Small and Medium Enterprise Dynamics in Indonesia

Berry, Albert; Rodriquez, E.; Sandee, Henry

doi:10.1080/00074910152669181

Cited by 131 publications

(94 citation statements)

References 14 publications

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“…Large enterprises may be the first to lay-off workers in order to reduce operational costs to thrive the crisis. Berry et al (2001) and Tan and See (2004) also found evidence on SMEs' resistance during volatile macroeconomic conditions. Nevertheless, the effect of size is less visible among FFs, as large FFs' employment growth rates did not evolve significantly different from that of smaller FFs during the two recessions (Model A.5).…”

Section: Employment Growthmentioning

confidence: 96%

Do foreign and domestic firms behave any different during economic slowdowns?

Varum

Rocha

2011

International Business Review

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The global crisis has called to further reflection on the role of multinationals in host economies during crisis. The evidence on this matter is scarce and no definite conclusions were achieved. Using panel data analysis, this paper examines the link between foreign ownership, firm employment and turnover growth over twenty years and during economic downturns in particular. We analyse the determinants of firm employment and turnover growth and investigate whether there are significant differences in both variables among domestic and foreign firms when controlling for firm and industry specificities. Additionally we assess if the foreignness effect alters during economic downturns. After controlling for several firm and industry characteristics, we find no significant differences between domestic and foreign firms in what concerns employment growth. However, our results suggest that foreign ownership may affect positively firms' sales turnover growth during recessions.

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Section: Employment Growthmentioning

confidence: 96%

Do foreign and domestic firms behave any different during economic slowdowns?

Varum

Rocha

2011

International Business Review

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“…As a result, SMEs may be more able to sustain their employment levels and thus counteract the negative effects of the crisis, helping to stabilize the economy. Indeed, there is robust empirical evidence showing that SMEs, and specifically export-oriented SMEs, are better able to adjust to crises (e.g., Sato 2000;Berry et al 2001;and Wengel and Rodriguez 2006 There are also several reasons to expect smaller firms to be more vulnerable to the negative effects of an economic crisis. On the one hand, SMEs may suffer disproportionately from economic downturns due to their limited financial resources and dependence on banks' lending, paying for such high interest rates (e.g.…”

Section: Firm Size Firm Growth and Economic Downturnsmentioning

confidence: 99%

“…Smaller enterprises may be more flexible in adapting to an economic downturn as they are less resistant to inertia, rigidity and sunk costs (Tan and See 2004), more able to exploit market niches (Gregory et al 2002;Narjoko and Hill 2007;Hodorogel 2009), being concentrated on activities characterized by economies of agglomeration, rather than economies of scale (Berry et al 2001;Hall and Harvie 2003), and less reliant on formal credits compared to their larger counterparts, who are more burdened by debts (Sato 2000;Wangel and Rodriguez 2006). Even their disadvantages at technological and knowledge levels can be overcome through the imitation of other firms' best practices (Nugent and Yhee 2002).…”

Section: Firm Size Firm Growth and Economic Downturnsmentioning

confidence: 99%

Employment and SMEs during crises

Varum

Rocha

2011

Small Bus Econ

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The current economic crisis has raised concerns about the persistent increasing duration of unemployment. Although lay-offs at large firms normally make headlines during crises, we still know little about the potential impact of firm size on firms' adjustment behavior under a crisis context. We study firm size effects on employment growth during economic slowdowns, using a rich microeconomic database for the 1988-2007 period in the Portuguese manufacturing industry. The results show that economic downturns impacted negatively upon firm growth. This negative impact is found to be higher for larger firms, either during or also immediately after crisis periods. Small and medium sized enterprises (SMEs) emerge as potential stabilizers in downturn periods. However, larger firms seem to be able to quickly recover from downturn periods.Our results contribute to the scarce literature on these matters and also to the understanding of the Portuguese case, where there are a great number of SMEs which secure the majority of jobs. These first results may be useful as SMEs play a determinant role in other economies of the European Union (EU).

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“…For instance, Berry, Rodriguez and Sandee (2001) reported that micro and small manufacturing enterprises in Indonesia employ 67 percent of the total working population in the country in manufacturing establishments. Similarly, in Ghana, micro, small and medium-sized enterprises are said to be a characteristic feature of the production landscape and have been noted to provide about 85 percent of manufacturing employment of Ghana (Abor & Quartey, 2010).…”

Section: Introductionmentioning

confidence: 99%

Market Orientation and the Performance of Small and Medium-Sized Manufacturing Enterprises in the Accra Metropolis

Boachie-Mensah¹,

Issau²

2015

IJMS

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The importance of small and medium-sized manufacturing enterprises as an engine of economic growth has been widely recognized. However, despite their invaluable contribution in the Ghanaian economy, their performance has not been impressive due to the orientation of their marketing strategies. This study, therefore, sought to investigate the relationship between market orientation and the performance of small and medium-sized manufacturing enterprises in the Accra metropolis of Ghana. Given the purpose and nature of this study where most of the analyses were quantitative in nature, quantitative research approach was deemed the most appropriate and, therefore, adopted. The descriptive and correlational study designs, too, were adopted for this study. Simple random sampling technique, specifically lottery method, was used to select 346 small and medium manufacturing enterprises in the Accra metropolis. Regression analysis was used to test the hypotheses postulated. It was observed from the findings that positive relationship exists between market orientation and small and medium-sized manufacturing enterprises performance. This means that market orientation contribute positively to the well being of small and medium-sized manufacturing enterprises. The study recommends that policy makers as well as National Board for Small Scale Industries should sensitize owners/managers of small and medium-sized manufacturing enterprises about the importance of employing market orientation practices in their business operations.

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Small and Medium Enterprise Dynamics in Indonesia

Cited by 131 publications

References 14 publications

Do foreign and domestic firms behave any different during economic slowdowns?

Do foreign and domestic firms behave any different during economic slowdowns?

Employment and SMEs during crises

Market Orientation and the Performance of Small and Medium-Sized Manufacturing Enterprises in the Accra Metropolis

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