Institutionalization of Markets and Issues of the Growth of Industrial Enterprises

Анотація

The article developes and proves a scientific hypothesis that strengthening the integration processes in the market space causes its institutionalization, and thus leads to the issues of proliferation of the free market players as a result of a division of spheres of influence between the major financial-industrial groups and corporations. It has been proved that a clear hierarchical structure, along with rigid subordination of free economic agents to the chief processor of resources within the growing corporations are those preconditions, which gradually form characteristics of an organization or an institution in terms of markets. An author's own definition of the notion of «institutional market» has been proposed, which is different from the classic formulation. It is emphasized that institutionalization of market space turns the latter into an another economic system, the main characteristics of which are: limited number of buyers and sellers; presence of conglomerates with rigid hierarchical relationships between buyers and sellers; etc. Enlargement and diversification of business as well as growth of its influence not only within its own industry sector, but also in the related sectors, leads to the fact that corporations are trying to control markets (supply and demand) which meantime are turning into rigid management structures, acquiring characteristics of institutions (organizations). This hinders the market entry of new market players, increases risks of business and requires on the part of enterprises new marketing techniques for positioning the own ability to create customer value.

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