External Integration; A Feasible Competitive Strategy of SMEs
This paper uses a vertical integration model to explain internal and external integration, analyses respective characteristics of internal integration and external integration, studies the path of external integration of SMEs. The paper points out that there are two approaches of expansion of enterprises organization; internal integration and external integration, the function of these two approaches is to enhance enterprises competence. Internal integration behavior mainly establishes and uses internal market in order to reduce the transaction cost, but external integration behavior more establishes perfect exterior market and uses it. External interegration activities urge exterior market to become perfect, so may overcome the problem of market failure. With the aid of external integration, SMEs may share and optimize those interior or exterior resource, creating advantages for SMEs to grow rapidly.
External Integration Internal Integration Small and Medium-Sized Enterprises ( SMEs ) Transnational Corporations (TNCs)
Hu Yi
School of economics, Huazhong Normal University, Wuhan P.R.China, 430079
国际会议
天津
英文
2007-10-20（万方平台首次上网日期，不代表论文的发表时间）