Impact of Global Value Chain on the Performance of SMEs
The globalization has interfered to almost all sections, such as social, economic and cultural sectors of countries in the world. In this scenario the small and medium sized enterprises (SMEs) also obviously become victims less or more in depending on exposure to the open economy. The development of technology and communication, accelerated it without ignoring a single country in the world. Even though the big picture is as such, SMEs, especially in East Asian countries had not reached to its optimum level, in the context of contribution to Global Value Chains(GVCs). Involvement of a number of tasks or processes in the form of international networks, which are actively constructed mainly by multinational corporations, provides ample opportunities to SMEs to participate in globalization. Within the whole value chain, SMEs perform one task or process and contribute to huge production process system as one link. In GVC, SMEs can basically participate in two ways. The first method is ‘forward GVC participation” where, SMEs either provide goods and services directly to foreign firms or supply inputs to local firms that produce for exporting. By sourcing inputs from overseas suppliers maintain linkages with foreign partners, for production of goods and services utilized for domestic consumption or export is called ‘backward GVC participation’, the second way of participation. However, limited availability of human and financial resources and technological capacity, the main reason, that hinder SMEs, associating in international trade, from where they can earn high profit margins. GVC is an excellent platform to them to participate in international market. During last two decades many countries in the world, especially in Asian region, gained evocation, contributing a significant growth to their country economies. This study is focused to review the enhancement of SMEs participation in GVCs by Asian countries, Indonesia, Thailand, Viet Nam and Sri Lanka
Year of publication: |
[2021]
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Authors: | Dharmasiri, Janaki |
Publisher: |
[S.l.] : SSRN |
Subject: | KMU | SME | Betriebliche Wertschöpfung | Value creation | Unternehmenserfolg | Firm performance | Globalisierung | Globalization | Internationale Produktion | International production | Wertschöpfung | Value added |
Saved in:
freely available
Extent: | 1 Online-Ressource (8 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 8, 2021 erstellt |
Other identifiers: | 10.2139/ssrn.3939221 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013311754
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