Evaluating management practices in horizontal cooperation SMEs networks: the Ecuadorian context

Abstract

Small- and medium-sized enterprises (SMEs) play an important role in the economic growth of a country and of a sector. They seek to be incorporated into permanent productivity and competitiveness dynamics through a cooperation strategy. This article evaluated the application of management practices to horizontal SMEs networks of the dairy sector in Ecuador by following the constructivist methodology. The literature review and exploratory research indicated an understanding of cooperative work in the networks or Milk Collection Centers (MCCs) and identified the need to evaluate performance when applying management practices as an unavoidable element to enhance their operation and development. The construction phase took as reference a model for the evaluation of management practices in cooperation networks and contextualized it to the Ecuadorian environment. In the evaluation phase, three networks were evaluated, from which results and conclusions were obtained. The developed model identified six criteria with which the evaluations of MCCs were made, whose analysis allowed their performance level to be quantified and a proposal of some specific improvement opportunities for this sector and a group of SMEs.

Priority Sector of Small and Medium Enterprises Using Ahp: A Case Study of Yamaru Enterprise

“…Problems commonly faced by SMEs include inadequate advertising and promotion of products or services, and lack of a marketing strategy that results in imprecise sales forecasts and plans. Market research in Indonesia generally relies on data collected from a few customers having a limited network of clients (Rojas-Lema et al, 2019) that results in an inadequate understanding of market conditions. Many times, this results in SMEs competing with large companies that can sell the same products at a lower price and/or with better service (Maulina & Fordian, Management practices carried out by SMEs are related to the pattern and effectiveness of coordination, leadership, network structures and institutional relationships.…”

“…Practical management is also associated with the process of innovation and development. Institutional relationships increase interactions with stakeholders and strengthen business networks with suppliers, business partners, government and educational institutions (Rojas-Lema et al, 2019).…”

“…Several previous studies suggest that small and medium enterprises (SMEs) are a critical economic engine in a country's development (Arthur-Aidoo, Aigbavboa, & Thwala, 2016). According to Rojas-Lema et al (2019), the economic growth of developing countries is positively related to the work of SMEs.…”