Search
Search Results
-
The competitiveness of rural areas in the Republic of Tatarstan
89-96Views:116This paper analyses the main factors influencing the regional competitiveness of rural areas in the Tatarstan Republic. Firstly, 19 variables related to the socio-economic situation in the Tatarstan Republic were analysed, these having been taken from the Statistics Committee of the Tatarstan Republic. Principal component analysis (PCA) was then used to determine the weights of 10 indicators that have an effect on the level of regional competitiveness. Factor weights are used as weights in the summation of the standardised scores of variables that have an impact on competitiveness. The major factors influencing the level of regional competitiveness are the level of economically active population, investment in housing and the level of education. The following results were obtained: one of the 44 regions is very highly competitive and two are highly competitive; two of 44 regions have a medium level of competitiveness and 39 regions have a low level of competitiveness.
-
Risks and competitiveness in agriculture with emphasis on wine sector in Croatia
11-17Views:122International competitiveness, being a key objective of each economic entity, is at the same time significantly determined by the level of risk the entity is coping. Based on the assumption that risk management is directly linked to competitiveness in agribusiness, the scope of this paper is predominantly focused on the wine agribusiness in Croatia. The aim of this paper is to encompass available literature and transfer findings to interested parties, about risks and competitiveness in agriculture, with particular reference to the wine sector. Qualitative analysis of secondary data, descriptive i.e. monographic method, deductive method and comparison of available papers from the world and Croatia were applied in the paper. There are very few companies in general, however, that tend to use their abilities to manage risks as a source of competitive advantage. These companies go beyond compliance or cost-controlling defensive approaches and take a more aggressive stance toward risk. They have realized that their risk management capabilities can be leveraged as a source of competitive advantage (Elahi, 2013). Current literature showed that such companies indirectly exist within global agribusiness. Examples of such companies in the wine sector could be found in Old World and New World wine countries. In regards with the mentioned, further research in the wine sector that would more directly link competitiveness and risk management and benefits that could be drawn from such “linkage” is needed.
-
Competetiveness of the Montenegrin fruit and vegetables sector and recommendtations for impovement
69-75Views:84A number of facts, primarily including high fragmentation at all levels, weak vertical integration, limited dimensions in comparison to competitors poor technological level and unbalanced quality/price ratio make the sector weak, low competitive and exposed to international competition, reducing its capacity to capture any existing market potential. Almost all opportunities are frozen by prevailing weaknesses and threat impacts are exacerbated by a largely prevailing number of weaknesses. High production unit cost appears to be a major constraint to local supply market competitiveness. This situation appears to be mainly caused by general low levels of productivity – provoked by not adequate and up-to-date cultivation practices, reduced levels of input use, utilisation of old and, therefore, less performing varieties, and also farm management shortcomings. High losses from reduced availability of post-harvest facilities and equipment add up to the problem. The improvement of the sector is not easy. In other words, there is a lot to do for the Montenegrin sector operators to increase sales: tackle imports and increase market shares in the domestic market and abroad. Based on our research, we suggest that the Montenegrin fruit and vegetable sector should primarily aim at substituting imports, increasing domestic consumption and developing exports to the region (CEFTA countries) primarily via promising market opportunities. Based on our analyses of the state of affairs of the sector, the competitiveness and the market potentials, the recommendations for improvement competitiveness are outlined.
-
Effect of Quality Assurance Deficit on Market Competitiveness for Export Commodities and Household Income in Nigeria
103-108Views:99The Nigerian’s agricultural sub-sector contributes about 37 percent of her Gross Domestic Product (GDP) and employs about 65 per cent of the adult labour force. It is thus the major source of food and fibre for the nation. However, there are increasing concerns about the quality and level of safety of many of the agricultural export commodities, particularly in the European markets due to the composition of high level of unauthorized pesticides. This is a major challenge to the level of market competitiveness for these commodities in the international markets. This study therefore examined the effect of quality assurance deficit on market competitiveness and household income levels. Trends in Nigeria’s agricultural export trade between 1980 and 2014 were examined and emphasis was placed on cowpea, dried maize, melon seeds and palm oil. Descriptive and qualitative statistical methods were used to analyze the data. Quantitative statistics included the use of econometric models. Results indicated that there was an increase in the general price level of the commodities at the international market over time. The aggregate market demand for each of them dropped sharply in the last one decade even when the market price per unit increased steadily. This negatively affected the households’ average income level as returns on sales of export commodities declined. Huge quantities of the commodities were then forced to be sold at the local markets at cheaper prices. This development negatively affects the consumptions patterns of the exporters as they now have reduced disposable income. Appropriate agencies of government need to be awake to their responsibilities of assessing and certifying the quality of the Nigerian agricultural commodities before exporting them abroad. This will help to further boost the level of consumer confidence in these export commodities especially at the international markets.
JEL Classification: Q13
-
Relationships between competitiveness in the Northern Great Plain and the organisational culture of local authorities
13-20Views:134One of the five basic factors in the Lengyel-type pyramid model – institutions and social capital – is essential in the economic growth of the region. Economic success however, does not only depend on participants in the economy, but on social factors such as the roles played by local authorities, including their functions, operation and organisational culture, all of which are crucial factors. Based on the results obtained regarding organisational culture it can be stated that performance orientation, dominant motivation based on calculated risk, forward planning and regular feedback are expected values at local authorities in all three counties. All local authorities emphasise the importance of the need for forecasting. Respondents find it important that organisations encourage and reward individual action and contributions as expected values. The degree of human orientation expected by local authorities reflects the fact that respect for colleagues and attention to their well-being should be at the highest level. Reinforcing these organisational culture values (dimensions) is the basis for the efficient and successful operation of organisations (local authorities). The study examines the organisational culture of local authorities in the Northern Great Plain, looking for any relationships it might have with the competitiveness of the region. This study is an element of the wider research into organisational culture. We used the GLOBE (Global Leadership and Organisational Behaviour Effectiveness) survey, which had been successfully applied in the research programme In Competition with the World at the Corvinus University of Budapest. Koopman, Den Hartog, Konrad et al. (1999) examined the culture variables of 21 European countries in organisations. Based on Hungarian and international literature it can be stated that a similar survey of local authorities has not yet been conducted.
-
Tourism performance of destinations based on settlement approach
63-68Views:115Recently in the regional development researches the attention draw to the way of measuring destination's development and competitiveness. The further development of the Hungarian Tourism depends on the regions, destinations' developments, their success in competitiveness and the ongoing innovation in tourism. The research of the Budapest Business School Institute of Tourism Department intends to elaborate a complex tourism destination indicator based on former researches and experiences.
-
In search of clusters
7-17Views:128The aim of this article is to present the ‘regional cluster quick scan’as an efficient and objective tool to scan a region of interest for the presence, nature and development phase of regional clusters. The ‘tool’developed in this research is based on the relations between the state of cluster development in regions, competitiveness, and economic growth. First, a theoretical model is developed and then this model is applied to a real case to test the validity of the model. The results indicate the possibility of identifying regional clusters and their competitiveness by using Shift and Share analysis.
-
The examination of the profitability and competitiveness regarding the energy plantations of woody plants in the region of Észak-Alföld
5-11Views:130Due to the decrease in the quantity of traditional energy sources, in the future an alternative energy production should be sought which provides minimum environmental burden and offers an opportunity to generate energy. The use of biomass provides another option to resolve this problem. The most important features of the biomass are that the quantity doesn’t decrease during conversions and are reproduced by natural processes. The main raw materials of the biomass are considered to be the energy plantations, which are economic in areas where the farmer, during the traditional production, can’t or with difficulties can cover the expenses, so that profitably sustainable cultivation branches can come to the forefront with less material and energy input. Those cases in which the cultivation of agricultural areas are not economically feasible, there is a possible utilization in our country which is the installation of plantations with energetic aim.
-
Differences of the primary energy consumption of the countries all over the world
155-161Views:150The global energy consumption is continuously growing, because the population of Earth and the standard of living expands day by day. As a result, the emission of greenhouse gases increases further more. The various countries use the different types of fuels in varying amount.In this study we have examined the primary energy consumption of the countries, according to the BP Statistical Review of World Energy June 2016 (BP, 2016), based upon their usage of fuels.The assay resulted in a 7 cluster model. With one exception, each cluster contains a resource, which is used in a much larger amount than in the other clusters. As a result, we may differentiate between an average cluster, and the clusters of countries that use primarily hydropower, nuclear energy, renewable energy, coal, fossil oil, and natural gas.We have examined if there is any connection between the location of a country in a cluster and its HDI, as well as the countries’ competitiveness.
JEL Code: Q42, Q43, Q35, Q01, P28, P18
-
The role of social media in gastronomy industry
95-103Views:950Considering the rapidly changing business environment, staying competitive is a key issue and challenge for companies in the 21st century. The criteria of a company’s success and competitiveness is the changing behavior of the different economic actors and its influence. Through the information society came to the fore, the use of diverse information technology tools and methods has become a significant influence factor in terms of the entrepreneurs or company management and also the customers or other partners. Due to the rapid expansion of new technology developments, the role and importance of social media is continuously increasing. Also statistics show that one of the most regularly used IT tool is the social media and the different web 2.0 applications. The current study is intended to provide a better understanding how social media can emphasize the competitiveness of companies and format the consumer behavior in a special sector – the rapidly developing gastronomy industry. This paper presents an empirical research about the role of social media in the above mentioned industry based on the primary data which are gathered through a survey performed in Hungary. Beyond the empirical results presented, the paper also aims to provide some recommendations for research methodology – based on the international literature review and the Authors’ own experiences – both in gastronomy industry’s and customers’ point of view. Through the analysis the research hypotheses were examined and the most important correlations were identified between the survey results and the Authors’ initial supposition.
JEL Code: D83, L83, M31, Z33
-
Analysis of production and competitiveness on small beekeeping farms in selected districts of Serbia
Views:181The study researched the costs and returns on typical small beekeeping farms from five districts in Serbia. On the basis of the field research, data on the number of beehives,type of product, volume of production per beehive and values per measurement unit were collected.In order to demonstrate the competitiveness of various apicultural products, analysis of the available data was performed using analytical calculations. According to the analysis, the labour costs comprise about 49.65% to 64.15% of the variable costs on beekeeping farms in the Raška and Šumadija districts, respectively. Production is most economical on the bee farm in the district of Srem, where every dinar spent in production creates a value of 2.22 dinars, while the farm from the district of Raška is the least economical (1.32 din). Bee farms must reduce labour costs and re-direct their business orientation to other bee products, besides honey, such as pollen, which could be significantly more profitable.
-
Greener cement sector and potential climate strategy development between 2015-2030 (Hungarian case study)
65-74Views:349Advancing the domestic industrial production towards a sustainable, resource-preserving direction can become an important pillar to support competitiveness in the European Union, as well as in Hungary. Reaching the de-carbonization goals for industrial production via lowering the production volume may result in less desirable macro-economic effects, so decisions which concern the industry require a lot of attention from the climate policy as well. In the case of the cement sector, economic actors have to be motivated to make energy-efficiency investments and technology developments, which also show promise in terms of business efficiency. In the more natural-resource-intensive branches of the industry, both innovations and technological developments will be required to reduce the amount of used non-renewable energy resources, keep it in the industrial cycle, and reduce environmental load. The importance of greener cement will be essential in the near future to reduce the sector’s CO2 emission levels. We need to identify more sector branches which relate to sustainability, which can aid the country in establishing long-term competitiveness that points towards the de-carbonization goals. The cost-efficiency aspects of this development process are the most tedious questions in today’s business planning.
JEL classification: Q55
-
Integrated approach in Ukrainian dairy industry: a case study from Poltava region
Views:227Integration processes in the field of agriculture, and particularly in dairy industry, have real prospects for improving the efficiency of business entities in this industry due to technological features. Particular attention should be paid to vertically integrated business models that allow hedging of various risk groups and minimizing costs due to the optimal combination of the efforts of enterprises belonging to such associations.
The purpose of the article is to study the current state of dairy industry in Poltava Region, Ukraine, and to show one of the conceptual ways to increase its economic efficiency. The paper presents a theoretical hypothesis concerning the necessity of vertically integrated agricultural formation’s creation in order to improve the competitiveness of dairy production in the region and having positive effect on sustainable development of dairy industry.
The practical significance of the study includes the possibility to use findings and recommendations set out in the paper for introduction of mutually beneficial economic relations between agricultural, dairy and trade enterprises in concluding agreements on joint activities based on a successful example from Poltava Region, and contribute to the stabilization, development and increase of the enterprises’ efficiency in Ukrainian dairy industry.
JEL code: F15, Q13
-
The importance of organic agriculture in tourism rural
59-64Views:701Many farmers, in addition to normal farming activity, have already turned to agritourism as a source of additional farm income and opportunities. There are numerous benefits from the development of agritourism: it may strengthen local economy, create job opportunities and new businesses; develop and promote training and certification programs to introduce young people to agriculture and environment. Agritourism helps preserve rural lifestyles and landscape and also offers the opportunity to provide "sustainable" or "green" tourism. Organic agriculture is a cultural evolution that finds its origins in a environmentalist culture. Furthermore the focus on these products is due to demand on healthy foods with high quality standard limiting chemical substances usage. It’s clear the link of the organic agriculture with agritourism and tourism services. They have a considerable role in the future development of rural areas. The purpose of this paper was to identify and examine those factors that have helped rural communities successfully develop agritourism, in particular organic agritourism and its entrepreneurship opportunities. Several focus groups were conducted with local business persons and leaders about a applicative case of South Italy area.
-
Analysis of the cavebath of Miskolctapolca’s brand elements and guests satisfaction
155-160Views:243In the region of Northern Hungary the unique Cavebath of Miskolcatapolca is one of the leading health tourism service positioning itself on national and international market with its developing supply items and 4 star qualifications. It has a unique natural background all over in Europe; this uniqueness gives an opportunity to develop brand, which is a determinative item of competitiveness. Because of the competition between destinations and the ever-changing nature of tourists’ expectations and behavior tourism destinations need to be managed as other commercial brands. The aim of our research was to analyze the role and possibilities of product development which is based on the unique natural factors, and to help to expand the domestic health tourism supply. We examined how the possibility of branding and brand equity change based on brand elements; how satisfied are guests with the services; how often guests visit the bath; what kind of period guests arrive in the bath; what kind of services do guests try; how do guests arrive in the bath with. In summer of 2014 we asked 210 Hungarian customers to fill the questionnaire in the Cavebath. The choosing of guests happened randomly. 199 questionnaires were correctly filled.
JEL CODE: Z32
-
Complex problem analysis of the Hungarian dairy farms
93-100Views:203Hungarian dairy farms went through significant changes in past two decades. The most significant changes were caused by our accession to the European Union in 2004. In Hungary milk production remarkably declined after EU accession due to the decreasing level of support and decreasing milk prices. Size of our dairy herd has been practically reducing since the political transformation (1989); meanwhile the relative yields per cow have been continuously increasing. Relatively low prices, high production costs and tightening quality requirements ousted several producers – mainly small farms - from the market in past years. Feeding cost represents the highest rate in cost structure of production, but animal health expenditures and various losses are also significant. Applied technology of the Hungarian dairies lags behind theWestern-European competitors’; in addition they have handicaps in efficiency and product innovation. Moreover Hungarian milk and milk product consumption is about half of the Union average. In 2007 at the University of Debrecen the opportunities and the problems of this sector were discussed in the framework of a research and development project entitled “Project-generating based on sector-specific innovation”.At this workshop farmers, experts and advisers shared their ideas which were all gathered. The main objective of our paper is to provide useful information for the decision makers and the most important members of the sector. Using the practically successful ideas plus the ideas based on previous experience a new strategic concept was created. To reach the objective of this paper we collected, synthesized and analysed the strengths, weaknesses, opportunities and threats of the dairy farms and performed a SWOT analysis. On the basis of this SWOT analysis we set up a well organised problem hierarchy which would help to identify the main weaknesses of the sector. This analysis gives a great framework for the researches and it also gives a useful tool for the decision makers to improve the competitiveness of the Hungarian dairy sector.
-
Analysis of consumer habits and attitudes on the Hungarian beef and rabbit market
67-70Views:183As a consortium partner the authors took part in a research project aiming at the development of high added value, healthy and environment friendly animal products. From among the products developed by the consortium (rabbit meat, omega3-fatty acid enriched beef, goose liver from non forcible feeding, selenium-, vitamin-E and natural color enriched eggs) the present study describes the results concerning beef and rabbit meat. The given products are chosen because they are produced in and exported from Hungary in considerable quantities and their competitiveness can be further improved. In order to able to map the consumer preferences a 300 count nationwide, representative, questionnaire based survey was designed and performed. Actual products were tested by focus groups and professional interviews. Beside the specific features of the products a common character is that the marketing strategy focuses on the distinctive nutritional benefits and other quality parameters that seem to be of crucial importance for the targeted consumer segment. Their unique character and health protecting effects make their branding and using community labeling easy. Their positioning points toward the prestige products therefore consumers tend to accept higher prices. In marketing communication the image building advertisement can be a common goal.
-
Examination of enterpreneurship ecosystem in Debrecen from the direction of open innovation spaces
51-59Views:128Innovation is not just a technology, but it is rather a comprehensive vision of what the future should look like and which requires changes in many ambits. Innovation is driven by people’s needs, ambitions and dreams, and it is necessary that people at different positions in the society change the way they work and live. Innovation, as a result of human interactions, often fails because people do not understand each other, as they belong to different worlds which have their own languages and cultures. While innovation system-like thinking recognizes that the needs are a good mix of factors for innovation, it is hard to establish the perfect mix beforehand: innovation systems and policies need to be adaptive” (Klerkx, Mierlo & Leeuwis 2012). I tried to bring this complex vision to our future. The actuality of the topic is provided by the fact that we are in the period of the development of digital industrial revolution, on the peak of the technology innovations, slowly resulting in the revolutions of the machines. These technological innovations, trends, equipment or new technological achievements often make our work easier, or they may replace us, and will bring changes transforming the world with them. At present era, the availability and use of the relevant knowledge is essential. In Western Europe and in other more developed countries different spaces provide places for evolving various trends, applying the acquired knowledge, e.g. development of Silicon Valley, polices, clusters, co-workings. These innovative spaces may form a bridge for evolving a global, international or regional technology and knowledge transfer, sharing our knowledge and developing our competitiveness. They may be the engine of a “new world”. The entrepreneurship ecosystem in Debrecen was investigated regarding the presence of open innovation spaces. Though Debrecen has already had open innovation spaces, it does not have space operating as HUB. „HUB is a global platform, where people from all corners of the planet connect and engage in collaborative action to realize enterprising ideas for a better world” (HUB GMBH 2012). Furthermore, I studied the fact that why the creation of HUB in Debrecen is reasonable concerning every sector, and what characteristics this space may have. In order to analyze my hypotheses, I used questionnaires made by Delphi survey. During the process experts of this field were asked in two turns. Selecting the experts occurred on the basis of Helix model.
-
Knowledge needs in rural tourism in Czech Republic
111-114Views:83Rural tourism has gone through an important development, but in the Czech Republic has only been possible to run a private business only in last 18 years. In Czech Republic that form of tourism is not very widespread, although there is great potential in it and the neighboring countries such as Austria or Germany are on a much higher level. For more intensive development and better competitiveness on the marker a proper education is necessary especially on the secondary level. An inquiry investigation has been provided. The responders were owners and operators of small businesses in rural tourism. The first part of the questionnaire was focused on the matters of ownership, running the business, promotion, internet services, etc.The subsequent part of the questionnaire gathered the information about the capacity of the places, the types and prices of accommodation, and the facilities. It also surveys the surroundings of the place – both natural and cultural sights.The survey has brought interesting facts about the level of the rural tourism of selected regions.The inquiry investigation was made by trained persons who gathered much information above the framework of the questionnaire. Many demands and complains were concerned with lack of specialized education, needs of new study programs and branches. There are many specifics of this branches, the most important is that there are more than 90% of micro firms. If we want to keep the special features of the rural tourism we have to prepare future entrepreneurs and employees in completely different way than those for big hotels, spas or congress centers.The contribution deals with the present status of rural tourism in Czech Republic and the educational need of the people involved.
-
The economic situation of Hungarian crop production enterprises, especially in Hajdú-Bihar county
Views:171Increasing the competitiveness of Hungarian crop production plays a key role in moving forward at the international level. However, improving efficiency and profitability is essential in this regard. The natural resources in Hungary provide an excellent opportunity for crop production. About 8% of the arable land in Hungary (a total of 4.3 million hectares) belongs to farmers in Hajdú-Bihar County. This research is based on secondary data that can be found in the HCSO and EMIS databases. HCSO data was used for the comparison of national and county data characterising crop production, while the EMIS database was used to process the financial data of enterprises dealing with field crop production. The Hungarian sample size is 853, of which 69 enterprises are from Hajdú-Bihar County. The aim of this study is to assess the profitability, assets and financial situation of arable crop production enterprises operating in Hajdú-Bihar County as a function of national average data. Based on the examined profitability indicators (operating ROS and ROA), it was established that the enterprises in Hajdú-Bihar County are profitable, even in a national context. In terms of operating ROS, the farms in the examined county were able to achieve a 3.6 percentage point higher value due to their more efficient cost management, despite having a similar level of technology compared to businesses spanning across the entire country. The proportion of farms with the lowest leverage ratio (<20%) is 16 percentage points higher at the county level than at the national level. In addition, almost 70% of the enterprises operating in Hajdú-Bihar County have excellent liquidity. This rate is 50% at the national level.
-
Green house gas mitigation and headline targets of Europe 2020 strategy
109-117Views:103Climate change is considered as one of the biggest challenges of XXI century and global action is needed to mitigate greenhouse gases (GHG) and adapt to changing water levels and temperatures, which affect food supply and ecosystem integrity. Climate change will have significant economic and social impacts in many regions of EU and sectors like agriculture is considered to bear greater adverse affects. Less developed regions and certain sections of society (the elderly and/or low-income households) are expected to suffer more from climate change. Climate change policy of EU, adopted in December 2008, includes ambitious targets for 2020. The policy is focused on a sustainable future with an energy-efficient economy by (i) cutting greenhouse gases by 20% (30% if international agreement is reached), (ii) reducing energy consumption by 20% through increased energy efficiency and iii) meeting 20% of energy needs from renewable sources. In the frame of the headline targets of Europe 2020 Strategy, this paper discusses most important greenhouse gas-emitting activities in agriculture, emphasizes the importance structural changes through the modernisation of infrastructure particularly in developing regions of EU and calls for enhancing the competitiveness of economy to promote energy efficiency.
-
Efficiency indicators in different dimension
7-22Views:157There are several variations of efficiency definitions and of course ratios concerned with efficiency. A better understanding of the notion of efficiency is critical to dissolve ambiguity about it. Many confuse efficiency with other supposedly synonymous notions such as profitability, successfulness, competitiveness, liquidity or productivity. This ambiguity originates not only in subjective reasons, but the lack of hierarchical order among certain ideas. The primary driver in our research is, to systematize efficiency in general, and formulate a new categorical approach of the efficiency in corporate level.
-
Economical aspects of thermal and medical tourism
77-84Views:148Thermal and medical tourism in Hungary are characterised by a continuous development. The management, efficiency, operational effectiveness and offer of enterprises in the field of tourism influence the competitiveness of Hungary’s tourism. In the present day economic life the thorough analysis of the enterprises’ economy is indispensable. The result of the analytical methods applied by the report provide information for different stakeholders (owners, transporters, customers, employees, habilitators). The aim is to have data which inform us about the functioning, financial situation and profitability of the economic entities parallel with the factors and conditions determining these elements. In our paper we present the financial situation of the Demjén Thermal Spa Ltd., being one of the newest thermal spas of Hungary.
-
Strategy for soil protection in cross-border region of Hungary and Romania
135-137Views:105Within the Hungary-Romania Cross-Border Co-operation Programme for 2007-2013 the University of Debrecen and the University of Oradea is to elaborate a soil strategy for the Nyírség and Bihor Mts region. Project partners expect the strategy will support and strenghten national, regional and local soil policies and contribute to the competitiveness of the region by protecting and developing various soil functions. Project partners also expect to prevent cross-border problems with soil and reduce the competition caused by cost differences.The elaboration of the strategy includes the problems of erosion, deflation, compaction, water-deficiency, inland water-threat, problems induced by the usage of fertilizers, loss and substitution of soil organic matter, amelioration (bentonite, sewage sludge, fermented biogas). Based on summarised data of former examinations and new experiments a concise database will make it possible to calculate and apply the Sustainability Index Model, which may be useful in order to address EU supports properly based on objective calculations, and may be useful to determine the optimal culture. The project also encourages the farmers to keep in mind the cross-compliance, since EU gives financial support to realise sustainable soil strategy based on EU directives. This may enhance the options to initiate the take off of rural areas with shrinking export facilities, to mitigate social tensions and the effect of migration processes.
-
Supply chain management practices for SMEs
89-96Views:236In today’s globalized business environment small and medium sized enterprises (SMEs) face many challenges. In order of their survival SMEs need to produce more, at a lower cost, in less time, and with a few defects. They form the most significant group of manufacturing firms and give supports to large companies in many supply chains. In addition, SMEs contribute greatly to entrepreneurship, gross domestic product (GDP) and employment. Despite the fact that micro, small and medium sized enterprises have very important role in business networks, they still have many problems with using supply chain management (SCM) practices. In this research my purpose was to find the best SCM practices as a strategic method to improve SMEs’ performance. First, I give information in general about SCM and the SMEs, then highlight main characteristics of small firms compared to large ones and the reasons why it is essential and efficient to use SCM practices. The article is based on secondary data, using several analysis, surveys, books, journals and my personal experiences collected in this sector. I conclude the research by summarizing my recommendations in connection with SCM practices, the opportunities and barriers.
JEL code: M11
Keywords
