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Taiwan Micro-Multinationals Among the Most Bullish on Their International Operating Model

Their Multi-Market Strategy is Paying Dividends, According to a New Global Study

February 1, 2016

 

TAIPEI, February 1, 2016 — A whopping 94% of Taiwan micro-multinationals believe it is easier to operate across multiple markets now than it was five years ago – a much higher proportion than the 69% and 82% of their global and regional counterparts, according to a new global research study.  Many of them see the benefit of their international operating model, with 67% believing it makes selling across borders easier.

Commissioned by FedEx Express (FedEx), a subsidiary of FedEx Corp. (NYSE:FDX) and one of the world’s largest express transportation companies, the research study was conducted by Harris Interactive in September 2015.  It examines trends and characteristics among micro-multinationals – a subset of small- to medium-size enterprises (SMEs) that either have a presence in multiple markets from the start, or leverage online business platforms and the increased openness of the global economy to expand into overseas markets[1].

The study reveals that business is booming for micro-multinationals, with 62% of Taiwan micro-multinationals currently achieving annual revenue growth, much higher than the 40% of SMEs as a whole.  Not only do micro-multinationals outperform their peers, they can stand the test of time: 61% have been established for more than 10 years, above the global average of 55%.

“The rise of micro-multinationals proves the immense potential of small businesses when they have global access,” said Michael Chu, managing director, FedEx Express, Taiwan.  “Modern technologies open up access to a world of customers for businesses of all sizes, and the logistics industry has a vital role to play in that.  We are helping them connect to the world, not only with fast and reliable logistics, but also through deep expertise in trade regulations and supply chain management.”

When it comes to operating internationally, logistics plays an important role.  In Taiwan, 70% of micro-multinationals point to their logistics service providers as important in helping them run their international business successfully. In addition, they rank superior logistics systems (42%) among the top three factors that make multi-market operation possible.  Other factors they cited include access to online marketplaces (48%) and greater export opportunities (48%).

 

About the research study: Micro-multinationals & Cross-Border Growth

Harris Interactive used a mix of telephone and online interview methodologies to conduct interviews with 595 senior decision-makers in micro-multinational companies (micros), which are generally defined as companies with 1-249 employees and based in more than one country.

The research was conducted in 12 global markets across four regions: Asia Pacific (China, Hong Kong, Japan, Singapore, South Korea and Taiwan), Europe (France, Germany and the U.K.), Latin America (Brazil and Colombia) and Middle East, Indian Sub-Continent and Africa (India).

 

[1] The Lisbon Council, “The Rise of the Micro-Multinational” by Ann Mettler and Anthony D. Williams, 2011.

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