Characteristics of Strategic Subcontracting Relations of Industrial Smes

Maria Vasilska
University of National and World Economy, Sofia

Abstract

The paper explores and analyses activities of industrial small and medium-sized enterprises (SMEs) working as subcontractors that have built sustainable relationships with one or more of their clients. It focuses on the importance of such dealings for SMEs that enables them to overcome their inherent weaknesses, to enhance competitiveness and to realize promising development. For that reason, subcontractors usually seek to build strategic partnerships with contractors. The paper presents the main characteristics of the buyer-supplier relationships that could be defined as strategic to the subcontracting SMEs, such as: to be sustainable over time, to provide access to key resources and innovations, to lead to the acquisition of new competitive advantages, to be profitable, balanced and fair, etc. The data and methods used in the paper include a study of literature sources, an investigation of available research findings, results of the author’s individual research and expert observations, as well as data from a collective research project. Keywords: small and medium-sized enterprises, entrepreneurship, strategic subcontracting, competitive advantages, contractors, subcontractors

Presentation