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Globalization and Competitive Strategy in Europe's Vulnerable Regions: Firm, Industry and Country Effects in Labour-intensive Industries

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  • Gordon Clark
  • Theo Palaskas
  • Paul Tracey
  • Maria Tsampra

Abstract

Clark G. L., Palaskas T., Tracey P. and Tsampra M. (2004) Globalization and competitive strategy in Europe's vulnerable regions: firm, industry and country effects in labour-intensive industries, Regional Studies38, 1077-1092. European integration has prompted great interest in the adjustment capacities of small and medium enterprises in regions characterized by high levels of unemployment and lower-than-average incomes. At issue, in these circumstances, is the extent to which economic competitiveness can be enhanced by technological change and the resources of European and national governments. Relying upon the results of a detailed survey of small- and medium-sized firm competitive strategies in selected vulnerable regions across Europe, the paper focuses upon firm adjustment strategies in four labour-intensive industries vulnerable to international competition. It draws together the results of these surveys providing econometric and statistical analyses that demonstrate the commonalities and differences apparent in small- and medium- sized firms' responses to changing market competition. Significant insights were gleaned from the pooling of these data. It is shown that there are statistically significant firm, country and industry effects in competitive strategies. Unlike many other related studies, the derived results are quite consistent across Europe. Furthermore, statistically significant relationships are established between changes in market sales, local employment and the adoption of process-specific technologies. The findings provide robust conclusions about the significance of country and industry determinants of European small and medium enterprises' competitive strategies in relation to the expanding European and global economy. In sum, the paper raises doubts about the value of regional development strategies that rely exclusively upon clusters and geographical embeddedness in the face of globalization.Clark G. L., Palaskas T., Tracey P. et Tsampra M. (2004) La mondialisation et la strategie competitive dans les regions defavorisees d'Europe: les retombees sur l'entreprise, l'industrie et le pays des industries a forte main-d'oeuvre, Regional Studies38, 1077-1092. L'integration europeenne a suscite un interet important a la capacite d'ajustement des petites et moyennes entreprises dans les regions qui se caracterisent par des niveaux de chomage eleves et par des niveaux de revenu qui sont inferieurs a la moyenne. Dans de telles circonstances, la question qui se pose est la suivante. Jusqu'a quel point peut-on ameliorer la competitivite economique au moyen de l'evolution technologique et a l'aide des ressources dont disposent l'administration europeenne et nationale? Puisant dans les resultats provenant d'une enquete detaillee de la strategie competitive des PME situees dans certaines regions defavorisees a travers l'Europe, l'article porte sur les strategies d'ajustement dans quatre industries a forte main-d'oeuvre qui sont exposees a la competition internationale. A partir des resultats de ces enquetes, on fournit des analyses econometriques et statistiques, qui demontrent les similarites et les differences qui proviennent des reponses des petites et moyennes entreprises a l'evolution du marche. La mise en commun de ces donnees a facilite l'obtention d'importants apercus. On montre que les strategies competitives ont des retombees statistiquement importantes sur l'entreprise, le pays et l'industrie. A la difference d'autres etudes liees, les resultats se sont averes relativement homogenes a travers l'Europe. D'autres rapports statistiquement plus importants ont ete etablis entre la variation des ventes, l'emploi local et l'adoption des technologies specifiques aux procedes. Ces resultats fournissent de solides conclusions quant a l'importance des determinants nationaux et industriels des strategies competitives des petites et moyennes entreprises europeennes par rapport au developpement des economies europeenne et mondiale. En somme, on doute de la valeur des politiques d'amenagement du territoire qui dependent exclusivement des regroupements et de l'ancrage geographique face a la mondialisation.Clark G. L., Palaskas T., Tracey P. und Tsampra M. (2004) Globalisierung und Wettbewerbsstrategie in wirtschaftlich wehrlosen Regionen Europas: Firmen-, Industrie- und Landereffekte in arbeitsintensiven Industrien, Regional Studies38, 1077-1092. Die europaische Integration hat grosses Interesse an den Anpassungsfahigkeiten kleiner und mittelgrosser Unternehmen (small and medium enterprises - SMSs) in Regionen geweckt, die durch hohe Erwerbslosigkeit und unterdurchschnittlich niedrige Einkommen gekennzeichnet sind. Unter diesen Umstanden erhebt sich die Frage, in welchem Ausmass die wirtschaftliche Konkurrenzfahigkeit durch technologischen Wandel und die Mittel der europaischen und einzelner Landerregierungen aufgebessert werden kann. Unter Verlass auf die Ergebnisse einer ins Einzelne gehenden Untersuchung von Wettbewerbsstrategien kleiner und mittelgrosser Unternehmen in ausgewahlten, wirtschaftlich schwachen Regionen in ganz Europa konzentrieren die Autoren sich auf Anpassungsstrategien von Firmen in vier arbeitsintensiven Industrien, die als wehrlos gegenuber der internationalen Konkurrenz angesehen werden. Die Autoren betrachten die Ergebnisse dieser Untersuchungen im Zusammenhang, wobei okonomische und statistische Analysen Gemeinsamkeiten und Unterschiede aufzeigen, die in Antworten kleiner und mittlerer Firmen auf die sich wandelnde Marktkonkurrenz erscheinen. Die Kombination dieser Daten gewahrt wesentliche Einsichten. Es wird aufgezeigt, dass es statistisch signifikante Firmen-, Lander- und Industrieeffekte in Wettbewerbsstrategien gibt. Im Unterschied zu vielen anderen, verwandten Untersuchungen stimmten die gewonnenen Ergebnisse in ganz Europa uberein. Daruberhinaus wurden statistisch signifikante Beziehungen zwischen Veranderungen bei Marktsabsatz, Erwerbstatigkeit am Orte und der Einfuhrung verfahrensspezifischer Techniken festgestellt. Diese Befunde vermitteln uberzeugende Schlusse auf die Bedeutung der Lander- und Industriedeterminanten der Wettbewerbsstrategien der europaischen kleinen und mittelgrossen Unternehmen im Verhaltnis zu der sich ausweitenden europaischen und globalen Wirtschaft. Zusammenfassend werden Zweifel am Werte der regionalen Entwicklungsstrategien laut, die sich angesichts der Globalisierung ausschliesslich auf Cluster und geographisches Eingebettetsein verlassen.Clark G. L., Palaskas T., Tracey P. y Tsampra M. (2004) Globalizacion y estrategia competitiva en las regiones europeas mas vulnerables: efectos empresariales, industriales y del pais en la industrias de mano de obra intensiva, Regional Studies38, 1077-1092. La integracion europea ha despertado un gran interes en las capacidades de ajuste de las pequenas y medianas empresas en regiones caracterizadas por altos niveles de desempleo e ingresos que estan por debajo de la media europea. En tales circunstancias, una de las cuestiones es el grado hasta el cual se puede mejorar la competitividad economica por medio del cambio tecnologico y de los recursos de los gobiernos tanto europeos como nacionales. Contando con los resultados obtenidos de una encuesta detallada de las estrategias competitivas de las PIMEs en una serie de regiones vulnerables seleccionadas a traves de Europa, nos centramos en las estragias de ajuste de las empresas en tres tipos de industrias de mano de obra intensiva vulnerables a la competicion internacional. Reunimos los resultados de estas escuestas y ofrecemos analisis econometricos y estadisticos que demuestran las similitudes y diferencias que son aparentes en las respuestas de las pequenas y medianas empresas con respecto a la cambiante competencia de mercado. Un numero de percepciones nuevas se ha derivado de estos datos. Mostramos que existen efectos empresariales, industriales y del pais significativos en las estrategias competitivas. A diferencia de muchos otros estudios similares, los resultados obtenidos eran bastante consistentes a traves de Europa. Ademas, se establecieron otras relaciones estadisticas significativas entre los cambios en las ventas al mercado, el empleo local y la adopcion de tecnologias especificas de proceso. Estos resultados ofrecen conclusiones robustas en lo que respecta a la significancia de los determinantes industriales y del pais de las estrategias competitivas de las PIMEs europeas en relacion a la economia global y europea en expansion. En resumen, planteamos una serie de dudas acerca del valor de las estrategias de desarrollo regional que dependen exclusivamente de clusters y de una incrustacion geografica ante la globalizacion.

Suggested Citation

  • Gordon Clark & Theo Palaskas & Paul Tracey & Maria Tsampra, 2004. "Globalization and Competitive Strategy in Europe's Vulnerable Regions: Firm, Industry and Country Effects in Labour-intensive Industries," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 1085-1100.
  • Handle: RePEc:taf:regstd:v:38:y:2004:i:9:p:1085-1100
    DOI: 10.1080/0034340042000292656
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    Citations

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    Cited by:

    1. Ali Fikirkoca & Bahar Çelikkol Erbas & Arcan Tuzcu, 2011. "Understanding Regional Innovation Systems in LMT Industries: The Case of Turkey as an Emerging Market Economy," Chapters, in: Paul L. Robertson & David Jacobson (ed.), Knowledge Transfer and Technology Diffusion, chapter 12, Edward Elgar Publishing.
    2. Palaskas, Theodosios & Tsampra, Maria, 2003. "Η Επιχειρηματική Ανταγωνιστικότητα Στην Οικονομία Της Γνώσης: Προσδιοριστικοί Παράγοντες Της Καινοτομικότητας Των Μικρομεσαίων Επιχειρήσεων [Entrepreneurial competitiveness in the knowledge economy," MPRA Paper 33561, University Library of Munich, Germany.
    3. Łuczak, Aleksandra & Kozera, Agnieszka, 2021. "A model to assess the development priorities of local administrations through the hierarchy of strategic factors," Journal of Policy Modeling, Elsevier, vol. 43(2), pages 474-492.
    4. Gordon L Clark & Theo Palaskas & Paul Tracey & Maria Tsampra, 2004. "Market Revenue and the Scope and Scale of SME Networks in Europe's Vulnerable Regions," Environment and Planning A, , vol. 36(7), pages 1305-1326, July.
    5. Ismael Sanz & Ferran Martinez Coma, 2007. "Skill and support to globalization in the EU," Applied Economics Letters, Taylor & Francis Journals, vol. 15(4), pages 271-275.
    6. Greta Falavigna & Roberto Ippoliti, 2018. "Industrial spatial dynamics, financial health and bankruptcy: evidence from Italian manufacturing industry," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(4), pages 533-554, December.
    7. Barrios, Salvador & Mas, Matilde & Navajas, Elena & Quesada, Javier, 2008. "Mapping the ICT in EU Regions: Location, Employment, Factors of Attractiveness and Economic Impact," MPRA Paper 6998, University Library of Munich, Germany.
    8. Ugo Fratesi, 2012. "A globalization-based taxonomy of European regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(1), pages 1-23, March.
    9. Susan Christopherson & Gordon L. Clark & John Whiteman, 2015. "Introduction: the Euro crisis and the future of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 843-853.
    10. Gordon L. Clark, 2015. "The geography of the European Central Bank: form, functions and legitimacy," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 855-881.
    11. Neil Lyee & Marc Cowling, 2015. "Do Rural Firms Perceive Different Problems? Geography, Sorting, and Barriers to Growth in UK SMEs," Environment and Planning C, , vol. 33(1), pages 25-42, February.

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