RELEVANCE OF FLEXIBLE SPECIALIZATION FOR SMALL-SCALE ENTERPRISES IN THE DEVELOPING-COUNTRIES

The study explores the relevance of flexible specialization (FS) for small scale enterprises in the developing countries. The concept envisages conglomeration of small scale firms with interfirm cooperation, interfirm division of labour, and use of multipurpose technology. FS has been adopted both in large and small scale enterprises but emphasis laid on various aspects of FS in small enterprises is different from large enterprises. International experience in FS can be of relevance for its applications in small enterprises in the developing countries. This would possibly be through decentralization of the production activities and bringing about closeness of small plants to the local resources. Thus, curbing necessary siphoning off local resources to distant production sites. This can help in curbing migration and creating employment opportunities. Study forms a basis for taking up case studies from Indian small scale sector in the due course.