To What Extent Do the Investment Programs in the Small and Medium Enterprises Sector Comply with the Determinants of National Competitive Advantage?
Abstract
The analysis of the researcher was corroborated by the expert opinion.In the interview researcher said that, the base is small and medium enterprises, the Palestinian economy is dominated by small and medium family-owned businesses: more than 85% of all establishments are owned by a single individual. Private and public shareholder companies and partnerships constitute less than 11% of all firms. The first and most important step is to establish governance in SMS & Establishing partnerships in shape of fund of funds, we have 6 funds, 60 million fund for industry, fund for agriculture, fund for microfinance, fund for Gazza, Jerusalem, fund convertible process, is not money wise but convincing the owners to change the way of working is the most impediment.According to Porter, competitive advantage results from the presence of world- class institutions that first create specialized factors and then continually work to upgrade them. Additional steps to be undertaken according to Mustafa, SMEs widen and open new markets and further invest in local markets and sponsor high-tech industries. The analysis of the researcher was corroborated by the expert opinion.In the interview researcher said that, the base is small and medium enterprises, the Palestinian economy is dominated by small and medium family-owned businesses: more than 85% of all establishments are owned by a single individual. Private and public shareholder companies and partnerships constitute less than 11% of all firms. The first and most important step is to establish governance in SMS & Establishing partnerships in shape of fund of funds, we have 6 funds, 60 million fund for industry, fund for agriculture, fund for microfinance, fund for Gazza, Jerusalem, fund convertible process, is not money wise but convincing the owners to change the way of working is the most impediment.According to Porter, competitive advantage results from the presence of world- class institutions that first create specialized factors and then continually work to upgrade them. Additional steps to be undertaken according to Mustafa, SMEs widen and open new markets and further invest in local markets and sponsor high-tech industries.
References
Smit. A.J., (2010).The competitive advantage if nations. Is Porter’s diamond framework that explains international competitiveness of countries?
Aiginger, K. (2006). ‘Competitiveness: from a dangerous obsession to a welfare creating ability with positive externalities’, Journal of Industrial Trade and Competition, 6: 63–66.
Balassa, B.A. (1965). Trade liberalization and revealed comparative advantage. Manchester School, Working Paper No. 33. May.
Baldwin, R.E. (1971). ‘Determinants of commodity structure of US trade’, American Review, 61(1): 126–146. The competitive advantage of nations 125
Baldwin, R.E. (1979). ‘Determinants of trade and foreign direct investment: further evidence’,Review of Economics and Statistics, 61(1): 40–80.
Barney, J.B. (1994). ‘Strategic factor markets: expectations, luck, and business strategy’, In Rumelt, R.P., Schendel, D. &Teece, D. (eds), Fundamental Issues in Strategy: a Research
Agenda. Boston, MA: Harvard Business School Press.
Barney, J.B. (2002). ‘Strategic management: from informed conversation to academic discipline’, Academy of Management Executive, 16(2): 53–57.
Bellak, C.J. & Weiss, A. (1993). ‘A note on the Austrian “diamond”’, Management International Review, 33(2): 109.
Bernhofen, D.M. & Brown, J.C. (2004). ‘A direct test of the theory of comparative advantage:the case of Japan’, Journal of Political Economy, 112(1): 48–67.
Bhagwati, J., Krugman, P., Baldwin, R., Collins, S. et al. (1993). ‘Reject managed trade’, Far Eastern Economic Review, 156(44): 26.
Boltho, A. (1996). ‘The assessment: international competitiveness’, Oxford Review of Economic Policy, 12(3): 1–16.
Bowen, H.P. (1985). ‘Changes in the international distribution of resources and their impact on US comparative advantage’, Review of Economics and Statistics, 65(3): 402.
Brander, J. &Krugman, P. (1983). ‘A reciprocal dumping model of international trade’, Journal of International Economics, 15(3): 313.
Brander, J.A. & Spencer, B.J. (1985). ‘Export subsidies and international market share rivalry’, Journal of International Economics, 18(3): 83–100.
Budd, L. &Hirmis, A.K. (2004). ‘Conceptual framework for regional competitiveness’, Regional Studies, 38(9): 1015–1028.
Cartwright, W.R. (1993). ‘Multiple linked diamonds and the international competitiveness of export-dependent industries: the New Zealand experience’, Management International
Review, Special Issue, 33(2): 55–70. Corden, W.M. (1990). Strategic trade policy. How New? How Sensible? Country Economics
Department, World Bank, April, WPS: 396.Cox, D. & Harris, R. (1985). ‘Trade liberalization and industrial organization: some estimates for Canada’, Journal of Political Economy, 93(1): 114.
Culberson, J.M. (1986). ‘The folly of free trade’, Harvard Business Review, September/October, 64(5): 122–128.
Copyright (c) 2018 Orobah Ali Barghouthi
This work is licensed under a Creative Commons Attribution 4.0 International License.