Internal and external determinants of export performance: Insights from Algeria

The internationalization of small and medium‐sized enterprises (SMEs) has been the focus of numerous studies. However, while the attention has thus far been on SMEs operating in developed countries, firms evolving in a developing context, including Africa, have been largely neglected. To address this, and drawing on a dual resources‐based and network‐based view, this study simultaneously investigates the importance of internal and external resources for firms’ export performance and regularity in the context of North African SMEs. Using a sample of Algerian exporters, the study reveals the superiority of discrete resources for boosting export performance and export regularity. These findings provide directions to Algerian SME managers and policymakers as to important factors driving the internationalization process in the developing Algerian context.     

Influence of Innovativeness,Environmental Competitiveness and Government,Industry and Professional Networks on SME Export Likelihood

The purpose of this study is to examine how small to medium‐sized enterprises (SMEs) in different industry segments utilize government, industry, and professional networks and to test the influence of SME innovativeness, environmental competitiveness and network type for SME export likelihood. Previous studies on networks and exports tend to be qualitative and based on small samples. This study adds to previous scholarship by investigating a large database consisting of 2,263 Australian SMEs. Results indicate SME innovativeness contributes positively to export likelihood while contrary to extant studies, no significant relationship is observed between environmental competitiveness and export likelihood. Moreover, a significant, positive relationship exists between government networks and export likelihood, and a positive though weaker relationship between industry networks and export likelihood. On average, the likelihood of SMEs receiving export income increases by 47 percent if all three network types are accessed between one and three times a year, controlling for other factors. Further analyses of industry sub‐segments indicate a stronger relationship between industry networks and export likelihood.     

汇改对我国中小企业出口的影响测度与预测——基于汇改后月度数据的实证分析

当前我国中小企业出口经营困境凸显,进一步汇改是否会加剧其困境成为关注的焦点。本文基于汇改后的月度数据,采用GARCH模型分析各次汇改对汇率弹性的影响特征,构建向量误差修正模型测度和预测汇改对中小企业出口的影响。结果表明:汇改促使人民币每升值1%,其出口减少3.874%;汇率弹性增强1%,其出口减少0.034%。预测的中小企业出口总额较为平稳。进一步汇改以增强汇率弹性为核心不会对中小企业出口总量造成大的冲击。     

Rigidity in SME export commencement decisions

In an increasingly globalised world, firms generally have become more internationalised utilising a range of different modes of operation. In the case of small-medium sized enterprises (SMEs), exporting is the favoured mode of international market entry, at least in the early stages of internationalisation, and many governments have supported SME exports through export promotion policies because of the importance of SMEs in employment creation. However, in spite of this policy focus, in most countries, the proportional involvement of SMEs in exporting remains low, which raises an important question as to what factors are inhibiting firms that are successful domestically from exporting. In addressing this question, much scholarly research has focused on the broad concept of ‘export barriers’. These barriers, for example, tariffs, quotas and administrative obstacles, are seen as a primary source of export reluctance. This paper takes a different approach to previous studies and proposes that a firm's resistance to exporting can be better understood through an analysis of the behavioural decision process of firms in line with the Uppsala internationalisation model. We propose ‘lateral rigidity’, first introduced in the literature in the 1970s, as an important concept in export commencement. By applying factor analysis to a survey of Australian SMEs, we provide a measurement model for lateral rigidity, revealing its important factors and thus strengthening understanding of firms' export commencement decisions. We conclude by drawing implications for internationalisation theory, practice and public policy and suggesting ways to extend this work through future research.     

Networking responses to different levels of institutional void: A comparison of internationalizing SMEs in Egypt and the UK

This paper reports a comparative qualitative study of how decision-makers in internationalizing SMEs respond to relevant institutions in their domestic environment through networking activity. Twenty SMEs are compared respectively from a developing economy (Egypt) and a developed economy (UK). The two countries contrast both in the effectiveness of their institutional support for SMEs and in their cultural norms towards network relationships. Substantial differences are found between the two national samples in SME decision makers’ networking behaviour in response to specific institutional conditions. The links between institutional conditions, national cultural norms and SME networking responses are explicated in a new theoretical model.     

How Campanian Small and Medium Enterprises (SMEs) Can Compete in the Global Agro-Food Industry

Importance of the agro-food industry in Italy and in Campania led us to investigate industry structure and small and medium enterprises' (SMEs) strategies for competing in the global scenario. We first analyzed the relevance of the Campanian agro-food system. Then we presented the results of face-to-face interviews to some SMEs. Through the interviews, we highlighted the SME value chain structures and their strategies to face global challenges. Most of the Campanian SMEs internationalize their activity by exporting their products abroad. Firms export in markets oriented to a high level of product quality—the main factor of Campanian agro-food SMEs' competitive advantage.     

The Brand Personality of Nonprofit Organizations and the Influence of Monetary Incentives

This article contributes to the limited literatures on small- and medium-size enterprises (SMEs) and corporate social responsibility (CSR). Using an institutional theoretical framework, we analyzed fieldwork interviews with twenty SMEs and perspectives of 165 SME managers and workers in textiles, garment, and footwear industries, the most important wage-earning sector in Vietnam. Having understood in the context of a developing “market economy with socialist orientation” (thus a “Southern perspective”), we find that socially responsible practices and expectations developed long before the arrival of CSR as a western concept and an MNC agenda. While identifying and contributing ideas concerning forms of “informal” CSR practices—influenced by social and cultural expectations—to the CSR/SME literature, we are conscious of the mixed effects of these practices and the ongoing nuanced negotiations between workers and managers in these SMEs. In our research, we found that it takes both domestic and international stakeholders to improve labor conditions in Vietnam under the banner of CSR.     

Network ties and export propensity of Vietnamese small and medium enterprises

This paper investigates the impacts of different network ties on export propensity of Vietnamese small and medium enterprises (SMEs) in the manufacturing sector. Using data from a survey of over 2,600 manufacturing SMEs in 2015, we found that social networks contribute positively to the export propensity of SMEs, while the size of business networks negatively associates with the likelihood of export. However, bank networks and political networks are not significant for the propensity to export of Vietnamese SMEs. We discuss the results in detail and offer recommendations for SME owners, managers and policy makers.     

Exploration of Chinese SMEs' export development: The role of managerial determinants based on an adapted innovation‐related internationalization model

Over the past two decades, small to medium‐sized enterprises (SMEs) in China have achieved rapid international development. Due to China's unique cultural and institutional environments, our understanding of the influence of managerial determinants on internationalization is still limited. This exploratory study takes the lens of the innovation model of internationalization to revisit the dynamic development of Chinese SMEs' export operations. Based on the four in‐depth case studies, the findings suggest that exports by Chinese SMEs are influenced by managerial perceptions such as negative country‐of‐origin effect and strict overseas quality standards. In addition, they show that both external and internal drivers act as “change agents” in their internationalization involvement. These findings will assist various stakeholders—government and export promotion agencies—to develop and deliver needs‐based supports and encourage nonexporters to participate in international operations.     

Targeting Export Support to SMEs: Owners' International Experience as a Segmentation Basis

This paper addresses the issue of how export support programs can be effectively targeted to SMEs. This paper argues that the normally low awareness and usage of export support programs among SME owners can be countered by segmentation based on their level of export experience. The paper develops a theoretical rationale for this segmentation basis and develops hypotheses related to it. The hypotheses are tested, and largely supported, using data from Canadian SME exporters and pre-exporters. Results indicate that segmentation based on owners' level of export experience can be an effective supplement to current segmentation bases. Implications of the results for providers of export support services are discussed in the concluding section.     

SMEs and regional economic growth in Brazil

This paper examines the relationship between the small and medium-sized enterprise (SME) sector and economic growth for an annual panel of Brazilian states for the period 1985–2004. We investigate the importance of the relative size of the SME sector measured by the share of SME employment in total formal employment and the level of human capital in SMEs measured by the average years of schooling of SME employees. The empirical results indicate that the relative importance of SMEs is negatively correlated with economic growth, a result that is consistent with previous studies examining developing countries. In addition, our results show that the human capital embodied in SMEs may be more important for economic growth than the relative size of the SME sector.     

Quantity and quality of information and SME financial structure

We test whether the amount and/or quality of financial statement information affects the financial structure of small and medium-sized enterprises (SMEs). Belgian SMEs are used, because there are important differences in disclosure and audit requirements among them. Consistent with the traditional view that asymmetric or incomplete information restricts access to external funds, our results indicate that both the amount and quality of financial statement information are positively related to SME leverage. In addition, we find that leverage is positively related to asset structure, growth (prospects) and median industry leverage, and negatively related to firm age and profitability.     

The Role of Political Intelligence in Firms’ Export Decisions During the Euro Crisis

Inspired by the literatures on internationalization and absorptive capacity, we develop a model exploring how small firms—during crises—acquire and apply political information to export decisions. We test our model using data collected during the 2012 Eurozone crisis from a sample of 440 British, French, and Swedish SMEs. Findings indicate that firms dependent on the Eurozone for exports and heavily impacted by the crisis engaged in frequent political monitoring. In turn, frequent monitoring leads to the development of formal routines for exploiting political information. Firms with the most formal routines sought new export opportunities beyond the Eurozone. In contrast to previous research into small‐firm internationalization, our study stresses the significance of “shortcut” searching activities, non‐market information, and firms’ decisions to reduce prior investments in export markets.     

Facilitation of links between multinational subsidiaries and SMEs: The Scottish Technology and Collaboration (STAC) initiative

Multinational subsidiaries constitute a potential source of social capital for SMEs that can help in the internationalisation process. Such social capital is particularly valuable because it is a form of bridging (socially heterogeneous), rather than bonding (socially homogenous), social capital, and therefore could potentially lead to new information, ideas and opportunities. However, even in the best situations, limits on information exchange and trust hamper collaboration between SMEs and MNC subsidiaries. Facilitation by a neutral agency may help to overcome these barriers. This paper presents the case of the Scottish Technology and Collaboration (STAC) initiative as an illustration of the facilitation process—comprising architecting, brokering and coaching—and its outcomes, chiefly the formation of social capital, which in turn has the potential to lead to knowledge outcomes and ultimately internationalisation for the SME. This case reveals important implications for both policy and theories of SME internationalisation, especially the need to recognize and lever under-utilized sources of social capital.     

Experience,age and exporting performance in UK SMEs

We consider the determinants of SME exporting performance using a survey of internationally engaged UK SMEs. We first develop a model incorporating organisational and prior managerial learning effects. Our empirical analysis then allows us to identify separately the positive effects on exporting from the international experience of the firm and the negative effects of firm age. Positive exporting effects also result from grafted knowledge – acquired by the recruitment of management with prior international experience. Innovation also has positive exporting effects with more radical new-to-the-industry innovation most strongly linked to inter-regional exports; new-to-the-firm innovation is more strongly linked to intra-regional trade. Early internationalisation is also linked positively to the number of countries to which firms export and the intensity of their export activity. We find no evidence, however, relating early internationalisation to extra-regional exporting, suggesting that early-exporting SMEs tend be ‘born regional’ rather than ‘born global’.     

Technology and Export Decision

Taiwan has played an important role in international trade in the world and its manufacturing industries are dominantly composed of SMEs, yet little is known about the export decision of Taiwanese SMEs, especially the role of technology. This paper aims to explore the role of technology on the export decision of Taiwanese SMEs. In addition, whether there are differences in the determinants of the export decision for different groups of SMEs classified by size is also discussed. The empirical results show that the technological capability embodied in firms, measured by R&D, technology import, and training investment, do increase the probability of exporting. There does exist some variations in the determinants of exports between SMEs of different sizes. The impact of R&D is significantly positive on export propensity in all SMEs, while the role of technology imports and training investment are evidenced for only small firms, implying that external technological sources and other R&D-related activities are particularly important on the formation of technological capability for small firms.     

Firm-Level Determinants of the Financing Decisions of Small and Medium Enterprises: Evidence from Argentina

This article studies the determinants of the financing decisions of small and medium enterprises (SMEs), which we characterize through three cases: trade-off behavior, pecking order, and extreme aversion to debt. We test our hypotheses using a dataset of firms from Bahía Blanca (Argentina) for two years: 2006 and 2010. We find that firm characteristics related to information asymmetries, such as firm age, size, and legal form; and personal factors, such as owner’s age and education; and perception of emotional bankruptcy costs, are relevant variables in SME financing behavior. The recognition of extreme aversion to debt motivates reconsideration of the underleverage problem of SMEs.     

Contextual ambidexterity in SMEs: the roles of internal and external rivalry

This article seeks to extend research on small to medium-sized enterprises (SMEs) and ambidexterity by investigating contingency factors that influence the relationship between contextual ambidexterity and SME performance. Acknowledging the importance of internal knowledge flows in leveraging ambidexterity, it offers unique insights into how internal and external rivalry conditions influence performance outcomes related to an ambidextrous posture. Using a sample of Canadian-based SMEs, the study shows that the contextual ambidexterity–performance relationship is suppressed at higher levels of internal rivalry and amplified at higher levels of external rivalry. The findings suggest that developing an ambidextrous posture should not be an end by itself, and they point to the need for SMEs to understand how the features of their internal and external environments affect the performance consequences of such posture.     

Using the “best‐fit” approach to investigate the effects of politico‐economic and social barriers on SMEs' internationalization in an emerging country context: Implications and future directions

The way this study has used the “best‐fit” approach has facilitated the investigation of how three hypothesized constructs of political, economic, and social barriers can deepen our knowledge of their impacts on small and medium‐sized enterprises (SMEs)' internationalization within a small developing country context. Based on a quantitative analysis of the three hypothesized barriers, we used the “best‐fit” approach to measure the extent to which the SMEs' internal variables like people, products, services, and practices might best fit some of the people and non‐people factors external to the businesses. The application of the “best‐fit” approach onto the three hypotheses—politics (H1), social (H2), economics (H3), helped us in explaining the major social and politico‐economic barriers faced by a developing economy' (Bangladeshi) SMEs' internationalization despite previous literatures' emphasis on the impacts of globalization, market drivers or their oversight. Based on the findings, we point to future research trajectory. This study used primary survey data from 212 Bangladeshi SMEs and successfully validated an HR model by using Smart PLS3 software. The results from the hypotheses were used to produce the HR model to help SMEs identify the significance of people and economic factors and propose these aspects for inclusion in the “best‐fit” approach, SME, and globalization research.     

Promoting Small and Medium Enterprises with a Clustering Approach: A Policy Experience from Indonesia

Small and medium enterprises (SMEs) in Indonesia are very important for employment creation and are important sources of economic growth and foreign currencies. It is therefore not a surprise that SMEs receive ample attention in Indonesia. In recent years, particular attention has been paid to development of SME clusters. The main aim of this paper is to review government policies on SMEs with a clustering approach, in Indonesia. The paper argues that in many cases, the development policy has not been so successful. In essence, most failures can be attributed to the fact that one or more critical factors for successful SME cluster development were either not existing or not addressed correctly. Neglecting cluster linkage to markets is one main reason for the failure. Prerequisite for successful cluster development is the cluster's potential to access growing markets, either domestic or abroad.