IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v26y2006i5p475-492.html
   My bibliography  Save this article

Performance, Internationalization, and Firm-specific Advantages of SMEs in a Newly-Industrialized Economy

Author

Listed:
  • Yu-Ching Chiao
  • Kuo-Pin Yang
  • Chwo-Ming Yu

Abstract

In light of the lack of empirical evidence regarding issues of internationalization as they affect small and medium-sized enterprises (SMEs) from newly-industrialized economies (NIEs), this study aims to expand the applicability of existent internationalization theories. So far, such theories have largely been developed with MNCs from industrialized economies in mind. In examining a 1996 sample of 1,419 Taiwanese SMEs, we found that the relationship between internationalization and performance could be graphically depicted as one of inverted U-shaped curvilinearity, and that a specific level of internationalization corresponded to maximum profitability. Our empirical findings also confirmed a relationship of U-shaped curvilinearity between advertising investment and performance, indicating that a minimum level of investment is required in order for advertising to be effective. Investments in research and development (R&D) were also shown to be positively associated with firm performance. The external validity of our internationalization theories regarding SMEs from NIEs was generally supported, though some modifications allowing for consideration of the particular context of individual SMEs will ultimately become a necessity. Copyright Springer 2006

Suggested Citation

  • Yu-Ching Chiao & Kuo-Pin Yang & Chwo-Ming Yu, 2006. "Performance, Internationalization, and Firm-specific Advantages of SMEs in a Newly-Industrialized Economy," Small Business Economics, Springer, vol. 26(5), pages 475-492, June.
    • Handle: RePEc:kap:sbusec:v:26:y:2006:i:5:p:475-492
    DOI: 10.1007/s11187-005-5604-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11187-005-5604-6
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-005-5604-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:26:y:2006:i:5:p:475-492. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.