Authors: Denis A. Coelho, Joao C.O. Matias
Addresses: Centre for Research in Engineering and Industrial Management, DEM, University of Beira Interior, Covilha, Portugal. ' Centre for Research in Engineering and Industrial Management, DEM, University of Beira Interior, Covilha, Portugal
Abstract: In the past, economic success of most countries depended on the performance of their greater companies. Nowadays, bearing globalisation in mind and the wide implementation of the multinational companies, the economic success of developing countries and the internationalisation of their economy depends on the performance of SMEs. However, these companies, in some countries mostly of a family scope, usually have insufficient know-how about new forms of management. Recognising that management systems are nowadays considered market qualifiers, this paper presents two ways the smaller companies can direct their efforts to production while implementing the various management systems. Outsourcing the implementation and management of the several management systems to companies specialising in that activity is one way. The alternative is forming new companies with the same goal, but in a cooperative way amongst several small or medium sized companies operating in the same industrial sector or in close geographical proximity. The choice between alternatives for an SME depends on its sector of activity, its financial health, and applicable market qualifiers and order winners. Examples of both forms of outsourcing are discussed and the selection criteria inherent to this decision process are discussed based on the results of a survey of Portuguese companies.
Keywords: outsourcing; entrepreneurship; intrepreneurship; innovation; co-competition; order-winners; market qualifiers; management systems; small and medium-sized enterprises; SMEs; Portugal.
International Journal of Entrepreneurship and Innovation Management, 2010 Vol.11 No.3, pp.324 - 329
Available online: 02 Mar 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article