Published January 15, 2013 | Version v1
Journal article Open

Sovereign Interactions: A Theoretical Framework for Enhancing Business Linkages between Large Firms and Small to Medium Enterprises in South Africa

Authors/Creators

  • 1. University of the Western Cape

Description

The business landscape in South Africa is characterized by significant disparities between large firms (LFCs) and small to medium enterprises (SMEs). LFCs often face challenges in integrating with SMEs, which can hinder market penetration and innovation. No empirical data are included; this article employs a structured review of existing literature combined with analytical synthesis to develop a comprehensive theoretical model. The framework proposes a structured approach to overcome the barriers faced by LFCs in engaging with SMEs, emphasising the importance of mutual trust and shared objectives for successful business linkages. Business leaders should prioritise developing long-term relationships based on mutual benefits, while policymakers can facilitate such interactions through supportive regulatory environments.

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