Essay from the year 2021 in the subject Business economics - General, , course: Master of Business Administration, language: English, abstract: In this paper, five research papers published by the Asian Development Bank in 2021 about how the global value chain impacts Small and Medium – size businesses in the countries of Indonesia, Vietnam, Sri Lanka, and Thailand were analyzed. Global Value Chain (GVC), The full range of activities (design, production, marketing, distribution, and support to the final consumer, etc) that are divided among multiple firms and workers across geographic spaces to bring a product from its conception to its end use and beyond. Most of the countries in south Asia and southeast Asia such as Sri Lanka, Vietnam, Indonesia, Philippines, Malaysia, India, and Bangladesh economics depend on the GVC’s participation. Especially the production and service sector in the Small and Medium Enterprises of each country has linked with the GVC. Small and Medium – size enterprises (SME) have played a major role in the country's economy and it is the country’s backbone. Therefore, if some factors affecting the SME sector it is also directly affected positively or negatively to the relevant country’s economic developments. Considering the latest studies and research, the impact of the Global value chain on the performance of SMEs, we identified negative and positive relations with the SME sector of the Asian region countries.

The GVC framework is an emerging concept in the last decade, providing theoretical platformto understand and assess the value creation in international trade. In this area, research interest exists with the international business literature. This article offers a critical evaluation of the literatures on impact of Global Value Chains (GVCs) on Small and Medium-sized Enterprises'(SMEs) performance. This study is mainly based on five research articles which are related to Indonesia, Thailand, Viet Nam and Sri Lanka published by Asian Development Bank Institute (2021). Performing a qualitative content analysis based on selected five research publications on GVCs, this paper describes the SME participation in global value chains and importance of factors which enhance the SMEs' performance to participate in GVCs. It also identifiesresearch opportunities along the GVC framework.

Globalization is regarded as one of the most major factors that led to rapid global economic growth. This has led to the emergence of new technologies and lowered the transferring costs have allowed corporations to expand their operations to nations that have led to world production chains which are known as the global value chains. However, some groups of individuals or firms, or countries have not been able to take the benefits of globalization and small and medium-sized enterprises are one such group. small and medium-sized enterprises have been identified as the backbone of an economy, but several constraints have blocked the global value chains participation by small and medium-sized enterprises especially in developing countries. Thus, this study attempted to investigate the impact of global value chains on the performances of small and medium-sized enterprises in the developing countries of the Asian Region. The study was conducted based on the qualitative research design with the support of secondary data. Five (5) research articles representing four different countries namely; Indonesia, Thailand, Vet Nam, and Sri Lanka have been selected based on the purposive sampling technique. The gathered data has been analyzed qualitatively by using descriptive analysis. Accordingly, the study concluded that there are several constraints with SMEs in global value chains participation, especially in developing countries. But if they can overcome those constraints and able to participate in global value chains, they can be able to increase the performances of the small and medium-sized enterprises and able to achieve economic development.

The paper focuses on the impact of global value chains on the performance of small and medium-sized enterprises. This review was conducted as a journal paper by analysing qualitative data derived from the five research papers selected. In the research papers, they have focused on econometric and descriptive analyses with reference to the selected and reviewed articles. This review was able to detect that SMEs that are aligned with GVCs are showing a good profit than those that are not. Besides that direct impact of GVCs, the study on the other hand found that relationship with GVCs indirectly boosts the performance of SMEs by the improvement of sales revenue and tasks related to research and development of SMEs. Also, elements like ensuring the quality of products, the availability of skilled labour, better access to finance, access to better technologies, the ability to produce at low cost, can be recommended to increase the potential to link SMEs with GVCs. The review findings suggest the government, and other organizations for encouraging SMEs to participate in GVCs by letting them to grow as internationally competitive entrepreneurs.

Introduction - Background and ObjectiveLiterature Review- Impact of SMEs on Economics Impact of GVC on SMEs PerformanceMethodology - Data and Data AnalysingResult and DiscussionConclusion.

The international fragmentation of economic activities – from research and design to production and marketing – described through the lens of the global value chain (GVC) approach impacts the structure and performance of small and medium-sized enterprises (SMEs) agglomerated in economic clusters. The consolidation of GVCs ruled by global lead firms and the recession of 2008-09 exacerbated the pressures on cluster actors that based their competitive advantage on local systems, spurring an increasing heterogeneity, both across and within clusters, that is still overlooked in the literature. Drawing on detailed studies of different industries and countries, Local Clusters in Global Value Chains shows the co-evolutionary trajectories of clusters and GVCs, and the role of firms and their strategies in organizing manufacturing and innovation activities in the context of ongoing technological shifts. The book explores the tension between place-based variables and global drivers of change, and the possibility for territories containing such clusters to prosper in the new global scenario. By adopting insights from the GVC framework and management studies, the book discusses how the internationalization strategies of firms create opportunities as well as constraints for adaptive upgrading in clusters. This book is of interest to both researchers and policy-makers who are interested in the dynamic sources of competitive advantage in the global economy.

The international trade is one of the key concepts of developing countries to enhance economy through value addition. Global value Chain is the main platform which contribute to economy in the world while engage with Small Medium Enterprises. The developing countries such as Sri Lanka, Indonesia, Thailand and Viet Nam was taken as the model countries to evaluate GVCs involvement in SME development. The study identified several key factors contribute to the performance of SMEs through engaging with GVCs. Higher level of human capital, better foreign networks, high production capacity, more asset, more investment in research and development of SMEs are some identified factors. Moreover, the linkage with GVCs involved in earning high profit in most SMEs than not related firms. The review also showed the direct exportation was more efficient in earning profit than indirect exportation from SMEs. Furthermore, capital assets, number of workers, sales revenue of firms, human capital and types of SMEs also affect the performances of SMEs. The review mentioned some factors; high level of human capital, better foreign networks, high production capacity, more asset, more investment in research & development are some factors which improve the linkage with GVCs. Government, private organizations and policy makers of developing counties can be involved by identifying key components to develop SMEs by creating platform to enhance linkage with GVCs.