The Transnational Activities of Small and Medium-Sized Enterprises

This is a study of the role, impact and policy implications of small and medium-sized transnational corporations (TNC's) in the developed economies as well as in the developing countries. After a description of the theoretical framework, the volume analyzes trends, patterns and salient features of small and medium-sized TNC's by emphasizing the problems in the transnationalization process and proposes measures and policy suggestions to promote foreign direct investment by small and medium-sized enterprises. The study is largely derived from a survey, conducted by the author, designed to obtain information about the characteristics and consequences of small and medium-sized transnational corporations' activities compared with those of large TNC's and indigenous firms. This volume describes the role of TNC's in domestic economies and their transnational activities.

Table of Contents:
Executive Summary.- Definition of Small and Medium-Sized Transnational Corporations.- The Author’s Survey.- I. Small and Medium-Sized Enterprises in Domestic Economies.- A. The importance of small and medium-sized enterprises in the domestic economy.- B. The role of small and medium-sized enterprises.- C. Conclusions.- II. The Transnationalization Theory and Evidence of Small and Medium-Sized Enterprises.- A. Theoretical framework.- B. The transnationalization process.- C. Transnationalization factors.- D. Conclusions.- III. Trends and Patterns of Foreign Direct Investment by Small and Medium-Sized Enterprises.- A. Global trends, patterns and characteristics of foreign direct investment.- B. Japan.- C. United States.- D. European countries.- E. Conclusions.- III. Trends and Patterns of Foreign Direct Investment by Small and Medium-Sized Enterprises.- A. General characteristics of small and medium-sized transnational corporations.- B. Competitive advantages of small and medium-sized transnational corporations.- C. Strategies of small and medium-sized transnational corporations.- D. Conclusions.- V. Impact on Host Developing Countries of Foreign Direct Investment by Small and Medium-Sized Enterprises.- A. Technology transfer.- B. Balance-of-payment effects.- C. Linkages with the local economy.- D. Human resource development.- E. Market structure and other effects.- F. Conclusions.- VI. Problems in the Transnationalization Process of Small and Medium-Sized Enterprises.- A. Problems related to size.- B. Problems related to the nature of small and medium-sized enterprises.- C. Problems related to partners of small and medium-sized enterprises in host countries.- D. Problems related to host countries.- E. Conclusions.- VII. Measures to Promote Foreign Direct Investment bySmall and Medium-Sized Enterprises.- A. Initiatives and programmes in developed countries.- B. Initiatives and programmes in developing countries.- C. Initiatives and programmes in international organizations.- D. Conclusions.- VIII. Policy Suggestions to Promote Foreign Direct Investment by Small and Medium-Sized Enterprises into Developing Countries.- A. Policies to encourage the transnationalization of small and medium-sized enterprises.- B. Concrete programmes and mechanisms.- C. Basic criteria to orient policy decisions.- D. Conclusions.- Concluding Remarks.- References.- Annex A. Questionnaire.- 1. Questionnaire sent to parent firms of small and medium-sized transnational corporations.- 2. Questionnaire sent to foreign affiliates of transnational corporations.- 3. Questionnaire sent to indigenous firms in developing countries.- 4. Questionnaire used for interviews with public institutions in developed countries.- Annex B. Profile of the Sample.

About the Author :
Masataka Fujita has published probably the two most important articles on the subject of TNC's recently in Small Business Economics (SBEJ). He has been involved in research on the subject at the United Nations for a number of years and is one of the leading authorities on the subject as well as on foreign direct investment and transnational corporations in general.