CLUSTER-NETWORK PARADIGM IN THE REGION ECONOMY MANAGEMENT

In the age of globalization of the world economic intercourse, the relations between the stakeholders in the region change. The nature of these relations undergoes the significant changes under the influence of globalization, which results in business going beyond the national borders, and the economy moving from strict hierarchic structures with vertical subordination to more flexible, opening up new opportunities.

Affected by the global crisis, a new organizational and management, “cluster-network” paradigm appears, when the regional economic systems move to a cluster-based structure and a network type of interactions. Networks allow economic actors to integrate in the economic space of the regions. The integration of regional business entities according to the network type leads to the formation of clusters, which, in the authors’ opinion, are the “inserted” inside the network. The activation of networks in the region contributes to the comprehensive development of territories and increases the competitiveness of all economic agents of a network.

Despite the fact that the networks do not require control from the center, however, the regional authorities’ activity affects all business entities in the region.

Management decisions made under such conditions are often dysfunctional, not promoting the system to achieve goals because they do not take into account the interests of all actors. Management dysfunctions identified at this stage of management require the immediate evening-out in order to avoid serious consequences. Since the making of optimal decisions is practically impossible due to the actors’ diversity, as the alternative, the authors propose a conflict-compromise management methodology that allows reaching local compromises and making “quasioptimal management decisions”.