SMEs’ dependency on large corporations’ technology for sustainability in the United States
Authors: Afolabi Salami  
Published: October 2024

Introduction/Background: This study discusses how small and medium-sized firms (SMEs) depend on major corporations for key technology resources that support sustainability initiatives. While SMEs contribute considerably to economic development and innovation, they typically rely on bigger enterprises for access to new technology and market possibilities. This partnership gives SMEs benefits like greater operational efficiency and global market access but also creates obstacles such as budgetary limits and technical reliance. The essay explores techniques for SMEs to effectively exploit new technologies, balancing partnership with larger firms while retaining their autonomy and competitiveness in a quickly shifting business climate focused on sustainability. Materials and Methods: The materials used for this study were sourced from different databases which include scholarly journal articles, reports, and government gazette and policy papers in the areas of business, small and medium scale enterprises, entrepreneurship, management and economics. The inclusive criteria ensured that only those articles that investigated the merits and demerits of SMEs dependence on large corporation were utilised. The review of literature was conducted on 50 documents published between 2009 and 2024. Results: The findings as revealed from the reviewed literature revealed the different merits and demerits of SMEs dependence on large corporation. Case studies of Tesla, Microsoft, Walmart, and Amazon demonstrate the intricate reliance of SMEs on major firms in the United States. Tesla's reliance on SMEs for crucial components like batteries underlines the reciprocal advantages and dangers involved, since SMEs' stability rests on Tesla's performance. Microsoft helps SMEs through initiatives that stimulate innovation and technology adoption, boosting their capabilities. Walmart gives SMEs with access to huge distribution networks, enabling sales growth. Similarly, Amazon's platform gives SMEs tremendous market reach but also brings issues in competitiveness and price. Together, these instances show the potential and challenges SMEs confront in their relationships with bigger enterprises. Discussion: Encouraging supplier growth and enhancing supply chain resilience are vital for establishing a sustainable SME environment. Policymakers may promote SMEs through mentorship programs, financial aid, and tax incentives for partnership with large enterprises. Addressing financial impediments with targeted funding and boosting skills development through collaborations with educational institutions would help SMEs embrace new technology. Additionally, establishing technology-sharing activities and developing a legal framework that supports fair competition are vital. Fostering innovation among SMEs and supporting sustainable practices will eventually boost their competitiveness and contribute to broader economic and environmental goals, benefitting both SMEs and bigger organizations. Conclusion: The reliance of SMEs on big corporations provides noteworthy hurdles and possibilities that require for the adoption of effective government involvement. Through the elimination of financial obstacles, the upgrading of technical skills, the promotion of fair competition, and the encouragement of innovation and sustainability, governments may build a fair climate that enables SMEs to prosper alongside bigger firms. This approach not only allows SMEs access to resources and contemporary technology, but it also stimulates economic variety and creativity, which in turn contributes to continuous development and competitiveness in a dynamic market.