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The Small and Medium Sized Exporters' Problems: An Empirical Analysis of Canadian Manufacturers

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  • Sharmistha Bagchi-Sen
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    Abstract

    BAGCHI-SEN S. (1999) The small and medium sized exporters' problems: an empirical analysis of Canadian manufacturers, Reg. Studies 33 , 231-245. This paper examines the competitive characteristics of small and medium sized manufacturers from small towns and cities in southern Ontario. The paper is situated within the context of two bodies of theoretical literature. The first is the literature on the dilemmas faced by small and medium sized enterprises (SMEs) in small open economies, especially in an era of trade liberalization. The second body of literature involves the role and nature of SMEs in employment growth, trade and innovation. A particular focus of this study is to understand the relationship between export orientation and innovation performance. The study is based on a survey of SMEs in the Niagara region, a mature industrial region in the periphery of Toronto. Results confirm that successful exporters from these small urban places are also actively involved in both product and process innovation. As a result, competitive advantage is based on both price and non-price based factors. Competitive problems include issues related to scale economies and the rising import competition from US producers in the post FTA and NAFTA period. Successful entrepreneurs from this region are not only pushing forward with innovation, but strive to become leaders within their market segment. Future studies will focus upon: cross-border comparisons of SMEs with regards to the relationship between innovation and export performance; competitive strategies and technical problems; and innovation and export market development efforts in other countries of the Asia-Pacific region. BAGCHI-SEN S. (1999) Les problemes auxquels font face les PMI a vocation exportatrice: une analyse empirique des industriels au Canada, Reg. Studies 33 , 231-245. Cet article cherche a examiner les traits concurrentiels des petites et moyennes entreprises industrielles situees aux villes de l'est de l'Ontario. L'article embrasse deux corpus de documentation theorique. Primo, la documentation qui traite des problemes auxquels font face les PMI dans les petites economies ouvertes, surtout a l'heure de la liberalisation des echanges. Secundo, la documentation qui traite du role et des caracteristiques des PMI quant a la creation de l'emploi, le commerce et l'innovation. Cette etude porte notamment sur le rapport entre la vocation exportatrice et la capacite d'innover. L'etude provient d'une enquete des PMI situees dans la region de Niagara, une region industrielle developpee a la peripherie de Toronto. Les resultats confirment que les exportateurs reussis qui proviennent de ces petites zones urbaines s'engagent serieusement aussi dans l'innovation des produits et des procedes. Par la suite, l'avantage competitif s'explique et par des facteurs de prix et par d'autres facteurs. Les problemes de competitivite embrassent des questions qui se rapportent aux economies d'echelle et a la concurrence de plus en plus vive des industriels aux EU au lendemain de la FTA et de la NAFTA. Les entrepreneurs reussis de cette region n'ont pas seulement le merite de faire valoir l'innovation, mais aussi s'efforcent de devenir leader au sein de leur secteur. Des etudes futures porteront sur des comparaisons transfrontalieres des PMI quant au rapport entre l'innovation et l'exportation; les strategies competitives et les problemes techniques; l'innovation et la promotion a l'exportation dans d'autres pays de la zone asiatique, pacifique. BAGCHI-SEN S. (1999) Probleme kleiner und mittelgrosser Exportfirmen: eine empirische Analyse kanadischer Hersteller, Reg. Studies 33 , 231-245. Dieser Aufsatz untersucht die Wettbewerbseigenschaften kleiner und mittelgrosser Hersteller in Klein- und Grossstadten von Sudontario. Der Aufsatz ist im Zusammenhang zweier Gebiete der theoretischen Literatur angesiedelt: das einebeschaftigt sich mit den Dilemmas, denen kleine und mittelgrosse Unternehmen (small and medium sized enterprises=SME) sich in kleinen, offenen Wirtschaftssystem ausgesetzt sehen, besonders in einem Zeitalter der Handelsliberalisierung, wahrend es sich bei dem anderen um Rolle und Natur kleiner und mittlerer Firmen bei Beschaftigungsanstieg, Handel und Innovation dreht. Diese Studie konzentriert sich vorallem auf das Verhaltnis zwischen der Ausrichtung auf Export und Durchfuhrung von Innovationen. Sie beruht auf der Untersuchung kleiner und mittlerer Firmen im Niagaragebiet, einem voll entwickelten Industriegebiet am Rande Torontos. Die Ergebnisse bestatigen, dass erfolgreiche Exportfirmen in diesen Kleinstadten auch aktiv in Produkt- und Verarbeitungsinnovation engagiert sind. Daraus ergibt sich, dass Wettbewerbsvorteile sowohl auf Preisfaktoren beruhen wie auch auf anderen, ausserhalb des Preises liegenden. Wettbewerbsprobleme entstehen durch Fragen, die mit der Wirtschaftlichkeit des Betriebsumfangs zu tun haben, mit dem sich verscharfenden Importwettbewerb von Herstellern in den USA im Gefolge des FTA and NAFTA Zeitalters. Erfolgreiche Unternehmer dieses drangen nicht nur auf Innovation, sondern bemuhen sich daruberhinaus, auf ihrem Marktsektor fuhrend zu werden. Zukunftige Untersuchungen werden sich auf grenzuberschreitende Vergleiche kleiner und mittelgrosser Firmen im Hinblick auf das Verhaltnis von Innovation und Expertleistung; auf Wettbewerbsstrategien und technische Probleme; auf Innovation und Anstrengungen bei der Entwicklung von Exportmarkten in anderen Landern der asiatischen-pazifischen Region konzentrieren.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 33 (1999)
    Issue (Month): 3 ()
    Pages: 231-245

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    Handle: RePEc:taf:regstd:v:33:y:1999:i:3:p:231-245

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    Related research

    Keywords: Canadian Exporters; Small And Medium Sized Manufacturers; Export Barriers; Product Innovatio; Competitive Strategies;

    References

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    1. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
    2. Robert G Cooper & Elko J Kleinschmidt, 1985. "The Impact of Export Strategy on Export Sales Performance," Journal of International Business Studies, Palgrave Macmillan, vol. 16(1), pages 37-55, March.
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    4. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    5. Samiee, Saeed & Walters, Peter G. P., 1990. "Influence of firm size on export planning and performance," Journal of Business Research, Elsevier, vol. 20(3), pages 235-248, May.
    6. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-67, November.
    7. F H Rolf Seringhaus & Guenther Botschen, 1991. "Cross-National Comparison of Export Promotion Services: The Views of Canadian and Austrian Companies," Journal of International Business Studies, Palgrave Macmillan, vol. 22(1), pages 115-133, March.
    8. Harrison, Richard T & Hart, Mark, 1987. "Innovation and market development: the experience of small firms in a peripheral economy," Omega, Elsevier, vol. 15(6), pages 445-454.
    9. Alan Baursmichmidt & Danial Sullivan & Kate Gillespie, 1985. "Common Factors Underlying Barriers to Export: Studies in the U.S. Paper Industry," Journal of International Business Studies, Palgrave Macmillan, vol. 16(3), pages 111-123, September.
    10. Erwin Dichtl & Hans-Georg Koeglmayr & Stefan Mueller, 1990. "International Orientation as a Precondition for Export Success," Journal of International Business Studies, Palgrave Macmillan, vol. 21(1), pages 23-40, March.
    11. W J Coffey & M Pol�se, 1987. "Trade and location of producer services: a Canadian perspective," Environment and Planning A, Pion Ltd, London, vol. 19(5), pages 597-611, May.
    12. Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
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    Cited by:
    1. Wilkinson, Timothy & Brouthers, Lance Eliot, 2006. "Trade promotion and SME export performance," International Business Review, Elsevier, vol. 15(3), pages 233-252, June.

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