We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Firm Characteristic Determinants of SME Participation in Production Networks

Firm Characteristic Determinants of SME Participation in Production Networks
Date:
2 October 2010
Authors:
Charles Harvie, Dionisius Narjoko, Sothea Oum
Tags:
SMEs, Innovation and Technology

Print Article:

 

This paper provides an empirical analysis of small and medium enterprise (SME) participation in production networks. It gauges firm characteristic determinants of SME participation in production networks. The empirical investigation utilises results obtained from an ERIA Survey on SME Participation in Production Networks, conducted over a three month period at the end 2009 in most ASEAN countries (i.e., Thailand, Indonesia, Malaysia, Philippines, Viet Nam, Cambodia, and Lao PDR) and China .

The results suggest that productivity, foreign ownership, financial characteristics, innovation efforts, and managerial/entrepreneurial attitudes are the important firm characteristics that determine SME participation in production networks. The paper extends the analysis to identify the determinants that allow SMEs to move from low to high quality or value adding participation in production networks. The results suggest that size, productivity, foreign ownership, and, to some extent, innovation efforts and managerial attitudes, are the important firm characteristics needed by SMEs to upgrade their positions in production networks. The finding suggests that SMEs really exploit competitiveness from economies of scale only when they are able to engage in production networks.

ERIA-DP-2010-11.pdf

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

Online Public Service, Asia, Digital Economy
4 March 2024
Editor(s)/Author(s): Fukunari Kimura, Lurong Chen
(still under ISBN process and under review Chief Economist) The implications of digital[...]
trade, semiconductor trade, trade network, regional trade, COVID-19, ASEAN
23 February 2024
Editor(s)/Author(s): K.P. Prabheesh, C.T. Vidya
This paper examines the global semiconductor industry trade network[...]