Relevance of flexible specialization for small scale enterprises in the developing countries
Sharma, S.
Journal of Scientific and Industrial Research 53(4): 259-266
1994
ISSN/ISBN: 0022-4456 PMID: 12287944 Document Number: 285664
Flexible specialization (FS) is a new way of organizing industrial production which envisages changing the production system from one based in rigid mass production to one which is innovative and flexible with multipurpose machines and widely skilled workers capable of responding to changes in market demand. Interfirm cooperation, interfirm division of labor, and the use of multipurpose technology are the norm. The strategy is far more sensitive to market demand than conventional approaches. The author explores the relevance of FS for small-scale enterprises in developing countries. It is clear by looking at experiences across countries that FS has been adopted both in large- and small-scale enterprises. The emphasis placed upon various aspects of FS in small enterprises, however, is different from that in large enterprises. International experience can nonetheless help FS be applied in small enterprises in developing countries. Strategic benefits would most likely accrue through the decentralization of production activities and moving small plants closer to local resources. In so doing, production costs would be lowered, migration would be curbed, and local employment opportunities would be created.