Download Management & Engineering Supply Chain Alliance Pattern in Small and Medium-Sized

Management & Engineering 22 (2016) 1838-5745
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Management & Engineering
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Supply Chain Alliance Pattern in Small and Medium-Sized
Enterprises Cluster from Symbiosis Network Perspective
Yuanqiang LIAN ∗
School of Business, Yangzhou University, 225127, P.R.China
KEYWORDS
ABSTRACT
Supply chain alliance,
Small and medium-sized enterprises,
Symbiotic cooperation,
Cluster network
The long-term development of Small and Medium-sized Enterprises (SMEs) cluster must
depend on the organic integration between supply chain and cluster network. Supply chain
alliance is a new business model for SMEs to deal with the fierce competition, and its
symbiotic cooperation is a form of behavior to obtain long-term competitive advantage. This
paper analyzes symbiotic interaction relationship between industrial cluster enterprises,
constructs supply chain alliance patterns according different cluster types, and compares its
symbiotic characteristics based on supply chain alliance organization theory and symbiosis
theory. On this basis, in order to promote the construction of supply chain alliance in small
and medium-sized cluster successfully, some countermeasures are proposed.
© ST. PLUM-BLOSSOM PRESS PTY LTD
1 Introduction
SMEs are very flexible, but they are very easy to be influenced by the market. Industrial cluster have both the characteristics of
network organization, but also the characteristics of the supply chain system. SMEs cluster is the most characteristic style of the
industrial organization. From the perspective of network-based supply chain, industrial cluster is an organic alliance network system
formed by interactions in the same industrial value chain between some enterprises and organizations which are in the division of
collaborative relationships and aggregated in a particular geographical area. Therefore, supply chain and cluster network must be
integrated organically for long-term development of SMEs clusters.
Supply Chain Alliance (SCA) is a new business model for SMEs to deal with fierce competition. With the recent development of
SCA, some scholars have begun to study cluster and SCA jointly. First scholar who explicitly studied the relationship between
clusters and supply chain is Humphrey and Schmitz, they believe, from supply chain relationships and cooperation perspective,
cluster enterprises have four forms: short distance market supply chain, leveled supply chain, quasi-hierarchical supply chain and
network supply chain, different supply chain structure characteristics can lead to different types of business cooperation mode; Wu
Yingying (2007) proposed supply chain alliance is core content and development direction for industrial clusters to upgrade; Yu
Huanzhou (2010) also proposed strategic alliance will be a new organization and development strategy within the cluster.
In addition, other studies show that symbiotic cooperation is an important way for SMEs to obtain long-term competitive advantage.
Industrial Clusters and natural symbiotic existence has similar characteristics, cluster can provide a natural operating platform of
∗
Corresponding author.
E-mail address: [email protected]
English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD
DOI:10.5503/J.ME.2016.22.019
105
supply chain industry. American scholars Markus believe that the large and small enterprises can formed a good symbiosis under
satellite or axle clusters; Yang Qingfen (2008) pointed out that the process of industrial clusters in essence, is the formation and
concentration of supply chain processes, industrial clusters and supply chains have mutually reinforcing symbiotic relationship.
But with the proposal and development of SCA in cluster, there is still no scholar to study specific SCA mode in different clusters.
Symbiosis theory has been applied in cluster and SCA academic fields in recent years, but the symbiotic research about SCA in
cluster is very scarce. Therefore, it is very necessary to design SCA models in different clusters based on symbiosis theory and
alliance theory from the symbiotic interaction relationships among SMEs in cluster.
2 Classification of Industrial Cluster Under the Perspective of Symbiosis Theory
As a complex system, industrial cluster essentially is a form of industrial organization. In this paper, based on the symbiosis theory,
we divided industrial cluster into the following three types by the analysis of the relationship between different supply chain
enterprises in cluster:
2.1 SMEs community cluster
This kind of industrial cluster usually has the following characteristics: enterprises size is small, every enterprise is mainly
concentrated on its own single function in supply chain, and cooperation between enterprises and trade relations are networked. This
type cluster can achieve a unified of specialized production and flexible production and created a mode of production which
completely different with “mass production” approach of single enterprise.
2.2 Symbiotic type cluster formed by single core enterprise and many SMEs
This kind of cluster has notable characteristics: a single core enterprise control one or a few nodes of cluster supply chain completely,
upstream and downstream nodes are large number of SMEs, and core enterprises and many SMEs are independent. According to
different core enterprise node location in the products supply chain, this type of cluster can be divided into three categories: single
input and multiple outputs, multiple inputs and single output, multiple inputs and multiple outputs.
2.3 Network type cluster formed muiti-core enterprises and many SMEs
This kind of industrial cluster is controlled by several core enterprises rather than a core enterprise at someone node or several nodes
of supply chain. Other upstream and downstream nodes are many SMEs. These few core enterprises play an important supporting
and linking role in production, and play a leading role especially in core technology research and innovation application. While the
other SMEs achieve a social production and network organization model by forming cooperation network.
3 Supply Chain Alliance Pattern Design in Different Types of Industrial Cluster
The core contents of SCA construction in cluster is to achieve symbiotic integration development, it also means that relevant
enterprises and organizations in cluster should carry economic alliance collaborative activities in order to achieve mutual interests.
Therefore, SMEs should select appropriate SCA mode according to cluster size and type, external conditions, their own strength,
alliance purpose and other factors under symbiosis theory perspective. According to the different types of industrial clusters defined
in this paper, we will design proto-cooperation, key species-driven and multi-nested SCA modes for different types of industrial
cluster based on symbiosis theory and a variety of SCA symbiotic relationships.
3.1 Proto-Cooperation supply chain alliance mode in SMEs community cluster
In this mode, there are not alliance leader enterprises in SMEs community cluster, all the member enterprises are equal, independent
and no obvious master-slave relationship. This is a relatively loose alliance cooperation mode. It is more suitable for relatively
balanced and advantage complementary enterprises in SMEs community cluster or similar enterprises to cooperate and form SCA
based on certain market opportunities. The structure is shown in Figure 1.
Combined symbiosis theory, Proto-Cooperation SCA can be designed as the following structure models:
One is Proto-Cooperation Tandem SCA mode. This mode means that each alliance member companies which are in equivalent
position in industrial cluster form SCA by series relations connection in a single chain. The whole process from raw materials to the
final product is in series, the operation of the industrial chain and information Transmission are only by a single supplier of upstream
through the middle of the single demand-side. Often manifests itself in the industrial chain or subcontracting chains, the structure is
shown in Figure 2.
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Figure 1 Proto-Cooperation supply chain alliance mode
Figure 2 Proto-Cooperation Tandem SCA mode
Another is Proto-Cooperation Network SCA mode. This mode means that SCA relationship composed of several enterprises in
cluster like an intricate network system, each node enterprise in SCA is on an equal status in the business. Usually an enterprise will
cooperate with other several enterprises, there is no attachment relationship between enterprises, and the nodes mainly rely on market
mechanism to achieve exchange of the material, information, funds, talents and other resources, so that it can maintain SCA
organization though self-adjusting. This kind of structure is usually becoming because some early SMEs gathered in a cluster area,
who want to take advantage of the cluster advantages will also join the cluster, this enterprises also can get the common procurement
or shared cluster resources. Especially, under some positive factors of the cluster policy promotion, interaction between these
enterprises in geographic cluster will generate effective institutional arrangements. Gradually and spontaneously they will form an
organic SCA structure mode. The structure is shown in Figure 3.
3.2 Key species-driven supply chain aliance mode in symbiotic type cluster
It is suitable for symbiotic type cluster formed by single core enterprise and many SMEs to build key species-driven SCA, which is
composed by a key species enterprise in clusters. This SCA mode selects key enterprise as the main species of SCA by using the
theory of key species. The key species enterprise will be a core organizer to build SCA symbiotic relationship with some fixed
member enterprises. Such key species-driven SCA mode is shown in Figure 4.
Figure 3 Proto-Cooperation Network SCA mode
Figure 4 Key species-driven SCA mode
It can be shown that the characteristics of this structure mode have a strong dependence on key species enterprise who dominated the
construction and operation of SCA. The key species enterprise mostly is a large enterprise in cluster, and their demands for
production materials or by-product supplies who can provide for other companies is stable and has the size advantage. Many SMEs
around these key species enterprise form close interdependence and mutual restraint input and output relationship. Specifically for
the two modes:
One is Multi Upstream SCA Mode. This mode relies on key species enterprise is usually due to the success of the key species
enterprise management which can attract suppliers and related supporting enterprise. Another situation is the key species enterprise
will be split some of the department in the original enterprise and separate out into a new enterprise because of diseconomies of scale.
But these enterprises maintain a good contact of supply with the original enterprises, they are combined through SCA, jointly
cooperate to complete complex product production, eventually build more complex SCA pattern of parallel input, this structure can
also be called a modular pattern. For example, an automobile supply chain alliance is adapted to modular mode is shown in Figure 5.
Another is Multi Downstream SCA Mode. In this situation, the upstream in cluster is a key species enterprise, its product range and
quantity is large. The downstream is a number of extended enterprises or deep processing enterprises, which produce different
products by receiving the products of key species enterprise. When the key species enterprises can produce large amounts of
by-products which are just he production materials of related enterprises, a large number of companies may join SCA around their
related businesses. Many SMEs around the leading enterprise will gradually establish trust SCA relationships with key species
enterprise, eventually form a stable SCA mode. The structure is shown in Figure 6.
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Figure 5 Multi Upstream SCA Mode
Figure 6 Multi Downstream SCA Mode
3.3 Multi-nested supply chain aliance mode in network type cluster
The alliance enterprise can be divided into the core layer and the peripheral layer in this mode. The core layer consists of several key
species enterprises, and these core members which are more closely linked to each other usually establish a coordination structure
which common and similar to Alliance Steering Committee on the basis of equality mode. It is the highest decision-making and
coordination agency of the whole SCA, and responsible for the entire resources integration, internal coordination, strategic decision,
optimization scheduling, etc. As shown in Figure 7.
Figure 7 Multi-nested SCA Mode
Figure 8 Tandem Star SCA Mode
This SCA mode is conducive to the formation of scale and brand creation, also can reduce repeated investment and save money, and
help to improve the utilization rate of resources, make plan, management, division of labor and collaboration more reasonable and
effective, so that SMEs can focus on the cultivation of core competence. It can specifically be designed for the following two modes:
One is Tandem star SCA type. It means that there are two or more key species enterprises in cluster whose relationship is upstream
and downstream supply relationship. Many other SMEs in cluster establish SCA around these several key species enterprises. The
SCA mode has obvious core enterprise and supporting enterprise, a key species enterprise can drive many peripheral enterprises by
the form of a more stable. Its brief structure is shown in Figure 8.
Another is Composite Star SCA Mode. It is a more complex symbiotic relationship. Only rely on star type and too dependent on one
of the key species enterprise, has a very strong specificity, but a simple network structure are too loose, so it is difficult to form a
truly symbiotic SCA. This model absorbed several advantages of in front of SCA types. It is a multi-level nested SCA mode
developed through a variety of business relationships by several key species enterprises and many SMEs in cluster. Its structure
relationship is shown in Figure 9.
Figure 9 Composite Star SCA Modes
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4 Conclusion
Through the above analysis, it is very important to develop a symbiosis relationship between large and small enterprises in the
development of regional economy. SCA in SEMs cluster have certain similarities with biological populations, cluster is like an
ecosystem, and supply chain is like the food chain in ecosystem. Based on symbiosis theory, the relationship between cluster
enterprises is not just competition or cooperation. Because of many enterprises in SMEs clusters can get a strong professional support
and a high degree of correlation between each other, and more importantly, these SMEs can achieve coexistence and co-evolution in
the process of interactions and interactions. As a result, they will form a symbiotic community with common interests and goals
through complementary advantages and mutually beneficial co-existence. The SAC patterns we design in this paper are suitable for
different types of symbiotic development needs in clusters, sometimes several SCA modes can be integrated to use. So, we should
construct SCA mode according to different types of industrial clusters, and make full use of the symbiotic relationship between SMEs
in cluster supply chain alliances, and make it an efficient industrial paradigm of regional economic development.
Note:
This paper is a part of research results about project supported by the National Natural Science Foundation of China (Grant No.
71103155).
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