Strategic Tools for Improving the Efficiency of Light Industry through Public-Private Partnership
Year: 2025
Type: article
Abstract: Public-private partnership (PPP) may be an efficient strategizing tool in the light industry. Professor V. L. Kvint’s theory of strategy and strategizing, applied to a pulp and paper production company, revealed the sustainable water and energy cycles as the main areas of strategic development. The resulting strategizing approach focused on the environmental impact and competitiveness. The major strategic priorities were to combine public and private funding with reliable management. Each priority was provided with strategic goals that pursued competitive advantages. The case study featured the projected profitability of the Intersectoral Innovation Complex of pulp and paper production for 2024–2040. It yielded a project for a pulp and paper plant in the Penza Region, Russia. This PPP project can be used by other light industry enterprises. The project covered the economic, environmental, and institutional aspects of the agreement between the Russian Ministry of Industry and Trade and the Intersectoral Innovation Complex. The funding structure was as follows: 30% government, 70% private sector. It involved risk mitigation mechanisms, contributions to import substitution, and profitability forecasts. The key factors of long-term sustainability included flexible tax conditions and synchronization with major industrial initiatives. The PPP strategy made it possible to achieve technological sovereignty through innovative processing methods and integration into global value chains. The concessionary model provided a balance between the strategic objectives of the state and the commercial logic of businesses, triggering a structural transformation of resource-intensive industries.
Source: Strategizing Theory and Practice
Authors: Alexander Semenov, Aleksei Fadeev
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4416133062