The Contemporary Dynamics of Quantitative Effects of Business Partnerships of Construction Enterprises
Scientific Problems of Engineering Economics of Construction and Real Estate Management, Regional and Territorial Development ICEREE’2022: Book of Abstracts 2023
Jānis Vanags, Ineta Geipele, Andris Vanags

In the context of recent European history, the quantitative effects of business partnerships of construction enterprises have changed dramatically. To a large extent, these changes concern the partners of construction enterprises – the suppliers of resources. For political and moral reasons, many manufacturers of construction products in Latvia and in several other EU countries have had to withdraw from a partnership with a number of construction enterprises. In order to continue construction work, construction enterprises and companies in many other sectors have been forced to restructure their partnership in order to create the necessary flow of resources from other countries in Europe and on other continents. This led to a sharp increase in the prices of economic resources used in construction, resulting in an increase in the prices of the construction products being in manufacturing. To accomplish the objectives and to reach the aim of the study, purposefully selected, mutually compatible and complementary research methods have been applied, thus forming a unified research methodology. The research results show that the restructuring of partnerships of construction enterprises has resulted in different quantitative effects with dynamic fluctuations by economic resource groups and types of construction products. For some construction resource groups, price increases exceed those of energy resources with regard to their share in the production of a respective resource type. Many construction enterprises use the restructuring of business partnerships to ensure that the prices of the products they produce exceed the rate of increase in the prices of economic resources. Thus, entrepreneurs in the construction sector and in several other sectors of the economy are taking advantage of the situation for greedy purposes in order to increase profits. As a solution, extraordinary fiscal policy measures should be taken to mitigate price increases, which may be more effective than increasing the refinancing rate.


Keywords
partnership effect, partnership of construction enterprises, profit, resource price increase
Hyperlink
https://buni.rtu.lv/wp-content/uploads/sites/68/2023/09/ICEREE-abstracts_2023.pdf

Vanags, J., Geipele, I., Vanags, A. The Contemporary Dynamics of Quantitative Effects of Business Partnerships of Construction Enterprises. In: Scientific Problems of Engineering Economics of Construction and Real Estate Management, Regional and Territorial Development ICEREE’2022: Book of Abstracts, Latvia, Riga, 29-29 September, 2023. Riga: RTU Press, 2023, pp.32-32. ISSN 2592-9372.

Publication language
English (en)
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