TY - CHAP
T1 - Horizontal and Vertical Relationships in Developing Economies
T2 - Implications for SMEs’ Access to Global Markets
AU - Mesquita, Luiz F.
AU - Lazzarini, Sergio G.
N1 - Funding Information:
The Argentine furniture sector is also adequate for testing our model given the profile of its firms. Most firms are small family businesses (CSIL Research 2003); as such they lack the necessary scale to compete on costs and search for global opportunities. Further, responding to a request of the local trade association, the Foreign Ministry of Argentina developed an exports sponsorship program coordinated by its agency Fundación ExportAR. Such program provided furniture makers with the necessary support in foreign relations, market information and even partial financial support aimed at facilitating their involvement in export activities. We consider this governmental service to be a collective resource that a group of firms can access through interfirm coordination.
Funding Information:
We thank Jay Anand, Oana Branzei, Patricia Friedrich, Robert Hoskisson, Werner Hoffman, Laura Poppo, Harbir Singh, Fred Walumbwa, Libby Weber, and seminar participants at Arizona State University, the University of Illinois in Chicago, and the University of Connecticut for comments and suggestions on earlier drafts. We also thankfully acknowledge Maria Belen Lopez Aleman for her research assistance with data-collection. This research received funds from the Inter American Development Bank and Brazil’s National Council for Scientific and Technological Development (CNPq), as well as institutional support from the IAE School of Management & Business, Universidad Austral, Argentina. An earlier draft of this research appeared in the Academy of Management Journal.
Publisher Copyright:
© 2009, Springer Science+Business Media, LLC.
PY - 2010
Y1 - 2010
N2 - We integrate resource-based-view, transaction-cost economics, and institutional theory to model how collaboration efforts among SMEs immersed in weak infrastructure and institutional environments help them achieve a host of collective efficiencies and greater access to global markets. Using a survey database from 232 Argentine furniture SMEs, we find that while vertical ties yield manufacturing productivity along the supply chain, horizontal ties enable the access to collective resources and joint product innovation. These collective efficiencies, in turn, serve as competitive currencies for SMEs to access global markets. We discuss implications for theory and practice.
AB - We integrate resource-based-view, transaction-cost economics, and institutional theory to model how collaboration efforts among SMEs immersed in weak infrastructure and institutional environments help them achieve a host of collective efficiencies and greater access to global markets. Using a survey database from 232 Argentine furniture SMEs, we find that while vertical ties yield manufacturing productivity along the supply chain, horizontal ties enable the access to collective resources and joint product innovation. These collective efficiencies, in turn, serve as competitive currencies for SMEs to access global markets. We discuss implications for theory and practice.
KW - Collective Efficiency
KW - Global Market
KW - Product Innovation
KW - Supply Chain
KW - Transaction Cost Economic
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U2 - 10.1007/978-1-4419-0058-6_3
DO - 10.1007/978-1-4419-0058-6_3
M3 - Chapter
AN - SCOPUS:85064944360
T3 - International Studies in Entrepreneurship
SP - 31
EP - 66
BT - International Studies in Entrepreneurship
PB - Springer
ER -