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Engaging Small and Medium Enterprises in Production Networks: Firm-level Analysis of Five ASEAN Economies

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  • Wignaraja, Ganeshan

    (Asian Development Bank Institute)

Abstract

The Association of Southeast Asian Nations (ASEAN) small and medium enterprises (SMEs) are under scrutiny for their engagement in production networks following recent emphasis on increasing intra-regional trade, rebalancing, and inclusive growth in Asia. Using a data set covering 5,900 firms in five ASEAN economies at different stages of development, this paper analyses the participation of SMEs in production networks, determinants, and policy implications. It finds that although large firms dominate production network engagement in ASEAN economies, there are signs that SMEs have modestly increased their participation since the late-1990s. This is linked to firm-specific factors (e.g., firm size, foreign ownership, skills, technological capabilities, and access to credit) as well as a supportive business environment. Tackling residual supply-side and policy constraints can further the participation of ASEAN SMEs in production networks.

Suggested Citation

  • Wignaraja, Ganeshan, 2012. "Engaging Small and Medium Enterprises in Production Networks: Firm-level Analysis of Five ASEAN Economies," ADBI Working Papers 361, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0361
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    References listed on IDEAS

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    Cited by:

    1. Jamil Paolo Francisco & Tristan Canare & Jean Rebecca Labios, 2018. "Obstacles and Enablers of Internationalization of Philippine SMEs Through Participation in Global Value Chains," Working Papers id:12905, eSocialSciences.
    2. Ganeshan Wignaraja & Jens Krüger & Anna Mae Tuazon, 2013. "Production Networks, Profits, and Innovative Activity : Evidence from Malaysia and Thailand," Microeconomics Working Papers 23391, East Asian Bureau of Economic Research.
    3. repec:ilo:ilowps:486999 is not listed on IDEAS
    4. Muhammad H. Yudhistira & Decky Priambodo K. & Sonny H.B. Harmadi & Andhika Putra Pratama, 2016. "How Congested Jakarta is? Perception of Jakarta’s Citizen on Traffic Congestion," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 62, pages 141-151, December.
    5. Nam Hoang Vu & Tuan Anh Bui & Tram Bao Hoang & Hanh My Pham, 2022. "Information technology adoption and integration into global value chains: Evidence from small‐ and medium‐sized enterprises in Vietnam," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(2), pages 259-286, March.
    6. Lord, Montague & Artuso, Fabio & Record, Richard & Clarke, Julian, 2014. "Trading Costs in East Asia’s Global Value Chains," MPRA Paper 66437, University Library of Munich, Germany.
    7. Nguyen Dinh Chuc & Anh Ngoc Nguyen & Nguyen Thi Kim Thai, 2018. "VIETNAM SMEs' PARTICIPATION IN REGIONAL ECONOMIC INTEGRATION. Survey Results of Three Manufacturing Sectors," Working Papers 02, Development and Policies Research Center (DEPOCEN), Vietnam.
    8. Mohamad Dian Revindo, 2017. "Types and Severities of Export Barriers: Evidence from Indonesian SMEs," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 63, pages 150-175, December.
    9. Cassey Lee & Dionisius Narjoko, 2015. "Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 124-147, January.
    10. Tony Cavoli & David Christian & Rashesh Shrestha, 2022. "Understanding SME Trade Finance in ASEAN: An Overview," Working Papers DP-2021-55, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. Scuotto, Veronica & Garcia-Perez, Alexeis & Nespoli, Chiara & Messeni Petruzzelli, Antonio, 2020. "A repositioning organizational knowledge dynamics by functional upgrading and downgrading strategy in global value chain," Journal of International Management, Elsevier, vol. 26(4).
    12. Yap, Josef T., 2014. "ASEAN Community 2015 : managing integration for better jobs and shared prosperity in the Philippines," ILO Working Papers 994869993402676, International Labour Organization.
    13. repec:unt:escsti:sti84 is not listed on IDEAS
    14. Anh Ngoc Nguyen & Nguyen Thi Tuong Anh & Nguyen Ngoc Minh & Nguyen Thi Phuong Mai, 2018. "SOUTH KOREAN MULTINATIONAL ENTERPRISES AND VIETNAM SMEs’ PARTICIPATION IN GLOBAL PRODUCTION NETWORKS IN THE CONTEXT OF INCREASED ASEAN AND EAST ASIAN REGIONAL ECONOMIC INTEGRATION," Working Papers 03, Development and Policies Research Center (DEPOCEN), Vietnam.
    15. Mohamad D. Revindo & Christopher Gan, 2018. "Factors Affecting Variation in SMES' Export Intensity," LPEM FEBUI Working Papers 201820, LPEM, Faculty of Economics and Business, University of Indonesia, revised May 2018.

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    More about this item

    Keywords

    small and medium enterprises; production networks; asean; intra-regional trade;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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