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The Small and Medium Sized Exporters' Problems: An Empirical Analysis of Canadian Manufacturers

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  • Sharmistha Bagchi-Sen

Abstract

BAGCHI-SEN S. (1999) The small and medium sized exporters' problems: an empirical analysis of Canadian manufacturers, Reg. Studies 33 , 231-245. This paper examines the competitive characteristics of small and medium sized manufacturers from small towns and cities in southern Ontario. The paper is situated within the context of two bodies of theoretical literature. The first is the literature on the dilemmas faced by small and medium sized enterprises (SMEs) in small open economies, especially in an era of trade liberalization. The second body of literature involves the role and nature of SMEs in employment growth, trade and innovation. A particular focus of this study is to understand the relationship between export orientation and innovation performance. The study is based on a survey of SMEs in the Niagara region, a mature industrial region in the periphery of Toronto. Results confirm that successful exporters from these small urban places are also actively involved in both product and process innovation. As a result, competitive advantage is based on both price and non-price based factors. Competitive problems include issues related to scale economies and the rising import competition from US producers in the post FTA and NAFTA period. Successful entrepreneurs from this region are not only pushing forward with innovation, but strive to become leaders within their market segment. Future studies will focus upon: cross-border comparisons of SMEs with regards to the relationship between innovation and export performance; competitive strategies and technical problems; and innovation and export market development efforts in other countries of the Asia-Pacific region. BAGCHI-SEN S. (1999) Les problemes auxquels font face les PMI a vocation exportatrice: une analyse empirique des industriels au Canada, Reg. Studies 33 , 231-245. Cet article cherche a examiner les traits concurrentiels des petites et moyennes entreprises industrielles situees aux villes de l'est de l'Ontario. L'article embrasse deux corpus de documentation theorique. Primo, la documentation qui traite des problemes auxquels font face les PMI dans les petites economies ouvertes, surtout a l'heure de la liberalisation des echanges. Secundo, la documentation qui traite du role et des caracteristiques des PMI quant a la creation de l'emploi, le commerce et l'innovation. Cette etude porte notamment sur le rapport entre la vocation exportatrice et la capacite d'innover. L'etude provient d'une enquete des PMI situees dans la region de Niagara, une region industrielle developpee a la peripherie de Toronto. Les resultats confirment que les exportateurs reussis qui proviennent de ces petites zones urbaines s'engagent serieusement aussi dans l'innovation des produits et des procedes. Par la suite, l'avantage competitif s'explique et par des facteurs de prix et par d'autres facteurs. Les problemes de competitivite embrassent des questions qui se rapportent aux economies d'echelle et a la concurrence de plus en plus vive des industriels aux EU au lendemain de la FTA et de la NAFTA. Les entrepreneurs reussis de cette region n'ont pas seulement le merite de faire valoir l'innovation, mais aussi s'efforcent de devenir leader au sein de leur secteur. Des etudes futures porteront sur des comparaisons transfrontalieres des PMI quant au rapport entre l'innovation et l'exportation; les strategies competitives et les problemes techniques; l'innovation et la promotion a l'exportation dans d'autres pays de la zone asiatique, pacifique. BAGCHI-SEN S. (1999) Probleme kleiner und mittelgrosser Exportfirmen: eine empirische Analyse kanadischer Hersteller, Reg. Studies 33 , 231-245. Dieser Aufsatz untersucht die Wettbewerbseigenschaften kleiner und mittelgrosser Hersteller in Klein- und Grossstadten von Sudontario. Der Aufsatz ist im Zusammenhang zweier Gebiete der theoretischen Literatur angesiedelt: das einebeschaftigt sich mit den Dilemmas, denen kleine und mittelgrosse Unternehmen (small and medium sized enterprises=SME) sich in kleinen, offenen Wirtschaftssystem ausgesetzt sehen, besonders in einem Zeitalter der Handelsliberalisierung, wahrend es sich bei dem anderen um Rolle und Natur kleiner und mittlerer Firmen bei Beschaftigungsanstieg, Handel und Innovation dreht. Diese Studie konzentriert sich vorallem auf das Verhaltnis zwischen der Ausrichtung auf Export und Durchfuhrung von Innovationen. Sie beruht auf der Untersuchung kleiner und mittlerer Firmen im Niagaragebiet, einem voll entwickelten Industriegebiet am Rande Torontos. Die Ergebnisse bestatigen, dass erfolgreiche Exportfirmen in diesen Kleinstadten auch aktiv in Produkt- und Verarbeitungsinnovation engagiert sind. Daraus ergibt sich, dass Wettbewerbsvorteile sowohl auf Preisfaktoren beruhen wie auch auf anderen, ausserhalb des Preises liegenden. Wettbewerbsprobleme entstehen durch Fragen, die mit der Wirtschaftlichkeit des Betriebsumfangs zu tun haben, mit dem sich verscharfenden Importwettbewerb von Herstellern in den USA im Gefolge des FTA and NAFTA Zeitalters. Erfolgreiche Unternehmer dieses drangen nicht nur auf Innovation, sondern bemuhen sich daruberhinaus, auf ihrem Marktsektor fuhrend zu werden. Zukunftige Untersuchungen werden sich auf grenzuberschreitende Vergleiche kleiner und mittelgrosser Firmen im Hinblick auf das Verhaltnis von Innovation und Expertleistung; auf Wettbewerbsstrategien und technische Probleme; auf Innovation und Anstrengungen bei der Entwicklung von Exportmarkten in anderen Landern der asiatischen-pazifischen Region konzentrieren.

Suggested Citation

  • Sharmistha Bagchi-Sen, 1999. "The Small and Medium Sized Exporters' Problems: An Empirical Analysis of Canadian Manufacturers," Regional Studies, Taylor & Francis Journals, vol. 33(3), pages 231-245.
  • Handle: RePEc:taf:regstd:v:33:y:1999:i:3:p:231-245
    DOI: 10.1080/00343409950082427
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    3. Renee Will & Alan MacPherson, 2001. "The Impact of the North American Free Trade Agreement on the Economy of Western New York," Economic Development Quarterly, , vol. 15(4), pages 340-349, November.
    4. Nazarczuk Jarosław M. & Umiński Stanisław, 2018. "The geography of openness to foreign trade in Poland: The role of special economic zones and foreign-owned entities," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 39(39), pages 97-111, March.
    5. Peter Mayerhofer & Oliver Fritz & Dieter Pennerstorfer, 2010. "Dritter Bericht zur internationalen Wettbewerbsfähigkeit Wiens," WIFO Studies, WIFO, number 42430.
    6. Wilkinson, Timothy & Brouthers, Lance Eliot, 2006. "Trade promotion and SME export performance," International Business Review, Elsevier, vol. 15(3), pages 233-252, June.
    7. Aalto, Eero & Gustafsson, Robin, 2020. "Export Promotion Rationales and Impacts – A Review," ETLA Reports 100, The Research Institute of the Finnish Economy.
    8. Nguyen, Truc Le & Ghatak, Subrata & Daly, Vince, 2006. "The export propensity of Polish SMEs," Economics Discussion Papers 2006-3, School of Economics, Kingston University London.
    9. Quy T. Vo & Tho V. Nguyen & Tin H. Ho & Hien T. T. Bui & Khoa N. A. Le, 2023. "Supportive Policies of Government as the Drivers of SMEs’ Export Performance: A Study in Ho Chi Minh City, Vietnam," SAGE Open, , vol. 13(4), pages 21582440231, November.

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