The determinants of location specific choice: small and medium-sized enterprises in developing countries

Abstract

This study adopts a resource-based view to model how location specific-factors among small and medium-sized enterprises (SMEs) in coastal environments in developing economies enable them to sustain clusters and contribute to economic growth. Locations of small and medium enterprises (SMEs) play a crucial role in determining their survival. SMEs agglomerations are often due to natural resource endowments and types of business climate in their environment. The amoebic nature and economic roles they play have made them the bedrock of the micro economy in most economies. This study contributes to the literature on crosscountry comparison of small and medium enterprises (SMEs) in Zhenjiang (China) and in Lagos State (Nigeria). The methodology used was mainly literature review and secondary research data from World Bank and data sets from China and Nigeria. The findings highlight an upsurge in research on SMEs in developing countries and how these enterprises have used locationspecific endowments to mitigate their resource limitation predicament. The learning points are envisaged to contribute to strategic growth in international business and foreign investments, knowledge for policy makers and to generate further comparative location studies in developing countries.

Does innovation stimulate performance? The case of small and medium enterprises in regional Australia

“…The contribution of innovation activities at the firm level and economy‐wide are well‐recognised, although the magnitude of the contribution remains unclear because the evidence is drawn from cross‐sectional studies, which often fail to disentangle cause and effect (Love & Roper, 2015; Palangkaraya, Spurling, & Webster, 2015), and much of the effect depends on issues, such as study design, assumptions and context, and the types of innovation and performance under consideration (Frenz & Ietto‐Gillies, 2009). Some recent researchers have highlighted the need to consider country‐specific and location‐specific research for regional development (Alam, Adeyinka, & Wiesner, 2020; Alam, Erdiaw‐Kwasie, Shahiduzzaman, & Ryan, 2018; Alam & Mamun 2017; Banwo, Du, & Onokala, 2017; Pinho, 2007). The failure of much of the literature to allow for the interdependence of innovation and firm performance is likely to be significant.…”

Investigating the relationship between entrepreneurship and regional development: case of developing countries

“…This particular research originates in the issues associated with the limited data availability (for a discussion on how to measure entrepreneurship and self-employment, see e. g. Dvouletý 2018, Justo et al 2008Iversen et al 2007), that is problematic especially in case of developing countries (Banwo et al 2017;Adusei 2016;Lafuente and Vaillant 2016). The motivation for studying situation especially in a developing countries lies in 1) a strong assumption of different empirical findings compared to European countries due to different political and institutional environment (Hartog et al 2010;Van Stel et al 2005;Wennekers et al 2005) and 2) an ongoing need to solve economic sustainability of the developing countries (Dhahri and Omri 2018;Pinillos and Reyes 2011;Acs and Szerb 2007).…”

The Impact of Strategy, Technology, Size and Business Environment on the Organizational Form of Small Firms in China

“…For our purposes, Environment is regarded as 'munificent' if a firm experiences few external financing difficulties [41], enjoys supportive government policies [63] and has an advantageous location [64]. In our analysis, the capacity/scarcity dimensions of the Environment are proxied by the cash flow problems during operation (Cash Flow Problems), the number of government financial sponsorships (Financial Sponsorship) and the number of government nurturing policies, which might also relate to locational advantage (Government Support).…”