Fulfilling the Export Potential of Small and Medium Firms. Edited by Brian Levy,Albert Berry and Jeffrey B. Nugent. Boston: Kluwer Academic Publishers, 1999.

Small Business Economics -     

External and internal influences on R&D alliance formation: Evidence from German SMEs

Relying on relational capital theory and transaction cost economics (TCE), this study identifies factors that impede or promote alliance formation in small to medium-sized enterprises (SMEs). Environmental uncertainty and knowledge intensity impede firms' R&D alliance formation; the focal firm's overall trust in partners enhances alliance formation. Trust interacts positively with environmental uncertainty and knowledge intensity to affect alliance formation in SMEs. The findings reflect data from a longitudinal sample of 854 German SMEs, captured over eight years from 1999 to 2007.     

Mapping fragmentation: Electronics and automobiles in East Asia and Latin America

"Fragmentation", the relocation of processes or functions across countries in response to cost and other differences, has important implications for development. We discuss the drivers of fragmentation and map it for electronics and automotives in East Asia (EA) and Latin America. For technical reasons, electronics is fragmenting faster world-wide than the auto industry. Electronics networks are more advanced, widespread and integrated in EA than Latin America and the Caribbean (LAC), and are largely responsible for EA's rapid export growth. The auto network is more advanced in LAC but is slower growing and is not integrated into a regional system. Apart from Mexico, LAC lacks an electronics network, partly accounting for the region's weak export performance. We offer insights into the following: Why do industries fragment differently? How can fragmentation be measured? Why does fragmentation in developing countries concentrate on EA and LAC? Why has fragmentation evolved differently in these two regions? Can other developing regions attract and benefit from fragmentation?     

Determinants of R&D in an LDC: The Indian engineering industry

R&D behaviour of LDC industrial firms is an unexplored subject. Data on the largest engineering firms in India are analysed to test the hypothesis that technological effort in LDCs is primarily directed at assimilating and adapting foreign technologies.     

Firm-level export performance in an inward-looking economy: The Indian engineering industry

This paper investigates some influences on export activity by the 100 largest engineering enterprises in India in the period 1966–1968 to 1976–1978. Among the interesting findings are that exporting is negatively correlated with profitability and technological activity, but that there are some major exporters who find exporting increasingly profitable and relate their R and D activity more to exporting over time. In general the findings illustrate at a disaggregated level the anti-export bias of the industrialization strategy pursued by India.     

Financial and profit performance of MNCs in developing countries: Some evidence from an Indian and Columbian sample

This paper presents detailed information on the financing patterns and profit performance of a sample of multinational and other manufacturing firms in India and Columbia. It finds that local borrowing patterns of MNCs do not differ significantly from those of other firms, that MNC affiliates tend to pay lower interest rates abroad, that multinationality as such does not exercise a significant influence on profitability, and that local advertising and borrowing patterns have some effects on profitability.     

Technological development and export performance in LDCs: Leading engineering and chemical firms in India

Zusammenfassung Technologische Entwicklung und Exportleistung in Entwicklungsl?ndern: Das Beispiel der führenden Maschinenbau- und Chemiefirmen in Indien. - In diesem Aufsatz wird der Einflu\ technologischer und anderer Faktoren auf die Exportleistung indischer Firmen untersucht. Daten der gr?\ten Maschinenbau- und Chemieunternehmungen werden analysiert, indem auf die Literatur zur Unternehmenstheorie und zum internationalen Handel Bezug genommen wird. Die Regressionsergebnisse sind aufschlu\reich: Die auf den Binnenmarkt orientierte indische Wirtschaftspolitik dürfte die technologische Entwicklung fehlgeleitet haben, besonders im Falle von Maschinenbaufirmen, bei denen es auf die Produktinnovation ankommt. Die Erzeugnisse wurden an indische Bedingungen angepa\t, und die Modellentwürfe blieben hinter dem Weltmarktniveau zurück: Beides hat die Exportleistung beeintr?chtigt. In der Chemieindustrie dürften die technologischen Anstrengungen die Exportleistungen gef?rdert haben, weil die Produkte weitgehend standardisiert sind und Anpassungen dazu dienen, die Kosten zu senken.

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Résumé Développement technologique et performance exportatrice dans les PVD: Les premières entreprises chimiques et de construction mécanique en Inde. - Cet article explore les conséquences de la technologie et des autres facteurs pour la performance exportatrice des entreprises indiennes. Les données des entreprises de construction mécanique et chimiques les plus grandes sont analysées appropriées aux sciences économiques d’industrie et à la théorie du commerce extérieur. Les résultats de regression sont suggestifs: Le régime indien orienté vers le marché local peut avoir déformé le développement technologique, particulièrement dans les entreprises de construction mécanique où l’innovation de produit est essentielle. Des produits ont été adaptés aux conditions indiennes et le dessin des produits est resté en arrière du niveau mondial: Ces deux facteurs empêchaient un succès aux marchés mondiaux. Dans l’industrie chimique, l’effort technologique semble avoir avancé la performance des exportateurs parce que les produits sont uniformes et les adaptations servent à baisser les co?ts.

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Resumen Desarrollo tecnológico y exportaciones de los países en desarrollo: el caso de empresas químicas y de ingeniería en la India. - Este trabajo investiga el impacto de factores tecnológicos y de otra índole sobre las exportaciones de empresas indias. Se analizan los datos pertenecientes a las empresas químicas y de ingeniería más importantes a la luz de la literatura sobre economía industrial y comercio internacional. Los resultados obtenidos de las regresiones son sugestivos: la política económica india orientada hacia el mercado interno puede haber distorsionado el desarrollo tecnológico, especialmente en las empresas de ingeniería, donde la innovación a nivel de productos es crucial. Los productos han sido adaptados a las condiciones indias y los dise?os se han alejado de la frontera tecnológica internacional: ambos factores han contribuído a disminuír la participación de estos productos en las exportaciones. En el sector químico el esfuerzo tecnológico parece haber fomentado las exportaciones, debido a la uniformidad de los productos y a las adaptaciones realizadas para reducir los costos.