Influence of subcontracting on innovation and economic performance of SMEs in Indian automobile industry


Autoria(s): Kumar, Sudhir R; Subrahmanya, Bala MH
Data(s)

01/12/2010

Resumo

Trans-national corporations (TNCs) expanding their production bases to developing countries having better conditions of manufacturing and domestic markets provide increasing opportunities for local small and medium enterprises (SMEs) to have subcontracting relationships with these TNCs Even though some theoretical and a few empirical studies throw light on the nature of assistance provided by TNCs to local SMEs through subcontracting relationships none of the studies so far quantitatively analysed the role of this assistance on the innovative performance of SMEs leading to better economic performance This paper probes the extent and diversity of assistance received by SMEs from a TNC through subcontracting and its influence on technological innovations and economic performance of SMEs in the Indian automobile industry Indian SMEs were able to receive mainly product related and purchase process assistance thereby implying that subcontracting is largely confined to purchase-supply relationships However assistance received through subcontracting is beneficial as It promoted technological innovations of SMEs the higher the degree of assistance the higher the level of innovations carried out by these SMEs which in turn facilitated their economic performance Thus this paper substantiates in the Indian context that subcontracting relationship with a TNC can be an important source of technological innovations and enhanced economic performance for SMEs (C) 2010 Elsevier Ltd All rights reserved

Formato

application/pdf

Identificador

http://eprints.iisc.ernet.in/34299/1/Influence.pdf

Kumar, Sudhir R and Subrahmanya, Bala MH (2010) Influence of subcontracting on innovation and economic performance of SMEs in Indian automobile industry. In: Technovation, 30 (11-12). pp. 558-569.

Publicador

Elsevier Science B.V.

Relação

http://dx.doi.org/10.1016/j.technovation.2010.06.005

http://eprints.iisc.ernet.in/34299/

Palavras-Chave #Management Studies
Tipo

Journal Article

PeerReviewed