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Innovative Management in Subcontracting Business in Growing and Stagnating Economies

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  • Karl-Heinz SCHMIDT

    (University of Paderborn, Paderborn, Germany)

Abstract

The worldwide economic recession demonstrates: innovations are needed to increase productivity and competitivity of enterprises, especially of subcontracting companies. The paper compares the subcontracting business at a boom- and recession-phase, mainly in Japan and Germany. For Japan the components of subcontracting systems are exposed by a static and dynamic view. Changes of subcontracting firms from dependent, but stable suppliers of parts and services to extremely dependent subcontractors are shown for Japan. European subcontracting companies are found being less dependent, or even independent, networking suppliers. The worldwide dynamic view demonstrates: innovative management enables SMEs of former LDCs to compete with subcontracting companies of developed countries. The economic recession, yet, endangers the stability of the subcontracting systems worldwide.

Suggested Citation

  • Karl-Heinz SCHMIDT, 2010. "Innovative Management in Subcontracting Business in Growing and Stagnating Economies," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(1), pages 76-86, March.
    • Handle: RePEc:rom:rmcimn:v:11:y:2010:i:1:p:76-86
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    File URL: https://www.rmci.ase.ro/no11vol1/Vol11_No1_Article7.pdf
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    References listed on IDEAS

    as
    1. Robert Z. Lawrence, 1993. "Japan's Different Trade Regime: An Analysis with Particular Reference to Seiretsu," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 3-19, Summer.
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    More about this item

    Keywords

    new combinations of economic resources – types of subcontracting systems – economic recession – pressure to innovate – new risks and opportunities of subcontracting business.;

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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