The response of small and medium-sized enterprises to potential water risks: an eco-cluster approach

This paper investigates the perception of mangers of small and medium-sized enterprises (SMEs) in undertaking collaborative forms to overcome the weaknesses faced by individual SMEs in an attempt to tackle production and operational risks associated with water issues. It particularly examines the effect of water related problems on the operations of SMEs mainly as a result of excessive and sudden environmental changes (e.g. droughts and floods) and strict public policy requirements (e.g. the Clean Water Act). Current literature examines these reasons at an individual firm level and mainly for large firms. To fill this gap, this paper focuses on examining these issues in SMEs. A case study was conducted on a sample of 10 SMEs located in Northern Greece and operating in the food industry in order to examine the perceptions of managers/owners of SMEs regarding the suitability of collaborative forms to face potential water risks. The findings showed that despite the low awareness of managers/owners of SMEs concerning the effects of water risks on their operations, they considered collaboration between SMEs as a good tool for eliminating water risks and gaining financial benefits.