SMES’ STRATEGIES TO FACE THE ONSET OF THE GREAT RECESSION

Juan A. Máñez Castillejo, Mari´a E. Rochina-Barrachina and Juan A. Sanchis Llopis ()
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Juan A. Máñez Castillejo: Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).
Mari´a E. Rochina-Barrachina: Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).
Authors registered in the RePEc Author Service: Juan A. Mañez

No 1910, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: This work analyses how SMEs (as compared to large firms) endured the onset of the recent Great Recession through the engagement in internationalization and innovation strategies. We focus on the SMEs strategies of exporting and undertaking R&D and the impact of these activities on firms’ markups (i.e., a measure of performance). This study will allow determining whether performing these strategic activities allowed SMEs to get advantages to sustain markups, not only in an expansive period but also during the hit of the hardest period of the recent financial and economic crisis. The data we use is the Spanish survey on firms’ strategies (ESEE), 1993-2009. We obtain two main results: first, for SMEs the strategies of only exporting or performing both activities explain higher markups; and, second, there is confirmation that R&D played an increasing role in protecting firms against a decrease in markups in the onset of the crisis.

Keywords: SMEs; Exports; R&D; markups; the Great Recession (search for similar items in EconPapers)
JEL-codes: D24 E32 F14 O32 (search for similar items in EconPapers)
Date: 2019-10
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eur, nep-mac and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1910

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