Territorial Distribution of Business Processes as a Source of Increasing Competitiveness in Companies

Abstract

Globalization of the economy has changed the nature of competition. Territorial distribution of units, engaged in these or other business processes, assumed the character of an independent source of competitive advantage. The article discusses the features of a modern approach to management of geographically distributed companies. To characterize the dynamics of spatial distribution of business processes the authors define the concepts of "presence region", "base region", "home region" and "key region", which define characteristics of regions where the company can carry out its activities. The authors show that geographically distributed business processes are sources of the company's growth and ways to strengthen its competitiveness, not only due to the choice of the optimal placement of its business processes, but also due to their coordination. The article identifies the benefits and disadvantages of spatial distribution and spatial concentration of business processes. Studying the basis of features of regional development in the Russian Federation the authors conclude that for Russian companies the territorial expansion of activities within the boundaries of the country's complexity and scale is comparable to the process of internationalization of foreign companies’ activities.

DOI: 10.5901/mjss.2015.v6n6s3p503