measure of the rate of innovation --research-and-development (R&D) expenditure per employee compared to new patents received per employee -- does not adequately capture a unique feature of SMEs, namely that owners and managers are often themselves innovators. For example, in Japan 52 per cent of SMEs' innovations reported in 1986 were created by employers, whereas in large firms 72 per cent of innovations were created by research technicians. Nevertheless, patchy evidence from Germany, the United Kingdom and the United States indicates that SMEs at least hold their own in terms of innovation compared to large firms. Perhaps most significantly, a recent study indicates that, while the total number of innovations is positively related to R&D expenditures, skilled labour and the degree to which large firms comprise the industry, in innovative industries innovative activity tends to emanate more from SMEs than large firms. This is probably because in industries where large firms dominate, SMEs need to be innovative to survive. There is much information to suggest that in technologies such as micro-electronics, new materials and biotechnology SMEs tend to be in the vanguard of innovation. Small and medium-sized enterprises as exporters. The contribution of SMEs to a national economy from exporting is generally small; for example, in Japan SMEs accounted for only 13 per cent of merchandise exports in 1990.

The drivers of globalization are removing the barriers that segregated the competitive space of the small and large firms in the past. It is becoming increasingly difficult for independent small firms to thrive in their traditional markets unless they are globally competitive. Managing an enterprise's commercial, industrial and political relations well, regardless of size and location, is the essence of the entrepreneurial challenge in this competitive arena. Small and medium size enterprises (SMEs) often face very different issues than large multinational enterprises do when confronting internationalization. This volume provides an in-depth discussion of these challenges. The contributors to this volume explore the emerging patterns of SME growth and international expansion in response to the evolving competitive environment, dynamics of competitive behavior, entrepreneurial processes and formulation of strategy. They examine the basis and requirements of growth and expansion from three perspectives: the rapidly-changing environment in which business is conducted, entrepreneurial characteristics, and the evolving strategic and competitive response to this changing business environment. Business leaders, scholars and students interested in international business and entrepreneurship will welcome this volume.

p>Written by globally renowned scholars in the field of international business, International Business, Second Edition takes a truly global perspective that goes beyond the United States, presenting the latest concepts, tools and events, and adopting integrated and problem-solving approaches in every chapter. The book highlights the role of culture, politics and legal issues in international business and illustrates how they influence institutions, structures and processes that permeate all functions of business.

This edited volume develops an understanding of the strategies, processes, issues and concerns involved when small and medium-sized enterprises (SMEs) go international with their local products/services and vice versa. It is a compendium of eighteen selected chapters on the subject, supported by an introductory chapter. The contributions are organized in four parts based on the sub-themes they deal with. The first part, containing the introductory chapter, provides different perspectives on transnational entrepreneurship, returnee entrepreneurship and their linkages with the internationalization process. The subsequent parts have chapters dealing with three sub-themes of the subject – the internal factors (individual and firm-level resources), the external factors (entrepreneurial ecosystem), and the process of organizational transformation and change, respectively, in the context of SME internationalization. Special issues and challenges being faced by SME entrepreneurs in emerging economies have been highlighted in this book, discussing key contemporary issues with regard to internationalization in the three dimensions outlined above. Further, the book explains how an entrepreneur can engineer the transformation of his/her organization into an international SME. This book is a very useful resource for entrepreneurs and policy-makers in general, and for academics and researchers in particular, as it provides an overview of the contemporary research in the critical areas of SME internationalization and transnational entrepreneurship by highlighting the linkages between them with special reference to emerging economies.

Globalization has begun to dismantle the barriers that traditionally segregated local business opportunities and local firms from their international counterparts. The works in this collection provide new insights on both traditional and emerging aspects of small and medium sized enterprises.

International economic law, with its traditional focus on large multinational enterprises, is only slowly waking up to the new reality of small and medium-sized enterprises (SMEs). In the wake of the digital revolution, smaller companies now play an important role in the economic landscape. In 2015 the UN expressly called for SMEs to have greater access to international trade and investment, and it is increasingly recognized that the integration of SMEs provides one of the keys to creating a more sustainable and inclusive global economy. As 'born global' SMEs increasingly permeate transnational supply chains, so interactions between these companies and legal policy makers proliferate. Small and Medium-sized Enterprises in International Economic Law offers the first comprehensive analysis of the interaction between SMEs and international economic law. This book presents a broad international perspective, gathering together contributions by leading experts from academia, legal practice, and international organizations. It opens up a field of enquiry into this so far unexplored dynamic and provide a touchstone for future debate. Diverse perspectives illuminate regional developments (in particular within the EU), such as State Aid and the implications of multinational free trade partnership agreements. The analysis covers a broad spectrum of international trade and investment law focusing on issues of particular interest to SMEs, such as trade in services, government procurement, and trade facilitation. The essays also examine questions of legitimacy and conduct in the global marketplace; in particular, concerns surrounding the threat posed to the interests of domestic SMEs by the growing liberalization of international trade and investment. These essays constitute essential reading for practitioners and academics seeking to navigate a previously neglected trend in international economic law.

While the Corporate Social Responsibility (CSR) activities of small firms have been analysed to some extent, their engagement in international networks relating to CSR is less understood. Most of these networks primarily address the needs of multinational corporations. Surprisingly, however, the number of small firms participating in such institutions has substantially increased over recent years. But what is the reason for this new interest of SME in institutional forms of CSR? Based on a qualitative empirical study of German small firms’ participation in the most prominent CSR institution, the UN Global Compact, this book explores the drivers for small firm participation. The motivations are complex and do not follow the same hierarchical order associated with large business behaviour. Rather, reasons for institutional engagement suggest a heterarchical structure, where alignment is contingent upon factors such as individual CSR perception, self-conception or social environment. The book explains why small firms prefer to engage in sustainable development within institutionalised forms of CSR rather than act in isolation, and provides recommendations on how to support and thus increase SME participation in institutionalised forms of civic engagement.

Supply Chain Management (SCM) has become an important area of focus for any business that wishes to remain competitive. It is especially integral to managing successful Small and Medium-sized Enterprises (SMEs). In recent years, there has been a growing interest in how SCM can be used to create value for SMEs. The development of SCM systems in SMEs has been a key factor in their success. SCM can provide SMEs with an understanding of their supply chain, enabling them to better manage their resources and ensure that their products and services meet customer demand. It also provides an opportunity to reduce costs and improve customer service. The book enables SMEs to better understand the complexities of the supply chain process and provides insights into the best practices for Sustainable Supply Chain Management (SSCM), Customer Relationship Management (CRM), Corporate Social Responsibility (CSR) and Customer Satisfaction and Service (CSSCM). There are the challenges of managing a supply chain in SMEs and suggestions on how to increase efficiency and reduce costs by including methods of inventory management, vendor selection and the use of technology. The book provides an invaluable resource for anyone involved in the supply chain practice and study, whether as a business owners, employees, researchers or students. It offers an in-depth exploration of the various facets of SCM and provides readers with valuable insights into the complexities of managing the supply chain in the SME sector.

What is international business? How does it differ from local or national business? What are the fundamental challenges and emerging trends in international business? What is the impact of globalization, corporate social responsibility, and the ever expanding use of digital technology on corporate strategies and executive decisions? International Business: Theory and Practice addresses these questions by providing the student with a broad overview of the subject, while guiding readers through the practical issues and context of international business with the use of a range of examples, cases and discussion questions drawn from around the world. Current critical issues in international business are analysed and explored: corporate social responsibility in an era of unprecedented globalization, the rise of the global entrepreneur and the `democratization′ of competition worldwide, and applications of technology in a digital economy. Key Features: - Unpacks the complex issues facing both multi-national enterprises (MNE) and international small and medium enterprises (SME) - Contains a full range of learning features including international case studies, explanations of key terms, a glossary, and annotated further reading - A dedicated companion website with material to support both lecturers and students.

Entrepreneurship and globalization are two much-examined forces as we enter the new millennium--yet very little has been published on the intersection of small and medium-sized enterprises (SMEs) and the global economy. To close the gap, this volume delves into the intricate roles and consequences of such businesses on both global and domestic economies. The first part of the volume provides an overview of the phenomenon of globalization, arguing that entrepreneurial discovery and technological change lead to globalization, which in turn leads to further opportunity for entrepreneurial discovery--no less for SMEs than for multinational corporations. In part two, the essays examine the role of SMEs in the global economy and why they are thriving. Part three reviews the roles of SMEs and innovators and examines their roles in direct foreign investment. Part four explores the role of technological diversity and knowledge spillovers as a way to explain the superior innovative performance of SMEs. Part five looks at the role of SMEs in technology transfer. Finally, part six examines the theoretical and policy implications of the international activities of SMEs, suggesting that policies should aim to reduce the costs in international expansion for SMEs. This volume will provide the foundation for further study in SMEs and globalization. It will appeal to scholars and students in both international business and economics. Zoltan J. Acs is Professor of Economics and Finance, University of Baltimore. Bernard Yin Yeung is Professor of International Business, University of Michigan.