Foreign Direct Investment and Small and Medium Enterprises

10.1142/9616 ◽  
2015 ◽  
Author(s):  
Khee Giap Tan ◽  
Kong Yam Tan

2020 ◽  
Vol 24 ◽  
Author(s):  
‪M. Elfan Kaukab ◽  
Vincent Didiek Wiet Aryanto

Data on real-time marketing performance from micro, small and medium enterprises (MSMEs) selling their products in marketplace e-commerce corporations (MECCs) is a big challenge for researchers studying the performance of MECCs capital structure. This article explores the use of Google Trends to determine the impact of Foreign Direct Investment (FDI) on MECCs’ performance. The findings of the trend analysis are explained using the N-OLI framework. It is found that there was a sharp trend decrease in MECCs with partial FDI (Tokopedia and Bukalapak) and full domestic investment (Blibli).On the other hand, there was a sharp increase in MECCs full FDI (Shopee). Other MECCs with full FDI, namely Lazada, has experienced a decrease but it is not as consistent as that of partial FDI. An increase trend in Shopee has negative correlation with a decline trend in Bukalapak. However, after being grouped, partial FDI has a significantly higher mean score compared to full FDI, and MECCs without FDI has the lowest mean score. This finding shows that in the case of Indonesia, FDI plays a role in encouraging the success of MSMEs, especially in MECCs, which have a combination of FDI and domestic investment.



2020 ◽  
Vol 6 ◽  
pp. 160-166
Author(s):  
Y. D. Cisneros-Reyes ◽  
D. C. Caldera-Gonzalez ◽  
M. G. Arredondo-Hidalgo

Despite Mexican leather footwear industry is traditional, it has not increased or even maintained the level of competitiveness in the global market; the export problems of SMEs (Small and Medium Enterprises) have been studied by some authors but the internationalization (beyond exports and imports and including foreign direct investment, international subcontracting and international technical cooperation) has not been deeply explored so it is not documented how the process of this economic segment is occurring and if that is evolving accordingly to the theory (E.g. Uppsala model). The objective of this study is to analyze the internationalization of SMEs of the Mexican leather footwear industry to know if accumulated knowledge and experience in foreign markets effectively leads the organization to more advanced and complex stages of international exchange. A survey composed by 47 questions was applied to a sample of 21 SMEs of the Mexican leather footwear industry, their experience was also collected by semi-structured interviews. Results show that SMEs are involved in the internationalization process strongly oriented to the development of exports and imports and only a small number of them have been able to reach the stage of foreign direct investment. These results suggest that internationalization is only conceived in terms of imports and exports and efforts are carried out only to those stages even if SMEs could obtain a great benefit from the rest of the internationalization exchange (FDI, international subcontracting and technical cooperation). This behaviour might be due to some factors as: (1) the relatively low level of competitiveness of the Mexican firms in the global industry, (2) the lack of know-how and (3) the vision of the owners and managers of the company.



2018 ◽  
Vol 11 (2) ◽  
pp. 557-587 ◽  
Author(s):  
Colette M.A. van der Ven

Abstract Most Sub-Saharan African countries have adopted policies to attract foreign direct investment (FDI) and policies to stimulate the growth of small and medium enterprises (SMEs). While a significant body of literature exists analyzing how these objectives can be mutually reinforcing, the negative interplay between these policies remains relatively unexplored. This paper examines whether, and in what circumstances, investment incentives could undermine SME competitiveness and, conversely, whether policies aiming to promote SMEs through encouraging FDI-SME linkages could impede FDI. This paper demonstrates that, absent a comprehensive approach to policy making, tensions invariably arise between investment incentives and SME promotion policies.



2014 ◽  
Vol 05 (03) ◽  
pp. 1403002 ◽  
Author(s):  
Khee Giap Tan ◽  
Kong Yam Tan

There is a large literature dealing with the spillover effects of foreign direct investment (FDI) flows to emerging and developing economies at the aggregate level. Beyond the aggregate impacts, a growing number of studies also examine the impact of FDI spillovers on firms of different sizes, especially small and medium enterprises (SMEs). This special issue of the journal of International Commerce, Economics and Policy (JICEP) features seven empirical papers dedicated to exploring issues relating to the various interactions between FDI flows, productivity spillovers and SMEs in Asia and beyond.



2011 ◽  
Vol 2 (4) ◽  
pp. 138-153
Author(s):  
Kamaladevi B

Invest in India is an initiative to market India as an investment destination all over the globe, to provide a networking platform to the Indian businesses at a global level and to provide information to the international investors about investment opportunities in India. It is the policy of the Government of India to attract and promote productive Foreign Direct Investment (FDI) from non-residents in activities which significantly contribute to industrialization and socio-economic development. FDI supplements the domestic capital and technology. This paper firstly speaks about the FDI culture in India, secondly, reviews economic reforms in India and global response to India’s reforms, the next level discusses the policy issues that would address India’s relative lack of success in attracting FDI and the ‘Expanding Opportunities for Global Retailers’ with reference to the retail sector. The last part reveals the key recommendations towards attracting Diaspora FDI. Based on the objective analysis, the key recommendations towards attracting FDI are revealed like allow 100 % FDI in retail and Small & Medium Enterprises (SME), develop a strategic vision for FDI with focus on latest technology, reduce the transaction costs & improve the infrastructure, international and domestic entrepreneurship, decentralize the administration process, reduce overly bureaucratic FDI facilities, private public partnership with private sector taking the lead, Indian professionals placed in key decision making positions, creative joint ventures and partnership to tap entrepreneurship and fix the policies to convert remittances into investment & create venture capital.



2021 ◽  
pp. 097639962097702
Author(s):  
Mengdie Ruan ◽  
Angathevar Baskaran ◽  
Shanshan Zhou

This article explores the contributions of—and constraints faced by—small and medium enterprises (SMEs) owned by mainland Chinese immigrant entrepreneurs in Malaysia using qualitative research and primary data gathered from five cases. It was found that Chinese immigrant SMEs make significant contributions to the host economy in terms of employment, diverse products and services, exports, innovation, micro foreign direct investment (FDI) and global linkages. Of these, employment creation and exports appear to be their most important contributions. They face various constraints, some of which are largely the same as those faced by local entrepreneurs. However, they additionally face some specific constraints which local entrepreneurs do not, such as language barrier, lack of financial support in the growth stage, lack of government assistance, and onerous bureaucratic problems, such as tax and visa requirements. The findings suggest that the government should create a special department to formulate tailor-made policies and incentives to support immigrant-owned SMEs, so that their contribution to the future economic development of Malaysia can be further strengthened and monitored.



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