Import substitution as a strategic means for ensuring the sustainability and competitiveness of the Russian companies

Abstract

In terms of the modern geopolitical and economic realia, import substitution is one of the strategic means for ensuring sustainability and competitiveness of Russian companies. Import substitution is a state program, and a special government commission is responsible for the monitoring of its implementation. However, the results of this program that are currently obtained do not provide an insight into its potential. This research aims to devise recommendations for improving the import substitution program as a strategic means for ensuring the sustainability and competitiveness of Russian companies. In this research, we have used the systematic approach, statistical analysis, and the dialectical method of cognition. The article provides a complex analysis of statistical data on the results of the import substitution program implementation in the Russian Federation on the example of the Volgograd region. Consequently, this analysis has enabled us to devise suggestions on how to increase the efficiency of the aforementioned program in order to ensure the sustainable and competitive development of Russian companies. We have come a conclusion that it is crucial to reach a balance between import substitution and export-orientation since it will help eliminate some disadvantages of import substitution and, consequently, help overcome the limitations of the domestic market, create new production facilities, optimize business processes, and decrease the volume of monopoly and corruption.