry of Health of the Russian Federation: The order “On approval of the norms of medical nutrition” (June 21, 2013 No. 395n), Moscow, Russia (2013) Puchkova, L.I.: Laboratory Workshop on Baking Technology. GIORD, St. Petersburg (2004) Skurikhina, I.M., Tutellan, V.A. (eds.): Guidance on Methods for Analyzing Food Quality and Safety. Brandes. Medicine, Moscow (1998)

Assessing the Expediency of Using Outsourcing in Various Economic Sectors: A Review of the Existing Approaches Irina V. Trushchenko , Marina V. Samoshkina , and Evgenia V. Vikulina Abstract Many companies use outsourcing as one of the highly effective forms of organizing business processes to respond to market changes quickly. It allows companies to reduce costs and focus on the most cost-effective activities. However, how to understand whether it is worth transferring the business process to outsourcing to a third-party organization or still leave it inside the company? This paper will try to answer this question. The main objective of the study is to conduct a comparative analysis of existing approaches to assessing the appropriateness of using outsourcing by a company to form a mechanism for using new forms of outsourcing. In the paper, we will present an overview of the main methods and models for evaluating the feasibility of using outsourcing, based on the scientific works of foreign and domestic scholars. Additionally, we will study approaches aimed at forming a decision on the use of outsourcing, the selection of business processes, and their composition for outsourcing. The goal of the study was achieved by systematizing and analyzing the scientific works of foreign and domestic scholars according to the theoretical and practical orientation on the issue investigated in this work. A review of the literature indicates that each method and model for evaluating the feasibility of using outsourcing takes into account either quantitative or qualitative characteristics, which separately do not provide an objective assessment for deciding on the use of outsourcing. Based on the study, we can conclude that there is no universal approach to determining the feasibility of outsourcing nowadays. The authors proposed an integrated approach to solving this problem.




Keywords Outsourcing Business process Outsourcing matrix Algorithms





Graphical and calculation methods


I. V. Trushchenko (&)
M. V. Samoshkina
E. V. Vikulina Moscow Region University of Technology, Korolev, Russia e-mail: [email protected] M. V. Samoshkina e-mail: [email protected] E. V. Vikulina e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_117

1095

1096

I. V. Trushchenko et al.

1 Introduction Based on the study, we can conclude that there is no universal approach to determining the feasibility of outsourcing nowadays. The modern methodology for deciding on applying outsourcing to enterprises of various forms of ownership and production focus is based on economic (settlement) and graphical assessment models (Gribanov 2005; Grunichev 2010; Zinkov 2006; Mukhina 2010). Existing approaches to assessing the appropriateness of outsourcing are based on the consideration of specific criteria, which, in a given situation, are key to the analysis. The study examined models for evaluating the feasibility of outsourcing proposed by economists like Haywood (2002); Kremlyova (2009); Kuznetsova (2010); Makhmutov et al. (2015); Anikin and Rudaya (2009); Kurbanov (2012); Kurbanov and Plotnikov (2013); Moiseeva et al. (2010); Khlebnikov (n.d.); Mukhina (2008) and others, as well as the models of such companies as McKinsey (Polienko n.d.), Boston Consulting Group (Moiseeva et al. 2010), Price Waterhouse Coopers (Willcocks et al. 1995), BKG Profit Technology (Willcocks et al. 1995), and IBS (Mitrofanova n.d.). Nowadays, there is no universal approach to determining the feasibility of outsourcing. The study aims to develop an integrated approach to assessing the feasibility and effectiveness of using outsourcing in the service sector.

2 Materials and Methods The methodological basis of the study is the analysis of existing approaches and outsourcing methods to learning the appropriateness of outsourcing. The goal of the paper was achieved by studying the scientific works of foreign and domestic scholars according to the theoretical and practical orientation of the issue investigated in this work.

3 Results A comparative analysis of existing approaches to assessing the appropriateness of using outsourcing to form a mechanism for using new forms of outsourcing showed that these approaches are aimed at forming a decision on the use of outsourcing, selecting business processes and their composition for outsourcing, and analyzing the appropriateness of using outsourcing technology. As a fundamental advantage of the application of economic (settlement) methods, the possibility of obtaining numerical indicators, which is the basis for making

Assessing the Expediency of Using Outsourcing …

1097

a managerial decision, is revealed. However, when applying only economic (settlement) methods, one analyzes quantitative characteristics. Therefore, it is impossible to assess the qualitative characteristics. To analyze qualitative characteristics, it is necessary to use graphical methods, which are the basis for visualizing results. However, using only the graphical method makes it difficult to obtain data for an accurate quantitative assessment of the results. Thus, it is impossible to make an unambiguous decision on whether to implement outsourcing or not. According to the author, the imperfection of the proposed methods, expressed in the absence of a universal approach to determining the feasibility of outsourcing, and taking into account only some parameters when forming a decision regarding the use of outsourcing, requires an integrated approach to solving this problem. As a solution to this problem, the author proposes to allocate algorithms to a separate group of approaches to evaluate the feasibility of using outsourcing. The algorithm, as an integral part of the decision-making on the application of outsourcing, helps to follow the sequence of actions when defining and delegating individual business processes to improve the quality of their execution (Kurbanov and Plotnikov 2013). The authors consider such types of stepwise algorithms with a clear indication of actions and a description of the fundamental tasks at each stage to be the most suitable for this study. A holistic and systematic approach distinguishes stepwise algorithms. Based on them, a decision on the implementation, use, and assessment of outsourcing appropriateness is made (Gribanov 2005). The number of algorithm stages depends on the level of detail of the analyzed object. As a result of the analysis of existing outsourcing methods and techniques, the following algorithms were proposed: 1. The analysis and assessment of the internal state of the company. The contents of this step include the following sub-steps: a) b) c) d)

the analysis of the company’s activities; strategic positioning of the company in the market; the analysis of the situation in the industry and competition; the identification of possible business processes for outsourcing.

2. The analysis of the feasibility of outsourcing individual business processes. When analyzing this stage, it is necessary to evaluate the own possibilities for implementing business processes in comparison with the cost of acquiring these processes from an external organization. This stage is decisive in deciding whether to use outsourcing or not. At this stage, the feasibility of implementing outsourcing is assessed. To solve this problem, it is recommended to use methods of graphical outsourcing. The following sub-stages can be distinguished: a) the identification of business processes to be outsourced;

1098

I. V. Trushchenko et al.

b) business cases for transferring business processes to third parties, i.e., comparing own capabilities and resources for the implementation of the above business processes and the cost of these business processes acquired from outsourcing companies; c) the final decision on outsourcing business processes. 3. The analysis of potential suppliers of outsourcing services (outsourcers) and the selection of an outsourcer to transfer the business process. The third stage involves the following sub-steps: a) the analysis of possible outsourcers, their business reputation, market experience, and customer reviews; b) the analysis of the proposals of outsourcers in the context of their pricing policy; c) the assessment of risks and outsourcing guarantees; d) the selection of an outsourcer that meets key selection criteria depending on the goals of outsourcing and the industry specifics of the company. 4. The implementation of a management decision on the use of outsourcing. According to the results of a positive decision on the use of outsourcing in the activities of the company, it is necessary: a) to discuss the terms of cooperation with an outsourcer; b) to make an outsourcing agreement. 5. Monitoring and control of the results of using the outsourcing mechanism. The fifth stage involves monitoring and controlling the results of the outsourcers, assessing targets, and comparing them with the planned ones, creating an understanding of the need to continue cooperating with the outsourcers. To analyze the results of outsourcing, one can apply, for example, calculation methods based on the search for integral values of outsourcing efficiency (Kurbanov and Plotnikov 2013), evaluating the level of effectiveness of the outsourcing process using the modified Harrington scale (Harrington et al. 2002). The advantage of this algorithm is the simplicity and comprehensibility of the implementation process and the decision on the feasibility of attracting outsourcers to perform individual business processes. However, according to the authors, the presented algorithm requires further refinement and details to develop a single mechanism for using new forms of outsourcing.

4 Discussion To form a mechanism for using new forms of outsourcing, it is necessary to analyze existing approaches to assessing the appropriateness of using outsourcing.

Assessing the Expediency of Using Outsourcing …

1099

A comprehensive analysis of existing approaches should begin with a grouping of outsourcing methods and techniques that allow us to evaluate the feasibility and results of using outsourcing. The authors adhere to the approach described by Mukhina (2008), according to which existing outsourcing techniques can be divided into two groups: 1. economic (settlement) methods; 2. graphical methods. The use of economic (settlement) outsourcing allows us to compare possible options and scenarios. Based on calculations and specific digital values, it becomes possible to resort to computer modeling, thereby minimizing the presence of a subjective (human) factor (Bravard and Morgan 2007). The most striking example of this outsourcing technique is the economic rationale for outsourcing developed by Anikin and Rudaya (2009). They propose to produce it based on a comparison of the costs incurred for the implementation of a separate business process using structural units of the organization and the costs of acquiring outsourcing services for this separate business process. Anikin and Rudaya (2009) propose to consider only those costs that will minimize the organization’s costs, subject to the transfer of the business process to outsourcing. It should be agreed that such expenses include the cost of labor of employees involved in this business process, their professional development, the cost of maintaining the necessary space, the cost of basic and auxiliary means of production, the cost of storing inventories, management costs, etc. When calculating, it is necessary to take into account the transaction (additional) costs that accompany the entire process of transferring the business process to outsourcing. It is also essential to take into account the “opportunity costs” that can be redistributed to other organizations’ activities in connection with their release as a result of application outsourcing. After accumulating the above costs, Anikin and Rudaya (2009) make a comparison according to the following ratio: if the costs of own production/costs of purchase from an outsourcer > 1, then one should resort to the services of an outsourcing company; if the costs of own production/costs of purchasing from an outsourcer < 1, it is preferable to focus on the independent implementation of this business process, since the use of outsourcing in these areas will not allow achieving benefits minimizing the costs of the organization. It should be noted that a significant drawback of the application of the methods of this group is the inability to take critical evaluation criteria that affect the results of outsourcing into account. These include qualitative characteristics and parameters for evaluating business processes, possible options, and scenarios related to the organization’s positioning on the market which have various consequences. It is possible to eliminate this drawback in evaluating the feasibility of outsourcing using graphical (martial) methods. Graphic-based methods can be grouped into two groups: graphs and matrices.

1100

I. V. Trushchenko et al.

Fig. 1 The graph of the “McKinsey & Co” company Source (Polienko n.d.)

The most visual graphical method helping to decide whether to use outsourcing is the McKinsey & Co model (Polienko n.d.). During the application of this method, a graph is constructed that demonstrates the feasibility of outsourcing depending on the degree of involvement of the business process in the organization’s production chain (X-axis) and their profitability (Y-axis) (Fig. 1). Experts assess the degree of involvement in the organization’s technological chain. In determining profitability, the net costs and the contribution to the organization’s profit are estimated. During the analysis, a dot, which represents a separate business process or organizational unit, is plotted on the graph field. The analysis of the outsourcing feasibility using the McKinsey & Co model is carried out in stages and includes the following actions. Firstly, it identifies those business processes or organizational units that are non-core or unprofitable for the organization. It is necessary to agree with the opinion of McKinsey & Co that according to these business processes or organizational units, a decision should be made about their sale or liquidation with their subsequent acquisition from relevant organizations. Secondly, it is necessary to identify business processes or organizational units with a high degree of involvement in the technological chain and low profitability or loss-making level. According to the McKinsey & Co model, for these business processes or organizational units, options for changing the technological components of the business processes or organizational units should be considered, which will reduce the dependence on third-party executives for business processes or organizational units with a high degree of involvement in the technological process. Thirdly, it is necessary to identify and maintain business processes or organizational units with a high degree of involvement in the technological chain and a high profitability level. These business processes or organizational units will be the key to successful business development.

Assessing the Expediency of Using Outsourcing …

1101

One of the main advantages of the McKinsey & Co model is that, when used, key directions for assessing the organization’s effectiveness are taken into account. However, due to frequently changing market conditions, the McKinsey & Co model does not allow a comprehensive assessment of the organization’s activities in the context of other significant factors, which is a significant drawback of this model. In this regard, there is a need to consider other models that will take into account other factors affecting the decision-making on the use of outsourcing of the organization. Another graphical method proposed by Price Warehouse Coopers (Willcocks et al. 1995) is based on the construction of a matrix reflecting the strategic and competitive importance of the analyzed business process or organizational units (Fig. 2). The combination of these factors presents the management of the organization with four options for deciding on the use of outsourcing or independent reorganization of activities. When applying this model, the following options for making managerial decisions are opened before the organization’s leadership: According to the authors, the presented matrix is a relatively simple and convenient tool that allows us to analyze all existing activities of the organization and identify the areas that can be outsourced. The “BKG Profit Technology” company proposed one more outsourcing model based on the construction of the matrix and justifying the management decision on the application and implementation of outsourcing technology (Willcocks et al. 1995). The construction of this matrix is the basis for portfolio analysis, in which the consideration of the services and products of the enterprise occurs in the context of their investment attractiveness. The advantage of this analysis is its applicability to the assessment of individual components of business processes (areas of activity, functions, technological processes, key competencies, etc.). The author notes that the construction of this matrix is a convenient tool when deciding on the use of outsourcing technologies, which allows analyzing existing activities and restructuring those areas that are not core and priority for the organization. Fig. 2 The matrix of the “Price Warehouse Coopers” company

1102

I. V. Trushchenko et al.

Fig. 3 A matrix based on the research of E. V. Volodina, A. V. Ovcharenko, and A. Kh. Kurbanov Source (Kurbanov 2012)

The model of the company “Boston Consulting Group” (Moiseeva et al. 2010) is based on the correspondence of the business process to the strategic goal of the company and the efficiency level of the business process concerning return on assets. The IBS specialists developed a decision matrix that is formed based on the two aspects, most important from their point of view: the ratio of the cost of a business process provided that it is carried out by the organization itself to the cost of a similar business process on the market and the ratio of the qualitative characteristics of the business process in comparison with the market (Mitrofanova n.d.). E. V. Volodina, A. V. Ovcharenko, and A. Kh. Kurbanov (Kurbanov, 2012) suggest building a matrix for assessing the feasibility of an outsourcing initiative based on the assessment and analysis of two indicators: the outsourcing feasibility index and the level of competitiveness of the system. During the construction of this matrix, there arise four options for making decisions on the transfer of individual business processes to outsourcing following the four fields of the matrix (Fig. 3).

5 Conclusion Despite the unanimity of foreign and domestic scholars on key issues of the interpretation of “outsourcing,” a single universal approach to determining the feasibility and effectiveness of using outsourcing has not yet been developed. The boundaries of the outsourcing process and the algorithm of actions for applying to outsource individual business processes remain somewhat blurred.

Assessing the Expediency of Using Outsourcing …

1103

In this study, the main outsourcing and methodologies are grouped and considered, allowing the company to identify those business processes that are more expedient to outsource without harming the primary goal of the business organization and the company as a whole. The analysis of outsourcing models allowed us to identify common methods. Among them, the leading positions are occupied by methods related to visualization of the analysis. A comprehensive solution to the problem identified during the study was the formulation of an algorithm indicating step-by-step actions to achieve the goal of the analysis. However, as the study showed, this problem requires further research and a more detailed study of the presented algorithm for outsourcing in the service sector.

References Anikin, B.A., Rudaya, I.L.: Outsourcing and Outstaffing: High Technology Management. INFRA-M, Moscow (2009) Bravard, J.-L., Morgan, R.: Effective Outsourcing. Understanding, Planning, and Using Successful Outsourcing Relationships. Balance Business Books, Moscow (2007) Gribanov, A.V.: Improving the competitiveness of the business structure through outsourcing (Abstract of the Dissertation of the Candidate of Economics). Saint Petersburg State University of Engineering and Economics, St. Petersburg (2005) Grunichev, Yu.A.: Research and development of a methodology for evaluating the economic efficiency of outsourcing and insourcing of IT services (Dissertation of the Candidate of Economics). Moscow Technical University of Communications and Informatics, Moscow, Russia (2010) Harrington, D., Esseling, C.S., Nimwegen, H.V.: The Optimization of Business Processes. Azbuka, Moscow (2002) Haywood, J.B.: Outsourcing: Looking for Competitive Advantages. Williams Publishing House, Moscow (2002) Kalendjyan, S.O.: Outsourcing and delegation of authority in the activities of companies (Abstract of the Dissertation of the Candidate of Economics). Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia (2003) Khlebnikov, D.: Outsourcing as a tool to reduce costs and optimize the business system (n.d.). http://www.iteam.ru/publications/strategy/section_16/ article_222/ Kremlyova, N.A.: Providing competitive advantages of production and sales of products based on the outsourcing model of business organization. Organ. Prod. 43, 72–75 (2009) Kurbanov, A.Kh.: Methods of assessing the value of outsourcing. Modern Problems of Science and Education, vol. 1 (2012). https://science-education.ru/pdf/2012/1/138.pdf Kurbanov, AKh, Plotnikov, V.A.: Outsourcing: History, Methodology, and Practice. INFRA-M, Moscow (2013) Kuznetsova, YuV: Various forms of interaction within the framework of the outsourcing model. Econ. Anal. Theor. Pract. 38, 51–55 (2010) Makhmutov, I.I., Murtazin, I.A., Karamyshev, A.N.: Methods and models of outsourcing. Socio-Econ. Techn. Syst. Res. Des. Optim. 1(64), 133–157 (2015)

1104

I. V. Trushchenko et al.

Mitrofanova, E.: How to optimize the business model of the company (n.d.). https://www.fd.ru/ articles/14585-kak-optimizirovat-biznes-model-kompanii Moiseeva, N.K., Malyutina, O.N., Moskvina, I.A.: Outsourcing in the Development of Business Partnerships. Finance and Statistics, Moscow (2010) Mukhina, I.S.: The analysis of existing approaches to assessing the effectiveness of outsourcing. Siberian Finan. Sch. 6, 111–115 (2008) Mukhina, I.S.: On the feasibility of using outsourcing organization. Siberian Finan. Sch. 3(80), 143–148 (2010) Polienko, M.: The General Electric – McKinsey Matrix (n.d.). http://marketopedia.ru/38-matricagemckinsey.html Willcocks, L., Fitzgerald, G., Feeny, D.: Outsourcing IT: strategic implications. Long Range Plann. 28(5), 59–70 (1995) Zinkov, D.V.: Outsourcing for Increasing the Sustainability of the Company. University of Tyumen, Tyumen (2006)

Customs and Logistics Activity in Geopolitical and Economic Changes: Problems, Strategies, and Risks Tatyana A. Kozenkova , Tatyana V. Abalakina , Ziya E. Suleymanov , Sergey V. Bank , and Olga B. Sokolnikova

Abstract The paper focuses on the problem of the strategic development of customs and logistics activities. Its solution involves a whole range of factors, including the effectiveness of state policy, the state of customs and logistics systems, the ability to manage development risks, the degree of consolidation of relations with foreign partners, the impact of Western sanctions, the turbulence of the economic environment, etc. The problem areas of customs and logistics activities were identified. The measures were proposed to optimize the management system of customs and logistics activities at the levels of macroeconomic regulation, intracompany management, and inter-company business partnerships. The essence of the logistics-oriented modernization of business processes is disclosed, and strategic objectives for the development of logistics in the customs sphere are formulated. The authors substantiated that the achievement of strategic goals for the development of customs and logistics systems is highly interfaced with a significant number of risks. A description of the risk system in Customs logistics is described and analyzed with the establishment of prerequisites for occurrence, essential manifestations, and negative consequences. It is concluded that there is a vital need for a sound strategy and tactic of the economic behavior of organizations particiT. A. Kozenkova
Z. E. Suleymanov (&) Institute of Research of Merchandising and Environment of the Wholesale Market, Moscow, Russia e-mail: offi[email protected] T. A. Kozenkova e-mail: [email protected] T. V. Abalakina Financial University under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] S. V. Bank MIREA – Russian Technological University, Moscow, Russia e-mail: [email protected] O. B. Sokolnikova Russian Customs Academy, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_118

1105

1106

T. A. Kozenkova et al.

pating in custom and logistics activities in the new geopolitical, geoeconomic, and in-country conditions.




Keywords Customs sphere Customs and logistics systems cesses logistics Strategic objectives Risks








Cross-border pro-

1 Introduction A specific feature of custom and logistics systems is their continuous operation at high risk and uncertainty. In Russia, starting from 2014, these conditions were manifested exceptionally clearly and on a large scale. The geopolitical situation, market conditions, the organization of international transport corridors saw a dynamic change. The significance of solving the problem of improving the functioning of customs and logistics systems is explained by their key role in determining the development prospects of all national economies, including the development of the global business environment. This paper conducts a theoretical analysis of problems to search for strategic solutions in the development of customs and logistics activities, taking into account the associated risks and opportunities. The achievement of this goal required the application of an integrated approach to identifying problem areas for the development of customs and logistics activities, developing measures of managerial impact at all levels of its regulation, and identifying the prerequisites for the growth of its scale. An important task is the development of strategic decisions in logistics-oriented modernization of business processes in the customs sphere, extending to the external and internal environment of customs authorities. In this regard, it seemed necessary to justify the feasibility of using modern tools, enhancing the logistics focus of customs processes. The study’s relevance lies in the development of theoretical and methodological approaches to the strategic development of customs and logistics activities in Russia based on the identified problems and approaches proposed to their solution, as well as approaches to the management of associated risks in a turbulent modern geopolitical situation.

2 Materials and Methods The study is based on the scientific works of foreign and Russian scholars who made a significant contribution to the methodology and theory of logistics-oriented management of business (N. A. Adamov, B. M. Beamon, E. Koronis, S. T. Ponis, T. A. Prokofiev, Z. E. Suleimanov, T. M. Ware), to solving the problems of the development of customs logistics, customs, and logistics services (N. A. Adamov, A. N. Bryntsev, S. Ghosh, V. V. Glekova, Y. V. Gnezdova, T. A. Kozenkova,

Customs and Logistics Activity …

1107

N. Murthy. P. M. Swafford), to the methodology of building logistics systems (N. A. Adamov, A. S. Ellaryan) and logistics management of business activities in the face of risks (M. A. Izmaylova, G. M. Alimusaev, E. A. Kameneva, V. I. Morgunov), to the solution of the problem of innovation development (M. Sawhney, R. C. Wolcott, I. Arroniz). At the same time, many issues of logistics-oriented management of customs activities in the modern turbulent economy remain insufficiently studied and are not adequately reflected in the economic literature. Particular attention should be focused on the strategic development of customs and logistics systems, improving the risk management system of customs and logistics activities. This work is devoted to filling this deficit of scientific knowledge. The formalization and generalization of the results were carried out using an integrated approach to the study of problems in the field of customs and logistics activities, as well as using general scientific methods of cognition: theoretical analysis, inductive and deductive methods, analogy, analysis, synthesis, and system and structural analysis.

3 Results 3.1

Problem Areas of Customs and Logistics Activities

The effectiveness of customs and logistics activities is determined by the effectiveness of the efforts of state bodies to create rational conditions for organizing cross-border trade flows, the performance of direct participants in foreign trade activities, exporters and importers (initiators of cross-border operations), and the ability of customs and logistics providers (entities of customs and logistics infrastructure, including customs brokers and freight forwarders) to fully comply with the requests of initiators of cross-border operations and the requirements of legislation (Prokofieva 2006). To ensure the sustainable optimization of the management system of customs and logistics activities, it is necessary to use an integrated approach, which means managerial impact in the context of three main interconnected blocks: 1. The block of macroeconomic regulation, which provides favorable conditions (necessary environmental parameters) for the dynamic development of customs and logistics activities, defines the priority areas for this development. It is aimed at the formation and adjustment of the regulatory framework for customs logistics; the optimization of interstate relations in the field of customs logistics; the creation of customs and near-customs infrastructure adequate to business needs; improving methods of customs control over the movement of cross-border commodity flows; improving the efficiency of macroeconomic risk management in the customs and logistics sector to reduce the likelihood of customs violations;

1108

T. A. Kozenkova et al.

2. The block of intra-company management for the development of the potential of participants in cross-border processes, which, on an innovative basis, provides an increase in the rationality of their activities, taking into account the logistical coordination of intra-company business processes with the prevention of inconsistency of end-to-end material, information, and financial flows. 3. The block of intercompany business partnerships (development of effective economic relations) in the customs sector, logistically promoting synergies between exporters and importers with customs authorities and customs and logistics providers, taking into account the criteria for partnership effectiveness, customs stability coefficients, customs risk profiles, and instruments for reconciling interests. The solution to the problems of the custom and logistics sphere requires a significant modernization of tools and mechanisms for managing a cross-border business, taking into account the full range of features of modern world economic relations and the geopolitical situation. The adaptation of national customs systems to world standards determines the degree of trust of foreign partners (Adamov and Ellaryan 2013). The improvement of the situation is facilitated by the development of methods for the electronic declaration of goods and other innovative customs technologies. The prospects for the development of the customs and logistics sphere are determined by the dynamics of macroeconomic indicators (GDP, foreign trade turnover). The following prerequisites for the growth of the scope of customs and logistics activities can be noted: – state policy aimed at supporting the development of the infrastructure complex (Ponmaarov and Holcomb 2009); – increased interest of exporters and importers in outsourcing customs and logistics functions to concentrate efforts on key businesses (Matraeva et al. 2017); – the expansion of globalization and the complexity of cross-border supply chains (Ponis and Koronis 2012); – the development of the integration of national economies in the global business sphere with an increase in the share of highly profitable goods in export-import processes and the expansion of the logistics infrastructure typical of international transport corridors (Gnezdova et al. 2017). The factors of inhibition of the development processes of the custom and logistics sphere are obsolete moral and physical fixed assets; a high level of differentiation of regions according to the degree of infrastructure support; insufficient development of intercompany and inter-organizational coordination of associated business processes; insufficient use of end-to-end logistics-oriented technologies in multimodal and intermodal cross-border cargo transportation; the lack of qualified specialists in the field of customs logistics and others.

Customs and Logistics Activity …

3.2

1109

Strategic Objectives of the Development of Customs and Logistics Systems

Strategically, the logistics-oriented modernization of business processes in customs can be interpreted as a systematic multi-level optimization of the whole complex of works related to the passage of cross-border flow processes. The strategic objectives of the development of logistics in the customs sector can be grouped into two large blocks: (1) providing favorable conditions for the logistics of the participants of foreign economic activity (FEA); (2) logistic-oriented optimization of the own activities of customs authorities. The information technology of electronic declaration ED-1, which involved the transfer of information through a dedicated communication channel and was used in 2002–2013, was changed with the ED-2 technology. It involves transferring information from participants in foreign economic activities to the central information and technical customs department via the Internet through a special information operator or the FCS portal. In 2013, the share of foreign trade participants using electronic declaration technology amounted to about 94% of the total number of organizations conducting customs declaration of goods (Krotov 2014). Since January 01, 2014, the procedure for electronic declaration became mandatory. The development of electronic declarations served as the basis for the use of technologies for the remote release of goods. Thus, in 2013, according to this principle, about 10% of all declared goods were declared in electronic form (more than 410 thousand declarations). It should be noted that, recently, the number of documents required for customs clearance of cross-border processes was reduced. The obligation to submit a transaction passport and several other documents were canceled. To minimize the time and simplify customs procedures, it is necessary to formulate and systematically refine the list of participants in foreign economic activities who strictly adhere to customs legislation for a certain period (“green list”). As an element of the logistics of the customs sphere, we should separately highlight the preliminary information system, which began to operate in Russia in 2008. It involves the submission of data on imported goods and vehicles to the customs authority at least two hours before they are imported to the territory of the Customs Union (CU). Starting from June 17, 2012, preliminary informing became mandatory for goods imported to the CU territory by roads and rails. This principle became mandatory from January 01, 2014 (Suleymanov 2016). For air transportation and sea transport, the preliminary notification system is still being experimentally worked out. The development of information systems and technologies in the customs sphere makes it possible to significantly reduce the number of documents for customs procedures and the time it takes. This, accordingly, reduces costs and barriers to cross-border business logistics (Adamov and Penchukova 2008). From a strategic perspective, to optimize information processes, it is advisable to provide a higher pairing of information systems of customs and tax authorities in

1110

T. A. Kozenkova et al.

the regulation of export-import flows. The activities of such consolidated logistics systems, along with the development of the information component of foreign trade logistics, will ensure the optimization of state functions with an increase in the efficiency of managing financial flows (Bryntsev 2010). In 2012, the Government of the Russian Federation approved an action plan (roadmap) for optimizing (simplifying) customs administration methods “Improving Customs Administration.” It has a clear focus on improving the performance of customs regulation of business processes until 2018 (Government of the Russian Federation 2012). The estimated dynamics of these indicators are presented in Table 1. As can be seen from Table 1, the roadmap implies a significant reduction in the number of documents required for customs clearance of cross-border flows, and the time for customs procedures. These measures should help to minimize the time and financial costs of foreign trade participants and, accordingly, positively affect the transparency of the business sector and the development of interstate goods distribution logistics. In 2014, the customs authorities began experimental work on the automatic release of goods with the automatic registration of electronic declarations. Nowadays, the work is underway to implement the “Single Window” concept in information systems of customs authorities with the coordination of national “Single Windows” of participants in the Customs Union and the Common Economic Space and their integration into multi-level logistics systems (Maloletko et al. 2017).

Table 1 The dynamics of indicators of customs regulation of foreign trade in Russia Quantitative characteristics of the processes of customs regulation of foreign trade activities The number of documents required for passing imported goods through the border (units) The time for the preparation of all documents required to complete all procedures for moving the imported goods through the border (days) The time of customs clearance for imported goods not subject to additional types of control and not identified as risk delivery (hours) The number of documents required for passing exported goods through the border (units) The time for the preparation of all documents required to complete all procedures for moving the exported goods through the border Customs clearance times for exports that are not subject to additional types of control and are not identified as risk delivery (hours) Source Developed by the authors

Years 2013

2014

2015

2018

10

8

6

4

21

20

15

7

72

48

24

2

9

6

4

4

22

20

15

7

60

45

24

2

Customs and Logistics Activity …

1111

Many measures are already being implemented. They will contribute to the optimization of customs processes. At the same time, strategically, for the sustainable development of the customs and logistics sphere with its timely adaptation to all-new global challenges, it is necessary to strengthen the systemic approach, which implies a coupled solution to the totality of the problems existing in the sphere with overcoming fragmentation in efforts to develop the business sphere (Suleymanov 2016).

3.3

The Approaches to Risk Management During the Strategic Development of Customs and Logistics Systems

The achievement of strategic priorities for the development of customs and logistics systems is fraught with a significant number of risks. The tasks of improving the quality of customs services, reducing the financial and time costs of initiators of cross-border processes and their logistics partners, and searching for new models of economic behavior require the adoption of logistically-oriented decisions (Odess and Semenov 2012), which results can vary due to factors of medium turbulence. Using new combinations of economic factors (efficient technologies and equipment, qualified personnel, modernized methods of economic partnership), using innovative technologies in customs and logistics activities, and taking risks for these reasons, participants in cross-border processes are counting on improving the quality of their functioning (Seth et al. 2005) and new revenue generation. Usually, risks are associated with possible undesirable outcomes of any economic decisions: negative work results in insufficiently clear conditions, when business decisions are made with certain admissibility of success or failure. The risk system in customs logistics includes both the risks of foreign economic activity, initiators, carriers, and customs authorities. These risks differ fundamentally: for exporters, importers, carriers, this is the risk of a decrease or non-profit in the delivery of goods; for customs authorities, it is the risk of non-compliance (violation) of customs legislation. The list of risks of cross-border carriers is primarily associated with the objective factors most taken into account when preparing a carriage contract. These risks affect the income and profits of the carrier and the initiator of foreign economic activity. As part of customs logistics, customs authorities significantly expanded the risk system of carriers, increasing their costs for guarantees and control operations used to perform the control and supervision functions of customs authorities (Beamon and Ware 1998). Taking all the circumstances into account, the authors offer the following features of the essence of risk management in the custom and logistics sphere. Risk management of customs and logistics activities is a logistics-oriented way of organizing cross-border management in insufficient certainty (turbulence). Risk, in contrast to the general concept of uncertainty, is a measurable quantity, which

1112

T. A. Kozenkova et al.

quantitative measure is the degree of probability of adverse results. In a narrow sense, the risk is a measurable probability of loss of income. It should be borne in mind that the risks of customs and logistics activities are manifested in diverse forms. In many ways, they are determined by environmental factors (geopolitical, socio-economic, natural-climatic, etc.) (Sheffi and Rice 2005). Considering the problems of logistics in the customs and near-customs areas, the following risk groups should be distinguished: 1. Exogenous risks associated with the transport and logistics cluster; 2. Endogenous risks based on the internal aspects of the customs sphere; 3. Narrow-profile risks associated with identifying risky deliveries. The risks can be systematized and grouped based on different classification features (magnitude of the consequences, degree of tolerance, causes of occurrence, the types of activity (including innovative), insurance options, etc.). Circumstances of external and internal nature can determine risks. The source of external risks is the external environment. These are risks that do not depend on the activities of participants in cross-border processes: global transformations, including military conflicts, sanctions, etc., changes in national macroeconomic regulators of business, deviations in the business partnership system, new methods of competitors, changes in market conditions, natural disasters, etc. The subjects of customs and logistics activities may not always have an impact on changing the prerequisites of external risks, but they should try to predict and take them into account. Internal risks are associated with the activities of organizations participating in cross-border processes, i.e., the organization may be the source of risk itself. Such risks may be associated with ineffective management, inefficient work technologies, shortcomings of internal corporate relationships, etc. (Izmaylova et al. 2018). By the sphere of occurrence, the risks of customs and logistics activities can be grouped into risks of customs authorities, risks of initiators of cross-border processes, risks of customs, and logistics providers. By possible consequences, risks can be subdivided into the ones that can cause losses and those that can reduce income (lost profit). The risks of losses are subdivided by the degree of their admissibility or by the level of loss. Insured risk implies a reasonably accurate assessment of its level, which allows it to be accepted by insurance organizations. The level of uninsurable risks, in most cases, is difficult to determine (Swafford et al. 2006). Concerning the risk characterization of cross-border processes, one should pay attention to management. Risk and management should be considered as interrelated elements of the custom and logistics system (Izmaylova et al. 2018). Management can become a source of risk. This was demonstrated by some measures to transform the economy of several states operating in the post-Soviet space. The lack of rationality of some adjustments to national macroeconomic management systems served as a prerequisite for increasing risks in commercial activities,

Customs and Logistics Activity …

1113

Fig. 1 The algorithm of risk management. Source Developed by the authors

which created many unprofitable business structures, including exporters and importers. It can be argued that any innovation carries a risk of loss. Anyone who cannot adapt to the changes loses. In this regard, one of the main reserves of leadership for participants in cross-border processes is the introduction of customs and logistics innovations. The risk of innovation is the probability of losses when investing in the development of new business processes, as well as in the development of new technological solutions that, contrary to expectations, will not give the desired effect (Fig. 1). Methodological approaches to the risk management of customs and logistics activities involve the consistent solution of several main tasks: substantiation of risk management objectives (reducing the likelihood of losses or focusing on revenue growth); the determination of possible consequences in a risky situation—deviations from the desired result with the specification of the level of risk (the extent and probability of deviations); making decisions about the style of economic behavior in a risk situation—choosing a risk management strategy (avoiding risk; reducing the likelihood and magnitude of negative consequences by mobilizing all reserves of strength and adapting to risk; transferring risk); the development of tools and methods for the implementation of decisions and their use with monitoring the level of risk.

4 Discussion Improving the efficiency of mechanisms for managing customs and logistics activities at all levels of management is a rather relevant and multifaceted problem addressed by many states, including Russia, in terms of their strategic development and increasing competitiveness. The competitiveness of the national economy

1114

T. A. Kozenkova et al.

depends, to a great extent, on the quality of the solution to this problem. The tool for solving this problem, in the context of large-scale penetration of innovative technologies in all areas of business (Sawhney et al. 2006), should be considered innovation-oriented development of custom and logistics activities, even though innovation is considered as one of the riskiest activities. When analyzing the prospects for the development of innovations in the Russian customs and logistics sphere, it should be borne in mind that, in current geopolitical conditions, the influence of sanctions can become more widespread due to the closure of access to specific development tools by several American and European companies. This implies the need to find internal sources for the development of the customs and logistics sphere in terms of expanding the use of innovative technologies, developing information and communication systems of electronic interaction in the customs sector with increasing volumes of preliminary informing the customs authorities about emerging cross-border processes.

5 Conclusion Under the difficult geopolitical situation, changes in the vector of business partnerships between Russia and foreign countries, and the modernization of the economy based on the principles of innovation, the subjects of the customs sphere attained fundamentally new tasks (digitalizing, development of logistic approaches). New business structures begin to operate in this area. New relationships are formed between customs authorities and initiators of cross-border processes (exporters and importers) and their logistics partners. Business ties are strengthened within individual participants in foreign economic activities and across the entire customs logistics complex. At the same time, there are many risks in the modern customs sphere. A whole set of geopolitical and domestic factors, sanctions decisions currently complicate the activities of participants in the customs and logistics sphere both in the operational plan and in their strategic development. In such a situation, it is vitally necessary for the organizations involved in customs and logistics activities to have a carefully substantiated strategy and tactics of their economic behavior, so that to ensure their dynamic development, despite all the arising risks.

References Adamov, N.A., Ellaryan, A.S.: Conceptual aspects of the development of the national transport and logistics system. RISK Resour. Inf. Supply Competition 3, 40–41 (2013) Adamov, N.A., Penchukova, T.A.: Theoretical foundations of cost management. Russ. Financ. Manager 1, 5–8 (2008) Beamon, B.M., Ware, T.M.: A process quality model for the analysis, improvement, and control of supply chain systems. Int. J. Phys. Distrib. Logist. Manage. 28(9/10), 704–715 (1998)

Customs and Logistics Activity …

1115

Bryntsev, A.N.: The concept of a logistics field. RISK Resour. Inf. Supply Competition 3, 123–127 (2010) Gnezdova, Y.V., Glekova, V.V., Adamov, N.A., Bryntsev, A.N., Kozenkova, T.A.: Development prospects of Russia’s transport infrastructure in the conditions of development of the market of transport and logistic services. Eur. Res. Stud. J. 20(4A), 619–631 (2017) Izmaylova, M.A., Adamov, N.A., Brykin, A.V., Siniaev, V.V., Luchitskaya, L.B.: Assessing the state of logistics and ways to improve logistics management in the corporate sector of the Russian economy. J. Appl. Econ. Sci. 13(2(56)), 414–424 (2018) Izmaylova, M.A., Alimusaev, G.M., Kameneva, E.A., Morgunov, V.I.: A contemporary approach to the strategic management of logistics processes in integrated corporate structures. Int. J. Civ. Eng. Technol. (IJCIET) 9(13), 11–27 (2018) Krotov, I.: The simplification of trade procedures with the application of information customs technologies. Logistics 11, 106–108 (2014) Maloletko, A.N., Andryushchenko, G.I., Kaurova, O.V., Mityushina, E.A., Shatskii, A.A.: Current employment patterns in the labor market of the Eurasian Economic Union. Revista Espacios 38 (49), 19–21 (2017) Matraeva, L., Kaurova, O., Maloletko, A., Erokhin, S.: Prospects and problems of adaptation of international experience of participation of pension funds in infrastructure and social investment projects in the Russian economy. Man India 97(21), 15–28 (2017) Odess, V.I., Semenov, N.N.: From supply and distribution through wholesale to logistics. RISK Resour. Inf. Supply Competition 1, 647–651 (2012) Ponis, S.T., Koronis, E.: Supply chain resilience: definition of the concept and its formative elements. J. Appl. Bus. Res. 28(5), 921–930 (2012) Ponmaarov, S.Y., Holcomb, M.C.: Understanding the concept of supply chain resilience. Int. J. Logist. Manage. 20(1), 124–143 (2009) Prokofieva, T.A.: Logistic centers as strategic points of economic growth in Russia. Forwarding Logist. 1, 40–41 (2006) Government of the Russian Federation: The order “On approval of the action plan (roadmap) “Improving customs administration” (June 29, 2012 No. 1125-r). Moscow, Russia (2012) Sawhney, M., Wolcott, R.C., Arroniz, I.: The 12 different ways for companies to innovate. MIT Sloan Manage. Rev. 47(3), 75–81 (2006) Seth, N., Geshmukh, S.G., Vrat, P.: Service quality model: A review. Int. J. Q. Reliab. Manage. 22 (9), 913–949 (2005) Sheffi, Y., Rice, J.B.: A supply chain view of the resilient enterprise. MIT Sloan Manage. Rev. 47 (1), 41–48 (2005) Suleymanov, Z.E.: Water management in the region as part of the concept of sustainable development. RISK Resour. Inf. Supply Competition 2, 148–151 (2016) Swafford, P.M., Ghosh, S., Murthy, N.: The antecedents of supply chain agility of a firm: scale development and model testing. J. Oper. Manage. 24(2), 170–188 (2006)

Legal Consequences of Violating Integration and Cooperation Relations Melia K. Nurkaeva , Elvira I. Karamova , Elmira M. Salihova , Tanzilya R. Gallyamova , and Georgy I. Peshcherov

Abstract This paper focuses on the legal consequences of violation of integration and cooperation relations between Russia and some foreign states that cross-exchanged restrictions and prohibitions. The authors consider the application of customs procedures to entities that did not participate in foreign economic operations, as part of the application of special economic measures in the form of a ban on importing goods. The problems of referring the procedure for the seizure and destruction of goods received for sale to consumers to the customs procedure of destruction are considered. The authors conclude that the by-law expansion of customs regulation leads to the use of customs procedures in areas where, in essence, there are no custom legal relations. In turn, this leads to a violation of the property interests of citizens and organizations.







Keywords Customs procedures Special economic measures Prohibition of the import of goods Conscientious purchaser of “sanctioned” goods




M. K. Nurkaeva (&)
E. I. Karamova
E. M. Salihova Bashkir Cooperative Institute (Branch) of the Russian University of Cooperation, Ufa, Russia e-mail: [email protected] E. I. Karamova e-mail: [email protected] E. M. Salihova e-mail: [email protected] T. R. Gallyamova Bashkir State Agrarian University, Ufa, Russia e-mail: [email protected] G. I. Peshcherov Federal State Institution Research Institute of the Federal Penitentiary Service of Russia, Moscow, Russia e-mail: [email protected] © Springer Nature Switzerland AG 2021 A. V. Bogoviz et al. (eds.), Frontier Information Technology and Systems Research in Cooperative Economics, Studies in Systems, Decision and Control 316, https://doi.org/10.1007/978-3-030-57831-2_119

1117

1118

M. K. Nurkaeva et al.

1 Introduction Over the past five years (since the beginning of 2014), international relations with Russia were in the nature of permanent economic wars with foreign states and international economic and political organizations. Foreign states consolidated or individually, apply various kinds of sanctions (economic, political, and other) against Russia, legal entities in its jurisdiction, and Russian citizens. Such sanctions include the seizure of bank accounts of Russian legal entities and individuals in foreign jurisdictions, the prohibition of these people from carrying out foreign economic operations outside of Russia, the prohibition of entry into the territory of a foreign state for these citizens. Additionally, sanctions include a ban on citizens establishing legal entities in a foreign state, the expulsion of Russia from institutional or informal international organizations (or suspension of membership in them), etc. The primary measure to counter these sanctions was the introduction of a ban on foreign economic operations in domestic jurisdictions for foreign states, citizens, and organizations. The implementation of reciprocal Russian sanctions revealed many legal problems regarding customs regulation issues, including how customs legislation applies to business relations that develop after customs procedures. The protection of the interests and constitutional rights of citizens and organizations are of particular importance. Despite legitimate and conscientious activities, they can unreasonably suffer from political clashes between Russia and its “foreign partners.” Therefore, we will consider the legal chronology, which served as the basis for identifying the problems under consideration.

2 Materials and Methods During the study, general scientific methods (dialectic, analysis, synthesis, analogy, and deduction) and traditional legal methods (systematic, formal-logical, comparative-legal) were used. First of all, the principle of historicism became a methodological basis. An attempt to consider special economic measures (in the form of a ban on the import of goods) in the context of a specific historical situation was undertaken. Turning to the comparative analysis method made it possible to identify methods of importing prohibited goods aimed at circumventing the ban. The systematic approach revealed the negative and positive aspects of the study object.

Legal Consequences of Violating Integration and Cooperation Relations

1119

3 Results The Federal Law “On Special Economic Measures” (December 30, 2006 No. 281-FZ) was adopted long before the start of cross-exchange of restrictions and bans between Russia and foreign states (Russian Federation 2006). Article 3 of this law provided an approximate list of measures to be applied in connection with the unfriendly actions of foreign states. The ban or restriction of foreign economic operations was among them. Shortly after the start of hostile actions on the part of the United States, European Union countries, and other states (for example, Canada and Australia), the Decree of the President of the Russian Federation “On the Application of Certain Special Economic Measures to Ensure the Security of the Russian Federation” (August 6, 2014 No. 560) was adopted (Presidential Executive Office 2014). He introduced a ban on the import into the Russian territory of agricultural products, other raw materials, and food. The import of those products was prohibited, the countries of origin of which are states that have introduced unfriendly restrictions and prohibitions on Russia, its citizens, and organizations. The specified act ordered the Government of the Russian Federation to establish a list of goods prohibited for import. These bans apply to both foreign and Russian citizens and organizations. In the system of Russian legal regulations, non-compliance with these prohibitions entailed and entailed the imposition of an administrative penalty based on Article 16.3 of the Administrative Offenses Code of the Russian Federation (the objective side of the offense is non-compliance with the ban on the import of goods). Additionally, non-compliance with these prohibitions entailed and entails the imposition of an administrative penalty based on paragraph 2 of Article 16.2 of the Code of Administrative Offenses (the objective side of the offense is the indication of false information about the country of origin of goods for importing prohibited goods) (Russian Federation 2001). At first glance, the harmonization of introducing restrictions and legal consequences of non-compliance with prohibitions in the form of administrative responsibility was achieved. However, the real situation testified to the inefficiency of the economic impact on unfriendly countries. The business community was justifiably interested in continuing import delivery (including in connection with previously concluded supply contracts between wholesale importing organizations and network retailers). It resorted to the import of prohibited goods in the two following ways aimed at circumventing the ban: (a) by indicating the countries of production not included in the list of restricted; (b) by indicating similar commodity nomenclature of foreign economic activities. For example, judicial practice demonstrates that importers of prohibited goods resort to insignificant processing of goods to change their qualifications in the Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union (CN FEA EEU).

1120

M. K. Nurkaeva et al.

Thus, Balti Group LLC [Company] appealed to the Arbitration Court of the Pskov Region, demanding that the actions of the Federal Customs Service (FCS of Russia) be recognized as illegal. The Company demanded compensation for the damage caused by the destruction of goods imported into Russia. As follows from the case file, the Company introduced a batch of slightly salted fish into the customs procedure. However, during customs control, the customs authority determined that the actual product range is frozen salmon. The Company changed the product nomenclature in connection with the surface treatment of fish in the Republic of Belarus. Frozen salmon is a product included in the list of banned for import into Russia (Arbitration Court of the North-Western District 2017). In this regard, the act was adopted, which we consider as the basis for considering the protection of bona fide participants in the goods turnover. The decree of the President of the Russian Federation of July 29, 2015 No. 391 “On Certain Special Economic Measures Applied to Ensure the Security of the Russian Federation” established that goods imported into the Russian territory but prohibited for import, are subject to destruction. The Government of the Russian Federation approved the rules for the seizure and destruction of goods prohibited for import [Rules] (Government of the Russian Federation 2015). The rules provide for a precise administrative procedure for the seizure of property and its destruction. These by-laws are consistent with the higher standards enshrined in laws. Regarding the destruction of goods placed in customs procedures, the following two legal regimes apply: a) The first regime is the destruction of goods imported into the customs territory of the EAEU as part of the administrative offense proceedings (for example, according to Article 16.3 and part 2 of Article 16.2 of the Code of Administrative Offenses of the Russian Federation); b) The second regime is the destruction of goods in an administrative order in cases provided for by the law on the circulation of specific types of goods, raw materials, and other food. For example, part 5 of Article 15 of the Federal Law of July 21, 2014 No. 206-FZ “On Plant Quarantine” provides that one of the measures to eliminate the infection of plant quarantine objects is its destruction (Russian Federation 2014). It should be noted that the Customs Code of the Customs Union in force at the time of the adoption of these by-laws also contained a reference norm. This norm provided that the grounds for the destruction of goods within the framework of customs procedures are established by the legislation of the countries participating in the Customs Union. The current EAEU Customs Code contains a similar norm. Furthermore, we note that the customs officer is not entitled to impose a penalty in the form of confiscation of prohibited goods because according to Part 1 of Article 3.7 of the Code of Administrative Offenses, only a judge (of general jurisdiction or arbitration court) is entitled to impose this administrative penalty.

Legal Consequences of Violating Integration and Cooperation Relations

1121

Thus, systematic legal regulation is aimed at the seizure and destruction of goods prohibited from being imported into the Russian territory or posing a security risk. Based on the meaning of systemic legal regulation, the principle of establishing grounds for such destruction only acts by law. As follows from the Federal Law of December 30, 2006 No. 281-FZ (Russian Federation 2006), as well as other laws, there are no grounds and procedures for the destruction of goods prohibited for import into them. This explains the fact that the Decree of the President of the Russian Federation of July 29, 2015 No. 391 (Presidential Executive Office 2015) was adopted not in compliance with the law, but based on the previous act, namely, the Decree of the President of the Russian Federation of August 6, 2014 No. 56 (Presidential Executive Office 2014). Secondly, the by-laws introduced no less specific administrative procedures for the seizure of goods that have undergone customs procedures for release for domestic consumption. The rules for the seizure and destruction of goods prohibited for importation are distributed without exception to all business entities. It is stipulated that the right to carry out such administrative measures is vested with the FCS of Russia, with the Rosselkhoznadzor of Russia and Rospotrebnadzor of Russia. If economic operations in Russia are detected using “sanctioned” goods, the inspecting authorized body must immediately seize these goods by actuation (protocol) and destroy them in the presence of two witnesses. We will leave the question of the validity and legality of the destruction of goods under customs procedures in line with the implementation of exclusive by-laws. This legal problem can be solved by amending the customs legislation and security legislation. However, the destruction of banned imported goods seized from bona fide purchasers of such goods intended to sell such goods raises a serious question. We are referring to organizations and individual entrepreneurs who received banned imported goods under supply contracts with importers or with subsequent intermediaries executed in Russia. The legislation of the Russian Federation provides for an administrative procedure for the seizure and destruction of goods, which also applies to goods produced in Russia. Thus, according to Article 3 of the Federal Law of January 2, 2000 No. 29-FZ “On the Quality and Safety of Food Products” (Russian Federation 2000), food products that do not have information about the place of origin or have signs of falsification are subject to seizure and destruction. However, as we have already indicated, these standards are universal and aimed at ensuring safety. In this regard, if prohibited imported goods are imported into the customs of the Russian Federation based on falsified documents or without documents at all, this property is subject to seizure and destruction according to general (non-customs) rules (for example, in import, when goods are delivered bypassing customs procedures (that is, by smuggling)). If banned goods are imported into the Russian Federation’s customs based on falsified documents or without them, and it is not possible to establish the place of origin of the goods, then this property is also subject to seizure and destruction, provided that these rules are established by law (for example, in the regime of food circulation).

1122

M. K. Nurkaeva et al.

4 Discussion Therefore, after summing up, we will indicate the current legal situation. Organizations and individual entrepreneurs may possess, on the right of ownership, imported goods prohibited for import into Russia, with the availability of documentation confirming the place of origin of the goods and their safety. At the same time, these people purchase goods from third parties that are directly imported into the customs territory, or from people who also purchased them from customs declarants. Upon detection of these goods, they are subject to seizure and destruction, the legal bases for which are by-laws of the President of the Russian Federation and the Government of the Russian Federation. We consider this situation abnormal in terms of the law. In this work, we will not consider the constitutionality of these by-laws, but want to draw attention to the deviation from the principles of customs regulation. The constitutional legality of the conditions and rules for the seizure and destruction of goods banned for importation raises serious doubts, at least, based on the inadmissibility of unreasonable restriction of ownership. The Rules indicate that the goods are subject to destruction regardless of whether or not the person who imported these goods into the customs territory of the EAEU (Russian Federation) is identified. Furthermore, the Rules qualify the activities of all three executive bodies authorized to monitor and seize “sanctioned” goods as verification of foreign trade operations. Thus, the decrees of the President of the Russian Federation and the Rules consider the trading activities of commercial organizations and individual entrepreneurs selling “sanctioned” goods as foreign economic activities. This approach is an excessive, unreasonable expansion of the scope of custom legal relations and customs entities. Entrepreneurial entities that purchased goods from people who were required to undergo customs procedures and pay the appropriate duties are not essential participants in customs relations. Customs procedures are strictly regulated by peremptory norms of legal relations, with a system of authorized and obligated people and their liability for violation of customs rules. Expanding the circle of people liable for the violation of customs legislation based on by-laws is not permissible. Thus, in connection with the initial inefficiency of the economic measures adopted in unfriendly states, the government expanded the scope of customs procedures to increase this efficiency. This is because the legislation does not contain other mechanisms for withdrawing from circulating goods that are not dangerous (compared, for example, with narcotic drugs, weapons, cultural properties, etc.). The following fact explains the reasons for the expansion of customs destruction procedures and the inclusion of bona fide purchasers of “sanctioned” goods. Establishing a limited defense regime by banning transactions with banned imported goods would be absurd since these requirements would have to be included in civil law and create a new regime for the circulation of goods, inherently no threat to society and the state.

Legal Consequences of Violating Integration and Cooperation Relations

1123

However, in our case, the end does not justify the means. It remains to add that the Supreme Court of the Russian Federation considered an administrative statement of claim for invalidating clause 1 of Decree of the President of the Russian Federation of July 29, 2015 No. 391 (Presidential Executive Office 2015) and paragraphs 2–6 of the Decree of the Government of the Russian Federation of July 31, 2015 No. 774 (Government of the Russian Federation 2015). Refusing to satisfy the application, the court did not conduct a proper analysis of the legal arguments of the administrative plaintiff but only explained the decision by the current legislation, without resorting to its interpretation (Supreme Court of the Russian Federation 2019).

5 Conclusion We agree with the arguments of the administrative plaintiff, which are as follows. Special economic measures in the implementation model that exist within the framework of customs destruction procedures are directed towards Russian citizens and organizations rather than against unfriendly states. This is because a foreign organization that sold goods to a Russian importer and received payment does not undergo any restrictions. As a result, the by-law expansion of customs regulation leads to the use of customs procedures in areas where, in essence, there are no custom legal relations. In turn, this leads to a violation of the property interests of citizens and organizations.

References Arbitration Court of the North-Western District: Resolution of the Arbitration Court of the North-Western District (October 5, 2017 No. Ф07-10700/2017, in the case No. A52-4453/ 2016) (2017) Government of the Russian Federation: Decree of the Government of the Russian Federation “On approval of the Rules for the Destruction of Agricultural Products, Raw Materials and Food, Included in the List of Agricultural Products, Raw Materials and Food, the Country of Origin of Which is the United States of America, European Union Countries, Canada, Australia, the Kingdom of Norway, Ukraine, the Republic of Albania, Montenegro, The Republic of Iceland and the Principality of Liechtenstein and which are prohibited from importing into the Russian Federation until December 31, 2019” (July 31, 2015 No. 774). Moscow, Russia (2015) Presidential Executive Office: Decree of the President of the Russian Federation “On the Application of Certain Special Economic Measures to Ensure the Security of the Russian Federation” (August 6, 2014 No. 560). Moscow, Russia (2014) Presidential Executive Office: Decree of the President of the Russian Federation “On Certain Special Economic Measures Used to Ensure the Security of the Russian Federation” (July 29, 2015 No. 391). Moscow, Russia (2015) Russian Federation: Federal Law “On Quality and Food Safety” (January 2, 2000 No. 29-FZ). Moscow, Russia (2000)

1124

M. K. Nurkaeva et al.

Russian Federation: Code of the Russian federation on administrative offenses (December 30, 2001 N 195-FZ). Moscow, Russia (2001) Russian Federation: Federal Law “On special economic measures and coercive measures” (December 30, 2006 N 281-FZ). Moscow, Russia (2006) Russian Federation: Federal Law “On Plant Quarantine” (July 21, 2014 No. 206-FZ). Moscow, Russia (2014) Supreme Court of the Russian Federation: The decision of the Judicial Collegium for Administrative Cases of the Supreme Court of the Russian Federation “On the refusal to satisfy the application for invalidating clause 1 of Decree of the President of the Russian Federation of July 29, 2015 N 391 “On Certain Special Economic Measures Used to Ensure the Security of the Russian Federation” and paragraphs 2–6 of the Rules for the Destruction of Agricultural Products, Raw Materials And Food, Included in the List of Products Whose Country of Origin are the USA, EU countries, Canada, Australia, Norway, Ukraine, Albania, Montenegro, Iceland and the Principality of Liechtenstein and which until December 31, 2019 Banned from Import into the Russian Federation, Approved by Decree of the Government of the Russian Federation of July 31, 2015 No. 774” (February 20, 2019 No. AKPI18-1211). Moscow, Russia (2019)