THE CATEGORY “COMPETITION” AND THE CONGRUENCE OF ITS CONCEPTS
Brest State Technical University, Belarus
Nauka naukozn. 2021, 2(112): 42-54
Section: Science and Innovation-driven development of economy and society
Abstract: Theoretical aspects and evolution of the market category “competition” are discussed in the context of the formation of reference concepts derived from it: “competitive relations”, “competitive advantages”, and “competitiveness”. Renowned scholars like A. Smith, J. Mill, D. Riccardo, E. Chamberlin, J. Robinson and others devoted their works to the study of the phenomenon of competition. In their works, its content underwent a transformation from polypoly to monopoly, from the concept of free market and perfect competition, to monopolistic and oligopolistic models, and to non-price methods of competition.
Later, M. Porter, W. Eucken, A. Strickland and A. Thompson expanded its conceptual horizons in view of the economy globalization, transnationalization of its structure and the onset of a new phase in science & technology revolution, by introducing the terms “competitive space”, “competitive environment”, “competitive relations”, and “competitive advantages”. The effort of many researchers across the post-soviet area is focused on substantiating the competitiveness mechanisms, e. g. the works of Belarusian economic scientist V.Yu. Shutilin who revealed the causality of the concepts “competitive potential”, “competitive advantages”, and “competitiveness”.
On the basis of the author’s research, the structural and functional relationship between the category “competition” and the concepts derived from it is determined. It resulted in a constructed algorithm for the causal correlation between the market competition (x) and the competitiveness of the actors of the market economic system (y), approximated by a superposition of functions y = f (μ (x)). Its distinctive feature is the introduced auxiliary variable u = μ (х) of competitive relations, which are (i) a form of competition, (ii) an exogenous factor determining the development of market actors whose response is the formation of competitive advantages enabling their ability to operate in the competitive market conditions.
From theoretical point of view, the results can broaden the perspectives for scientific understanding of competition as a basic category of a market economy. In practical point, they justify the need to distinguish it from the notion “competitiveness” equated by many researchers with the notion “competition”, which is not methodologically correct and may lead to inadequate conclusions. This algorithm developed by the author is intended to eliminate this possibility.
Keywords: competition, competitive environment, competitive relations, competitive potential, competitive advantages, competitiveness.
- Mill, J. (1980). Fundamentals of Political Economy. Vol. 1. Moscow: Progress [in Russian].
- Galkin, V.V. Competition and economic efficiency. Retrieved from http://vadim-galkin.ru/ politics/macroeconomics/adam-smith/ (last accessed: 17.10.2020) [in Russian].
- Smith, A. (1962). An Inquiry into the Nature and Causes of the Wealth of Nations. Trans. from English. Moscow: Sotsekgiz [in Russian].
- Ricardo, D. (2007). On the Principles of Political Economy and Taxation. Trans. from English. Moscow: Eksmo [in Russian].
- Chamberlin, E. (1996). Theory of Monopolistic Competition. Trans. from English. Moscow: Ekonomika [in Russian].
- Robinson, J. (1986). The Economics of Imperfect Competition. Moscow: Progres [in Russian].
- Mankiw, N.G. (1999). Principles of Economics. Trans. from English. S.-Petersburg: Piter Kom [in Russian].
- Ovchinnikov, G.P. (1997). Microeconomics. Macroeconomics. S.-Petersburg: Publishing house of Mikhailov V.A. Vol. 1 [in Russian].
- Arkhipov, A.M. The role of competition in the development of a market economy. URL: https://cyberleninka.ru/article/n/rol-konkurentsii-v-razvitii-rynochnoy-ekonomiki (last acces sed: 21.10.2020) [in Russian].
- Medvedev, G.A. (2005). Competition: essence, methods, strategies. Moscow: Dashkov i K [in Russian].
- Polusmakova, N.S. (2011). Development of competition concepts: the evolutionary approach. Bulletin of the Volgograd State University. Series 3, Ekonomics, 1, 13—19 [in Russian].
- Nadein, N.V. (2015). Theoretical studies of the formation and development of competitiveness of organizations. Bulletin of Samara State University, 2, 157—163 [in Russian].
- Porter, M.E. (2005). Competition. Trans. from English. Moscow: Publishing house “Williams” [in Russian].
- A.A. Thompson, Jr., A. J. Strickland III (2000). Strategic Management: Concepts and Cases. Trans. from the 9th English еd. Moscow: INFRA-M [in Russian].
- The concept and essence of M. Porter’s theory of competition. Retrieved from https://ba ribar.kz/student/22814/ponyatie-i-sushhnost-teorii-m-portera-o-konkurentsii/ (last accessed: 23.10.2020) [in Russian].
- Porter, M. (1993). The Competitive Advantage of Nations. Trans. from English. Moscow: International Relations [in Russian].
- Eucken, W. (1995). Grundsätze der Wirt schaftspolitik (Principles of Economic Policy). Trans. from German. Moscow: Progres [in Russian].
- Usik, N.I. (2012). Formation of a competitive environment and competition policy. Theoretical Economics, 4, 33—42 [in Russian].
- Gulyaev, G.Yu. The essence and patterns of competitive relations. Retrieved from https:// cyberleninka.ru/article/n/suschnost-i-zakonomernosti-konkurentnyh-otnosheniy (last accessed: 23.10.2020) [in Russian].
- Porter, M.E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. N.Y.: The Free Press.
- Shutilin, V.Yu. (2016). Competitive advantage as a characteristic of market superiority: content, measurement problems. Bulletin of Belarussian State Economic University, 2, 36—42 [in Russian].
- Shutilin, V.Yu. (2016). Competitive potential and competitive advantages of the machine-building complex of the Republic of Belarus at the present time: key indicators and development trends. Minsk: Belarussian State Economic University [in Russian].
- Vesnin V.R. (2006). Management. 3rd ed., rev. and suppl. Moscow: TK Welby, Publishing hou se “Prospect” [in Russian].
- Lukyanenko, V.N. (2014). Correlating the concepts of “competitiveness” and “competitive advantages”. Bulletin of Transbaikal State University, 6, 114—120 [in Russian].
- Volontsevich, E.F. (2003). Competitiveness of firms. Minsk: Belarussian State Economic University [in Russian].
- Malik, M.Y. Nuzhna, O.A. (2007). Competitiveness of agricultural enterprises: methodology and mechanics. Кyiv: Institute of Agrarian Economy [in Ukrainian].
- Vashkiv, O. (2016). Competitiveness of the enterprise. Ternopil: Ternopil National Economic University [in Ukrainian].
- Porter, M. (2005). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Trans. from English. Moscow: Alpina Business Books [in Russian].
- Zavyalov, P.S. (2001). Marketing in diagrams, figures, tables. Moscow: INFRA-M [in Russian].
- Bogatyrev, V.V., et al. (2018). Competitiveness of economic systems in the context of the networked socio-economic space: theory, methodology, practice. G.A. Yasheva (Ed.). Vitebsk State Technological University [in Russian].