Models of vertical integration as a factor of resilience in medium-sized businesses in the real sector of the economy

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Abstract

the article presents an analysis of vertical integration models as a factor of resilience in medium-sized businesses operating in the real sector of the economy. The study combines theoretical approaches to assessing the impact of structural integration, digital modernization, and managerial maturity on companies’ ability to maintain stable operations under external instability. Three integration models are examined – the classical model, vertical M&A transactions, and digital integration – and their differing mechanisms of influence on resource control, execution predictability, and the adaptability of operational systems. The findings show that process consistency, the presence of proprietary infrastructure, and digital management systems form stable operational frameworks that reduce dependence on suppliers and enhance a company’s ability to withstand demand fluctuations and logistical disruptions. Particular attention is given to the limitations of applying integration models in medium-sized businesses, including constraints related to access to financing, human resources, and integration capacity. The study substantiates that vertical integration becomes effective when organizational readiness and technological foundations are in place, forming the basis for long-term resilience and competitive advantages. The article may be useful for managers of industrial and construction companies, supply chain analysts, and strategic development specialists.

About the authors

G. B Shashiashvili

General Director of NSO Industrial LLC, Moscow

References

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