The success of SME's in the global value chain
Toth, Zoltan (2020)
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020091820548
https://urn.fi/URN:NBN:fi:amk-2020091820548
Tiivistelmä
This paper studies what the prerequisites are for small- and medium-sized companies to run a successful business as a part of the global supply chain. The study concentrates on specific small- and medium-sized manufacturing enterprises because they represent a very significant part of the global economy. The thesis states that European companies can also be competitive in the fractionalized subcontracting field, where Asian companies dominate.
First, the study concentrates on the formation of the global value chain. This is explored by examining the three unbundling steps in trade that have led to today’s global market. It very specifically examines how evolving technology has helped overcome constraints.
The research then introduces some industry specific indicators that are used to measure a company’s overall performance in quality, cost and lead time. These performance indicators are generally used by industry procurement decision makers to make purchase agreements. These indicators are used in the two interviews. Two companies in the same industry with different backgrounds are interviewed to gain knowledge about their comparative advantages using the performance indicators.
The research concludes that the manufacturing companies are most successful in competing with Asian competitors when the desired performance indicators are achieved. Both interviewed companies manage to have some of these comparative advantages.
First, the study concentrates on the formation of the global value chain. This is explored by examining the three unbundling steps in trade that have led to today’s global market. It very specifically examines how evolving technology has helped overcome constraints.
The research then introduces some industry specific indicators that are used to measure a company’s overall performance in quality, cost and lead time. These performance indicators are generally used by industry procurement decision makers to make purchase agreements. These indicators are used in the two interviews. Two companies in the same industry with different backgrounds are interviewed to gain knowledge about their comparative advantages using the performance indicators.
The research concludes that the manufacturing companies are most successful in competing with Asian competitors when the desired performance indicators are achieved. Both interviewed companies manage to have some of these comparative advantages.