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SMEs and Regional Production Networks

Chapter


Abstract


  • The onset of globalization and increased regional economic integration has presented new

    challenges as well as opportunities for SMEs in East Asia. Despite the many barriers and

    capacity constraints they face arising from their relatively small size, they remain a vibrant and

    essential ingredient for the economic growth and employment generation of the regional

    economy. To survive in an increasingly competitive environment requires a new growth

    paradigm and business strategy for SMEs that focuses upon knowledge and skill acquisition,

    technology upgrading, innovation and wealth creation. These are likely to be necessary

    attributes for SME participation in regional and global production networks, and in particular

    for the high value adding parts of such networks. The former have become very important in

    explaining the rapid growth of trade and investment flows in East Asia, where intra regional

    and intra industry trade now predominate.

    In this context the chapter: conducts an overview of the role and significance of the SME

    sector in the economic development of East Asia; provides context for this and subsequent

    chapters relating to the development of production/distribution networks in East Asia; briefly

    discusses the potential opportunities and challenges facing SMEs from participation in

    production networks; and highlights key areas for capacity building if SMEs are to achieve

    their full potential from this participation.

Publication Date


  • 2010

Citation


  • Harvie, C. (2010). SMEs and Regional Production Networks. In V. Thanh, D. Narjoko & S. Oum (Eds.), ERIA Research Project 2009 No. 8: Integrating Small and Medium Enterprises (SMEs) into the More Integrated East Asia (pp. 19-45). Jakarta: ERIA.

Book Title


  • ERIA Research Project 2009 No. 8: Integrating Small and Medium Enterprises (SMEs) into the More Integrated East Asia

Start Page


  • 19

End Page


  • 45

Abstract


  • The onset of globalization and increased regional economic integration has presented new

    challenges as well as opportunities for SMEs in East Asia. Despite the many barriers and

    capacity constraints they face arising from their relatively small size, they remain a vibrant and

    essential ingredient for the economic growth and employment generation of the regional

    economy. To survive in an increasingly competitive environment requires a new growth

    paradigm and business strategy for SMEs that focuses upon knowledge and skill acquisition,

    technology upgrading, innovation and wealth creation. These are likely to be necessary

    attributes for SME participation in regional and global production networks, and in particular

    for the high value adding parts of such networks. The former have become very important in

    explaining the rapid growth of trade and investment flows in East Asia, where intra regional

    and intra industry trade now predominate.

    In this context the chapter: conducts an overview of the role and significance of the SME

    sector in the economic development of East Asia; provides context for this and subsequent

    chapters relating to the development of production/distribution networks in East Asia; briefly

    discusses the potential opportunities and challenges facing SMEs from participation in

    production networks; and highlights key areas for capacity building if SMEs are to achieve

    their full potential from this participation.

Publication Date


  • 2010

Citation


  • Harvie, C. (2010). SMEs and Regional Production Networks. In V. Thanh, D. Narjoko & S. Oum (Eds.), ERIA Research Project 2009 No. 8: Integrating Small and Medium Enterprises (SMEs) into the More Integrated East Asia (pp. 19-45). Jakarta: ERIA.

Book Title


  • ERIA Research Project 2009 No. 8: Integrating Small and Medium Enterprises (SMEs) into the More Integrated East Asia

Start Page


  • 19

End Page


  • 45