Editorial Board

A Refereed Monthly International Journal of Management

International Joint Business: Problems and Prospects in choosing of Organizational Model (Case of Ukraine and India)

Parkhomenko Nataliia,

Associate Professor,

Department of Marketing,

Doctor of Sciences(Economics and Management),

PhD in Economics and Management,

Comenius University in Bratislava, Slovakia

parkhomenko.na28@gmail.com

Abstract

The purpose of research is to analyze the organizational models of joint international business (case of Ukraine and India) to justify the choice of organizational forms of managing. The article is devoted to the comparison of organizational support of international business cooperation, such as contract manufacturing, joint venture, concern, conglomerate, corporation, strategic alliance, international network structures, networking, outsourcing, etc. The study is based on primary and secondary sources of information, namely the State Statistics Service of Ukraine, the Ministry of Trade and Industry of India, the Ministry of Economy, Trade and Agriculture of Ukraine, reports of international organizations, scientific publications of experts, and official websites of Ukrainian and Indian companies.The paper uses general and special research methods, namely systematization, analysis and synthesis, induction and deduction, comparison, generalization, matrix method, statistical analysis and more.The article systematizes the features of organizational support for joint international business, as well as examples of successful cooperation of Ukrainian-Indian partners, mainly in the automotive, pharmaceutical and agricultural markets.The results of research show that in the framework of international cooperation, the business structures of Ukraine and India effectively combine organizational forms of business, thus minimizing costs, expanding markets, gaining competitive advantages.Innovative organizational models of business are defined as integration associations, network structures, strategic alliances, and outsourcing partnerships.The problematic aspects of international cooperation in the markets of Ukraine and India are summarized, which include understanding of regulatory framework, specifics of business ethics, market features, as well as cultural, religious and socio-economic diversity for optimizing the organizational model of joint business.Measures have been taken to eliminate these problems, which are the unification of the registration procedure, the procedure for obtaining loans and building permits, the process of paying taxes, simplifying the procedure for importing products and implementing international trade agreements, etc.

Keywords: international joint business, Ukrainian-Indian cooperation, organizational model of business, organizational support of cooperation, international trade.

Introduction

India is one of Ukraine's important partners and a leading export market for Ukrainian products. If analyzing the trends of international trade operations between Ukraine and India, it should emphasize the gradual growth, in addition to periods of general global crisis phenomena, such as the Covid-19 pandemic in 2020 and military actions on the territory of Ukraine in 2022, which in a certain way affected the dynamics of export and import transactions between countries.

The purpose of the research is to study the trends in the development of international business cooperation between Ukraine and India regarding the justification of the choice the forms of organizational support for their integration, which is caused by positive changes in the growth of international trade. Accordingly, the goal determined the work methodology, which is based on the comparison of forms of business organization based on bilateral cooperation and the justification of priority areas of organizational support for international cooperation of business entities.

The main directions of international cooperation in the economic sector are implemented in accordance with the intergovernmental agreement of April 19, 1994 on the activities of the Intergovernmental Ukrainian-Indian Commission on Trade, Economic, Scientific, Technical, Industrial and Cultural Cooperation (Treaty on Friendship and Cooperation between Ukraine and the Republic of India, 1994).

Regarding the effectiveness and sufficiency of the contractual and legal framework for the organizational support of international cooperation, a number of intergovernmental documents on interaction and mutual assistance, access to the markets of goods and services, mutual understanding between the Ukrainian Union of Industrialists and Entrepreneurs and the Confederation of Indian Industry were signed during the years 1991-2021, which contributed the growth of export and import transactions between states.

Coordination of international cooperation between Ukraine and India is mainly carried out by departments and diplomatic missions of the countries, chambers of commerce and contacts at the UN. Institutional cooperation is implemented by the Ukrainian-Indian commission on trade, technical, industrial, economic, scientific, cultural cooperation; coordinating group in the field of electric power and metallurgy; by the committee on scientific and technical cooperation, as well as at the level of consultations at the level of ministries of foreign affairs.

The results of effective cooperation are determined by the effectiveness of international trade between Ukraine and India. Thus, in 2020, trade between India and Ukraine decreased by 2.76%, exports from Ukraine decreased by 2.6%, imports from India decreased by 2.7% compared to 2019 (according to the State Statistics Service of Ukraine, 2022). The dynamics of the development of international trade relations between Ukraine and India during 2016-2020 are presented in the table.1.

Table 1: Dynamics of development of international trade between Ukraine and India in 2016-2021

Source: compiled by the author based on the materials of the State Statistics Service of Ukraine, 2022.

As for the commodity structure of Ukrainian exports to India, the largest specific weight is made up of fats and oils of vegetable origin (about 70%), fertilizers (about 10%), nuclear reactors and boilers (about 5%). Ukraine imports from India mainly pharmaceutical goods (about 30%), electrical machines (about 10%), organic chemical products (about 10%), etc.

The foreign trade turnover in the service sector exceeded USD 100 million. USA in 2020, i.e. Ukraine had a positive trade balance in services. More than 90% is the export of services, which mainly concern tourist trips and business services. The same types of services prevail in the structure of imports.

In 2021, Ukraine imported from India fish and crustaceans, tea and coffee, grain crops, seeds and fruits of oil crops, various food products, tobacco, mineral fuels, organic chemical compounds, pharmaceutical products, various chemical products, plastics and polymer materials, rubber and rubber, ceramic products, ferrous metals and products made from ferrous metals, nuclear reactors, boilers and machines, electric machines, land vehicles. The main import products from India to Ukraine are metallurgical products, chemical products, pharmaceutical products, oil plants.

The main export products are agricultural products, organic chemical products, sunflower oil. At the same time, in 2021, Ukraine exported from India fats and oils of vegetable and animal origin, residues and waste of the food industry, inorganic chemical products, fertilizers, wood and wood products, ferrous metals and ferrous metal products, nuclear reactors, boilers and machines, aircraft, miscellaneous. Therefore, in terms of exports to India, the largest specific weight in 2021 was occupied by such types of products as mineral fuel (petroleum), precious stones and precious metals, the sales of which were about 18 percent. The significant proportion is occupied by the pharmaceutical industry in relation to the production of biotechnologies and the production of vaccines. Animal and vegetable fats and oils are a significant part of exports. That is, raw materials and intermediate products make up the majority of India's exports, while finished products make up the majority of imports.

India's foreign direct investment in the Ukrainian economy amounted to 14.8 million US dollars as of September 30, 2020. According to the National Bank of Ukraine, the volume of Indian investments in 2016 amounted to 8.4 million US dollars, in 2017 - 1.2 million US dollars, in 2018 - 3.6 million US dollars, in 2019 - 18.5 million US dollars, in 2020 - 7.2 million US dollars (IBEF, 2020).

As for the retrospective development of international cooperation between Ukraine and India, the effectiveness of international trade in goods in 2002-2016 is presented in Table 2.

Table 2: Foreign trade in goods between Ukraine and India in 2002-2016, thousand dollars USA

Source: compiled by the author based on the materials of the State Statistics Service of Ukraine,2002-2022.

That is, from 2002 to 2013, there was a constant increase in export-import operations, in 2014-2015 a significant drop due to the armed conflict, and in 2016, the beginning of export growth to the level of 2013 indicators.

The evolution of the development of relations is realized not only between state structures, but also between chambers of commerce, individual enterprises and industries of the two countries.

Currently, there are about fifty Indian companies operating in Ukraine, mainly in the field of automobile construction and pharmaceutical industry. The largest Indian companies operating in Ukraine on the pharmaceutical market are Euro Lifecare, Organosyn, Aurobindo, Abril, Glenmark, Sun Farma, Mega we care, Macleods, Dr. Reddy's, Hetero, Progressfarm; as well as the automotive industry are Tata Motors Ltd., Bajaj Motorcycles (Website of the Embassy of India in Ukraine, 2022).

In the industrial segment, the Indian economy is characterized by a powerful energy complex, transport infrastructure, aerospace, pharmaceutical and information sectors. According to the size of GDP, taking into account indicators of purchasing power parity, India's economy is one of the most powerful in the world.

India's economy has one of the highest growth rates compared to the economies of the world.  In addition, the large consumer market of the country with a population of more than 1.3 billion people and constant significant growth has prospects for increasing Ukrainian exports.

According to the materials of the Ministry of Trade and Industry of India, bilateral trade between Ukraine and India was characterized by positive trends (Table 3).

Table 3: Indicators of bilateral international trade between Ukraine and India

in 2016-2020

Source: Compiled by the author based on Ministry of Commerce and Industry of India, 2022

The priority sectors of investment for Ukraine in India are agriculture and food industry, defense industry, infrastructure and transport, ports and sea transportation, mining, tourism and hotel business.

On the one hand, India is an agrarian and industrial country with a weak level of agricultural mechanization, on the other hand, the country ranks in the Top 10 in terms of GDP per capita. The agricultural sector accounts for more than 30% of the country's GDP, producing wheat, millet, rice, oilseeds and legumes, sugar cane, tea, peanuts, coffee, spices, etc. The animal husbandry is also a strong arm of India's agricultural sector, home to a quarter of the world's cattle population. The main trade ties are directed towards China, the USA and the UAE (Site of the Embassy of India in Ukraine, 2022). Despite the fact that the country is the world's leading agricultural producer, it is also the leading importer of agricultural products, including Ukrainian agricultural products. The Indian market is the largest importer of vegetable oil, in the structure of which a significant weight belongs to Ukrainian exports (about 30%). In addition, in the agricultural segment, India imports grain crops, animal oil, vegetables, and food industry residues. Considering the current trends in the Indian market, favorable commodities for trading are walnuts, sunflower, as well as rapeseed and rapeseed oils, dairy products, legumes (chickpeas, beans, peas), yeast, juices, wine, alcohol, grains and oilseeds etc.Given that most of India's population is vegetarian, the export of pulses is an attractive niche. On the agricultural market, promising directions for Ukrainian exports are grain crops, namely wheat and corn, as well as ready-made food products, in particular candies, chocolate, flour confectionery, processed fruits and vegetables, legumes.

Market research identifies problems and prospects for the development of international business and cooperation. Ukraine and India cooperate in the sectors of engineering, science and technology, pharmaceuticals, and energy (Semenets, 2006). Regarding the issue of expansion of Indian business in Ukraine, the main problems are banking security, which will enable Indian entrepreneurs to receive loans, without risking investing funds and making calculations. Regarding international cooperation in the aerospace field, intergovernmental agreements were signed between the Indian Space Research Organization and the State Space Agency of Ukraine.

The alternative energy sector is attractive for investment, namely the construction of solar power plants, the installation of windmills, and the production of hydrogen. Several Indian companies operate in this segment on the territory of Ukraine. A significant number of Indian pharmaceutical companies are represented in the Ukrainian market, offering medical drugs and instruments such as drugs for diabetes, cancer, tuberculosis, health screening instruments, heart valves, etc. Ukrainian pharmaceutical enterprises have the opportunity to produce Indian medicinal products, which is an effective tool for the development of international business (Make in India, 2022). The priority areas of investment are the spheres of transport, energy, infrastructural industries, and the defense-industrial complex.

Review of Literature

Internationally operating companies will find a significant gap in what aspects of formal and informal institutional perspectives need to be identified and evaluated for international expansion. The institutional arrangements of international business in a new country consist of five main components, namely: people, power, performance, routes to international expansion and productivity, the latter being defined in terms of knowledge and innovation.(Lynch and Jin, 2016)

The influence of the integration course of the company's home country is almost one of the most important factors influencing the definition of its strategic activity and the selection of relevant tools for the company's adaptation to the newly formed market conditions. Taking into account the national competitive advantages of the country where the enterprise is based, mechanisms and indicators of enterprise management efficiency are formed, taking into account the state integration policy (Derhachova andTrykhlib,2013).

Indian companies have proven their global presence in manufacturing, real estate and hospitality, agriculture and construction. (Chaturvedi, Agarwal and Patodia, 2018).Effective choice of organizational business models allows foreign partners to achieve success in establishing new contacts and expanding their activities in local markets (Akmal and Pervez, 2000).Mechanisms for managing joint international business involve transaction costs and social exchange (Tahir, Saba and Khuram, 2021).

The international joint venture is a form of cooperation that can benefit multinational companies that are able to use their knowledge in foreign markets (Mohedano-Suanesa and Safónb 2021).Entering into alliances with foreign enterprises is limited by the achieved level of development, resource limitations, and attractiveness for potential partners. Strategic alliances represent the cooperation of several industrial enterprises, which is aimed at achieving long-term results, stable and sustainable development of the activities of participating corporations (Kasych, 2017).

Organizational models of international joint business are implemented through active integration processes (through concentration strategies in the form of mergers and acquisitions) with the aim of expanding production capacities, getting as close to potential customers as possible, reducing production and sales costs; an active promotion policy, which consists in the creation of trading houses, branches and subsidiary companies, concluding contracts with distributors and further providing them with consultations and clarifications; the use of cooperative strategies, a wide developed industrial partnership, which is implemented in the form of outsourcing of components, joint ventures or special orders (such orders include the production of a batch of bearings for a specific manufacturer, which will place its own brand on them); using methods of unfair competition and aggressive market behavior. (Parkhomenko and Otenko, 2019).

Methodology

The main goal of this study is to study global organizational models on the example of Ukrainian-Indian companies and to choose priority organizational strategies of international business.In this context and the trends of international economic relations between Ukraine and India, then the existing organizational forms of business of Ukrainian-Indian companies are analyzed.The paper uses general and special research methods, namely systematization, analysis and synthesis, induction and deduction, comparison, generalization, statistical analysis and more.The article systematizes the features of organizational support for joint international business, as well as examples of successful cooperation of Ukrainian-Indian partners, mainly in the automotive, pharmaceutical and agricultural markets.In this research, modern innovative forms of conducting joint Ukrainian-Indian business were selected and priority areas of cooperation were determined.

The choice of an organizational model for conducting a joint international business in the context of a global environment is a process of finding the most rational directions for the functioning of an international business entity, finding new opportunities to ensure competitive advantages and the desired market position. Methodological support of the organizational model for conducting joint international business is presented in the Table 4.

Table 4: Methodical approach to choosing an organizational model for joint international business

Source: Compiled by the author

The organizational model of conducting a joint international business is focused on the formation of an effective organizational structure, optimization of business processes, and application of effective methods of business interaction with the external environment and with individual elements of the business system.

Data Analysis and Interpretation

The expert assessment was conducted to determine the indicators of the choice of the organizational model of joint international business.

As the object of study, the set of questions was proposed for top-level managers, based on the definition of criteria that influence the choice of the organizational business model according to some parameters on a ten-point scale, such as the size of the authorized capital, business management, ownership issues, attracting financial funds, accounting and taxation, distribution of profits, business registration, responsibility. The following organizational models were evaluated as contract manufacturing, joint venture, concern, conglomerate, corporation, strategic alliance, networking structure, net-chasing, outsourcing. The survey materials of 30 respondents were used in the analysis. Non-parametric analogues of correlations, namely Spearman's rank correlations (Table 5), were used to construct correlations and determine dependencies.

Table 5: Spearman's rag-tag correlations according to the criteria for choosing an organizational model of conducting international business

Source: Author's calculations using softwareStatistica 13.5

That is, there is dependence between almost all criteria. The most important criteria are such as attracting financial funds, authorized capital, ownership issues. To determine the significance of the criteria, a non-parametric analog of variance analysis was used for several dependent variables, namely the Friedman test.

To form alternative ways of development of a subject of joint international business, we will form a matrix for choosing an organizational model of conducting joint international business, taking into account the criteria of general trends in the development of a subject of international business and the available potential, determining the necessary organizational models that are appropriate for joint business (Table 6).

Table 6: Matrix for choosing an organizational model of joint international business

Source: Compiled by the author

Thus, taking into account the development trends of the subject of international business and the existing potential for development, it is possible to distinguish 9 quadrants regarding possible alternatives of the organizational model of conducting joint international business. We will successively consider the specifics of the application of each of the organizational models.

Of course, there remain difficulties regarding business in the Indian market, which relate to the organizational support of international cooperation, despite which the economic partnership of India and Ukraine continues to develop.It is worth focusing attention on various forms of international business cooperation, such as the creation of joint ventures, vertical and integrated structures, contract production, etc., which will allow cooperation at the international level on the basis of a contract.

Cooperation based on contract production on the territory of Ukraine is an effective organizational toolkit. International business entities of two countries, working legally independently on a mutually beneficial basis, can enter into mutually beneficial agreements. Such a scheme of international cooperation is attractive for agriculture, food and light industry. For example, such a cooperation mechanism will allow growing agricultural crops from imported seeds and exporting the corresponding crops to India, or manufacturing certain types of products.

Joint ventures, which can be organized by creating Ukrainian and Indian business entities on the basis of joint capital, based on joint management and sharing of risks and results of activity, are also a priority form of international cooperation. Examples of active joint ventures are the Ukrainian-Indian joint venture LLC Magadpharm, Rourkela Steel, MagdeburgerWalzwerk Engineering, Danieli Heavy Machinery Engineering, etc.

The concern is a vertical, horizontal and diversified association, which remains an independent enterprise from a legal point of view, and gives a share of economic independence under unified management. Organizationally, concerns are formed through the acquisition by some business structures of shares of others, exchange of capital, and creation of a holding company. Successful examples of the application of organizational support for business activities through the creation of concerns in India are the companies Ranbaxy, Dr. Reddy’s Laboratories, Sun Group.

Integrative growth through the creation of a conglomerate is an organizational form of association as a result of the merger of several business structures that do not have any dependence on each other. The example of organizational integration in the form of a conglomerate is the Indian multinational company Tata Group, which operates in the market of communication, information technology, mechanical engineering, materials production, in the field of services, energy, production of consumer products, chemicals.Global companies that operate in many markets based on the organization of activities by creating a conglomerate Philips Electronics (Netherlands), Hitachi (Japan), Hanson (Great Britain), Textron Inc (USA), Raiffeisen Bank (Austria).

The creation of a consortium represents a form of association based on an agreement between banks, enterprises, scientific institutions, and state structures for the purpose of financing significant operations or implementing projects. Well-known global companies that work on the basis of the organization of the Airbus consortium, which unites companies in England, Germany, Spain, France; a consortium of companies including British Petroleum, Shell, Shevron, Amko, Turkish Petroleum, etc.

In modern conditions, the integration of Indian and Ukrainian business can be implemented in the form of an international corporation, namely: a license agreement based on copyright, trademark, patent; production of goods by a partner abroad; contract management through the transfer of management know-how; franchising when issuing a license for a certain type of activity with management, marketing and technological support; strategic alliance to pool resources to improve performance; joint venture when creating a new business structure by independent enterprises; a multinational company with a shareholding or other methods of corporate control of the network (Parkhomenko, 2021). Vizag Steel RashtriyaIspat Nigam Limited, Tata Steel, Steel Authonty of India, Visveswarayya Steels, and Visa Steel are strongly represented today.

Today, the cluster is an effective form of integration of various business entities, manufacturing enterprises, banks, educational institutions, government bodies, and infrastructure facilities located in a certain territory. The organizational form of the cluster is aimed at the production of competitive products by the members of the integrated association, while respecting the interests of each of the cluster members. Technopolis is a more complex organizational form, it can combine separate technology parks, business incubators, research centers and high technology centers.Clusters and technopolises unite a wide range of participants, regional and national authorities, and have territorially defined boundaries. Strategic alliances involve the cooperation of enterprises exclusively to achieve a result in a strategic direction. Strategic alliances can be implemented both within the cluster and technopolis and outside their boundaries. The network is an association of enterprises with the purpose of using their features, resources, and advantages over others for the implementation of joint projects. Strategic alliances can build the necessary interconnected network if necessary (Parkhomenko and Otenko, 2019).The strategic alliance of Steel and Industrial Forgings Limited and the Novokramatorsk Machine-Building Plant is an example of international Ukrainian-Indian cooperation based on the organization of the alliance. Using a suitable alternative for business organization, partners cooperate to achieve common and personal goals without losing their independence.

Thus, taking into account the constantly changing conditions of the global environment, which can be the growth of requirements for the quality of manufactured products and services on international markets, the rapid introduction of innovations, technological changes in the execution of business processes, trends in the development of labor markets, integration and disintegration processes in countries and between them, the reorganization of business structures, flexible organizational transformations need to be implemented, the formation of associations in business-friendly forms, such as strategic alliances, which will contribute to improving the performance of each of the alliance partners, will increase the level of efficiency of the overall business structure. The result of business interaction in the form of strategic alliances is rapid changes in technology, innovation of business processes, expansion and renewal of the assortment, acceleration of the pace of development of world markets, provision of competitive advantages, minimization of risks and more stable development.

The ability of integrated business structures to quickly adapt, flexibility to changes is important parameters for the successful development of international cooperation. It is possible to minimize the impact of the actions of competitors through cooperation and interaction with them. The organizational form of creating strategic alliances allows directing the activities of business structures not to competition, but to cooperation between partners. Partnerships in the system of a strategic alliance determine the favorable directions of movement of intangible and material flows; strengthen the weaknesses and shortcomings of partners.Combining businesses into alliances increases competition both in areas of activity and in certain markets. The structure of interaction between business structures of partners that are part of a strategic alliance forms the appropriate direction of organizational development, ensuring cooperation in the process of making and implementing strategic decisions.Depending on the structure of building interaction in a strategic alliance, the specifics of the distribution of tasks and powers, the competence of units, and the decision-making process may differ. The process of development and implementation of organizational support of a strategic alliance depends on the rights, obligations and powers of partner companies, their independence and interaction, integration into the activities of the host country, access to labor markets, capital, resources, suppliers, consumers, information, etc. Strategic alliances are significantly competitive business structures, compared to other integrated structures, which contributes to increased competition in international and local markets, competition in the industry, etc. From the point of view of the priority direction of organizational support, the formation of strategic alliances is used by business structures within the framework of international cooperation in the IT sphere, the production of new materials, the automotive industry, retail, etc.

Combining business structures into strategic alliances makes it possible to carry out horizontal and vertical integration, which contributes to conducting scientific research and introducing the latest information technologies. The advantages of creating strategic alliances are stable development, reduction of costs for scientific development and research, minimization of competitive influence, improvement of financial results of operations, payment of debts, exit from the crisis, and thus a strategic multi-purpose partnership.

As a result of the organization of strategic alliances, business partners have the opportunity to expand the range, get a larger number of customers, conduct joint research, form and use a single sales network, gain access to joint and diverse sources of information, conduct joint advertising campaigns (Parkhomenko, 2021). The creation of international strategic alliances through partnership agreements of business structures of different countries focuses attention on pooling resources, reorganization, obtaining an overall complementary effect; assumes a long-term nature of implementation and implementation and contributes to the stable development of partners participating in the strategic alliance. The positive results of the formation of strategic alliances open up opportunities for the alliance participants to access new international markets, contribute to the expansion of geographical presence, the rapid acquisition of innovative technologies, the updating of employees' competencies, and also open the possibility to solve emerging problems in commercial, industrial, financial and other areas at the organizational level (Kasich, 2017).The trade or commercial alliance allows unifying and improving the relationship between exporters and importers. The functional alliance unites the efforts and interests of participants to achieve functional tasks in the fields of marketing, advertising, sales, production, investment, etc. The technological alliance stimulates the development of personnel potential of business structures through the accumulation and distribution of skills, knowledge and opportunities for conducting research, organizational development and interaction, defining a market niche.

The significant number of the world’s leading companies has international partners in the organizational form of a strategic alliance, which indicates the trends of integration at various levels and the strategic importance of the appropriate form of organizational business support. Strategic alliances conduct joint marketing research to form effective sales channels, conduct effective marketing companies, expand the range of products, increase the level of its competitiveness, and increase the circle of interested consumers. The priority direction of the development of strategic alliances is the development and implementation of innovative projects (Kasich, 2017). Therefore, the common goals of business structures become the reason for the creation of strategic alliances.These goals are market development, risk distribution, increasing financial opportunities, finding innovations, and solving marketing, financial, and technical problems. The feature of strategic alliances is the preservation of independence, full legal and economic independence of each international business structure of the alliance.Strategic alliances may cease to exist if the goals are achieved.The effectiveness of the operation of strategic alliances is manifested in a set of results: the expansion of sales markets, an increase in sales volumes, an increase in investments, etc.Therefore, the functioning of strategic alliances is associated with both advantages and disadvantages. The organizational support for entering a strategic alliance requires the introduction of modern business methods into the management system in order to reduce differences between partners and form effective partnership relations.

It should be understood that the above-mentioned organizational forms of international cooperation and integration of business entities into the system of international cooperation are not mutually exclusive; it is advisable to use their combinations in relation to the relevant directions and spheres of activity, business structural units, and assortment units to achieve development goals in the appropriate period of time.

At the current stage of development, the implementation of organizational support for the development of international cooperation through the use of innovative organizational forms ensures the adaptation of business structures to changes, improves the competitive position, stimulating competition (Dergacheva and Trikhlib, 2013). As a result, a double effect is created, combining the use of resources, the introduction of innovations. The most powerful organizational form is global companies that flexibly adapt to external changes and can cover a significant number of international business entities. The priority task of global companies is global presence, acquisition, expansion and scale in order to generate significant amount of profits. Global companies may not have industry specialization and produce a wide range of goods and services, differ in flexibility and adaptability, and are established through the unification of holding structures.These companies produce quality products or services and have a strong reputation in the global market.

The international network structures are an innovative type of organizational support for international business. This form of organizational support aims at long-term cooperation of partners in one or more spheres of activity. To obtain additional competitive advantages, increase profits, strength of resource potential, partners with joint or interconnected business in the global environment combine their own efforts and capabilities on a contractual basis. Relations of international cooperation in the process of interaction of independent business structures with common economic interests through coordination of activities form appropriate international network structures. Such structures work for a short time, only for the implementation of priority tasks. Each of the partners of the network structure has its own characteristics and resource capabilities, but the partnership adheres to common values, which allows for coordination of activities. Structural units of international networks receive competitive advantages; because in the process of interaction they transfer innovations, establish communication links, maintaining information support and intellectual capabilities at a high level. Each unit of the international business network has the ability to reduce resource costs, rapidly implement innovations, flexibly adapt to changes.

The cooperation in the format of international network associations requires the interest of all parties, the availability of approximately the same resource capacities, communication and interaction with other participants of the business partnership. Difficulties in managing network structures occur due to cultural issues, management covers production, financial, investment, innovation, sales, resource tasks, and international interaction. Thanks to the implementation of the organizational form of international network structures, partners determine the directions of interaction for the long-term perspective, which ensure the implementation of transnational corporate ties. The network structures integrate partners into a single system, minimizing competition and increasing joint benefits. The advantage of this form of organizational business support is control over market distribution, forecasting of future parameters of market development, active marketing policy, the ability to identify promising markets and new needs of future consumers, which will allow obtaining competitive advantages. The network structure of the business involves replacing a single corporate management center with a network of interconnected regional centers located in different countries.The appropriate innovations in the management and marketing of international cooperation of business structures are an effective competitive tool (Klochko, 2015).

The innovative organizational support for international business cooperation based on the use of the Internet is net-chasing and outsourcing. The net-chasing as a form of organizational support involves the use of the Internet in the spheres of procurement, sales, adaptation to new conditions, business activity in general. This form of organization allows improving the exchange of information between the buyer and the seller regarding the level of established prices, product and assortment policy, product and brand promotion, and increase the efficiency of supply chains. The organization of net-chasing forms common values between the components of business structures, namely the consumer and the producer. The consumer feels involved in the business environment, and the business receives powerful levers of corporate influence to improve competitive positions. Consumers and customers become an element of business structure management, which speaks of a customer-oriented approach and involves the use of CRM technologies, which ensure the use of management and information tools in the process of collecting information about customers and using this information for business development through the construction of mutually beneficial relationships with consumers of the relevant network business structures. Thus, clients take part in all processes of the business structure, from the birth of an idea to production, implementation, and service. Thanks to the loyalty of consumers, integrated business structures ensure stable development and increase of competitive potential in new markets.

The specific form of business organization is outsourcing, when companies turn into small firms that coordinate the activities of an external network of partners.The development of information technologies stimulates appropriate organizational changes in the global environment and promotes the widespread use of outsourcing. Outsourcing is a form of business organization in the national and global markets, which involves the involvement on a paid basis in the process of creating the value of goods and services offered by the outsourcing company in the national and world markets of external/foreign suppliers by transferring them to perform part or all of the functions/processes in order to increase the international competitiveness of the outsourcer by using the existing competitive advantages of the counterparty.Outsourcing as a form of organizational support and business management is actively used by the world's leading companies that transfer production facilities and workplaces from one country to another, which, despite the distance, allows to improve productivity, reduce costs, increase profitability, etc. Outsourcing makes it possible to intensively spread innovations, conduct research and implement developments, while integrating the obtained achievements into the activities of business structures (Cummings, 2015). The use of outsourcing allows business structures within the framework of international cooperation to concentrate on the most important sphere of activity; reduce the need for capital investments, reduce costs for the operation of buildings and structures, equipment, minimize costs for the development and implementation of information technologies, reduce total costs; get access to innovative developments, resources and technologies unavailable within enterprises; optimize the staffing schedule, reduce the costs of the relevant staffing units and the associated mandatory social deductions, the costs of maintaining jobs (providing vacations, sick days, staff development, avoiding threats related to the possible sudden dismissal of qualified employees, etc.) (Didukh, 2017); perform specialized functions for which the organization does not have specialists or resources; to receive high-quality service due to the narrow specialization of the outsourcing partner, which contributes to the growth of professionalism and quality of work, the accumulation of experience in the relevant direction and the reduction of the degree of risk of non-performance; respond flexibly to changes in the international market; reduce the cost of the functions transferred to the outsourcing partner, since the latter has access to the necessary resources and information technology developments in the field of its specialization; to diversify activities as a result of obtaining free opportunities for production and intellectual innovation activities; to gain competitive advantages in the market thanks to optimization measures in organizational activities.Let's move on to identifying the disadvantages of implementing an outsourcing strategy.First of all, the loss of outsourced skills in marketing, production, and information activities, as well as dependence on external developers for the provision of important business processes can turn into threats to the further operation of the business system and business riskiness. In addition, the risk of information security and confidentiality can be a problem for companies due to the loss of valuable data. The customer provides outsourcers with information about the organizational structure, main business components, sales markets, partners, and financial information that may be disclosed to competitors. The second problem of outsourcing is the loss of control over the timing and quality of results provided by the external supplier, which can affect the quality and create consequences that will have a negative effect on the reputation of the company's business. In addition, there is a risk that the outsourcer, after receiving support and experience, will independently try to enter the market with products or services, become a competitor and bypass the buyer of outsourcing services in the sales markets (Vakhovich, 2014). The opportunity to increase the international competitiveness of outsourcing activities is the attraction of foreign investments, access to international markets through the creation of clusters and international network structures.

The diversity of the use of forms of organizational support for international business shows the perfection and high quality of interaction between the partners of both countries, since the possibility and expediency of international cooperation in the form of joint ventures, vertical and integrated structures, contract production, etc. is regulated at the level of the organizational and legal mechanism.

Thus, the similarity of interaction between Ukraine and India, which cooperate in the fields of information technology and software, mechanical engineering and metallurgy, energy, consulting services, etc., can be traced. It should be added that scientific and academic exchanges have a significant impact on the development of interaction between Ukraine and India, which are constantly increasing and intensifying.

As evidenced by research results, business structures of Ukraine and India within the framework of international cooperation actively combine in their activities several forms of business organizational support, trying to obtain competitive advantages as a result of cost minimization and obtaining price advantages; improving, updating or expanding the range or markets of activity; introduction of innovative management and marketing tools, which allows using new forms of organization of business structures and implementing effective business models of activity (Griffin and Pustay, 2015).

Innovative business structures, namely integration associations, network structures, strategic alliances, outsourcing partnerships, are effective tools for organizational support of business structures within the framework of international cooperation. The development and implementation of innovative forms of organizational support becomes a strategic development priority for business structures.

Conclusion

Therefore, it is expedient to implement cooperation between Ukraine and India through partnerships, creation of joint ventures, branches, representative offices or project companies. Activity through indirect export can be carried out in the format of intermediary agreements, namely distribution, agency activity, creation of electronic platforms for trade.

Regarding the prospects for the development of Ukrainian-Indian cooperation, the established connections and marketing needs of the markets indicate the feasibility of developing international cooperation in the fields of agriculture, food industry, heavy industry, mechanical engineering, light industry, the service sector as provision of consulting services, information technologies, software security, etc.

The difficulty of operating on the Indian market for Ukrainian businesses understands the regulatory framework, which is quite complex and specific. In addition, the ethics of doing business, the peculiarities of Indian markets, and the specifics of activities in certain segments complicate international cooperation. The opening of multinational companies on the territory of India has problems due to the cultural, religious, economic diversity of the country's population, which causes certain difficulties associated with the insufficient study of markets, namely regional features, competitive branching, pricing issues, etc.

The problems of bilateral cooperation between Ukraine and India are the perception of the Ukrainian economy as a post-Soviet one, that is, a country in which doing business is difficult and there are many obstacles. On the other hand, there is also a stereotypical perception of India among Ukrainians, which inhibits the creation of joint Ukrainian-Indian enterprises.

In order to intensify cooperation, the governments of countries are taking measures aimed at facilitating interaction between business entities, such as the unification of the business registration procedure for acceleration and simplification; obtaining loans and construction permits regarding the possibility of obtaining them online and reducing the required number of procedures; protection of investors' rights; simplification of the tax payment process thanks to digitalization; simplification of the product import procedure; process of execution of contracts on international trade; procedures for the reorganization of corporate debtors during insolvency and bankruptcy proceedings.

Given that India has opportunities for Ukrainian representatives to open a business, companies have significant difficulties due to the complexity of starting a business, paying taxes, doing business, procedures for closing a company, etc. A significant number of steps and the time required to complete these procedures discourages investors. Along with this, India is a country that has significant tools in terms of investor protection, credit facilities. Marketing research of the segments of the Indian market will provide an opportunity to understand the special features of the international business environment.Regional features, significant differences in urban and rural life, an unorganized large market, a complex administrative system, underdeveloped infrastructure, corruption, and bureaucratic procedures make the Indian market difficult for doing business.

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