Competitiveness of Family SMEs in the Supply Chain

Abstract

Abstract Objective: The goal of the article is to study the problem of identification of the correlation between the goals and development strategies of network structures (organizations) and the goals and strategies of SMEs, realization of their harmonization and synergy effect generation as well as adaptation of typical strategies to the conditions of functioning of small and medium-sized family businesses within network structures. Methodology: Theoretical (critical analysis of sources, data systematization, statistical analysis, comparative analysis, hypothesis formulation, etc.) and empirical (survey method, observation, critical analysis, hypothesis verification, etc.) research methods are used in the article. In order to study the prospects of and readiness of small enterprises for cooperation within network structures an express questionnaire online survey of the representatives of small companies in different sectors of Lviv and Lviv region (Ukraine) was conducted. The sample included 134 respondents. Findings: Calculation and statistical analysis of empirical material collected within the survey has not confirmed the assumption made by the authors about presupposed that the overwhelming majority of the representatives of small and micro enterprises would be open to (ready for) cooperation in the supply chains, ready for close interaction in the field of IC, business process integration with the supply network or chain participants/partners, etc. Only 7.6% are ready to be active participants of network structures, 84.6% are not yet clear about that, while 7.8% object to such cooperation. Less than 40% are ready to integrate their ICs with the ICs of network participants, and the same is the number of those who are not yet clear about that. The largest number of negative answers was given to the question about the readiness to share competences, expertise with network participants – 38.5% and 30.7% are not clear about that. Commodity (service) certification procedure is the direction where the representatives of SMEs showed the strongest readiness for cooperation (69.2%) Value Added: The article suggests a model of the mechanism of strategic development of small and medium-sized family businesses in the supply chain. This model involves, primarily, combination of strategies specific to the micro level and integrated systems, and secondly, delineation of typifying of strategic decisions in such areas as the basic strategies of competitive behaviour, strategies of supply chain development, strategies of supply system planning, relationship institutionalization strategies and specialization strategies. Recommendations: Modern supply networks and chains must possess a considerable elasticity potential that will enable them to successful adjust to the turbulent environment. Such elasticity potential should be developed via involvement of small and medium-sized enterprises with a relatively narrow specialization. Such process must take place in the context of well-grounded decisions of out/insourcing in the distribution system and towards construction of network structures in the strategic dimension. Involvement of small and medium-sized enterprises will contribute to increased elasticity of network structures’ means.