ǂthe ǂrole of power relations and transaction costs
Marko Lah (Author), Andrej Sušjan (Author)

Abstract

The article attempts to combine Alfred Eichner’s institutionalist theory of the megacorp and a corresponding definition of small and medium-sized enterprises (SMEs) with transaction cost theory (TCT) based on firms’ asset specificity. We have identified three types of SMEs: subcontracting SMEs as “spokes” within hub-megacorp network, independent SMEs as local competitors of megacorps, and SMEs as partners in cluster networks. The article outlines some distinctive features of the three types and then concentrates on subcontracting SMEs, presenting their submission to megacorp’s power through mark-down pricing and their consequent inability to grow. We mention some illustrative examples from Slovenia, a small transition economy, in which many SMEs have been part of international megacorps’ supply chains. We conclude that TCT, in spite of its neoclassical paradigmatic background, enriches the institutionalist approach to SMEs without changing its evolutionary character, inherited from old institutionalism.

Keywords

majhna in srednja podjetja;institutionalizem;post-keynesianizem;teorija;SMEs;institutionalism;post-keynesianism;theory;

Data

Language: English
Year of publishing:
Typology: 1.01 - Original Scientific Article
Organization: UL EF - Faculty of Economics
UDC: 330.1
COBISS: 123865859 Link will open in a new window
ISSN: 0021-3624
Views: 70
Downloads: 24
Average score: 0 (0 votes)
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Other data

Secondary language: Slovenian
Secondary keywords: majhna in srednja podjetja;institutionalizem;postkeynesianizem;teorija;
Type (COBISS): Article
Pages: str. 721-740
Volume: ǂVol. ǂ56
Issue: ǂiss. ǂ3
Chronology: 2022
DOI: 10.1080/00213624.2022.2079933
ID: 16716399
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