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Impact of globalization: The ability of less developed countries' (LDCs') firms to cope with opportunities and challenges

European business review, 2011-01, Vol.23 (1), p.120-132 [Peer Reviewed Journal]

ISSN: 0955-534X ;ISSN: 1758-7107 ;EISSN: 1758-7107 ;DOI: 10.1108/09555341111098026

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  • Title:
    Impact of globalization: The ability of less developed countries' (LDCs') firms to cope with opportunities and challenges
  • Author: Baffour Awuah, Gabriel ; Amal, Mohamed
  • Amal/Göran Svensson, Mohamed
  • Subjects: Business ; Competitive strategy ; Developing countries ; Globalization ; Handles ; Learning ; Markets ; Methodology ; SAMHÄLLSVETENSKAP ; Small to medium-sized enterprises ; SOCIAL SCIENCES
  • Is Part Of: European business review, 2011-01, Vol.23 (1), p.120-132
  • Description: Purpose The purpose of this study is to contribute to the debate on the impact of globalization on the competitiveness of firms in least developed countries (LDCs). Two main research questions will be addressed. How does globalization affect the competitiveness of small to medium‐sized enterprises (SMEs) in LDCs? How can SMEs handle opportunities and challenges emerging from globalization? Design/methodology/approach The methodology for this study is a conceptual attempt to review the existing literature and make some propositions about how SMEs can handle the opportunities and challenges emerging from globalization. Findings Building on a developed operational framework affecting the competitiveness of firms, some of the expected results are that firms' capabilities with regards to innovation, learning, and internationalization, which increase their competitiveness, are enhanced by institutional setups. Second, establishing relationships with governmental and non‐governmental institutions is crucial in terms of accessing resources, innovating, and entering into foreign markets. Originality/value The paper represents a contribution to the debate on the impact of globalization on the competitiveness of firms, particularly SMEs, in LDCs. Although globalization has brought considerable benefits to many actors worldwide, its impact on competitiveness of (SMEs) are controversial. We suggest that globalization's effects depend on the capability of firms to learning, to innovate, and also on the institutional setup in LDCs.
  • Language: English
  • Identifier: ISSN: 0955-534X
    ISSN: 1758-7107
    EISSN: 1758-7107
    DOI: 10.1108/09555341111098026
  • Source: ProQuest Central
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