Financial Aspects of Transactions with FDI: Trade Credit Provision by SMEs in China

This paper will document financial aspects of transactions, and trade credit supply behavior with FDI among small and medium-sized enterprises(SMEs) based on two original surveys, conducted in four cities in China in 2003. The survey was designed to capture the nature of inter-firm transactions, trade credit and other financial conditions. Literature on FDI mainly refers to technology transfer, employment or investment. This paper focuses on the role and significance of FDI in the supply of trade credit due to its trade credit enforcement technology. Yanagawa, Ito and Watanabe [2006] developed a model which indicates that when a seller has higher enforcement technology or a buyer has richer liquidity, both trade credit and transaction volume will be increased. In this paper, we confirmed that FDI and G contributed to the provision of trade credit and had a positive external effect on trade credit enforcement towards China’s economy. (1) Sales towards FDI customers have the power to increase the trade credit ratio,even when controlling other factors such as choice of payment instrument, competitiveness, and expost default management. This implies that FDI does provide trade credit, not only because it has superior liquidity, but because it is also superior in terms of enforcement of trade credit repayment.(2) Cash constraints of the buyer influence the decisions concerning trade credit provided by the seller, as a model in Yanagawa, et al. [2006] predicted, and this implies that strategic default is a serious concern among SMEs in China. (3) Spillover effect exists in payment enforcement technology in transactions with FDI customers.

Impact of foreign capital entry in the Indonesian banking sector

After the Asian financial crisis of 1997/98, the Indonesian banking sector experienced significant changes. Ownership structure of banking sector is substantially-changed. Currently, ownership of major commercial banks is dominated by foreign capital through acquisition. This paper examines whether foreign ownership changes a bank’s lending behavior and performance. Foreign banks tend to lend mainly to large firms; this paper examines whether the credit to small and medium-sized enterprises (SMEs) is affected by foreign capital entry into the Indonesian banking sector. Empirical results show that banks owned by foreign capital tend to decrease SME credit.

The role of a firm's absorptive capacity and the technology transfer process in clusters: How effective are technology centres in low-tech clusters?

This paper analyses how the internal resources of small- and medium-sized enterprises determine access (learning processes) to technology centres (TCs) or industrial research institutes (innovation infrastructure) in traditional low-tech clusters. These interactions basically represent traded (market-based) transactions, which constitute important sources of knowledge in clusters. The paper addresses the role of TCs in low-tech clusters, and uses semi-structured interviews with 80 firms in a manufacturing cluster. The results point out that producer–user interactions are the most frequent; thus, the higher the sector knowledge-intensive base, the more likely the utilization of the available research infrastructure becomes. Conversely, the sectors with less knowledge-intensive structures, i.e. less absorptive capacity (AC), present weak linkages to TCs, as they frequently prefer to interact with suppliers, who act as transceivers of knowledge. Therefore, not all the firms in a cluster can fully exploit the available research infrastructure, and their AC moderates this engagement. In addition, the existence of TCs is not sufficient since the active role of a firm's search strategies to undertake interactions and conduct openness to available sources of knowledge is also needed. The study has implications for policymakers and academia.

ASSOCIATIVISMO EMPRESARIAL ENTRE MICRO E PEQUENAS EMPRESAS: A EXPERIÊNCIA DO GRANDE ABC COM O PROJETO EMPREENDER (SEBRAE)

O associativismo empresarial aparece como forma de desenvolvimento regional, seja este econômico, social ou cultural, e é grande aliado para o surgimento e crescimento das micro e pequenas empresas. É um tema já vivenciado e estudado por vários países do mundo, entre eles europeus e especificamente italianos, mas ainda pouco estudado e conhecido no Brasil. A presente pesquisa objetivou analisar o associativismo empresarial entre micro e pequenas empresas (MPEs) na região do Grande ABC (GABC) pelo Projeto Empreender (SEBRAE) relacionando seus dados com os publicados do relatório 2003/5 de autoria do Observatório Europeu de estudos sobre pequenas e médias empresas europeias, analisando as formas de associativismo aqui ocorridas, além de identificar o perfil das empresas e empresários envolvidos no projeto. Para tal análise foram coletados dados de um total de 63 empresas do Projeto Empreender, nos núcleos de Santo André, São Caetano do Sul e Ribeirão Pires. Do GABC foram coletados dados utilizando o instrumento desenvolvido pelo Observatório Europeu de estudos sobre pequenas e médias empresas. A análise dos dados coletados no GABC em relação aos dados europeus se fez necessária para que pudessem ser encontrados pontos de divergências e convergências em cada uma das experiências, objetivando o aprendizado e evolução do tema. A escolha do GABC foi motivada pelo fato da região passar por mudanças no seu perfil econômico, passando de berço e grande pólo das grandes indústrias para um grande centro de pequenas empresas prestadoras de serviços. Após coleta e análise dos dados, percebeu-se que a experiência do GABC e a ocorrida na Itália se parecem em muitos aspectos, porém tem grandes diferenças estruturais. Enquanto o projeto europeu é de responsabilidade de um órgão da União Europeia, aqui o projeto é de autoria do SEBRAE e sofre grandes conflitos com as Associações Comerciais e Industriais (ACIs) da região quando o tema é custeio das despesas das pessoas e estrutura que envolve a implantação do projeto. Além disso, conclui-se que é necessária uma maior aproximação dos municípios com o projeto, tendo em vista que isto poderia ser fator de incentivo a entrada de novas empresas além de fator de aumento de seriedade do sistema. Mais dois dados merecem destaque. Primeiro o fato do Projeto Empreender ter pouca visibilidade regional, ou seja, ser muito pouco divulgado, e o fato da agência de desenvolvimento do GABC não ter aproximação alguma com o projeto. Por último, surgem dados no decorrer da pesquisa que rompem a barreira das teorias administrativas conhecidas, tais como a amizade como fator de associativismo. Portanto, os resultados obtidos com essa pesquisa apontam para a influência no incentivo ao desenvolvimento do processo associativista na região do GABC, além de servir como incentivador para a aproximação de outros atores sociais no processo.(AU)

ASSOCIATIVISMO EMPRESARIAL ENTRE MICRO E PEQUENAS EMPRESAS: A EXPERIÊNCIA DO GRANDE ABC COM O PROJETO EMPREENDER (SEBRAE)

O associativismo empresarial aparece como forma de desenvolvimento regional, seja este econômico, social ou cultural, e é grande aliado para o surgimento e crescimento das micro e pequenas empresas. É um tema já vivenciado e estudado por vários países do mundo, entre eles europeus e especificamente italianos, mas ainda pouco estudado e conhecido no Brasil. A presente pesquisa objetivou analisar o associativismo empresarial entre micro e pequenas empresas (MPEs) na região do Grande ABC (GABC) pelo Projeto Empreender (SEBRAE) relacionando seus dados com os publicados do relatório 2003/5 de autoria do Observatório Europeu de estudos sobre pequenas e médias empresas europeias, analisando as formas de associativismo aqui ocorridas, além de identificar o perfil das empresas e empresários envolvidos no projeto. Para tal análise foram coletados dados de um total de 63 empresas do Projeto Empreender, nos núcleos de Santo André, São Caetano do Sul e Ribeirão Pires. Do GABC foram coletados dados utilizando o instrumento desenvolvido pelo Observatório Europeu de estudos sobre pequenas e médias empresas. A análise dos dados coletados no GABC em relação aos dados europeus se fez necessária para que pudessem ser encontrados pontos de divergências e convergências em cada uma das experiências, objetivando o aprendizado e evolução do tema. A escolha do GABC foi motivada pelo fato da região passar por mudanças no seu perfil econômico, passando de berço e grande pólo das grandes indústrias para um grande centro de pequenas empresas prestadoras de serviços. Após coleta e análise dos dados, percebeu-se que a experiência do GABC e a ocorrida na Itália se parecem em muitos aspectos, porém tem grandes diferenças estruturais. Enquanto o projeto europeu é de responsabilidade de um órgão da União Europeia, aqui o projeto é de autoria do SEBRAE e sofre grandes conflitos com as Associações Comerciais e Industriais (ACIs) da região quando o tema é custeio das despesas das pessoas e estrutura que envolve a implantação do projeto. Além disso, conclui-se que é necessária uma maior aproximação dos municípios com o projeto, tendo em vista que isto poderia ser fator de incentivo a entrada de novas empresas além de fator de aumento de seriedade do sistema. Mais dois dados merecem destaque. Primeiro o fato do Projeto Empreender ter pouca visibilidade regional, ou seja, ser muito pouco divulgado, e o fato da agência de desenvolvimento do GABC não ter aproximação alguma com o projeto. Por último, surgem dados no decorrer da pesquisa que rompem a barreira das teorias administrativas conhecidas, tais como a amizade como fator de associativismo. Portanto, os resultados obtidos com essa pesquisa apontam para a influência no incentivo ao desenvolvimento do processo associativista na região do GABC, além de servir como incentivador para a aproximação de outros atores sociais no processo.(AU)

Architectural Technology and the BIM Acronym 3: Getting to Grips with BIM

Among Small and Medium Sized Enterprises (SMEs) in particular, the UK Government’s ambitions regarding BIM uptake and diffusion across the construction sector may be tempered by a realpolitik shaped in part by interactions between the industry, Higher Education (HE) and professional practice. That premise also has a global perspective. Building on the previous 2 papers, Architectural technology and the BIM Acronym 1 and 2, this third iteration is a synthesis of research and investigations carried out over a number of years directly related to the practical implementation of BIM and its impact upon BE SMEs. First challenges, risks and potential benefits for SMEs and micros in facing up to the necessity to engage with digital tools in a competitive and volatile marketplace are discussed including tailoring BIM to suit business models, and filtering out achievable BIM outcomes from generic and bespoke aspects of practice. Second the focus is on setting up and managing teams engaging with BIM scenarios, including the role of clients; addresses a range of paradigms including lonely BIM and collaborative working. The significance of taking a whole life view with BIM is investigated including embedding soft landings principles into project planning and realisation. Thirdly procedures for setting up and managing common data environments are identified and the value of achieving smooth information flow is addressed. The overall objective of this paper is to provide SMEs with a practical strategy to develop a toolkit to BIM implementation.

Why a more accurate EU definition of SMEs matters. ECMI Commentary No. 35, 15 November 2013

As part of the European Union’s commitment to deliver greater access to finance for small- and medium-sized enterprises (SMEs), EU policy-makers will have to deal with a fragmented market landscape and responses by individual member states to address failures. On the basis of some early evidence, this Commentary calls for a rethinking on the part of the EU of its definition of an SME, which currently does not take into account the internal market dimension. A more accurate definition, reflecting the internal market and the stages of evolution of a firm and its financing needs, would allow better benchmarking and a comparison of policy responses that often claim to address market failures in SME finance.

Supporting Access to Finance by SMEs: Mapping the initiatives in five EU countries. ECMI Research Report No. 9, April 2014

This paper maps the initiatives to support access to finance for small- and medium-sized enterprises (SMEs) that were available at national level in 2012 in the five biggest European economies (Germany, France, the UK, Italy and Spain). This mapping distinguishes initiatives promoted and financed primarily through public resources from those developed independently by the market. A second breakdown is proposed for those sources of finance with different targets, i.e. whether the target is debt financing (typically bank loans at favourable conditions, public guarantees on loans, etc.) or equity financing (typically venture capital funds, tax incentives on equity investments, etc.). A broad set of initiatives has been implemented to close the funding gap of SMEs in these five countries. The total amount of public spending for SMEs, however, has remained well below 1% of GDP. Public subsidisation of bank loans has been by far the most diffused type of intervention. Despite the fact that this strategy might prove to be effective in the short term, it fails to address long-term sustainability issues via a more diversified set of financing tools.

Is Horizon 2020 really more SME-friendly? A look at the figures. CEPS Commentary, 17 February 2016

Small- and medium-sized enterprises (SMEs) play a key role in the EU economy.[1] According to the latest “SME performance review” published by the European Commission,[2] in 2014 there were 22 million SMEs active in the non-financial business sectors, generating more than €3.7 trillion in added value and employing approximately 90 million people. SMEs’ contribution to the European economy becomes even more apparent if one considers that 99 out of every 100 enterprises active in the EU non-financial economy are SMEs, and that these firms account for about 67% of the total employment and some 60% of the overall added value produced in Europe. Against this background, enhancing the competitiveness of European SMEs is essential in order to foster the competitiveness of the EU economy as a whole. And since the competitiveness of European SMEs in the global arena largely depends on their ability to innovate,[3] unlocking the innovation potential of SMEs becomes pivotal to fostering growth and jobs in Europe.

We all stand together: Using cluster associations to create worldwide presence for SMEs

This paper examines the potential for cluster associations to act globally on behalf of small and medium-sized enterprises (SMEs) utilising networked internet-based capabilities to trade globally. The slow up-take of such new technology and the problems involved is also becoming of increased interest to policymakers. This paper argues that cluster associations with low power-dependence and decentralised structures are better able to provide the necessary support that networks of SMEs require to utilise the technology.

Towards definition of the global biotechnology value chain using cases from Australian biotechnology SMEs

The generic pharmaceutical value chain model has been employed to describe both the global pharmaceutical and biotechnology industries till now. This research investigates the organisational value chain in Australian biotechnology companies in order to assess the appropriateness of the pharmaceutical value chain to small-and medium-sized biotechnology companies. The main theme of the research is: Can a generic model of the organisational value chain be defined for the biotechnology industry? Emanating from the literature, two research propositions were developed. RP1: there are eight major definable elements/activities of the organisational value chain for the biotechnology industry. RP2: Coverage of the elements in the biotechnology value chain ranges from focused to broad. A multiple case study methodology was used to explore these propositions. To develop a number of case studies, data was collected from senior managers of small and medium Australian biotechnology companies using an interview instrument, as well as from publicly available documentation and through observation. The results were analysed using cross-case comparisons. The results showed that an aggregation of the value chains of each organisation can be reduced to these eight definable elements that constitute the biotechnology value chain: basic research, applied research, development, verification and validation, prototype development, clinical trials, manufacturing and marketing. However, the findings also indicate that these major elements of the value chain need to be further reduced into sub-activities or sub-tasks to cater for the unique differences between biotechnology companies. Generally, the findings were consistent with the literature. However, a wider sampling, including international biotechnology organisations should be studied. The major contribution of this research is in the development of a value chain model, including general sub-tasks, for the Australian biotechnology industry.

The effect of enacted capabilities on adoption of a government electronic procurement system by Malaysian SMEs

Prior studies have shown that innovative information systems (IS) adoption behaviour by small-and medium-sized enterprises (SMEs) is greatly dependent on organizational and environmental characteristics. Government influence (i.e., federal and local government agencies) was found to play an important role in the promotion or enforcement of innovative IS adoption by SMEs, and it is vital for ensuring adoption of nationwide innovative IS, particularly in developing economies. This study introduces the construct of enacted capabilities and examines the enacted capabilities that motivate SMEs to use innovative IS (i.e., a government's electronic procurement systems) to its full potential. A model of how enacted capabilities affect IS adoption behaviour through perceived net benefits and attitude is developed. A survey (and follow-up interviews) of CEOs/owners from Malaysian SMEs was conducted. Results indicate the enacted capabilities possessed by SMEs play a prominent role in determining the adoption of government electronic procurement systems by these enterprises.

New descriptions and understandings of internationalisation: A tale of knowledge-intensive SMEs

This research seeks to generate and foster new descriptions and understandings of processes underlying the internationalisation experienced by small- and medium-sized, knowledge-intensive enterprises. The longitudinal study centres on the growth and internationalisation of a cluster of small- and medium-sized enterprises (SMEs) in the most southern state of Australia, of which a number were 'bom global.' It draws on both retrospective data such as corporate archives, as well as observations and interviews as events unfolded over a period of eighteen months to garner insights into processes underlying the SMEs' internationalisation. The approach to inquiry is influenced by an epistemology of social constructionism, interpretive narrative, sensemaking and dramaturgical theoretical perspectives, and elements of cultural anthropology. Exploratory in the early stages, a funnel approach characteristic of ethnographic enquiry was used whereby the study became progressively focused over time. The extended period of fieldwork led to observations and interpretations that cast the retrospective data in new light, and the use of the construct 'legitimacy' as a lens through which to view activities and events infusing the firms' internationalisation. A generic narrative scheme that offers a temporal ordering of actions, context and meaning attributions in relation to legitimation behaviours and internationalisation processes is developed. This narrative scheme is then used to garner a deeper understanding of three activities that were central to the firms' internationalisation over time: the choice of geographic export markets, strategic participation in international standard-setting committees, and portfolio entrepreneurship. In addition, the study offers a rich story of the growth and internationalisation of the cluster of knowledge-intensive SMEs. The tale of growth and internationalisation pursued by the cluster of knowledgeintensive SMEs spans the period from 1975 to mid 1997, and may prove a useful resource for the theorising of others.