[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/phd/dpaper/dp_2018-07.html
   My bibliography  Save this paper

Obstacles and Enablers of Internationalization of Philippine SMEs Through Participation in Global Value Chains

Author

Listed:
  • Canare, Tristan A.
  • Francisco, Jamil Paolo S.
  • Labios, Jean Rebecca
Abstract
Small and medium-sized enterprises (SMEs) are important in many developing countries, including the Philippines. However, this sector remains much less productive than their large counterparts. One factor that can help SMEs achieve higher productivity is to connect them to global value chains (GVCs) through internationalization. However, SMEs are faced with a host of obstacles in trying to participate in GVCs. This paper attempts to determine the challenges and enablers of connecting small and medium businesses to GVCs. It uses data from a survey of Metro Manila SMEs and a set of key informant interviews of SME owners and of government officials tasked to assist SMEs. Findings show that Philippine SMEs are weakly linked to GVCs. The challenges and enablers can be grouped into five themes, namely: (1) competition in ASEAN and East Asia; 2) international standards, regulatory requirements, and local institutions; (3) role of the government; (4) international market demand and inputs supply; and (5) entrepreneurial mindset. Based on the results, some policy implications were formulated.

Suggested Citation

  • Canare, Tristan A. & Francisco, Jamil Paolo S. & Labios, Jean Rebecca, 2018. "Obstacles and Enablers of Internationalization of Philippine SMEs Through Participation in Global Value Chains," Discussion Papers DP 2018-07, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2018-07
    as

    Download full text from publisher

    File URL: https://www.pids.gov.ph/publication/discussion-papers/obstacles-and-enablers-of-internationalization-of-philippine-smes-through-participation-in-global-value-chains
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    2. Meghan Millea, 2002. "Disentangling the wage-productivity relationship: Evidence from select OECD member countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 8(4), pages 314-323, November.
    3. Ganeshan Wignaraja, 2012. "Engaging Small and Medium Enterprises in Production Networks : Firm-level Analysis of Five ASEAN Economies," Trade Working Papers 23316, East Asian Bureau of Economic Research.
    4. Martina Musteen & Deepak K. Datta & Marcus M. Butts, 2014. "Do International Networks and Foreign Market Knowledge Facilitate SME Internationalization? Evidence from the Czech Republic," Entrepreneurship Theory and Practice, , vol. 38(4), pages 749-774, July.
    5. Robson, Paul J A & Bennett, Robert J, 2000. "SME Growth: The Relationship with Business Advice and External Collaboration," Small Business Economics, Springer, vol. 15(3), pages 193-208.
    6. N. Berger, Allen & F. Udell, Gregory, 1998. "The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle," Journal of Banking & Finance, Elsevier, vol. 22(6-8), pages 613-673, August.
    7. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
    8. Lizbeth Navas-Alemán & Carlo Pietrobelli & Marco Kamiya, 2012. "Inter-Firm Linkages and Finance in Value Chains," IDB Publications (Working Papers) 76418, Inter-American Development Bank.
    9. repec:idb:brikps:publication-detail,7101.html?id=57626 is not listed on IDEAS
    10. Fama, Eugene F. & Jensen, Michael C., 1985. "Organizational forms and investment decisions," Journal of Financial Economics, Elsevier, vol. 14(1), pages 101-119, March.
    11. Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB), 2015. "Integrating SMEs into Global Value Chains: Challenges and Policy Actions in Asia," ADB Reports RPT157679-2, Asian Development Bank (ADB).
    12. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-559, November.
    13. Charles HARVIE & Narjoko Dionisius & Sothea OUM, 2013. "Small and Medium Enterprises' Access to Finance: Evidence from Selected Asian Economies," Working Papers DP-2013-23, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. Asian Development Bank Institute, 2015. "Integrating SMEs into Global Value Chains: Challenges and Policy Actions in Asia," Working Papers id:7658, eSocialSciences.
    15. Beck, Thorsten & Demirguc-Kunt, Asli, 2006. "Small and medium-size enterprises: Access to finance as a growth constraint," Journal of Banking & Finance, Elsevier, vol. 30(11), pages 2931-2943, November.
    16. Yoshino, Naoyuki & Taghizadeh-Hesary, Farhad, 2016. "Major Challenges Facing Small and Medium-sized Enterprises in Asia and Solutions for Mitigating Them," ADBI Working Papers 564, Asian Development Bank Institute.
    17. Thong, J. Y. L. & Yap, C. S., 1995. "CEO characteristics, organizational characteristics and information technology adoption in small businesses," Omega, Elsevier, vol. 23(4), pages 429-442, August.
    18. Steen Thomsen & Torben Pedersen, 2000. "Ownership structure and economic performance in the largest european companies," Strategic Management Journal, Wiley Blackwell, vol. 21(6), pages 689-705, June.
    19. Navas-Alemán, Lizbeth & Pietrobelli, Carlo & Kamiya, Marco, 2012. "Inter-Firm Linkages and Finance in Value Chains," IDB Publications (Working Papers) 4067, Inter-American Development Bank.
    20. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    21. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    22. Bilitis Schoonjans & Philippe Cauwenberge & Heidi Bauwhede, 2013. "Formal business networking and SME growth," Small Business Economics, Springer, vol. 41(1), pages 169-181, June.
    23. Johan Wiklund & Holger Patzelt & Dean Shepherd, 2009. "Building an integrative model of small business growth," Small Business Economics, Springer, vol. 32(4), pages 351-374, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tristan Canare, 2018. "The Effect of Ease of Doing Business on Firm Creation," Annals of Economics and Finance, Society for AEF, vol. 19(2), pages 555-584, November.
    2. Nam Hoang Vu & Tuan Anh Bui & Tram Bao Hoang & Hanh My Pham, 2022. "Information technology adoption and integration into global value chains: Evidence from small‐ and medium‐sized enterprises in Vietnam," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(2), pages 259-286, March.
    3. Anoosheh Rostamkalaei & Mark Freel, 2016. "The cost of growth: small firms and the pricing of bank loans," Small Business Economics, Springer, vol. 46(2), pages 255-272, February.
    4. Charles HARVIE & Narjoko Dionisius & Sothea OUM, 2013. "Small and Medium Enterprises' Access to Finance: Evidence from Selected Asian Economies," Working Papers DP-2013-23, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Aleksandar M. Damnjanovic & Goran Dzafic & Sandra Nesic & Dragan Milosevic & Gordana Mrdak & Sinisa M. Arsic, 2022. "Strategic Management of External Disruptions on Realization of Business Plans—Case of Serbian Manufacturing Companies," Sustainability, MDPI, vol. 14(18), pages 1-22, September.
    6. World Bank, 2010. "Scaling-Up SME Access to Financial Services," World Bank Publications - Reports 12515, The World Bank Group.
    7. Slavec, Alenka & Prodan, Igor, 2012. "The influence of entrepreneur’s characteristics on small manufacturing firm debt financing," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(1), pages 104-130.
    8. Corti Paul Lakuma & Robert Marty & Fred Muhumuza, 2019. "Financial inclusion and micro, small, and medium enterprises (MSMEs) growth in Uganda," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-20, December.
    9. Iris Kruja, 2014. "Impact of Firm Specific Charachteristics in the Access to External Finances of SMEs," Proceedings of FIKUSZ '14, in: Pál Michelberger (ed.),Proceedings of FIKUSZ '14, pages 135-160, Óbuda University, Keleti Faculty of Business and Management.
    10. Gerrit de Wit & Haibo Zhou, 2009. "Determinants and dimensions of firm growth," Scales Research Reports H200903, EIM Business and Policy Research.
    11. Lashitew, Addisu A., 2017. "The Uneven Effect of Financial Constraints: Size, Public Ownership, and Firm Investment in Ethiopia," World Development, Elsevier, vol. 97(C), pages 178-198.
    12. Osei-Tutu, Francis & Weill, Laurent, 2023. "Individualism reduces borrower discouragement," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 370-385.
    13. Oznur Ozdamar & Eleftherios Giovanis & Sahizer Samuk, 2020. "State business relations and the dynamics of job flows in Egypt and Turkey," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 519-558, December.
    14. Florentina Melnic & Daniel Juravle, 2020. "Governance And Access To Finance," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 25, pages 151-168, June.
    15. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    16. Ana Venâncio & João Jorge, 2022. "The role of accelerator programmes on the capital structure of start-ups," Small Business Economics, Springer, vol. 59(3), pages 1143-1167, October.
    17. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    18. Saibal Ghosh, 2022. "Firm Performance and Productivity: Is Labour an Obstacle?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(3), pages 709-728, September.
    19. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    20. Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2013. "Like milk or wine: Does firm performance improve with age?," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 173-189.

    More about this item

    Keywords

    competition; Philippines; global value chains; SMEs; small and medium enterprises; Philippine SMEs; internationalization; exports;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2018-07. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aniceto Orbeta (email available below). General contact details of provider: https://edirc.repec.org/data/pidgvph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.