IDEAS home Printed from https://ideas.repec.org/a/idb/intala/jouintegandcomv37y2013i17p71-80.html
   My bibliography  Save this article

SME Internationalization through Value Chains: What Role for Finance?

Author

Listed:
  • Avendaño, Rolando
  • Daude, Christian
  • Perea, José Ramón

Abstract

Over 70 per cent of GDP in Latin America is produced by large firms, while in developed OECD economies the share of large firms in GDP is just 40 per cent. In terms of internationalization of Latin-American SMEs the situation is even less favourable. SMEs in Latin America have very little direct or indirect links to external markets through exports. These weak connections of Latin American SMEs to global and domestic value chains are an important explanatory factor for their low levels of labour productivity. In addition, when SMEs do not access international markets, they are subject to the conditions of domestic markets. This paper focuses on two important aspects of the environment in which SMEs operate today. First, we put an emphasis on global value chains and how SMEs can profit from them in the region. Integration of Latin American SMEs to Global Value Chains is an objective for inducing productivity gains and eventually economic upgrading. GVCs provide a fertile ground for knowledge transfer among its members, with positive externalities to its participants. Second, we discuss the type of financial instruments that can help SMEs to increase productivity through innovation and internationalization. Some of these initiatives have integrated the internationalization dimension in their approach: developing financial tools at the value chain and enhancing coaching between large and small firms for innovation programmes are some examples.

Suggested Citation

  • Avendaño, Rolando & Daude, Christian & Perea, José Ramón, 2013. "SME Internationalization through Value Chains: What Role for Finance?," Revista Integración y Comercio (Integration and Trade Journal), Inter-American Development Bank, INTAL, vol. 37(17), pages 71-80.
  • Handle: RePEc:idb:intala:jou:integandcom:v:37:y:2013:i:17:p:71-80
    as

    Download full text from publisher

    File URL: http://www.iadb.org/document.cfm?id=38634449
    Download Restriction: no

    More about this item

    Keywords

    PEQUEÑAS Y MEDIANAS EMPRESAS; CADENAS DE VALOR; INTEGRACION PRODUCTIVA; ACCESO A LOS MERCADOS; PRODUCTIVIDAD; INNOVACIONES TECNOLOGICAS; PYMES;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F1 - International Economics - - Trade
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    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:idb:intala:jou:integandcom:v:37:y:2013:i:17:p:71-80. 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: (Felipe Herrera Library). General contact details of provider: http://edirc.repec.org/data/iadbbus.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.