International Competitiveness of Small and Medium-Sized Enterprises: Peru, a Latin-American Emerging Market

ABSTRACT

Our research studies the international competitiveness of small- and medium-sized enterprises (SMEs) in an emerging Latin-American country. Using a sample of 100 SMEs in Peru, we find that firms compete abroad with standardized products, which are conditioned by the host-country markets, human capital, and industry cooperation. However, the results show that the age and size of the firm are not determining factors in competing overseas. Our findings open a new agenda for policymakers when interpreting how they should promote and support Latin-American SMEs.

KEY WORDS:

• emerging country
• firm competitiveness
• industry cooperation
• Latin America
• local/international environment
• Peru
• SMEs
• standardized products

Acknowledgments

One of the authors (Dr. Peña-Vinces) would like to express his gratitude to Professor José L. Galán (University of Seville) because, without his valuable suggestions, this research would not have been possible. Furthermore, acknowledgment is due to the universities of South America, especially those of Peru (ESAN, UPC, UP, San Marcos, Wiener, etc.), and to the practitioners who provided the information in the surveys and interviews. Our sincere thanks go to those at the Samuel C. Johnson Graduate School of Management, Cornell University; without their hospitality, it would not have been possible to complete this research. Finally, special thanks to Professor Lourdes Casanova and Soumitra Dutta.