Paper Title
Development of Downstream SMES In Manufacturing Value Chain: A Study in the Context of Oman
Abstract
This research considered the context of Oman where it is observed that a few mature manufacturers of primary products such as steel, aluminium and plastic are operating relatively in large scale, but at the same time the relevant local downstream companies especially small and medium enterprises (SMEs) are generally struggling for their business with the upstream parties. The research problem is to inquire into the status of the key upstream and downstream parties in the value chain and explore the reasons behind their state of existence so as to find out the possible ways to develop the downstream SMEs. This research utilized two approaches to develop a set of coherent output. First, a qualitative research approach was used to learn about the general status of the upstream and downstream companies in the value chain. The second approach was a model-based logical inquiry to clarify the reasons behind the state of existence of the key parties in the value chain.The qualitative inquiry informed more favorable state of affairs on the part of prominent u/s parties whereas the d/s counterparts were found to be in a challenging situation. The logical inquiry informed the causal structure of business growth, resource consumption, management of resources, and the interaction with other parties in the value chain. In overall, it was found that besides the interventionist policies, development and access to local and overseas markets for SMEs would provide opportunities for them to grow naturally, and at the same time, their internal capabilities are essential to generate and tap the market opportunities. The favourable interplay of market opportunities and the internal capabilities would help SMEs to grow and flourish in the long run.
Keywords - Manufacturing value chain; SMEs; in-country value; market opportunities; internal capabilities