Small enterprises within company are the hybrid form of subcontraction and their types are various. In this paper, they are classified as SE without business enrollment, internat SE, close SE, and open SE according to the location, the relationship wi...
Small enterprises within company are the hybrid form of subcontraction and their types are various. In this paper, they are classified as SE without business enrollment, internat SE, close SE, and open SE according to the location, the relationship with parent company, employee, legal characteristic, and the managcrial capability required.
The primary reason for their appearence is the shortage of labor forces in 1990's. The expected effects of SE in terms of parent company are the relief of shortage of labor forces and long tenure, improvement in productivity, timely delivery, flexiblity. The managers of SE are expected to enjor income increase, development of managerial ability, higher level of social status.
Inspite of many expected benifits, SE has prolems, such as lack of investment in research and development, the opposition of labor union, the increase of work intensity, overdependence on parent company, and these problems, if not properly managed, lead to failure of SE.