Impact of trade networks on the functioning and the prospects of development of small and medium-sized enterprises on the example of Lubuskie Voivodes Cover Image

Wpływ sieci handlowych na funkcjonowanie oraz perspektywy rozwoju małych i średnich przedsiębiorstw na przykładzie województwa lubuskiego
Impact of trade networks on the functioning and the prospects of development of small and medium-sized enterprises on the example of Lubuskie Voivodes

Author(s): Stanisław Urban, Mariola Michałowska
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: small and medium-sized companies; trade networks; competitiveness; co-operation

Summary/Abstract: The political changes after 1989 and the liberalization of trade led to the development of trade networks that increasingly strengthen their own position on the Polish market, reaching a high competitive advantage. The benefits that result for a voivodeship and Wpływ sieci handlowych na funkcjonowanie oraz perspektywy rozwoju... 209 the whole country from the creation of trade networks are noticeable, however, their development does not always bring positive results for small and medium-sized enterprises. The purpose of this paper is to present the impact of trade networks on the functioning of small and medium-sized enterprises as well as indicate the prospects of development of small and medium-sized enterprises on the example of Lubuskie Voivodeship as a result of the expansion of domestic and foreign investors. Trade networks influence the decisions undertaken within the sector of small and medium-sized enterprises becoming an integrator of these subjects. The perpendicular integration of trade networks with small and medium-sized enterprises assures the market of sale for these enterprises. However, there is another side of this cooperation, which does not look so favorable because of the abuse by trade networks of privileged position in the market at the expense of small and medium-sized enterprises. Thus, companies seeking to strengthen their market power should endeavor to create an organized network of links with other participants in the industry, through which they achieve measurable benefits. Small and medium-sized enterprises should treat the creation of buying groups as a way to survive, together with the elimination of competition, the realization of economies of scale, the expansion of economic activity and improvement in profitability.

  • Issue Year: 2012
  • Issue No: 21
  • Page Range: 191-209
  • Page Count: 19
  • Language: Polish