ISSN: 1659-2751

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Determination of the Interactions among Small and Medium Sized Businesses for the Development of Business Conglomerates in the Parismina River Watershed

Abstract

The globalization process has promoted a constant exchange of services and information between countries. Under this context, a strategy as associability is a way for the producers of incrementing competitiveness. This paper studies the interactions between associations of small and medium enterprises of conglomerate farmers in the RioParisminaValley, analyzing the network strengths and the competitiveness of the associations. The principal results proof a positive correlation between the variables with a R2 coefficient of 0.536. Complimentary to the analysis, a map of the existing networks was designed showing a total of 71 entities interacting between themselves. Themajority relations were the information interchange. The business climate in which the associations are linked was also determined through the Porter’s Competitiveness Diamond. Also was found that the principal setbacks that the associations face in the formation of business networks are lack of entrepreneurial mentality, lack of trust, selfishness and lack of leadership and dynamics between members. Finally, one concludes that the network strength influences the competitiveness that the associations reach within the network, while other factors, such as the business climate in which the associations are involved, are determinants of that competitiveness.

Key words: Associations, associative models, clusters, business climates, competitiveness, network, small and medium sized enterprises.

Artículo en español (pdf) (459)