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International entrepreneurship and technological capabilities in the Middle East and North Africa

Author

Listed:
  • Brach, Juliane

    () (University of Copenhagen and German Institute of Global and Area Studies, Hamburg)

  • Naudé, Wim

    () (UNU-MERIT/MGSoG, University of Maastricht)

Abstract

In this paper we investigate the extent of international entrepreneurship in Algeria, Egypt, Morocco, Oman and Syria using a dataset covering 3,281 firms. We find that weak technological capabilities constrain internationalization. Firms with ISO accreditation, an own website, and those who have introduced new technology have a higher probability of entering export markets than otherwise. Firms in high-tech sectors are more likely to export early. However with foreign shareholding this advantage of high-tech firms disappears. The results suggest that early international entrepreneurs may need to pay more in informal payments if they want to increase the share of their exports once they have entered into export markets. We derive implications for policy and further research.

Suggested Citation

  • Brach, Juliane & Naudé, Wim, 2012. "International entrepreneurship and technological capabilities in the Middle East and North Africa," MERIT Working Papers 020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2012020
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    File URL: https://www.merit.unu.edu/publications/wppdf/2012/wp2012-020.pdf
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    References listed on IDEAS

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    1. Soete, Luc, 2008. "Science, Technology and Development: Emerging concepts and visions," MERIT Working Papers 001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Van Biesebroeck, Johannes, 2005. "Firm Size Matters: Growth and Productivity Growth in African Manufacturing," Economic Development and Cultural Change, University of Chicago Press, vol. 53(3), pages 545-583, April.
    3. Juliane Brach, 2010. "Technological Readiness in the Middle East and North Africa – Implications for Egypt," GIGA Working Paper Series 155, GIGA German Institute of Global and Area Studies.
    4. Marianne Matthee & Wim Naudé, 2008. "The Determinants of Regional Manufactured Exports from a Developing Country," International Regional Science Review, , vol. 31(4), pages 343-358, October.
    5. Abu-Qarn, Aamer S. & Abu-Bader, Suleiman, 2007. "Sources of Growth Revisited: Evidence from Selected MENA Countries," World Development, Elsevier, vol. 35(5), pages 752-771, May.
    6. Fulvio Castellacci & José Miguel Natera, 2011. "A new panel dataset for cross-country analyses of national systems, growth and development (CANA)," Working Papers del Instituto Complutense de Estudios Internacionales 1105, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    7. Wim Naudé & Stephanié Rossouw, 2010. "Early international entrepreneurship in China: Extent and determinants," Journal of International Entrepreneurship, Springer, vol. 8(1), pages 87-111, March.
    8. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    9. Fahim Al-Marhubi, 2000. "Export diversification and growth: an empirical investigation," Applied Economics Letters, Taylor & Francis Journals, vol. 7(9), pages 559-562.
    10. World Bank, 2010. "Innovation Policy : A Guide for Developing Countries," World Bank Publications, The World Bank, number 2460, January.
    11. Michael Funke & Ralf Ruhwedel, 2005. "Export variety and economic growth in East European transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(1), pages 25-50, January.
    12. Juliane Brach & Robert Kappel, 2009. "Global Value Chains, Technology Transfer and Local Firm Upgrading in Non-OECD Countries," GIGA Working Paper Series 110, GIGA German Institute of Global and Area Studies.
    13. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
    14. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    15. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July.
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    17. repec:ucm:wpaper:05-11 is not listed on IDEAS
    18. Neil Rankin & Måns Söderbom & Francis Teal, 2006. "Exporting from Manufacturing Firms in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 671-687, December.
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    Citations

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    Cited by:

    1. Sekkat, Khalid, 2016. "Exchange rate misalignment and export diversification in developing countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 1-14.
    2. Agne Matiusinaite & Jurgita Sekliuckiene, 2015. "Factors determining early internationalization of entrepreneurial SMEs: Theoretical approach," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 8(3), pages 21-32, December.
    3. Khalid Sekkat, 2016. "Export Orientation and Exchange Rate Changes: Do Firms React Differently and Why?," Working Papers 989, Economic Research Forum, revised Apr 2016.
    4. José Ernesto Amorós & Rodrigo Basco & Gianni Romaní, 2016. "Determinants of early internationalization of new firms: the case of Chile," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 283-307, March.

    More about this item

    Keywords

    International entrepreneurship; exports; entrepreneurial capabilities; innovation; Middle East; North Africa; MENA;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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