Abstract
The authors provide the results of an empirical research carried out in north-east Italy and completed in 1992, which was aimed at investigating the rapport between large manufacturers operating on the multidomestic and global markets and the small local supplying concerns. This research identifies that the globalization process has had a strong impact in the relations with suppliers. The purchasing firms have adopted a particular approach when selecting the suppliers. This has involved widening their previous geographic areas of contact, even making use of foreign sources. Consequently, the local micro units either will become excluded from future business relations with the purchasing organizations, or will be relegated into lower levels of the supply chain. Today small and very small units working as suppliers with direct link with large-scale clients, face many challenges: they should now renew their know-how and skills, develop a new managerial and organizational sense, and recognise the need to invest in new forms other than machinery and processes. The empirical study clearly showed both the limits and the structural weakness of such small units and provided some indications for growth in their technical-productive potential.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Bertodo, R., 1991, ‘The Role of Suppliers in Implementing a Strategic Vision’,Long Range Planning 2(3), 40–48.
De Toni, A., G. Nassimbeni and S. Tonchia, 1992, ‘Evolution in the Rapport Between Large Firms Operating on the International Market and Small Local Supplying Concerns’, in R. H. Hollier, R. J. Boaden and S. J. New (eds.),International Operations: Crossing Borders in Manufacturing and Service, Amsterdam: Elsevier Science Publisher.
De Toni, A., G. Nassimbeni and S. Tonchia, 1993, ‘Extended and integrated production systems: the role of suppliers’, in I. A. Pappas and I. P. Tatsiopoulos (eds.),Advances in Production Management Systems, Amsterdam: North Holland, pp. 411–419.
Dumond, J. E. and W. Newman, 1990, ‘Closing the Gap between Buyer and Vendor’,Production and Inventory Management Journal 7(fourth quarter), 13–17.
Hayes, R., S. C. Wheelweight and K. B. Clark, 1988,Dynamic Manufacturing: Creating the Learning Organization, New York: The Free Press.
Imrie, R. and J. Morris, 1992, ‘A Review of Recent Changes in Buyer-Supplier Relations’,Omega 20(5/6), 641–652.
Lamming, R., 1992, ‘From National Competitive Advantage to Dominant International Operations: The Development of Lean Supply’, in R. H. Hollier, R. J. Boaden and S. J. New (eds.),International Operations: Crossing Borders in Manufacturing and Service, Amsterdam: Elsevier Science Publisher.
Lyons, F., A. R. Krachenberg and W. J. Hencke Jr., 1990, ‘Mixed Motive Marriages: What's Next for Buyer-Supplier Relations?’,Sloan Management Review 23(spring), 29–35.
Macbeth, D. and N. Ferguson, 1991, ‘Strategic Aspects of Supply Chain Management’,Integrated Manufacturing Systems 2(1), 8–12.
Nelson, A. P. and A. N. Jambekar, 1990, ‘A Dynamic View of Vendor Relations Under JIT’,Production and Inventory Management Journal 7(fourth quarter), 65–70.
Porter, M. E., 1985,Competitive Advantage, New York: The Free Press.
Schonberger, R. J., 1986,World-Class Manufacturing. The Lessons of Simplicity Applied, New York: The Free Press.
Stalk, R. and T. Hout, 1990,Competing Against Time, New York: The Free Press.
Williamson, O. E., 1975,Market and Hierarchies: Analysis and Antitrust Implications, New York: The Free Press.
Womack, P. J., D. T. Jones and D. Roos, 1990,The Machine That Changed The World, New York: Rawson Associates.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
De Toni, A., Nassimbeni, G. & Tonchia, S. Small local firms inside the supply chain: Challenges and perspectives. Small Bus Econ 7, 241–249 (1995). https://doi.org/10.1007/BF01135369
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/BF01135369