The Role of Networking in the Internationalization of Indonesian SMEs

Indonesian SMEs are less able to take advantage of foreign market opportunities than their large counterparts. This study analyses the internationalization of Indonesian SMEs, particularly the differences between exporting and non-exporting SMEs in terms of their network relationships. Primary data...

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Main Authors: Mohamad Dian Revindo, Sri Mulyani Indrawati, Sean Hambali
Format: Article
Language:English
Published: Universitas Negeri Semarang 2019-12-01
Series:JEJAK: Jurnal Ekonomi dan Kebijakan
Subjects:
Online Access:https://journal.unnes.ac.id/nju/index.php/jejak/article/view/21821
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author Mohamad Dian Revindo
Sri Mulyani Indrawati
Sean Hambali
author_facet Mohamad Dian Revindo
Sri Mulyani Indrawati
Sean Hambali
author_sort Mohamad Dian Revindo
collection DOAJ
description Indonesian SMEs are less able to take advantage of foreign market opportunities than their large counterparts. This study analyses the internationalization of Indonesian SMEs, particularly the differences between exporting and non-exporting SMEs in terms of their network relationships. Primary data was obtained from survey questionnaires in Jawa, Madura and Bali regions, yielding usable responses from 271 exporting SMEs and 226 non-exporting SMEs. Our results suggest that exporters on average have twice as many frequencies of interaction with various external actors than those of their non-exporting counterparts. Exporting and non-exporting SMEs also differ in the way they interact and maintain relationships with external actors. The exporting SMEs utilize various types of interactions including regular and irregular, as well as formal and informal ones, with various external actors in the network. In contrast, non-exporting SMEs are more dependent on personal relations with key persons in various governmental and private institutions. The policy and managerial implications of the findings are discussed.
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spelling doaj.art-8360eaa7ea1c4d6f9e4082919ed9e4852022-12-21T18:46:59ZengUniversitas Negeri SemarangJEJAK: Jurnal Ekonomi dan Kebijakan2460-51232019-12-0112242144510.15294/jejak.v12i2.218219481The Role of Networking in the Internationalization of Indonesian SMEsMohamad Dian Revindo0Sri Mulyani Indrawati1Sean Hambali2Universitas IndonesiaUniversitas IndonesiaUniversitas IndonesiaIndonesian SMEs are less able to take advantage of foreign market opportunities than their large counterparts. This study analyses the internationalization of Indonesian SMEs, particularly the differences between exporting and non-exporting SMEs in terms of their network relationships. Primary data was obtained from survey questionnaires in Jawa, Madura and Bali regions, yielding usable responses from 271 exporting SMEs and 226 non-exporting SMEs. Our results suggest that exporters on average have twice as many frequencies of interaction with various external actors than those of their non-exporting counterparts. Exporting and non-exporting SMEs also differ in the way they interact and maintain relationships with external actors. The exporting SMEs utilize various types of interactions including regular and irregular, as well as formal and informal ones, with various external actors in the network. In contrast, non-exporting SMEs are more dependent on personal relations with key persons in various governmental and private institutions. The policy and managerial implications of the findings are discussed.https://journal.unnes.ac.id/nju/index.php/jejak/article/view/21821smesinternationalizationnetwork relationshipsindonesiaexport assistance
spellingShingle Mohamad Dian Revindo
Sri Mulyani Indrawati
Sean Hambali
The Role of Networking in the Internationalization of Indonesian SMEs
JEJAK: Jurnal Ekonomi dan Kebijakan
smes
internationalization
network relationships
indonesia
export assistance
title The Role of Networking in the Internationalization of Indonesian SMEs
title_full The Role of Networking in the Internationalization of Indonesian SMEs
title_fullStr The Role of Networking in the Internationalization of Indonesian SMEs
title_full_unstemmed The Role of Networking in the Internationalization of Indonesian SMEs
title_short The Role of Networking in the Internationalization of Indonesian SMEs
title_sort role of networking in the internationalization of indonesian smes
topic smes
internationalization
network relationships
indonesia
export assistance
url https://journal.unnes.ac.id/nju/index.php/jejak/article/view/21821
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