IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v34y2022i2p259-286.html
   My bibliography  Save this article

Information technology adoption and integration into global value chains: Evidence from small‐ and medium‐sized enterprises in Vietnam

Author

Listed:
  • Nam Hoang Vu
  • Tuan Anh Bui
  • Tram Bao Hoang
  • Hanh My Pham

Abstract

While it is well known that the adoption of information technology facilitates the integration of enterprises into global value chains (GVCs), it is unclear how this relationship changes in different business environments. This study reveals that while the adoption of information technology facilitates micro‐, small‐, or medium‐sized enterprises which are located in an improved‐quality business environment to participate in GVCs, it does not help the micro‐sized enterprises located in a low‐quality business environment to become integrated into GVCs. Therefore, information technology policies should be complemented by policies which improve the business environment to promote smaller enterprises to be integrated into GVCs.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:jintdv:v:34:y:2022:i:2:p:259-286
    DOI: 10.1002/jid.3591
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/jid.3591
    Download Restriction: no
    File URL: https://libkey.io/10.1002/jid.3591?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ganeshan Wignaraja, 2015. "Factors Affecting Entry into Supply Chain Trade: An Analysis of Firms in Southeast Asia," Asia and the Pacific Policy Studies 201546, Crawford School of Public Policy, The Australian National University.
    2. Paunov, Caroline & Rollo, Valentina, 2016. "Has the Internet Fostered Inclusive Innovation in the Developing World?," World Development, Elsevier, vol. 78(C), pages 587-609.
    3. Hala El-Said & Mahmoud Al-Said & Chahir Zaki, 2015. "Trade and access to finance of SMEs: is there a nexus?," Applied Economics, Taylor & Francis Journals, vol. 47(39), pages 4184-4199, August.
    4. Ali Hortaçsu & F. Asís Martínez-Jerez & Jason Douglas, 2009. "The Geography of Trade in Online Transactions: Evidence from eBay and MercadoLibre," American Economic Journal: Microeconomics, American Economic Association, vol. 1(1), pages 53-74, February.
    5. 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.
    6. Miriam Bruhn & David McKenzie, 2014. "Entry Regulation and the Formalization of Microenterprises in Developing Countries," The World Bank Research Observer, World Bank, vol. 29(2), pages 186-201.
    7. Javier López González & Laura Munro & Julien Gourdon & Emanuele Mazzini & Andrea Andrenelli, 2019. "Participation and benefits of SMEs in GVCs in Southeast Asia," OECD Trade Policy Papers 231, OECD Publishing.
    8. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    9. Andreas Lendle & Marcelo Olarreaga & Simon Schropp & Pierre‐Louis Vézina, 2016. "There Goes Gravity: eBay and the Death of Distance," Economic Journal, Royal Economic Society, vol. 126(591), pages 406-441, March.
    10. Ahn, JaeBin & Khandelwal, Amit K. & Wei, Shang-Jin, 2011. "The role of intermediaries in facilitating trade," Journal of International Economics, Elsevier, vol. 84(1), pages 73-85, May.
    11. Melanie Beresford & Dang Phong, 2000. "Economic Transition in Vietnam," Books, Edward Elgar Publishing, number 2291.
    12. Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(2), pages 222-240, April.
    13. Vu Hoang Nam & Hoang Bao Tram, 2021. "Business environment and innovation persistence: the case of small- and medium-sized enterprises in Vietnam," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(3), pages 239-261, April.
    14. Ganeshan Wignaraja, 2015. "Factors Affecting Entry into Supply Chain Trade: An Analysis of Firms in Southeast Asia," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(3), pages 623-642, September.
    15. Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January.
    16. Ana Paula Cusolito & Raed Safadi & Daria Taglioni, 2016. "Inclusive Global Value Chains," World Bank Publications - Books, The World Bank Group, number 24910, December.
    17. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    18. Paul Matthews, 2007. "ICT assimilation and SME expansion," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(6), pages 817-827.
    19. Clarke, George R.G., 2008. "Has the internet increased exports for firms from low and middle-income countries," Information Economics and Policy, Elsevier, vol. 20(1), pages 16-37, March.
    20. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413.
    21. Subika Farazi, 2014. "Informal Firms and Financial Inclusion: Status and Determinants," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-28.
    22. 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).
    23. Osnago,Alberto & Tan,Shawn Weiming, 2016. "Disaggregating the impact of the internet on international trade," Policy Research Working Paper Series 7785, The World Bank.
    24. Ge, Ying & Dollar, David & Yu, Xinding, 2020. "Institutions and participation in global value chains: Evidence from belt and road initiative," China Economic Review, Elsevier, vol. 61(C).
    25. Przemyslaw Kowalski & Javier Lopez Gonzalez & Alexandros Ragoussis & Cristian Ugarte, 2015. "Participation of Developing Countries in Global Value Chains: Implications for Trade and Trade-Related Policies," OECD Trade Policy Papers 179, OECD Publishing.
    26. Asian Development Bank Institute, 2015. "Integrating SMEs into Global Value Chains: Challenges and Policy Actions in Asia," Working Papers id:7658, eSocialSciences.
    27. Farazi, Subika, 2014. "Informal firms and financial inclusion : status and determinants," Policy Research Working Paper Series 6778, The World Bank.
    28. Claire H. Hollweg & Tanya Smith & Daria Taglioni, 2017. "Vietnam at a Crossroads," World Bank Publications - Books, The World Bank Group, number 26215, December.
    29. Richard Baldwin, 2013. "Trade and Industrialization after Globalization's Second Unbundling: How Building and Joining a Supply Chain Are Different and Why It Matters," NBER Chapters, in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century, pages 165-212, National Bureau of Economic Research, Inc.
    30. George R. G. Clarke & Scott J. Wallsten, 2006. "Has the Internet Increased Trade? Developed and Developing Country Evidence," Economic Inquiry, Western Economic Association International, vol. 44(3), pages 465-484, July.
    31. Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    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. Nguyen Thi Tuong Anh & Hung Quang Doan & Tuan Anh Bui & Nam Hoang Vu & Duong Thuy Thanh Le, 2022. "A Revisit of Motives for Chinese Outward Foreign Direct Investment: The Role of the Institution in Host Countries," SAGE Open, , vol. 12(4), pages 21582440221, December.

    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. Lanz, Rainer & Lundquist, Kathryn & Mansio, Grégoire & Maurer, Andreas & Teh, Robert, 2018. "E-commerce and developing country-SME participation in global value chains," WTO Staff Working Papers ERSD-2018-13, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. Michele Imbruno & Joel Cariolle & Jaime de Melo, 2022. "Digital connectivity and firm participation in foreign markets: An exporter-based bilateral analysis," Discussion Papers 2022-02, University of Nottingham, GEP.
    3. Joël Cariolle & Michele Imbruno & Jaime de Melo, 2020. "Bilateral digital connectivity and firm participation in export markets," Working Papers hal-03182438, HAL.
    4. Jonathan Timmis, 2013. "Internet Adoption and Firm Exports in Developing Economies," Discussion Papers 2013-05, University of Nottingham, GEP.
    5. Zi Hui Yin & Chang Hwan Choi, 2023. "The effects of China’s cross-border e-commerce on its exports: a comparative analysis of goods and services trade," Electronic Commerce Research, Springer, vol. 23(1), pages 443-474, March.
    6. Mercedes Teruel & Alex Coad & Clemens Domnick & Florian Flachenecker & Peter Harasztosi & Mario Lorenzo Janiri & Rozalia Pal, 2022. "The birth of new HGEs: internationalization through new digital technologies," The Journal of Technology Transfer, Springer, vol. 47(3), pages 804-845, June.
    7. Bekkers, Eddy & Koopman, Bob & Teh, Robert, 2018. "Long run trends in international trade. The impact of new technologies," Conference papers 332962, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Mauro Boffa & Marion Jansen & Olga Solleder, 2021. "Participating to Compete: Do Small Firms in Developing Countries Benefit from Global Value Chains?," Economies, MDPI, vol. 9(1), pages 1-25, February.
    9. Monteiro, José-Antonio & Teh, Robert, 2017. "Provisions on electronic commerce in regional trade agreements," WTO Staff Working Papers ERSD-2017-11, World Trade Organization (WTO), Economic Research and Statistics Division.
    10. Carballo, Jerónimo & Rodriguez Chatruc, Marisol & Salas Santa, Catalina & Volpe Martincus, Christian, 2022. "Online business platforms and international trade," Journal of International Economics, Elsevier, vol. 137(C).
    11. Visser, Robin, 2019. "The effect of the internet on the margins of trade," Information Economics and Policy, Elsevier, vol. 46(C), pages 41-54.
    12. Gnangnon, Sèna Kimm, 2022. "Internet, Participation in International Trade, and Tax Revenue Instability," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 267-315.
    13. Richard Pomfret, 2020. "Global Production Networks, New Trade Technologies and the Challenge for International Institutions," Foreign Trade Review, , vol. 55(1), pages 21-41, February.
    14. Teruel Carrizosa, Mercedes & Coad, Alexander & Domnick, Clemens & Flachenecker, Florian & Harasztosi, Péter & Janiri, Mario Lorenzo & Pál, Rozália, 2021. "The birth of new high growth enterprises: Internationalisation through new digital technologies," EIB Working Papers 2021/02, European Investment Bank (EIB).
    15. Huub Meijers, 2014. "Does the internet generate economic growth, international trade, or both?," International Economics and Economic Policy, Springer, vol. 11(1), pages 137-163, February.
    16. Feng, Kuo & Guo, Yue & Ji, Yujun & Wang, Yuping, 2023. "Impact of the Internet on the exports in ocean-based manufacturing: Firm-level evidence from China," Journal of Asian Economics, Elsevier, vol. 84(C).
    17. Richard Kneller & Jonathan Timmis, 2016. "ICT and Exporting: The Effects of Broadband on the Extensive Margin of Business Service Exports," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 757-796, September.
    18. Sun, Meng, 2021. "The Internet and SME Participation in Exports," Information Economics and Policy, Elsevier, vol. 57(C).
    19. Gopalan, Sasidaran & Reddy, Ketan & Sasidharan, Subash, 2022. "Does digitalization spur global value chain participation? Firm-level evidence from emerging markets," Information Economics and Policy, Elsevier, vol. 59(C).
    20. José Anson & Mauro Boffa, 2018. "Consumer Arbitrage in Cross-Border E-commerce," RSCAS Working Papers 2018/17, European University Institute.

    More about this item

    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:wly:jintdv:v:34:y:2022:i:2:p:259-286. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    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.