Subcontractors are clustered into 5 types based on large firm's control and subcontractor's bargaining power. The purpose of this dissertation is to seek the characteristics and differences between each cluster under the assumption that large firms control subcontractors through their sales dependence on large firms and subcontractors use their level of technological advantages as their bargaining power.
Important findings are as follows:
Type Ⅰ firms, low sales dependence and low technological advantages, have the characteristics of having many employees, low level of employee's technology, highly competitive business environment, low linkage with large firms.
Type Ⅱ firms, high sales dependence and low technological advantages, have the characteristics of having a small capital scale, medium level of linkage with large firm with negligible impact on SMB's performance, land a plan to raise their sales to large firm.
Type Ⅲ firms, low sales dependence and high technological advantages, have the characteristics of having a unique technology, low linkage with large firm, highly independent R＆D activity.
Type Ⅳ firms, high sales dependence and high technological advantages, have the characteristics of having a small capital scale, high degree of linkage with large firm to improve their technology, effective performance of large firms' technological aids. Other factors such as financial aids, managerial advice have some impact, but not significant enough.
Type Ⅴ firms, characterized by some sales dependence have shown a trait of long history and middle positions in most factors.
In addition the market share is high in type Ⅲ and Ⅳ, which prove technological advantage is important factor in performance.
