Internationalization of Small and Medium-Size Enterprises from Selected Central European Economies
This paper examines differences in outward foreign direct investment (FDI) activity between small and medium-size enterprises (SMEs) and large enterprises in five Central European economies (CEEs). The effects of firm size on motives, barriers, and the competitive advantages of outward investment are examined by surveying 180 firms. Employment effects are examined on a single country. The results indicate more similarities than differences in internationalization patterns and prove SMEs to be capable of internationalization strategies. Similar to large CEE firms, SMEs' investment abroad is mainly market seeking. Both groups of firms identified similar barriers, but SMEs face larger financial and capacity problems. Their larger counterparts enjoy superiority in marketing and production capabilities, but, on average, lack the agility needed for swift and efficient market entry. As SMEs frequently target specialized niches, their main competitive advantages are technological know-how, organizational flexibility, and closer relationships with their customers. Larger competitors, apart from technological know-how, rely on the benefits arising from scale economies and marketing. Home-country employment effects of SMEs are positive and larger than they are for large firms. Our empirical results show that differences found in theoretical propositions and previous empirical studies apply, to a large degree, to companies from CEEs, though the specific characteristics of both types of firms and the intensity of differences are not yet as pronounced as they are in other developed countries, which is to some extent a transition-specific phenomenon. The differences identified suggest adaptations in support policy programs for SME internationalization.
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): 45 (2007)
Issue (Month): 4 (August)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106044|
When requesting a correction, please mention this item's handle: RePEc:mes:eaeuec:v:45:y:2007:i:4:p:36-65. 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: (Chris Nguyen)The email address of this maintainer does not seem to be valid anymore. Please ask Chris Nguyen to update the entry or send us the correct address
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.