Success Factors for SMES In the European Chemical Distribution Industry: A New Integrative Perspective

Keywords: European chemical distribution industry, SMEs, Success factors, Literature review

Abstract

The European chemical distribution industry, despite its significant contribution to the economy and employment generation, remains largely unexplored with little research, both on an academic and industry level, in the factors contributing to SMEs success. With the majority of chemical distributors being small and medium-sized enterprises, this paper discusses the driving forces of the industry, arguing that only when a small business is able to cope with, adapt to and overcome these forces, can it be successful. Consequently, a number of factors are identified and a positive relationship with SMEs success is proposed. This paper informs thinking and research design and becomes the basis for future research in this field. It further offers a way forward for both practitioners and policy makers to support small and medium-sized European chemical distributors.

Author Biography

Evripidis Lampadarios, Leeds Beckett University

Part time Lecturer

School of Strategy, PR and Communications

References

Bee, T.K., Chelliah, J. (2013) ‘Why are Private Equity Firms Acquiring Chemical Distributors Worldwide?’, The Journal of International Management Studies, Vol. 8, No. 1, pp. 108-113.

Berger, R. (2011) A different world - Chemicals 2030. [online] http://www.think-act.com/en/content/a-different-world-chemicals-2030.html (Accessed 18 August 2015)

Bishop S. and Walker, M. (2010) ‘The Economics of EC Competition Law: Concepts, Application and Measurement’, Sweet and Maxwell, London.

Brenntag (2010) About us [online] http://www.brenntag.com/ (Accessed 16 September 2015)

Burns, N. A. (2010): Chemical Distributors [online] http://www.neilaburns.com/chemical-distributors/ (Accessed 21 December 2015)

Burridge, E. (2013) ‘Industry needs to cultivate talent’, ICIS Chemical Business, 5 May, pp.15-17.

Burridge, E. (2014) ‘An eye on the future-FECC supplement’, ICIS Chemical Business, 14 May, pp. 14-15.

Camelot Management Consultants (2012) Focus Topics 2012 for the Chemical Industry, Outlook based on CheMonitor study results. [online] http://www.camelot-mc.com/fileadmin/user_upload/Flyer/Camelot-Focus-Topics-2012-Chemical-Industry.pdf (Accessed 10 June 2015)

CBA (2015) CBA Supply Chain Trends March 2015. [online] http://www.chemical.org.uk/news/cbanews/cbasupplychaintrendsmarch2015.aspx (Accessed 10 July 2015)

CEFIC (2010) Is European chemical industry losing its global leadership?. [online] http://www.cefic.be/files/Publications/Cefic_Dipliant_2015.pdf (Accessed 20 July 2015)

CEFIC (2012) Facts and figures: the European chemical industry in a worldwide perspective, European Chemical Industry Council (CEFIC. [online] http://www.cefic.org/Facts-and-Figures/

Facts--Figures-Brochures (Accessed 14 February 2014)

Chemagility (2008) UK Chemical Distributor Market Report 2008: Information, Insight and analysis of the UK Chemical distribution industry, Chemagility, Surrey.

Chemagility (2012) A Global Perspective on the World Chemical Distribution Market, First Panel Session: Chemical Distribution Industry Landscape, presented at the FECC Annual Congress, Lisbon, May 21-23, 2012. [online] http://www.assicconline.it/menu/documents/06_brown.pdf (Accessed 29 May 2015)

Chemanager (2012) Chemical Distribution: Global Mind with Local Focus. Biesterfeld’s CEO Birger Kuck Discusses Success Factors for the Chemical Distribution Industry. [online] http://www.chemanager-online.com/en/news-opinions/interviews/chemical-distribution-global-mind-local-focus (Accessed 19 May 2015)

Chemanager (2013) Distribution and Logistics for the Chemical and Life Sciences Industries. [online] http://www.chemanager-online.com/sites/chemanager-online.com/files/printausgabe/epapers/SDL/SDL0113/blaetterkatalog/index.html (Accessed 20 June 2015)

Chemical Business Association (CBA) (2015) About us. [online] http://www.chemical.org.uk/aboutus.aspx (Accessed 25 February 2015)

Chemical Industries Association (2009) Chemicals-The UK advantage: adding value for global investors and industries. [online] http://www.cia.org.uk/portals/0/downloads_pdf_1_Chemicals-Brochure-FINAL-JAN-2009.pdf (Accessed 30 July 2015)

Districonsult (2009) Chemical Distribution in 2009: Challenges and Uncertainties. [online] http://www.districonsult.com (Accessed 15 June 2015)

Districonsult (2010) Wheels of change spin in distribution. [online] http://www.districonsult.com/en/index-districonsult%2Bnewsletter-1-31%2B~%2Bwheels%2Bchange%2Bspin%2Bdistribution.html (Accessed 24 February 2014)

Districonsult (2011) Oligopsony or Monopsony?. [online] http://www.districonsult.com/en/index-di s t r i consul t%2Bnews letter - 1 -33%2B~%2Bsmiling%2Bfaces%2Bdespite%2Bchallenges%2Bahead.html (Accessed 11 May 2013)

Districonsult (2012) Chemical Distribution in 2012: What’s next on the horizon?, 6th Brazilian Congress of Chemicals and Petrochemical Distributors (EBDQUIM), Praia do Forte (Bahia), 16th March 2012 [online] http://www.associquim.org.br/ebdquim2012/palestras/Ebdquim2012_G%C3%BCentherEberhard.pdf (Accessed 10 May 2013)

Districonsult (2013) Old Game - New Rules? Chemical Distribution in the Age of Volatility. [online] http://www.districonsult.com/en/indexdistriconsult%

2Bnewsletter-1-34%2B~%2Bold%2Bgame%2Bnew%2Brules%2B2013.html (Accessed 27 February 2015)

Eacott, C. (2012) ‘Surviving and thriving under REACH’, The Chemical Engineer, 5 June, pp. 28-29.

Eastwood, A. (2012) ‘2012 Petrochemicals review’, Hydrocarbon Processing, Vol. 91, No. 12, pp. 64-65.

Eberhard, G. (2014) ‘Growth and consolidation’, ICIS Chemical Business, 21-27 July, pp. 44-46.

Elser, B. (2012) ‘Distribution is a lever for growth’, ICIS Chemical Business, Vol.281, No. 18, pp. 23-24.

European Chemicals Agency (ECHA) (2014) About us. [online] http://echa.europa.eu (Accessed 30 July 2015)

FECC (2011) Communication in the supply chain - distributors‘ challenges. ECHA – ENES Meeting 24th-25th November 2011, Brussels, [online] https://echa.europa.eu/documents/10162/13587/echa_enes_jensen_korte_en.pdf (Accessed 30 July 2015)

FECC (2013) The Chemical distribution Sector in Europe. [online] http://www.fecc.org/fecc/about-fecc/the-chemical-distribution-sector-in-europe (Accessed 26 April 2015)

FECC (2015) European business plan 2015. [online] http://www.fecc.org/fecc/images/stories/downloads/GTDP/2014/FECC_BusPlan_2015_def.pdf (Accessed 15 May 2015)

Fermont, M. (2007) ‘Channel Management in the Chemical Industry - Selecting the Right Option’, Journal of Business Chemistry, Vol. 4, No. 3, pp. 90-95.

Flavell-While, C. (2012) ‘Ch-Ch-Ch-Changes’, The Chemical Engineer, 853, pp. 44-46.

Frost, L. (2013) ’Distribution: Capturing growth opportunities’, IHS Chemical Week, 4 November, pp. 23-25.

Health and Safety Authority (HSA) (2011) Chemical Distributor Duties under REACH and CLP Information sheet. [online] http://www.hsa.ie/eng/Publications_and_Forms/Publications/Information_Sheets/Chemical_Distributor_Duties_REACH_and_CLP.pdf (Accessed 28 April 2015)

Hornke, M. (2013) ‘The future of chemical distribution in Europe: Customer relations as key value lever’, Journal of Business Chemistry, Vol. 9, No. 2, pp. 65-66.

Hornke, M. (2012) Chemical Distribution 2012. [online] http://www.chemanager-online.com/file/track/11755/1 (Accessed 28 July 2015)

ICIS (2010)Chemical Mergers and Acquisitions set to rise in 2011. [online] http://www.icis.com/Articles/2010/12/06/9415854/html (Accessed 16 April 2015)

Jensen-Korte, U. (2013) REACH 2013 challenges and best practice in the chemical distribution industry. European Chemical Agency Newsletter, [online] http://newsletter.echa.europa.eu/home/newsletter/entry/1_13_guest_fecc;jsessionid=630BA1472F0473C9F0BDB77106D1D705.live2 (Accessed 30 July 2015)

Jung, U., Wolleswinkel, R., Hoffmann, C., Rothman, A. (2014) Specialty Chemical Distribution-Market Update. Boston Consulting Group, [online] https://www.bcgperspectives.com/content/articles/process_industries_go_to_market_strategy_specialty_chemical_distribution_market_update/?chapter=2 (Accessed 16 May 2015)

Kamakura, Y. (2006) ‘Corporate Structural Change and Social Dialogue in the Chemical Industry’, International Labour Office, Geneva.

Kronimuns, A., Roos, A., Stelter, D. (2009) M&A: Ready for Lift-off? A survey of European companies’ Merger and Acquisition Plans for 2010. Boston Consulting Group, [online] https://www.bcg.com/documents/file36677.pdf (Accessed 30 July 2015)

Lampadarios, E. (2016a) ‘Critical challenges for SMEs in the UK chemical distribution industry’, Journal of Business Chemistry, Vol. 13, No. 1, pp. 17-32.

Lampadarios, E. (2016b) ‘Critical success factors for SMEs: an empirical study in the UK chemical distribution industry’, International Journal of Business and Management, Vol. 11, No. 7, pp. 67-82. http://dx.doi.org/10.5539/ijbm.v11n7p67

MarketLine (2013) ‘Chemicals in Europe’, MarketLine, London.

MINTEL (2005) ‘Chemical Distribution-Industrial Report’, MarketLine, London.

Mortelmans, S. and Reniers, G. (2012) ‘Chemical distribution in Belgium from 2007 to 2010: An empirical study’, Journal of Business Chemistry, Vol. 9, No.2, pp. 105-113.

Pistolese, P. (2011) ‘CLP Regulation and REACH Regulation: links, implementation and control in Italy’, Annali Dell'istituto Superiore Di Sanità, Vol. 47, No. 2, pp. 157-164.

Research and Markets (2013) Global Chemical Distribution Market 2012-2014. [online] http://www.researchandmarkets.com/research/8xg2bb/global_chemical (Accessed 22 July 2015)

Rowley, J. (2002) ‘Synergy and strategy in e-business’, Marketing Intelligence and Planning, Vol. 20, No. 4, pp. 215-222. http://dx.doi.org/10.1108/02634500210431603

Royal Society of Chemistry (RSC) (2014) Campaigning & outreach. [online] http://www.rsc.org/get-involved/importance-of-chemical-sciences/Economic_benefit.asp (Accessed 19 May 2015)

Tay, K. B. and Chelliah, J. (2010) ‘Disintermediation of Traditional Chemical Intermediary Roles in the Electronic Business-To-Business (e-B2B) Exchange World’, Journal of Strategic Information Systems, Vol. 20, No. 3, pp.217-231. http://dx.doi.org/10.1016/j.jsis.2010.11.003

Valk, V. (2012) ‘Distribution: New markets and a changing business mode’, IHS Chemical Week, 19 November, pp. 29-30.

VCI (2013) Messages and demands for the issue: Raw Materials Base of the Chemical Industry. [online] https://www.vci.de/Downloads/Top-Thema/OPen_Raw_Materials_Base_of_the_Chemical_Industry.pdf (Accessed 25 May 2015)

Whyte, M. (2012) REACH and its impact on SME. [online] http://ec.europa.eu/enterprise/sectors/chemicals/files/sherper_conference/sh_2f_m_whyte_refac_en.pdf. (Accessed 30 July 2015)

Young, I. (2012a) ‘Distribution: Robust Despite Market Uncertainty’, IHS Chemical Week, 7-14 May, pp. 21-25.

Young, I. (2012b) ‘FECC 2012: Distributors Adapt to Changing Markets’, IHS Chemical Week, 28 May, pp. 36-37.

Published
2016-07-19
How to Cite
Lampadarios, E. (2016). Success Factors for SMES In the European Chemical Distribution Industry: A New Integrative Perspective. Journal of Research in Business, Economics and Management, 6(3), 941-953. Retrieved from http://scitecresearch.com/journals/index.php/jrbem/article/view/842
Section
Articles