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Ekonomika preduzeća
2018, vol. 66, iss. 7-8, pp. 386-400
article language: English
document type: Original Scientific Paper

Value chain upgrading in transition economies
aUniversity of Belgrade, Faculty of Economics, Department for Business Economics and Management
bCultural Due Diligence Institute, Novi Sad


The integration of small and medium-sized enterprises (hereinafter referred to as SMEs), operating in transition economies, into global division of labour is characterized by barriers that are not only caused by the size of those enterprises, but also by the fact that these are the companies with limited experience in the internationalization of business operations. The barriers that SMEs can be exposed to while entering international markets can be overcome when the governments choose the most effective strategy for improving the competitiveness of their SMEs. The most common strategies for improving the competitiveness of SMEs in transition economies are: subcontracting, integration in value chains, market niche development, and networking. The paper estimates the conditions and the possibility of applying strategies of integrating SMEs in Serbia into global value chain, as well as the ability and propulsiveness of SMEs to enhance their role in value chain of fruit and vegetables. The methodology for assessing the readiness of SMEs for their integration into value chain of fruit and vegetable processing has been developed to assess the readiness of the selected SMEs for their integration and promotion in the fruit and vegetable processing chain. Upgrading in value chains depends on the willingness of companies, but also on the willingness of the governments of transition economies to reduce the costs of knowledge, kinetic and transaction costs that SMEs in transition economies are exposed to while trying to integrate into value chains. To upgrade in value chains, the innovation of the process is an essential feature.



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