Export Consortia in Developing Countries docx

[...]... than joint ventures or foreign direct investments (FDIs) Factors affecting firms’ export behaviour have been studied by researchers from the fields of economics, marketing and management Renewed interest in the topic is a result of the increasing role of emerging economies in export trade (Singh 2009) In a global world, and especially in developing countries, the number of small firms engaged in export. .. They include low-income countries in Africa, Latin America and Asia 14 1 Internationalization of Small and Medium-Sized Enterprises Consumers in developing countries have a very low discretionary income The proportion of personal income spent on goods other than food, clothing and housing is very limited Governments in developing countries are often heavily indebted and bureaucracy greatly constrains... case of SMEs in developing F Antoldi et al., Export Consortia in Developing Countries, DOI 10.1007/978-3-642-24879-5_1, # Springer-Verlag Berlin Heidelberg 2011 1 2 1 Internationalization of Small and Medium-Sized Enterprises countries, who are generally less experienced in exporting, especially to customers in the developed world SMEs suffer from a number of major internal barriers relating to their... of developing countries relies on a greater engagement of these countries in international trade Participating actively in international trade can significantly stimulate economic growth and stability in developing countries and help create jobs and raise income Promoting a higher level of exports can therefore be crucial for governments and policy-makers in order to make countries more successful in. .. developing countries and ‘emerging and other developing countries The United Nations Development Program identifies low, medium and high human development countries, whereas the World Bank classifies developing countries as either low-income or middle-income countries In broad terms, by developing countries we mean low-income countries still characterized by limited industrialization and stagnant economies... participation in foreign trade shows Such support is much more important in developing countries where SMEs are generally characterized by greater constraints in terms of resources and experience, compared to their counterparts in developed countries In many countries small firms often complain that they receive either insufficient export assistance, or none at all In addition, it is considered increasingly... of international production with important implications for developing countries (Johnson and Turner 2010) Increasing economic integration has enhanced the emergence of global manufacturing systems in which different production processes are dispersed on a global basis This has shown the relevance of a different route to international markets In developing countries, an increasing number of firms go international... (relationships involving SMEs in the same industry segment or producing complementary products) and vertical ties (relationships involving SMEs specialized in sequential activities of the value chain) SMEs can overcome the constraints deriving from weak infrastructure and poor institutional environment Inter-organizational collaborative arrangements act as substitutes for the lack of a strong institutional... conditions of use The main obstacle, especially in the case of firms in developing countries intending to export to more advanced economies, is the difficulty in meeting the quality standards required abroad Customers in developed countries are generally used to higher quality than that offered by firms in developing countries Furthermore, developed countries are characterized by stricter regulations, such as those... of these countries is quite different from what is often found in developed countries, in terms of governmental support, infrastructure and regulation In addition, it is increasingly acknowledged that firms can develop their export potential by leveraging on networks or collaborative strategies Combining resources, knowledge and experience can lead to more rapid internationalization Export consortia . marketing and management. Renewed interest in the topic is a result of the increasing role of emerging economies in export trade (Singh 2009). In a global world, and especially in developing countries, . Consortia in Developed Countries . . . . 52 3.5 Export Consortia in Developing Countries . . 54 3.6 The Experience of the United Nations Industrial Development Organization in Promoting SME Export.