This theoretical analysis reveals factors driving vertical integration in agricultural value chains, suggesting novel optimization strategies.
This study aims to identify and systematically conceptualize the economic determinants, forms, and effects of vertical integration in the agricultural economy of Russia. The relevance of the topic stems from the need to enhance the resilience and efficiency of agri-food value chains amid institutional transformation, market instability, and resource constraints. The paper explores key theoretical and methodological frameworks, including transaction cost economics, life-cycle theory, resource dependence theory, and institutional design. Particular attention is given to the diversity of vertical coordination mechanisms –from contract-based models and cooperatives to fully integrated holding structures – illustrated with examples from leading Russian enterprises and regional practices, including the case of the Republic of Crimea. The most important results include the development of an original model for optimizing resources and coordinating the activities of integrated structures based on linear programming, adapted to the conditions of the agricultural economy. The model allows optimizing the coordination and distribution of resources between participants in integrated structures. The scientific novelty lies in the comprehensive identification of integration factors, the construction of an analytical model for optimizing resources taking into account transaction parameters and its application to the practice of vertical integration in the agro-industrial sector.
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Тимиргалеева et al. (2025) studied this question.
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