Those who stayed loyal: An empirical examination of New Zealand manufacturers surviving in a global market
Purpose – Despite the ability of small and medium enterprise (SME) to successfully outsource production to low-cost labour markets, some SMEs continue to produce in the domestic market. A sharp decline in the number of New Zealand manufacturers of consumer goods has been observed in the last five years. This raises questions regarding the viability of a domestic manufacturing strategy in a global marketplace. The purpose of this paper is to explore the performance of New Zealand manufacturers who continue to pursue a domestic manufacturing strategy. Design/methodology/approach – The contextual background for the research is discussed first followed by the development of seven hypotheses. An overview of the methodology is presented before the results of statistical tests. A discussion of findings and implications precede concluding remarks. Practical implications – This reasearch suggests that SMEs need not succumb to pressures to shift manufacturing offshore in order to remain competitive in the local market. Findings – Findings suggest that company size, export strategy, and importance placed on non-financial goals influence the viability of a domestic manufacturing strategy. Originality/value – This paper is unique in that it does not argue domestic manufacturing as an optimal strategy, rather it considers the viability of a domestic manufacturing strategy in the consumer goods market. Furthermore, the paper adds insight on manufacturing strategy when faced with a small domestic market.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 4 (2010)
Issue (Month): 4 (November)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/jec.htm Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Geroski, P A, 1992. "Price Dynamics in UK Manufacturing: A Microeconomic View," Economica, London School of Economics and Political Science, vol. 59(236), pages 403-19, November.
- David L. Levy, 2005. "Offshoring in the New Global Political Economy," Journal of Management Studies, Wiley Blackwell, vol. 42(3), pages 685-693, 05.
- Nitsch, Volker, 1996. "Do Three Trade Blocs Minimize World Welfare?," Review of International Economics, Wiley Blackwell, vol. 4(3), pages 355-63, October.
- Michael Porter, 1994. "The Role of Location in Competition," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 35-40.
- Robert A Peterson & Alain J P Jolibert, 1995. "A Meta-Analysis of Country-of-Origin Effects," Journal of International Business Studies, Palgrave Macmillan, vol. 26(4), pages 883-900, December.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
- Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-45, September.
- Agustí Segarra & Maria Callejón, 2002. "New Firms' Survival and Market Turbulence: New Evidence from Spain," Review of Industrial Organization, Springer, vol. 20(1), pages 1-14, February.
- Lance Eliot Brouthers & Keith D Brouthers & Steve Werner, 1999. "Is Dunning's Eclectic Framework Descriptive Or Normative?," Journal of International Business Studies, Palgrave Macmillan, vol. 30(4), pages 831-844, December.
- Leo Dana & Robert Hamilton & Brooke Pauwels, 2007. "Evaluating offshore and domestic production in the apparel industry: The small firm’s perspective," Journal of International Entrepreneurship, Springer, vol. 5(3), pages 47-63, December.
- Diana Farrell, 2005. "Offshoring: Value Creation through Economic Change," Journal of Management Studies, Wiley Blackwell, vol. 42(3), pages 675-683, 05.
- Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
When requesting a correction, please mention this item's handle: RePEc:eme:jecpps:v:4:y:2010:i:4:p:346-371. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Heather Goss)
If references are entirely missing, you can add them using this form.