Factors Affecting Propensity to Export: The Case of Indonesian SMEs

The benefits of trade liberalization are not shared equally among countries and enterprises across the globe. Small and Medium-sized Enterprises (SMEs) in developing countries are less able to participate in export markets than their larger counterparts, despite various export assistance provisions...

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Main Authors: Mohamad Dian Revindo, Christopher Gan, Natanael Waraney Gerald Massie
Format: Article
Language:English
Published: Universitas Gadjah Mada 2019-12-01
Series:Gadjah Mada International Journal of Business
Subjects:
Online Access:https://jurnal.ugm.ac.id/gamaijb/article/view/41022
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author Mohamad Dian Revindo
Christopher Gan
Natanael Waraney Gerald Massie
author_facet Mohamad Dian Revindo
Christopher Gan
Natanael Waraney Gerald Massie
author_sort Mohamad Dian Revindo
collection DOAJ
description The benefits of trade liberalization are not shared equally among countries and enterprises across the globe. Small and Medium-sized Enterprises (SMEs) in developing countries are less able to participate in export markets than their larger counterparts, despite various export assistance provisions by their governments. This study aims to investigate the factors influencing Indonesian SMEs’ decisions and ability to engage in direct export activities. The evidence was collected from 271 exporting SMEs and 226 non-exporting SMEs in seven provinces in Java, Madura, and Bali. Logistic regressions were used to identify the distinct characteristics of the exporting SMEs. The findings show that the exporters differ from non-exporters in terms of their firms’ and owners’ characteristics, their perceptions toward export barriers, their participation in their national government’s export assistance program and network relationships. The academic, policy and managerial implications of the findings are discussed.
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spelling doaj.art-b27add8d84474d09b2adc9a81c85748c2022-12-21T19:23:52ZengUniversitas Gadjah MadaGadjah Mada International Journal of Business1411-11282338-72382019-12-0121326328810.22146/gamaijb.4102226002Factors Affecting Propensity to Export: The Case of Indonesian SMEsMohamad Dian Revindo0Christopher Gan1Natanael Waraney Gerald Massie2School of Global and Strategic Studies, Universitas Indonesia (SKSG UI) and Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)Lincoln University, New ZealandUniversitas IndonesiaThe benefits of trade liberalization are not shared equally among countries and enterprises across the globe. Small and Medium-sized Enterprises (SMEs) in developing countries are less able to participate in export markets than their larger counterparts, despite various export assistance provisions by their governments. This study aims to investigate the factors influencing Indonesian SMEs’ decisions and ability to engage in direct export activities. The evidence was collected from 271 exporting SMEs and 226 non-exporting SMEs in seven provinces in Java, Madura, and Bali. Logistic regressions were used to identify the distinct characteristics of the exporting SMEs. The findings show that the exporters differ from non-exporters in terms of their firms’ and owners’ characteristics, their perceptions toward export barriers, their participation in their national government’s export assistance program and network relationships. The academic, policy and managerial implications of the findings are discussed.https://jurnal.ugm.ac.id/gamaijb/article/view/41022smes, firm internationalization, export engagement, export propensity, export barriers, indonesia
spellingShingle Mohamad Dian Revindo
Christopher Gan
Natanael Waraney Gerald Massie
Factors Affecting Propensity to Export: The Case of Indonesian SMEs
Gadjah Mada International Journal of Business
smes, firm internationalization, export engagement, export propensity, export barriers, indonesia
title Factors Affecting Propensity to Export: The Case of Indonesian SMEs
title_full Factors Affecting Propensity to Export: The Case of Indonesian SMEs
title_fullStr Factors Affecting Propensity to Export: The Case of Indonesian SMEs
title_full_unstemmed Factors Affecting Propensity to Export: The Case of Indonesian SMEs
title_short Factors Affecting Propensity to Export: The Case of Indonesian SMEs
title_sort factors affecting propensity to export the case of indonesian smes
topic smes, firm internationalization, export engagement, export propensity, export barriers, indonesia
url https://jurnal.ugm.ac.id/gamaijb/article/view/41022
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