| Small-medium enterprises and large conglomerates interact with and influence each other on a substantial level. The purpose of the cross-sectional survey design study was to explore the beneficial aspects of relationships between conglomerates and SMEs in order to challenge the perception that, when a large retailer conducts business in a small town, local SMEs are forced to close their doors. The survey instrument developed for the study was found to be reliable. The findings indicated that there was a statistically significant positive impact of large firms on small firms. Contrary to the widespread viewpoint of an adversarial relationship between conglomerates and SMEs, the results from the study revealed that small firms actually benefit from large firms in a number of ways, including technology transfer, finance, and product development. The results of the study indicate supply chains dominated largely by large organizations develop linkages between companies to produce a product or service in an effort to create an efficient business process. The process results in a shift of costs and other activities needed to bring the product to life from the larger partner to the SME. The study findings could provide corporate leaders a better understanding of the need to support SMEs to grow to their full potential. Leadership is a vital ingredient in the formulation and deployment of strategic plans and in the achievement of strategic competitiveness and above-average returns. Forging beneficial relationships between conglomerates and SMEs requires innovative leadership which leaders of large firms should strive to develop. |
