SMALL LOCAL FIRMS INSIDE THE SUPPLY CHAIN - CHALLENGES AND PERSPECTIVES

The authors provide the results of an empirical research carried out i n north-east Italy and completed in 1992, which was aimed at investiga ting the rapport between large manufacturers operating on the multidom estic and global markets and the small local supplying concerns. This research identifies that the globalization process has had a strong im pact in the relations with suppliers. The purchasing firms have adopte d a particular approach when selecting the suppliers. This has involve d widening their previous geographic areas of contact, even making use of foreign sources. Consequently, the local micro units either will b ecome excluded from future business relations with the purchasing orga nizations, or will be relegated into lower levels of the supply chain. Today small and very small units working as suppliers with direct lin k with large-scale clients, face many challenges: they should now rene w their know-how and skills, develop a new managerial and organization al sense, and recognise the need to invest in new forms other than mac hinery and processes. The empirical study clearly showed both the limi ts and the structural weakness of such small units and provided some i ndications for growth in their technical-productive potential.