The role of government and the international competitiveness of SMEs

Appiah, Kenneth; Osei, Collins; Selassie, Habte G.; Osabutey, Ellis L.C.

doi:10.1108/cpoib-06-2018-0049

Cited by 17 publications

(11 citation statements)

References 59 publications

(94 reference statements)

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“…The findings show that government and nongovernment institutional support have standalone positive effects on EIFs' performance. While the beneficial role of government assistance in exporting firms' performance is supported by previous research (e.g., Appiah et al, 2019;Chabowski et al, 2018;Falahat et al, 2020;Freixanet and Churakova, 2018, etc. ), this study demonstrated that nongovernment assistance also has a significant positive impact (implied by other studies, e.g., Cardoza et al, 2016;Costa et al, 2017;Sousa et al, 2008).…”

Section: Discussionmentioning

confidence: 75%

“…In addition, the findings offer implications for developing and emerging countries at the economy level considering that exporting SMEs potentially improve efficiency and competitiveness, and contribute to employment generation, poverty reduction and foreign exchange earnings (Appiah et al, 2019). If firms are aware of the EPPs but do not use them, this indicates a barrier related to their accessibility or exporting firms' lack of trust in the institutions (Freixanet and Churakova, 2018).…”

Section: Managerial and Policy Implicationsmentioning

confidence: 99%

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The standalone and resource-bundling effects of government and nongovernment institutional support on early internationalizing firms’ performance

Faroque

Sultana²,

Ahmed

et al. 2021

CPOIB

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Purpose This study aims to analyze the individual and joint effects of institutional support by government and nongovernment institutions on early internationalizing firms’ (EIFs) performance. It also investigated the moderating impact of firm age and size on the institutional support-firms’ export performance relationships. Design/methodology/approach Data were collected from 705 EIFs in the apparel industry of Bangladesh and analyzed with hierarchical regression. Findings The positive influence of institutional support on exporting firms’ financial performance is stronger for the joint effect of government and nongovernment assistance than the individual impact. Firms’ size positively moderates the impact of individual government and nongovernment assistance, while age positively moderates their resource-bundling effect. Research limitations/implications The findings suggest the necessity of integrating resources from diverse but complementary sources of institutional support for superior export performance. The findings also show the presence of the liability of smallness and liability of newness in the standalone and joint influence of institutional support, respectively. Practical implications Firms need to bundle resources obtained from the government (unrequited) and nongovernment (reciprocal) institutional support to overcome the liability of smallness they might encounter while availing of support from only one source. Originality/value Distinguishing between government and nongovernment institutional support, this paper sheds light on exporting firms’ resource-bundling mechanism for these two sources of support in the backdrop of an emerging economy. It also offers fresh insights into the critical role of the liabilities of newness and smallness in early internationalization, especially with regard to the home-country institutional environment.

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Section: Discussionmentioning

confidence: 75%

Section: Managerial and Policy Implicationsmentioning

confidence: 99%

The standalone and resource-bundling effects of government and nongovernment institutional support on early internationalizing firms’ performance

Faroque

Sultana²,

Ahmed

et al. 2021

CPOIB

View full text Add to dashboard Cite

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“…Therefore, there are more options for achieving export success because firms are competent to obtain knowledge about markets, customers, regulatory agencies, local supplies, etc. [40,41].…”

Section: Hypothesis 1c Export Strategy Positively Influences the Export Success Of Colombian Export Businessesmentioning

confidence: 99%

Success Factors in the Internalisation of Export Companies in Colombia

Escandón-Barbosa¹,

Ochoa²

2021

EoR

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Export success is one of the key aspect of economic growth of a country because it is the principle means of specialising, developing economies of scale, accessing new technologies and attracting foreign investment. For this reason, the significance of this topic has encouraged scientists to investigate the main factors that play a part in the development and application of successful export strategies. This article analyses the export success of Colombian businesses from the behaviour of variables at the business and sectoral levels. The research aims to characterise the relevant conditions affecting the entry of small and medium-sized enterprises (SMEs) into the foreign market, which can be useful for business owners who are in the process of internationalisation; they can also be considered as an instrument for developing policies promoting exports from Colombia. A multilevel model is estimated for a sample of Colombian businesses. We examined international experience, export commitment and export strategy as business factors that positively influence export success, as well as export assistance programmes, networks, tariff legislation, sector size and innovation as sectoral factors. It was concluded that the export destination, the country’s conditions and regulations should be examined before the beginning of the export process. However, Colombian exporters usually choose international destinations without such an analysis. In addition, government support through programmes and tariff legislation leads to greater business dynamism, favours entry into new markets and helps compensate negative results of international destinations.

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“…While government agencies, be they at the supra-national, national, state or local levels, do try to offer support in one form or another to business organizations wishing to explore and possibly enter international markets, such support, if not specifically mandated, is often not effective (Whipple & Frankel, 2001, Appiah et al, 2019. This is particularly true for emerging countries or those still in the early stages of global engagement, including those of most Latin American countries.…”

Section: Vital-a Model For Leveraging Globalization and Entrepreneursmentioning

confidence: 99%

“…This is particularly true for emerging countries or those still in the early stages of global engagement, including those of most Latin American countries. As noted previously, such countries may still be dominated by commodity-based exports where economic development is often tied to the whims of global demand for undifferentiated offerings, primarily raw resources such as unprocessed metals, ores, energy, forest products, and basic agriculture products (Robson & Katsikeas, 2005;Appiah et al, 2019).…”

Section: Vital-a Model For Leveraging Globalization and Entrepreneursmentioning

confidence: 99%

Fostering Global Entrepreneurship and Business Development in Latin America Using Government, Public Universities and Private SME Partnerships: The Vibrant International Trade Alliance (VITAL) Model

Wood¹,

Franzak²,

Pitta³

2019

JEPF

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Economic development requires a complex mix of markets, financial resources, and expertise. Business development in Latin America has followed a tradition of natural resource exploitation, representing a classic example of the “old economy” in today’s global marketplace. However, in order to reap significant economic and social advancements it is imperative that this emerging region embrace a value-added approach requiring increasing knowledge resources. Today, the traditional drives of wealth creation—land, labor and capital—tend to be commodities. Ideas are the now the main currency driving development. One area where ideas flourish is entrepreneurship embedded in small and medium sized enterprises (SMEs). It is here where great promise for introducing innovation and boosting competitiveness lies. This paper, based on these notions, presents a development model that integrate—1) expertise from government agencies charged with enhancing international trade and investment (AITIs), 2) public institutions of higher education (PIHEs) charged with educating the next generation of globally competitive business leaders and 3) small to medium sized enterprises (SMEs) seeking real growth in the globalized business environment leading to a “win-win” situation for all. More specifically, the authors introduce one such model—VITAL (Vibrant International Trade Alliances), and—1) overview the realities of globalization that have created unprecedented SME opportunities for emerging markets, such as those in Latin America, 2) review the importance of entrepreneurship in moving SMEs to the next level of wealth creation, 3) present an example of the model currently utilized in a globally engaged U.S state (Virginia) that has fostered SME and entrepreneurial enterprises in global markets, 4) explains how the model can apply to Latin American nations and also to partnerships between Latin American nations and their U.S. counterparts, and 5) provides managerial, policy and future research implications related to this “boundary spanning” way of thinking.

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The role of government and the international competitiveness of SMEs

Cited by 17 publications

References 59 publications

The standalone and resource-bundling effects of government and nongovernment institutional support on early internationalizing firms’ performance

The standalone and resource-bundling effects of government and nongovernment institutional support on early internationalizing firms’ performance

Success Factors in the Internalisation of Export Companies in Colombia

Fostering Global Entrepreneurship and Business Development in Latin America Using Government, Public Universities and Private SME Partnerships: The Vibrant International Trade Alliance (VITAL) Model

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