SME-s GROWTH MODES: ARE HYBRID MODES APPROPRIATE FOR DEVELOPING COUNTRIES?
Journal: International journal of ecosystems and ecology science (IJEES) (Vol.3, No. 3)Publication Date: 2013-06-30
Authors : Shpresim Domi Gentjan Mehmeti;
Page : 463-470
Keywords : Hybrid mode of growth; Licensing; Joint venture; Kosovo.;
Abstract
Various studies show that business growth is usually achieved through two main modes the acquisition and organic growth. However, there is a third way of firms’ growth, the hybrid mode. Hybrid mode of growth means a method that lies between the first two modes. It is important to note that few attentions have been paid to this way of business growth. Hybrid mode of Growth occurs in several forms such as licensing, joint ventures, franchising, strategic alliances and partnerships. Despite multiple forms that Hybrid mode takes, our paper will focus on the theoretical treatment of Licensing and Joint Venture. During their theoretical treatment, we will aim to show the potentials of Kosovo’s business to implement these forms of business growth. Some best practices of joint ventures among enterprises of Kosovo and developed countries shows that joint ventures offer benefits for each partner as well as other stakeholders. ‘Modeli company” and “Birraria Peja” as a joint venture between local and international firms are success stories in terms of generating investments, increasing sales volume, and offering high quality products for customers. Using licensing offer reducing cost and time for a start up business and is a proper way to protect the foreign investors who came in Kosovo to expand their business through licensing or other hybrid modes.
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Last modified: 2013-06-30 17:07:44