Manufacturing SMEs, network governance and global supply chains
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 10 January 2020
Issue publication date: 4 February 2020
Abstract
Purpose
The purpose of this paper is to investigate how small manufacturing firms develop and manage relationships with global suppliers and distributors. In so doing the authors aim to contribute to knowledge about SMEs and supply chain management (SCM).
Design/methodology/approach
The authors conducted 12 in-depth case studies of SME final assemblers of machinery in the French farm equipment sector.
Findings
The most effective form of global supply chain governance used by successful SMEs is informal networks involving managers in similar complementary firms, which serve to concatenate links with foreign suppliers and distributors.
Research limitations/implications
The principal limitation of this research is that it is specific to one sector and therefore questions of transferability are raised.
Practical implications
The important implication for managers in manufacturing SMEs is that links with other complementary local firms in the same sector need to be developed, leveraged and valued.
Originality/value
The originality of this case research is that the authors draw on inter-organisational boundaries, power asymmetries and network governance to develop a conceptual framework for the study of SMEs and global supply chains. By focusing on the perceptions of boundary-spanning managers, the authors show how, in circumstances of demand uncertainty, soft network governance is an effective strategic choice.
Keywords
Citation
Cragg, T., McNamara, T., Descubes, I. and Guerin, F. (2020), "Manufacturing SMEs, network governance and global supply chains", Journal of Small Business and Enterprise Development, Vol. 27 No. 1, pp. 130-147. https://doi.org/10.1108/JSBED-10-2019-0334
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited