Japanese Small And Medium-sized Enterprises Research Articles

The trade credit channel revisited: evidence from micro data of Japanese small firms

It is suggested that trade credit can be a substitute for bank loans for small- and medium-sized enterprises (SMEs) that have little access to external funding sources. Using unique cross-sectional survey data of Japanese SMEs, we conduct a deep investigation into the substitutability between bank loans and trade credit. This survey contains rich information on the suppliers of trade credit to SMEs, thus enabling the examination of the channel through which credit is provided from suppliers to customers. We find that SMEs with little access to bank credit depend more on large suppliers for trade credit. We also find that when a purchase is made from a large supplier, more credit is indeed provided in the form of trade credit. Furthermore, this channel of credit from large suppliers to SMEs is only observed for solvent customers, not for insolvent customers. Our findings suggest that trade credit plays an important role for entrepreneurial firms over the financial growth cycle. For young and small firms with little access to bank loans trade credit is an important funding source.

Partnering strategies and performance of SMEs' international joint ventures

The international joint venture (IJV) is an important mode in the internationalization of small- and medium-sized enterprises (SMEs). Internationalization in turn is an entrepreneurial behavior in the pursuit of growth. Partnering strategies in the formation of IJVs can have significant effects on the outcome of SMEs' international expansion. In this study, we examine the performance implications of two types of resources contributed by SMEs' IJV partners, host country knowledge and size-based resources. We develop and test three sets of hypotheses about the longevity and financial performance of a sample of 1117 international joint ventures established in 43 countries by 614 Japanese SMEs that have fewer than 500 employees. Our findings indicate that SMEs' IJVs with local partner(s) may be associated with decreases in longevity, especially when SMEs acquire host country knowledge. The host country experience of Japanese partner(s) does not have any direct effects on IJV profitability but reduces the longevity of IJVs. Finally, the size of Japanese partner(s) increases the longevity of IJVs but may have negative effects on IJV profitability when large Japanese partners have low equity ownership in IJVs. Our findings highlight the differential effects that IJV partners' experience-based and size-based resources have on IJV performance. Our findings also demonstrate that the same strategy could have different effects on different dimensions of performance.

Development of a remote monitoring system for a manufacturing support system for small and medium-sized enterprises

This research discusses a manufacturing support system for small and medium-sized enterprises (SME). This paper describes an overview of a remote monitoring system as one component of a manufacturing support system. The remote monitoring system can support single-night unmanned nighttime operations of diversified manufacturing commonly found in Japanese SME. A prototype system of the remote monitoring system consists of a remote monitoring system using cell phones, 3-D layered information viewing environment (LIVE) and a load balancing system based on the remote monitoring was built by using open-oriented technologies and tested and is discussed.

The internationalization and performance of SMEs

AbstractWe discuss and explore the effects of internationalization, an entrepreneurial strategy employed by small and medium‐sized enterprises (SMEs), on firm performance. Using concepts derived from the international business and entrepreneurship literatures, we develop four hypotheses that relate the extent of foreign direct investment (FDI) and exporting activity, and the relative use of alliances, to the corporate performance of internationalizing SMEs. Using a sample of 164 Japanese SMEs to test these hypotheses, we find that the positive impact of internationalization on performance extends primarily from the extent of a firm's FDI activity. We also find evidence consistent with the perspective that firms face a liability of foreignness. When firms first begin FDI activity, profitability declines, but greater levels of FDI are associated with higher performance. Exporting moderates the relationship FDI has with performance, as pursuing a strategy of high exporting concurrent with high FDI is less profitable than one that involves lower levels of exports when FDI levels are high. Finally, we find that alliances with partners with local knowledge can be an effective strategy to overcome the deficiencies SMEs face in resources and capabilities, when they expand into international markets. Copyright © 2001 John Wiley & Sons, Ltd.

A CALS/EC education and training course for Japanese small- and medium-sized enterprises

This paper aims to report a CALS/EC education and training course for Japanese small-and medium-sized enterprises, conducted by the Advanced Polytechnic Center of Employment Promotion Corporation, and administered by the Japanese Ministry of Labor. The course was started in 1996, with the intention of training 'CALS engineers' to be able to structure/ restructure business processes in CALS or CALS-like environments, and to re-engineer questionable traditional Japanese management practices, particularly in small- and medium-sized enterprises. Concepts and curricula of the course are discussed, particularly in terms of its CALS/EC based business process re-engineering. An example of practical course exercises, which require participants to model both 'as-is' and 'to-be' business processes to enhance the above-mentioned ability, is also presented.