Factors Affecting Entry into Supply Chain Trade: An Analysis of Firms in Southeast Asia

Ganeshan Wignaraja

Asia and the Pacific Policy Studies, 2015, vol. 2, issue 3, 623-642

Abstract: This article undertakes a comparative, firm-level analysis of joining supply chain trade in five Southeast Asian economies to improve our understanding of fragmentation of manufacturing across borders. The findings suggests that firm size (reflecting economies of scale to overcome entry costs) matters for joining supply chain trade with large firms playing the dominant role in Southeast Asian economies. Meanwhile, small and medium-sized enterprises (SMEs) make a small contribution to supply chain trade relatively to the sectors employment contribution. However, firm size is not the whole story. Efficiency—particularly investment in building technological capabilities and skills—and access to commercial bank credit also influence joining supply chain trade. The article suggests that governments can facilitate SMEs joining supply chain trade through a market-oriented strategy, modern physical infrastructure, streamlined regulations and efficient business support services.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1002/app5.78 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:asiaps:v:2:y:2015:i:3:p:623-642

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=2050-2680

Access Statistics for this article

More articles in Asia and the Pacific Policy Studies from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().