Co-operation as a response to a turbulent environment

Heleen Stigter

No N200222, Scales Research Reports from EIM Business and Policy Research

Abstract: The objective of this study was to find out 'how SMEs perceive and respond to a turbulent environment'. We define a turbulent environment as an environment in which customer needs are rapidly changing. Based on this interpretation, we are interested in to what extent SMEs perceive these changes in customer needs and how they respond to these changes - particularly focussing on strategy and cooperation. The main conclusion of our research is that SMEs co-operate mainly to reduce costs or improve the competitive position, not to meet customer needs more adequately. SMEs do not realise the advantages of seeking cooperation in order to share means and expertise in delivering a custom or tailor-made product or service to their customer. With respect to their suppliers, SMEs often lack countervailing power, which is an obstacle for co-operation. SMEs in the retail sectors are unable to convince their suppliers of the need to respond to changes quickly. Regarding co-operation with the clients, one might question whether existing customisation strategies are really demand-driven. This research does not support the impression that SMEs really know their customers' wishes and needs. On the contrary, some businesses intentionally do not adjust their products to changing customer needs.

Pages: 41 pages
Date: 2002-12-01
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Persistent link: https://EconPapers.repec.org/RePEc:eim:papers:n200222

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