Benefits of clustering for SME's suppliers in the aerospace and defence sector through the adaptation of enterprise portals

Zenon M. Michaelides and Artin Papazian

International Journal of Services and Operations Management, 2007, vol. 3, issue 2, 152-171

Abstract: The aerospace industry today is indisputably global, with players needing to establish both a global presence and a competitive strategy in order to survive. Further subtier mergers and acquisitions are expected in the next few years in order for companies to reduce costs and reap economies of scale. It is envisaged that further consolidation will mainly affect Small to Medium Enterprise (SME) suppliers, which either will lose their independence or exit the market altogether. In order for SME suppliers to be better positioned to survive future market fluctuations associated with global events, whilst at the same time counteracting the dominance of the larger members they need to combine or cluster their resources. This paper reviews how beneficial clustering through the adaptation of enterprise portals can be for the SME suppliers and how enabling the aggregation of data, business processes and applications can support the emergence and development of new business models in the Aerospace and Defence sector.

Keywords: clustering; aerospace industry; defence sector; global industries; small and medium enterprises; SMEs; enterprise portals; business models; SME suppliers; supply chain management; SCM; globalisation. (search for similar items in EconPapers)
Date: 2007
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