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The impact of concentration on investment and innovation incentives of small and middle enterprises (SMEs) in the food supply chain. -An experience of local SMEs operating in a concentrated grocery market-

Stan, Lorin-Mihai (2017) The impact of concentration on investment and innovation incentives of small and middle enterprises (SMEs) in the food supply chain. -An experience of local SMEs operating in a concentrated grocery market-.

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Abstract:Competition authorities are more and more concerned about the growing dominance of big retailers in grocery markets. Mergers accelerated the process of concentration and oligopolies even more and few dominant retailers have an enormous amount of market shares in their country they operate. This thesis tests the effect of a concentrated grocery market on the incentives of local small and middle enterprises (SMEs) in the food supply chain to invest and innovate. The local grocery market of the German area Rhein-Main was chosen, because especially local markets are carefully monitored by antitrust authorities. 4 subquestions were established in order to answer the overarching research question more precisely. For this thesis, 4 interviews with local SMEs that are in different circumstances were conducted to find out information about what drives and harms them to innovate. The outcome of the study is that concentration can has a negative impact on the incentives to innovate of local SMEs, but other factors such as bureaucracy, limited resources and capacities, financial bottlenecks, urbanization and the availability of skilled personnel can also influence negatively SMEs decisions to invest and innovate.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:88 social and public administration
Programme:Management Society and Technology BSc (56654)
Link to this item:http://purl.utwente.nl/essays/73206
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