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Dealing With Crisis: Using Subcontracting For The Development Of The Croatian Leather Manufacturing And Processing Industry

Author

Listed:
  • Sanda Renko

    (University of Zagreb, Faculty of Economics and Business, Republic of Croatia)

  • Alica Grilec Kauric

    (University of Zagreb, Faculty of Textile Technology, Republic of Croatia)

  • Mario Lesina

    (PhD student candidate at the Faculty of Economics Osijek, Republic of Croatia)

Abstract

As literature suggests, subcontracting presents an important source of support of various kinds to small and medium-sized companies from large ones as well as an important source of efficiency and competitiveness. It is considered as an instrument of industrial and economic development and employment creation in developed and developing countries, and particularly in labour intensive industries. A reduction of demand, a change in consumption patterns, a global shift from production and economic crisis have increased the interest of many researchers analyzing subcontracting relationships mostly in textile and clothing industry. This paper is investigating the role of subcontracting in the case of the Croatian leather manufacturing and processing industry with an aim of getting better insight into its contribution to the development of this sector. Therefore, for the purpose of this paper, a two-phase research study, including a qualitative approach, was used: 1) the first phase on the sample of companies operating in the Croatian leather manufacturing and processing industry which intended to find out overall perception of benefits and limitations of subcontracting for the Croatian footwear and leather manufacturing companies; 2) the second phase on the group of the Croatian footwear and leather manufacturing companies, focusing on the success of subcontracting in dealing with global crisis. The findings of the study confirm that positive relationships between subcontracting and business performance was found as well as some areas for improvement.

Suggested Citation

  • Sanda Renko & Alica Grilec Kauric & Mario Lesina, 2014. "Dealing With Crisis: Using Subcontracting For The Development Of The Croatian Leather Manufacturing And Processing Industry," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 10, pages 463-474.
    • Handle: RePEc:osi:journl:v:10:y:2014:p:463-474
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    References listed on IDEAS

    as
    1. Erol Taymaz & Yilmaz Kilicaslan, 2001. "Subcontracting dynamics and economic development: A study on textile and engineering industries," ERC Working Papers 0108, ERC - Economic Research Center, Middle East Technical University, revised Aug 2001.
    2. Wladimir Andreff, 2009. "Outsourcing in the new strategy of multinational companies: Foreign direct investment, international subcontracting and production relocation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00443699, HAL.
    3. Allen Kaufman & Craig H. Wood & Gregory Theyel, 2000. "Collaboration and technology linkages: a strategic supplier typology," Strategic Management Journal, Wiley Blackwell, vol. 21(6), pages 649-663, June.
    4. Wladimir Andreff, 2009. "Outsourcing in the new strategy of multinational companies: Foreign direct investment, international subcontracting and production relocation," Post-Print halshs-00443699, HAL.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    subcontracting; Croatian footwear and leather manufacturing industry;

    JEL classification:

    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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