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Mode of Engagement of SMEs in the Value Chain of Top 100 Fortune Global Firms, for Inclusive Business.
Source publication
PurposeThis chapter presents an exploratory study aiming at understanding how the largest multinational enterprises (MNEs) engage small- and medium-sized enterprises (SMEs) in their (inclusive) business strategies, either as suppliers, distributors, customers, innovators or as a target of their (Corporate Social Responsibility) CSR policies.
Method...
Context in source publication
Context 1
... to the car industry, the electronics industry considers SMEs in their business in a rather scant but diverse set of roles, with one major exception: innovation. The general pattern in terms of business models (Table 3) reveals that the most proactive inclusive strategies are built on the roles of SMEs as suppliers and as CSRs targets, whereas the least developed aspects of SMEs in inclusive business strategies relates to innovation and distribution. There exists a link between the level of attention for a specific SME role and a more active approach. ...Similar publications
Aim/Purpose: The major challenges for firms to initiate corporate social responsibility (CSR) arise from resource constraints, complexity, and uncertainty. Consuming considerable financial and human resources is the main difficulty for smaller firms or those operating in less profitable industries, and the lack of immediate outputs from CSR initiat...
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Antecedent research has recognized a difference in the participation in Corporate Social Responsibility (CSR) practices between big companies and small- and medium-sized enterprises (SMEs). Certain characteristics of SMEs create challenges which influence the manner with which they treat the CSR topic. However, literature has failed to provide solu...
The concept of Corporate Social Responsibility (CSR) has gained immense recognition in present time. The need for eliminating poverty and promoting development has provided CSR a strategic position in business organizations. Businesses have been criticized for inducing poverty in developing nations by taking up resources but presently are seen as a...
Responsible research and innovation (RRI) has become an important topic in the academic community and in policy circles, but it has not yet been systematically included in the innovation process of companies. We discuss how companies can integrate RRI into their corporate social responsibility (CSR) policies and business strategy. To this end, we d...
The aim of this paper was to review the research on corporate social responsibility (CSR) in connection with business closures and downsizing to identify gaps in our knowledge. The study consisted of a systematic review of 24 refereed articles. The review identified four themes in the literature on CSR in connection with business closure and downsi...
Citations
... Badulescu et al. [171]; Skýpalová et al. [172]; McCaffrey and Kurland [173]; Parker et al. [174]; Tang and Tang [175]; D'Aprile and Talò [176]; Maijala et al. [177]; Robinson et al. [178]; Van Tulder and Da Rosa [179]; Tang and Tang [180]; Charitoudi et al. [181]; Ahmad and Seet [182]; Csáfor [183]; Lepoutre and Heene [12]; Crals and Vereeck [184], among others. ...
Abstract: The objective of this research is to analyze the scientific production indexed in the international Scopus database on the subject of “corporate social responsibility and corporate social performance” in small and medium-sized enterprises. In the literature, it is currently possible to observe how large corporations undertake social responsibility actions as a usual practice. However, in the case of small and medium-sized enterprises, the reality is different due to their high heterogeneity. To fulfil the proposed objective, a bibliometric analysis is carried out, identifying 277 articles on the subject. It is observed that scientific production is concentrated in a period of 18 years (2000–2018), the majority being qualitative studies.
Keywords: corporate social responsibility; corporate social performance; small and medium-sized enterprises; bibliometric analysis
... Small and medium sized enterprises (SMEs) have a very important role as suppliers, distributors, customers, innovators or as a target of the corporate social responsibility for large enterprises (Van Tulder & Da Rosa, 2014). Especially European firms are clearly amongst the leaders in experimenting with inclusive business strategies that include SMEs. ...
SMEs have irreplaceable task not only in macro-economic – in area of working posts creation, contribution to the flexibility of market mechanism or its contribution to the value added creation, but they are profitable also at the micro-economic level. The goal of the contribution is to search position and development of such enterprises in the frame of chosen European countries and how they contribute to economic growth and competitive environment. During the analysis we considered SME Policy Index. Overall position and development had been analyzed by chosen indexes, mainly index of economic freedom, global competition index, doing business index and corruption perception index. The results speak about increasing trend of SMEs in EU, creating employment possibilities, with limitation of barriers to make business in individual countries.
... The evolution of location based synergy, networks, external linkages with multinationals and blue chip firms often enables SMEs to fill service gaps through the provision of business and services that are considered necessary for the Multinationals operations but below their scope of activities [9], [10]. ...
Majority of literature and scholarly research on innovation focus on developed countries, while there exists very little research on Small and Medium Enterprises (SMEs) in developing nations. SMEs innovative styles are peculiar to their environment like the biological amoeba and home-grown within the confines of limited resources and myriad of problems.
This paper aims to explore the nature of “homegrown” innovation among SMEs arising from their symbiotic relationships with Multinational companies and strategic alliances with Asia. Evidences indicate the prevalence of process innovation in SMEs clusters and external linkages with Multinational corporations and Asian market has a positive impact on their performances, survival and growth.
The paper employed a qualitative approach and attempts to contribute to the literature on innovation in developing countries and provide strategic and practical policy and business recommendations beneficial to SMEs stakeholders and Multinational giants. SMEs in developing can use group borrowing to access bank loans easily, nurture their outward strategic linkages and pursue innovation practices suitable to their context.
Index Terms—Small and medium enterprises (SMEs), developing countries, external linkages, clusters, Innovation, Blue Chip Companies, Multinationals.
In this paper, we employed a blend of multiple and historical case study design, and a mix of institutional, behavioral, resource-based, and multinational theories, to examine the nature of multinational companies’ (MNC) engagements in local economic development and capital export practices in an African context. Evidence from our Nigerian case analysis (FrieslandCampina, Nigerian Breweries Plc. and Dangote Cement) confirms the proposition that, faced with a similar degree of uncertainty and constrained institutional environment and laying claims to differing sources of competitive advantage, both local and foreign MNCs would repatriate profits and limit exposures to local value chains (LVCs) mainly as a strategy for mitigating country risks and preserving corporate value. Such limited exposures detach MNCs, especially the foreign ones, from the LVCs, and by doing so push them to deeper reliance on the global value chains (GVCs). Linking local businesses to the GVCs is central in the inclusive development (ID) debate essentially because it allows for the redistribution of economic benefits, helps in building a complementary (rather than competitive) relationship between MNCs and local businesses, and facilitates local businesses’ access to international markets. We, therefore, recommend that in pursuit of the inclusive and sustainable development projects in Africa, industrial policies need to be tailored toward stabilizing the policy environment, protecting investments from risk of expropriation, and incentivizing MNCs’ participation in the LVCs.
