Strategic networking behavior of SMEs is an issue that has not yet been thoroughly studied in the context of emerging market economies in Eastern Europe. No doubt, through strategic networking, SMEs could gain access to valuable resources – information, know-how, technologies, finance, etc., needed for strategy development, and building and maintaining competitive advantages. In addition, the networking of Bulgarian firms operating in a limited domestic market can be viewed as a tool for gaining access to external markets. On the other hand, intensive collaboration and networking creates problems and challenges for the SMEs and places new requirements to their strategic management. Therefore, this chapter draws upon the data and results of three researches which investigated strategic networking behavior of Bulgarian SMEs in order to reveal the specific benefits and challenges of SMEs involved in networks and to examine the impact of networking activities on SMEs strategic development. Finally, recommendations for the strategic networking behavior of Eastern European SMEs are formulated with a view to improve their results from networking and hence their competitiveness.
The paper explores and analyses networking and usage of available support opportunities and services for participation and competitive performance of enterprises on international markets. The empirical results are part of a representative survey of enterprises in Bulgaria, varying in size, type of activity, location, ownership (family and non-family), age and sex of the founder entrepreneur, and other characteristics. The paper focuses on small and medium-sized companies due to their importance for the economy, as well as due to their not fully deployed potential for more active participation and successful performance on the international markets. The aims and advantages of networking have been investigated in the paper, as well as the relationship between participation in networks and providing public services to the enterprises. Furthermore, the connection between the entrepreneurs' specific characteristics, on the one hand, and the involvement of their companies in networks and looking for institutional support for different initiatives (including internationalisation), on the other hand, has been analysed. Based on the conclusions drawn, some recommendations to the stakeholders have been made.
The paper explores and analyses the activities of industrial small and medium-sized enterprises (SMEs), working as subcontractors, that have built sustainable relationships with at least one of their clients. It focuses on the importance of such dealings for SMEs that enables them to overcome their inherent weaknesses, to enhance competitiveness and to realize promising development. For that reason, subcontractors usually seek to build strategic partnerships with contractors. The paper reveals the main characteristics of the buyer-supplier relations that could be defined as strategic to the subcontracting SMEs, such as: to be sustainable over time, to provide access to key resources and innovations, to lead to acquisition of new competitive advantages and growth, etc. In addition, the paper presents some key traits of the relations that mark the existence of a mutual strategic partnership between subcontractors and their clients. The data and methods used in the paper include a study of literature sources, an investigation of available research findings, results of the author’s individual research and expert observations, as well as data from a collective research project.
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