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eKonferencije.com: Cooperation of small and large enterprises in transition economy of Ukraine as an enabler of innovation

Cooperation of small and large enterprises in transition economy of Ukraine as an enabler of innovation

1. Nina Isakova

This paper reports the results of an empirical study of the cooperation of small and large enterprises in the transition environment of Ukraine and its influence on innovation. Recent decades have shown that economic systems with insufficient diversity lose flexibility and the ability to adapt to change. The modern structure of the economy assumes a rational correlation between the number of large, medium and small enterprises, which perform certain functions in the development of national and regional economies and make more efficient use of the entrepreneurial potential. The global financial crisis has reduced demand for products and services to businesses and aggravated financial and economic problems such as inflation, high and changing lending rates, the unreliability of commercial banks and other financial institutions, especially for smaller businesses.
The basic idea of the study is that interaction of small and large enterprises can be mutually beneficial for both. More specifically such cooperation could strengthen the small business sector and increase its contribution to regional economics and innovation. In Ukraine limited internal resources and the adverse business environment predetermine the orientation of small enterprises for activities in the sectors of trade and services to population, and lack of significant contribution in the manufacturing and innovation. According to statistics in 2009 the share of enterprises with innovation among SMEs was lower (14.9% and 21.7% respectively) than among large companies (40.6%). Cooperation with large enterprises can enhance innovation in small business and increase their competitiveness.
The empirical study was carried out in 2010 in Chernigiv region of Ukraine. At the first stage a quantitative survey of small enterprises (109) and in-depth interviews with directors of five large enterprises were performed. At the second stage the issues of cooperation of small and large enterprises and innovation were discussed with representatives of public and private institutions responsible for business and innovation support.
The output of this study contributes to the understanding of the nature of cooperation between small and large enterprises in a transition economy. The results indicate that the intensity and efficiency of interaction are influenced by the type of economic activity, enterprise size, enterprise age, strategic management settings, style and methods of management and the level of trust between business partners. The study revealed that the potential of cooperation between large and small businesses is underused, in particular with reference to innovation. However, large enterprises in the cooperation with small businesses communicate their experience in implementing technological and organizational innovations thus increasing the susceptibility of small business to innovation.

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Uvodni rad: Da

Datum: 18.05.2011.

Br. otvaranja: 762

REDETE 2011


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