The Internationalisation (Transnationalisation) of the SME Sector as a Factor of Competitiveness

As part of a wider research program we analysed the theoretical frameworks and the developments of the process of internationalisation (transnationalisation) of small- and medium-sized enterprises in the European Union and specifically in Hungary and Spain. We tried to highlight the barriers and trends of internationalisation. We consider internationalisation of the SME sector as a crucial factor in increasing competitiveness and as an important condition for sustainable and dynamic growth and improving employment (Europe 2020). We made policy recommendation mostly for the government in terms of how to promote the process. We carried out analyses of documents and databases, interviews, and online data collection

The competitive repositioning of automotive firms in Turin: innovation, internationalisation and the role of ICT

Following the increasing competitive pressure and the emergence of new industrial poles within the auto industry, Italian firms have been the protagonists of an intense reorganisation, which is still ongoing. This case-study involves 13 supplier firms, operating in the automotive industry, localised in Turin, that have adopted a series of strategies aimed at improving their international competitiveness. The empirical findings show that there is a particularly strong innovative drive for the interviewed firms to position themselves in activities with greater added value and to undertake internationalisation strategies, from the 'lighter' to the more 'complex' forms, coupled with a use of information and communication technologies epresents a case of excellence.Innovation, Internationalisation, ICT, Automotive Industry

The determinants of eco innovation in green supply chains: evidence form an Italian sectoral study

In the last years attention has increased to the eco-innovation topic. Empirical studies have demonstrated that innovating firms grow faster, have higher productivity and are more profitable than their less innovative counterparts (Geroski et al., 1993; Roper and Hewitt-Dundas, 1998). Drawing upon a database of over 300 enterprises operating within eight defined green production chains working in the Province of Milan, this paper assesses the determinants and drawbacks of innovation. In particular, using an econometrical approach, we tested the following propositions: a) small dimension of enterprises is an obstacle to their innovation power; b) The adoption of an international strategy of production and commercialisation is an opportunity and a stimulus to eco-innovation; c) cooperation with research partners can help SMEs to overcome difficulties and help them to develop and offer eco-sustainable products and services. The econometric analysis shows a positive impact of dimension and level of internationalization on innovation capabilities. In addition, cooperation with research centers and access to capital market are positively related with effective innovations.SME, eco-innovation, supply chain, green economy.

Drivers and Impacts in the Globalization of Corporate R&D: An Introduction Based on the European Experience

The globalization of R&D activities has continued its growth path as companies are increasingly trying to capture knowledge and market opportunities internationally. The rapid evolution of national economies and the ways to conduct knowledge-intensive businesses has led researchers and analysts to pursue a deeper understanding of the globalization of corporate R&D and the related driving factors and impacts. This introduction to the Special Section: "Globalization and Corporate R&D" forthcoming in Industrial and Corporate Change (vol. 20 (2), April 2011) provides an update of trends in the globalization of corporate R&D. It reviews the literature on the main drivers and impacts of the process under investigation, introduces the papers for this Special Section, and offers some concluding remarks.outsourcing, R&D, globalization, FDI

The Industrialisation Process of Asian Small and Medium Firms

National governments throughout the Asia-Pacific Region have identified small and medium enterprises as an important source of economic growth and employment. In the past, SME business strategies have focused on production, relying on their subcontracting and sales contacts with large firms for technological innovation and marketing and on abundant domestic labour forces for comparative advantage. Recently, structural problems in the region arising from the Japanese recession, currency appreciation and rising labour costs have upset these relationships forcing SMEs to move offshore (DFI) to restore cost competitiveness and to upgrade their internal technological and organisational capacities to international standards in order to compete for contracts within more open, international markets. This paper analyses this process of change, analysing the development of SMEs within four Asian countries using a six stage evolutionary model. The majority of SMEs in these countries are still in the earlier second (dependency) or third (internalisation) stages. The more advanced SMEs have moved into the fourth (externalisation) stage, where firms develop independent technology and marketing capacities. To the extent that localisation (stage five) had occurred, it involved local embedded relationships which had limited scope for further internationalisation. Little evidence of regional integration or networking among SMEs was found.Asia-Pacific, industrialisation process, Asian small and medium enterprises

The Internationalization of Chinese Companies: Are the Traditional Resource Based Theories Valid Yet?

Over the past two decades, Chinese multinationals have made a huge amount of foreign direct investment abroad, making China the largest outward investor among top ten emerging countries. Nevertheless only in the last years some authors have begun to study this phenomenon.. According to these considerations, aim of this paper is to analyse the recent phenomenon of the internationalisation of Chinese firms in order to verify if it offers an opportunity to extend the traditional internationalisation theories based on the experience of developed countries’ firms. Combining the results obtained describing the international process of two large Chinese companies with the assumptions of the Resource based View approach and the Uppsala model, the paper shows that traditional proposed internationalisation theories cannot explain the internationalisation of Chinese firms. The international development of Chinese firms cannot be described as a gradual process direct toward near markets and aimed to exploit existing resources and to accumulate experiential knowledge. Chinese firms are forced to go abroad in order to gain the immaterial resources necessary to compete in the home and in the foreign market. The analysis of the Chinese firms’ internationalisation process seems to be an opportunity for extending the traditional internationalisation theories.internationalization; resource based view; Uppsala model; Chinese firms.

Information technology and electronics firms from Taiwan Province of China in the United Kingdom: Emerging trends and implications

This article examines the modal choices, key activities and motivations of non-dominant information technology and electronics firms from Taiwan Province of China in the United Kingdom, against the backdrop of recent trends in the global economy. Its main findings include the limited prospects of the sample firms' evolution into manufacturing activity in the United Kingdom and the increasing importance of inter-firm logistics collaboration. Among the key policy implications discussed in the article are: the need for appropriate measures to support the United Kingdom's positioning as a gateway to, and a preferred base for intelligence gathering on, other European markets; the need for "high-wage" advanced economies to capitalize upon their not-easily-replicable location-specific advantages (e.g. reputable research-anddevelopment clusters; substantial domestic market) in targeting foreign direct investment in the research and development, design and sales-related areas; and the importance of a more balanced investment attraction strategy that actively targets major global players (and their capacity to attract secondary inward investment) without compromising support for indigenous growth companies. Future research should pay greater attention to the intra-regional, rather than intra-country, context of firms' evolution in international markets

Functioning of the Clothing Networks on the Global Markets - Comparative Analysis

In the clothing sector the partnership networks are being created between the economic subject, because such actions are aimed at minimising the risk, as well as to reducing the production and distribution costs. The most often encountered networks in the textile-clothing branch are the franchising networks. The present article concentrates on the competitiveness aspect of the global clothing networks. A comparative analysis of the action of the commercial clothing networks was made, in order to show some features of its operation and proceeding, while focusing on the specified elements of the marketing-mix strategy. The obtained results allowed to show the differences and similarities in the used marketing strategies.W niniejszym artykule skoncentrowano się na aspekcie konkurencyjności globalnych sieci odzieżowych. Dokonano analizy porównawczej działania odzieżowych sieci handlowych, w celu ukazania pewnych cech jego działalności i postępowania skupiając się na określonych elementach strategii marketing-mix. Uzyskane wyniki pozwoliły na pokazanie róznic i podobieństw w stosowanych strategiach marketingowych

Entrepreneurship in the Netherlands; SMEs and International co-operation

This is the seventh edition of the series 'Entrepreneurship in the Netherlands'. The series started in 1997 and is a joint publication of the Netherlands Ministry of Economic Affairs and EIM Business & Policy Research. This edition deals with international cooperation of SMEs. The first Chapter by EIM describes characteristics of international cooperation: why, how and with what type of effects? Thereafter staff members of the Ministry sketch the aims and the ambition of policy instruments in the field. As practical illustrations three enterprises haven been portrayed. In addition to authors from EIM and the Ministry of Economic Affairs, three staff members working on internationalisation and entrepreneurship at the Nottingham University Business school in UK, reflect on the issues covered in this publication by presenting and commenting on ten myths that surround the internationalisation of smaller private firms.

The links between international production and innovation: a double network approach

This paper examines the changing role of multinationals in the global generation, adoption and transfer of innovation. It is argued that the combination of traditional asset exploiting objectives with increasing asset seeking activities entails a transition of multinationals towards a double network structure. On the one hand multinationals are more and more characterised by the interconnection of a large number of internal units that are deeply involved in the company’s use, generation and absorption of knowledge. On the other hand, units belonging to the internal network tend to develop external networks with other firms and institutions that are located outside the boundaries of the multinational firm, in order to increase the potential for use, generation and absorption of knowledge. Extending the analysis to a more general level, it is suggested that each of the external actors with which multinationals are interconnected across countries are themselves involved in extensive webs of relationships with other firms and institutions. By becoming embedded in different local contexts, multinational firms act as bridging institutions connecting a number of geographically dispersed economic and innovation systems. As a result, they are conditioned by, and contribute to, the evolution of different contexts in which they operate.innovation, multinational firms, networks.