The impact of globalisation on SME-subcontractors' supply chain strategies: a Danish case study Online publication date: Thu, 16-Aug-2007
by Britta Gammelgaard, John Bang Mathiasen
International Journal of Learning and Change (IJLC), Vol. 2, No. 1, 2007
Abstract: Globalisation and competition have impacted on not only large firms but also Small and Medium sizes Enterprises (SME) and these enterprises often act as subcontractors to larger firms operating in international markets. The impact of globalisation is severe on the SME subcontractors due to supply chain linkages between large and SMEs through growing base of international customers. The new conditions impact on SME subcontractors owing to supply chain connections and this paper using Danish case studies explores these conditions. The results of the study show that the SME subcontractors are met with higher demands on all parameters but again the price has become decisive and the traditional customer relations no longer automatically generate new orders. Subcontractors in their turn try to meet these new conditions using various strategies, moving production facilities and accepting new roles in the supply chain, namely as orchestrator of a part of the supply chain themselves.
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