Human Capital, Innovation and Internationalization of Micro and Small Enterprises in Rural Territory - a Case Study

Abstract

This paper investigates the relationship between human capital in micro and small enterprises and their respective behaviors in innovation and internationalization. Based on a case study of interpretative nature, from 2010 till 2012 we collected data about the agri‑food complex of Tagus Valley (Portugal) through triangulation of techniques typically used in qualitative research: direct observation (in farms, units of processing, storage and packaging food stuffs and wines, and regulatory and promotional agents); semi‑structured interviews with individuals representing the various categories of agents involved, alongside a survey with 110 business agents; and statistical data gathered in the Portuguese Agriculture Census. Survey data were object of descriptive, correlational and regression analyses. Our research provides evidence of firms making use of stable partnerships with intermediary economic agents and promoting organizations and demonstrating how effective are endogenous assets (especially those of non‑mercantile nature) to the competitiveness of a rural territory, in the framework of Common Agricultural Policy. In terms of public policies for competitiveness and innovation, according to an institutional view, the state and regional/local governments, research institutions (public or private), higher education institutions and business training centers, sharing a common agenda for endogenous assets valuation, might play a strategic role in an economy strongly built on micro and small enterprises, whose sustainability depends on collaborative networking.

Internationalisation of microenterprises: systematic literature review

“…Microenterprises and small firms that are engaged din business relations with their producer's organisations have strong dependence on the regional market. This is an almost inevitable consequence of these companies' scarce organisational resources (Oliveira and Turčínková, 2019).…”

“…The second cluster contains nine articles. A significant portion of the articles emphasised the influence of owner-managers, managerial skills, and human capital on internationalisation (Oliveira and Turčínková, 2019;Philp, 1998;Arpa et al, 2012;Hermel and Khayat, 2011). The second theme highlights how innovation plays an important role in internationalisation.…”

Developing a Strategy for Sustainable Rural Development in the COVID-19 Pandemic

“…The conducted studies based on surveys, observations and statistical data from the Portuguese Agricultural Census emphasize the significant contribution of human capital to achieving sustainable rural development [19]. The correlation and regression analysis determine the relationship of parameters reflecting human capital and indicators of innovation activity of micro and small enterprises operating in rural areas.…”

The Urgency of Education in Economic Development and Human Resources: A Theoretical Perspective

“…From the 20th century until now, education, skills, and knowledge acquisition have become important determinants of the productivity of a person and a nation (Benos & Karagiannis, 2016). One might even call the 20th century the "Age of Human Capital" (Oliveira & Turčínková, 2019), in the sense that the main determinant of a country's standard of living is how well it succeeds in developing and utilizing skills and knowledge, and promoting health and educating the majority residents (Annabi, 2017).…”