CLUSTER INITIATIVES AS A FACTOR OF THE RESILIENCE OF FOREIGN ECONOMIC ACTIVITY IN LIGHT INDUSTRY UNDER MARTIAL LAW: THE CASE OF UKRAINE

Abstract

Russian armed aggression has caused large-scale damage to the national economy of Ukraine, destroying production capacities and destabilizing traditional supply chains. Under such conditions, ensuring the resilience and adaptation of domestic businesses, particularly in the light industry sector, is directly linked to the search for new tools to support foreign economic activity (FEA) and integrate enterprises into global markets. Clustering is considered one of the most effective mechanisms for minimizing the consequences of crises, as network cooperation and synergetic effects allow organizations to be more resilient to macroeconomic shocks, share resources, and stimulate collaborative innovation.

The objective of the article is to provide a theoretical and methodical substantiation and empirical analysis of the role of clusters in the Ukrainian light industry sector in stimulating and restoring their foreign economic potential under martial law.

The article comprehensively analyzes the development dynamics and changes in the commodity structure of Ukraineʼs light industry foreign trade during 2020–2024. A trend towards a significant drop in export volumes (in particular, textiles and clothing in 2023) and an increase in the sectorʼs import dependence on foreign raw materials was revealed. Key non-tariff barriers to FEA were identified, among which delays at border crossings, lengthy document processing, and bureaucratization of customs procedures received the highest negative ratings. The role of the Smart Specialization concept (S3) and the twin (digital and green) transition within the activities of the Ukrainian Clusters Alliance (UCA) as tools for the internationalization of domestic small and medium-sized enterprises is substantiated.

Using the example of the “West Ukrainian Fashion Industry Cluster” Public Union, the effectiveness of institutional and donor business support (participation in international exhibitions such as Pure London, Berlin Fashion Week, and Fashion Park Lviv, as well as attracting grants from GIZ, USAID, and EU4Business) is demonstrated. For a detailed assessment of the practical effectiveness of cluster interaction, the FEA indicators of a specific cluster participant – “Beladonna” Private Enterprise – for the years 2021–2024 were investigated. Based on financial and economic data, indicators of FEA balance, FEA profitability, as well as export profitability and efficiency of the enterprise were calculated. The analysis confirmed that the peak of export activity efficiency occurred in 2022–2023 due to cluster cooperation and diversification of the product portfolio (specifically through increasing the export of workwear and outerwear). Despite the general economic downturn in 2024 caused by systemic challenges (labor shortages, power supply disruptions), the enterprise maintained a positive FEA balance.

It is proven that the formation of developed cluster structures in the fashion industry serves as a strategic tool for increasing competitiveness in the international arena. Clustering provides small and medium-sized enterprises with easier access to global value chains and mitigates logistic and financial risks during the period of martial law.