A Distributive Comparison of Enterprise Size in Korea and Taiwan

Research to date on the economic development of the Republic of Korea and Taiwan has frequently contrasted the two economies by depicting the former as centered on large-scale enterprises and the latter on small and medium-size enterprises (SMEs). The purpose of this study is to see if the appropriateness of this perception will also be verified by the statistical data. In Section I the authors utilized census data on the Korean and Taiwanese manufacturing sectors to compare the distribution pattern of the sizes of enterprises in the two economies. However, on examining the available data for making this comparison, the authors discovered that for Korea the statistics provided are those at the level of the establishment (a physical unit engaging in industrial activities such as a factory, workshop, office, or mine) while the statistics for Taiwan are those at the enterprise level. Mindful of this difference, the authors looked at the portion of the economy accounted for by large-scale establishments in Korea that employed 500 workers or more and by enterprises in Taiwan employing the same number of workers, and they discovered that the portion that these large-scale businesses account for, especially in the area of output, has steadily declined since the 1980s. When comparing the share of total production that these large-scale establishments/enterprises account for in the two economies, the authors concluded that those in Korea accounted for a larger share of that economy's production than did their counterparts in Taiwan. The authors then compared the portion of the economy accounted for by establishments in Korea and enterprises in Taiwan that employed less than ten workers, and they found that the portion of the two economies that these very small-scale production units accounted for has also been on the decline. Section II compares the portions of the two economies accounted for by large business groups. After comparing the percentage of GDP accounted for by the total sales of these business groups, the authors found that large business groups in Korea have played a far more important role in Korean economy than has been the case for such groups in Taiwan. This difference in the importance of such business groups in the two economies has also played an significant part in fostering the perceived dichotomy of large-scale enterprises playing the important role in Korea versus SMEs being the important players in Taiwan. Section III compares the percentage of total exports accounted for by SMEs, and shows that SMEs in Taiwan account for a larger share of exports than do their counterparts in Korea. This section also shows that in Taiwan the share of export sales for SMEs has consistently exceeded that for non-SMEs, while in Korea the relationship between enterprise size and the rate of export sales has been directly proportional. This difference in the size of the major export players is another factor fostering the perception of the Korean economy being centered on big business while Taiwan's is on SMEs. Although there were difficulties and limitations when comparing the data of the two economies, the statistical comparison undertaken in this study shows that in general big business has played the major role in the development of the Korean economy while in Taiwan's economic development this role has been played by SMEs. Thus the statistical data also verifies the perceived dichotomy of these two economies.

Factors Underlying the Formation of Industrial Clusters in Japan and Industrial Cluster Policy: A Quantitative Survey

The purpose of this report is to use information provided by a questionnaire survey to analyze the factors and processes underlying the formation of industrial clusters in Japan. The study, based on questionnaire surveys, forms part of an "Industrial Cluster Project". The Japanese government has implemented policies for industrial clusters so as to enable Japanese industries to maintain competitive power in global markets, and to aid the self-sufficient expansion of local industries. The government's project goes under the heading "Industry Agglomeration for the Recovery of Local Industries with respect to so-called "Industry Clusters." The authors aim to identify what expectations are held of government by the enterprises that make up industrial clusters. As part of our investigation, we used the results of a survey conducted by UNDP in 2004. Tsuji's study, published by the Osaka School of International Public Policy, surveyed 1198 small or medium sized manufacturing companies located in O ward, Tokyo and Higashi Osaka city, Osaka prefecture. The outcome of the present study, together with data from Tsuji's work on IT usage by SMEs in Japan, is meant to form the basis for policy design and implementation.

Unlocking the Potential of Zambian Micro, Small and Medium Enterprises "Learning from the international best practices - the Southeast Asian Experience"

This paper examines the SMEs performance in Zambia and attempts to identify some practical lessons that Zambia can learn from Southeast Asian countries (with reference to Malaysia) in order to facilitate industrial development through unlocking the potential of its SMEs sector. Malaysia and Zambia were at the same level of economic development as evidenced by similar per capita incomes but Zambia has remained behind economically and its manufacturing sector has stagnated as if both countries did not have similar initial endowments. It therefore, becomes imperative that Zambia learns from such countries on how they managed to take-off economically with a focus on SME development. Training (education), research & development, market availability and technological advancement through establishment of industrial linkages coupled with cluster formation were some of the outstanding strategies identified that Zambia could use as a “key” to unlock its SMEs’ potential as it strives to meet the UN MDGs in particular halving its poverty levels by 2015 and also realizing its vision of becoming a middle income earner by 2030.

Financing Small and Medium Enterprises in Myanmar

Small and medium enterprises (SMEs) share the biggest part in Myanmar economy in terms of number, contribution to employment, output, and investment. Myanmar economic growth is thus totally dependent on the development of SMEs in the private sector. Today, the role of SMEs has become more vital in strengthening national competitive advantage and the speedy economic integration into the ASEAN region. However, studies show that SMEs have to deal with a number of constraints that hinder their development potential, such as the shortage in power supply, unavailability of long-term credit from external sources and many others. Among them, the financing problem of SMEs is one of the biggest constraints. Such is deeply rooted in demand and supply issues, macroeconomic fundamentals, and lending infrastructure of the country. The government’s policy towards SMEs could also lead to insufficient support for the SMEs. Thus, focusing on SMEs and private sector development as a viable strategy for industrialization and economic development of the country is a fundamental requirement for SME development. This paper recommends policies for stabilizing macro economic fundamentals, improving lending infrastructures of the country and improving demand- and supply-side conditions from the SMEs financing perspective in order to provide a more accessible financing for SMEs and to contribute in the overall development of SMEs in Myanmar thereby to sharpen national competitive advantage in the age of speedy economic integration.

Chapter 7 Clusters of Modern and Local Industries in Vietnam

Since the introduction of the Doi Moi ('renovation') economic reform in 1986, Vietnam has experienced a transformation of its economic management, from a central planning economy to a market-oriented economy. High economic growth, created by the liberalization of activities in all sectors of the economy, has changed the economic structure of the country, and the once agriculture-based and poverty-stricken land now generates a midlevel income and possesses many industrial bases. Economic growth has also changed the landscape of the country. Business complexes have been built in metropolises like Ho Chi Minh City and Hanoi, and rice fields have been converted into industrial zones. As the number of enterprises increased, areas began to emerge where many enterprises agglomerated. Some of these 'clusters' were groups of cottage industry households, while many others were large-scale industrial clusters. As Porter [1998] argues, industrial clusters are the source of a nation's 'competitive advantage'. McCarty et al. [2005] indicate that in some key industries in Vietnam, some clusters of enterprises have been created, although the degree of agglomeration differs from one industry to another. Using industry census data from 2001, they include dot density maps for the 12 leading manufacturing industries in Vietnam. They show that most of the industries analyzed are clustered either in Hanoi or Ho Chi Minh City (or both). Among these 12 industries, the garments industry has the greatest tendency to cluster, followed by textile, rice, seafood, and paper industries. The fact that industrial clusters have begun to form in some areas could be a positive sign for Vietnam's future economic development. What is lacking in McCarty et al. [2005], however, is the identification of the participants in the industrial clusters. Some argue for the importance of small and medium enterprises (SMEs) in Vietnam's economic development (e.g. Nguyen Tri Thanh [2007], Tran Tien Cuong et al. [2008]), while others stress the impact of foreign direct investments (FDI) (for example, Tuan Bui [2009]). Adding information about the participants in the above cluster study (and in other studies of spatial patterns of location of enterprises) may broaden the scope for analysis of economic development in Vietnam. This study aims to reveal the characteristics of industrial clusters in terms of their participants and locations. The findings of the study may provide basic information for evaluating the effects of agglomeration and the robustness of the effects in the industrial clusters in Vietnam. Section 1 describes the characteristics of economic entities in Vietnam such as ownership, size of enterprise, and location. Section 2 examines qualitative aspects of industrial clusters identified in McCarty et al. [2005] and uses information on the size and ownership of clusters. Three key industries (garments, consumer electronics, and motor vehicle) are selected for the study. Section 3 identifies another type of cluster commonly seen in Vietnam, composed of local industries and called 'craft villages'. Many such villages have been developed since the early 1990s. The study points out that some of these villages have become industrialized (or are becoming industrialized) by introducing modern modes of production and by employing thousands of laborers.

Knowledge spillover in Indian automobile industry : the process and the coverage

In India, as the production of passenger cars increased, many local small and medium enterprises (SMEs) entered the parts and components manufacturing sector. The sources of knowledge for large enterprises and SMEs are different. Naturally, spillover effects among large enterprises and between large enterprises and SMEs are different. This paper focuses on knowledge spillover among large enterprises and from large enterprises to SMEs. Subcontractor can absorb relation-specific skills through repeated interaction with parent company. The results of field survey emphasizes that relation-specific skills are a determinant factor of spillover effects from assemblers and large auto component manufacturers to SMEs. Econometric analysis shows that spillover effects among medium and large automobile units and from medium and large automobile units to small units went beyond boundary of cluster.

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.

La definición de PYME en América: una revisión del estado del arte

This article presents the results of the review of the concept and classification of SMEs, by analyzing the state of the art of the past 6 years, the definitions applied in the countries of Central and South America and other international organizations. It was a powerful analytical documentary research, whose purpose was to reflect on the definition of this business category. The results suggest using the criteria: number of employees and turnover. These criteria, future research could be applied to uniform ranges all the American countries, minimizing the potential barriers to promotion policies and existing funding, regardless of sector or country to which they belong.

Alternativa a la fabricación de costillas con otros materiales compuestos

La investigación tiene como objetivo establecer los valores organizacionales que afectan la productividad. El trabajo empírico se desarrolló en una muestra intencional de 142 PYMES del sector metalmecánico de Venezuela. Se consultó a un panel de expertos a fin de determinar la importancia relativa de estos valores en la productividad. Fueron sometidos a evaluación 22 valores. Los valores que resultaron más importantes son: Recurso Humano, Calidad, Trabajo en equipo, Responsabilidad y Seguridad. Se recomienda a la PYME metalmecánica Venezolana, orientar esfuerzos hacia la promoción y puesta en práctica de este Sistema de Valores, pues tan sólo Recurso Humano y Calidad son los valores que tienen una mayor presencia en sus filosofías de gestión. The research aims to establish the organizational values that affect productivity. The empirical work was conducted in a purposive sample of 142 SMEs in the engineering sector in Venezuela. We consulted a panel of experts to determine the relative importance of these values on productivity. Were evaluated at 22 values. The values that were most important are: Human Resources, Quality, Teamwork, Responsibility and Safety. SMEs are encouraged to Venezuelan metalworking, focusing efforts towards the promotion and implementation of this system of values, as only Human Resources and Quality are the values that are more active in their management philosophies.

Operational characterisation of a Micro-SME producing farmhouse cheese in the south of Venezuela

A piece of research is presented that was conducted on the Guayanes Farmhouse Telita Cheese Producers Network located in the Piar and Padre Chien rural municipalities of Bolivar state in Venezuela. Guayanes telita cheese is a regional dairy product. The producers are to be found in a rural area with a high potential for marketing the label in the Southern Common Market (MERCOSUR). This market is the focal point of the strategic importance of this study for the Region and the Country. The research is of a descriptive scope conducted in the field. A questionnaire based on good food production practice was used as a data gathering technique. The final sample comprised 30 production units. Statistical processing was performed with version 15.2 of the STATGRAPHICS Centurion computational tool. The results would appear to confirm previous studies that point to the existence of factors that prevent these Micro-SMEs from guaranteeing the food safety of the product. The results indicate that new lines of research need to be opened up. These are oriented towards formulating strategies for the continuous improvement of these micro-SMEs, including quality control indicators.

Modelo de gestión logística para pymes industriales

This paper presents the design and results of applying a model for logistics management in industrial SMEs. To identify the variables in the model, we conducted a thorough review of the state of the art logistics management; to characterize SMEs, developed a Likert questionnaire with the variables collected in the previous step. Once validated the questionnaire, was applied the same to a group of seventy-five (75) SMEs in the industrial sector, located in Bolivar State, Venezuela. To determine statistically the most relevant variables of management was used exploratory factor analysis technique applied to the data collected. The qualification obtained for all companies evaluated (47% compliance), highlights the weakness of logistics management in industrial SME.

Hands-on training in Nonimaging Optics for SME's: the SMETHODS experience

A 5-day training in Nonimaging Optics for European SME’s employees was carried out in June 2012 in the framework of the FP7 funded Support Action "SMETHODS". The training combined theoretical introduction and hands-on practice. The experience was very positive, and the lessons learned will improve the next scheduled sessions. Introduction The FP7 funded Support Action "SMETHODS" [1] is an initiative of seven European academic institutions to strengthen Europe's optics and photonics industry, which has started on 1 September 2011. Participation in training sessions is free for participants, who are selected with priority will be given to employees of small and medium sized European enterprises (SMEs). The consortium in SMETHODS is formed by seven partners that are the most prominent academic institutions in optical design in their countries. Through fully integrated collaborative training sessions, the consortium provides professional assistance as well as hands-on training in a variety of design tasks in four domains: (1) imaging optics, (2) nonimaging optics, (3) wave optics, and (4) diffractive optics. For each of this domains domain, 5-day training sessions are scheduled to be hold in different locations throughout Europe, four times in two years, the teach four times in a 2.5 years period.

A formalism and method for representing and reasoning with process models authored by subject matter experts

Enabling Subject Matter Experts (SMEs) to formulate knowledge without the intervention of Knowledge Engineers (KEs) requires providing SMEs with methods and tools that abstract the underlying knowledge representation and allow them to focus on modeling activities. Bridging the gap between SME-authored models and their representation is challenging, especially in the case of complex knowledge types like processes, where aspects like frame management, data, and control flow need to be addressed. In this paper, we describe how SME-authored process models can be provided with an operational semantics and grounded in a knowledge representation language like F-logic in order to support process-related reasoning. The main results of this work include a formalism for process representation and a mechanism for automatically translating process diagrams into executable code following such formalism. From all the process models authored by SMEs during evaluation 82% were well-formed, all of which executed correctly. Additionally, the two optimizations applied to the code generation mechanism produced a performance improvement at reasoning time of 25% and 30% with respect to the base case, respectively.

Marco de Gobernanza de TI para empresas PyMEs – SMEsITGF

La tecnología de la información y su utilización en las empresas ha sido y es un elemento de debate ya que las organizaciones cuentan con grandes éxitos y grandes fracasos. Gran parte de estos últimos asociados a una falta de visión estratégica integral en relación a la utilización de TI en la organización lo que ha dado lugar al área del conocimiento llamada Gobernanza de TI y a la publicación de numerosos marcos y estándares. Un campo sensible y económicamente muy importante tanto para Uruguay como a nivel mundial son las empresas medianas y pequeñas (PyMEs), las que no logran aplicar de manera efectiva los marcos y estándares, es por esta razón que el objetivo final de esta tesis es el de construir un marco que permita a las PyMEs incorporar un marco efectivo para gobernar y gestionar TI adecuadamente obteniendo el valor esperado de las inversiones realizadas. Para alcanzar este objetivo general se ha realizado un estudio de campo que permita conocer la situación de la gobernanza y la gestión de TI en PyMEs del Uruguay; a partir de este estudio se pudo analizar cuáles son los factores más significativos que no permiten la correcta aplicación de buenas prácticas de gobernanza de TI en éstas empresas. Los resultados encontrados llevaron a la construcción de un marco de gobernanza de TI con foco en PyMEs, a la definición de un modelo de madurez asociado al marco y a una guía de implantación. En el marco de gobernanza propuesto, compatible con el estándar ISO/IEC 38500:2008, se han fortalecido los procesos que, por las características propias de las PyMEs presentan debilidades estructurales y se han reducido o eliminado aquellos que por las mismas razones no son aplicables a este tipo de organización. Finalmente se validaron los resultados en un entorno empresarial definiendo un estudio de caso. Los resultados obtenidos con una mejora porcentual consolidada del 46% en el conjunto de indicadores definidos llevan a considerar que la aplicación del marco fue exitosa. Por ser un estudio de caso único, los resultados no deben ser generalizados y una oportunidad de trabajo futuro es replicar el mismo estudio en otras empresas. ABSTRACT Information technology (IT) and its use in the enterprise context is a discussion element because organizations have numerous successes and failures using it. Most of the IT failed projects have a lack of integral strategic vision in relation with IT use in the organization. This fact has resulted in the IT Governance (ITG) area of knowledge. A large number of standards and frameworks have been published in relation with it. Small and medium enterprises (SMEs) are an important and sensible field in all economies around the world, particularly in Uruguay, an underdeveloped country of South America. Commonly, SMEs cannot apply successfully ITG frameworks because of the intrinsic complexity or because a lack of knowledge and culture respect this field, so the objective of this thesis is build a framework that allows SMEs to incorporate an effective framework to govern and manage IT properly, helping enterprises get the expected value of its IT investments. In a first place, has been conducted a field study to know the quality of actual practices relatively to the ITG and IG management in Uruguayan SMEs. With the obtained results in the study we can make a diagnostic of the most significant factors that prevent the proper application of good IT governance practices in these companies. The obtained results were the inputs to the definition of a IT governance framework with focus in SMEs, a maturity model associated with it and a implementation guide. The proposed framework is ISO/IEC 38500 standard compatible always with an SME vision so, sensible and weak processes have been strengthened and other ones have been eliminated because have no application in these type of organization. Finally the results were validated in a business environment by defining a case study. The results obtained with a consolidated percentage improvement of 46% in the defined set of indicators suggest that the implementation of the framework was successful. As a single case study, the results should not be generalized and an opportunity for future work is to replicate the same study in other companies.

Alternativas de financiación para las empresas españolas

El presente documento está enmarcado en elMáster de Consultoría en Gestión de Empresas de laUniversidad Politécnica deMadrid y la Asociación de Empresas de Consultoría como Trabajo de Fin deMáster. A lo largo del estudio, se introduce la problemática a la que se vienen enfrentando las pymes españolas en los últimos años, debido a la reducción del crédito bancario sufrida en nuestro importante en un país con una tradicional dependencia de la financiación bancaria, necesita encontrar soluciones en las fuentes alternativas de financiación que se vienen desarrollando internacionalmente. De esta forma, se realiza un recorrido por las distintas alternativas de financiación, haciendo un repaso de su actividad en España y en países de referencia internacional, y analizando las posibilidades de futuro de cada una de ellas en la realidad de nuestro país. ---ABSTRACT--This document is part of the Master in Business Management and Consultancy of the Universidad Politécnica de Madrid and the Asociación de Empresas de Consultoría as Master Degree Final Project. The problem that Spanish SMEs are facing, due to recent bank credit decrease in our country, is introduced throughout the study. This problem, which is specially critical in a country with a high bank financing tradition, needs to be solved with the alternative financing sources that have been raised internationally. Hence, this document offers an overview of the different financing alternatives, reviewing their activity in Spain and other countries taken as reference, and an analysis of the possibilities that these alternatives may bring to our country in the near future.