When SMEs think about delocalization: Theoretical issues

There is a wealth of delocalization studies for major corporations, but they largely overlook the constraints and mechanisms of decision-making in small and medium-sized enterprises (SMEs). We therefore analysed SME strategies in a bid to identify the risks and potential benefits of delocalization using a blend of internationalization theory, transaction cost theory and neo-institutional theory. This paper highlights linkages among these theoretical underpinnings and how they apply to SME delocalization decision-making.

Related Subject(s): Economic and Social Development