Lembaga Penyelidikan Ekonomi dan Masyarakat – Fakultas Ekonomi dan Bisnis – Universitas Indonesia

Factors Affecting Variation in SME’s Export Intensity

Mei 28, 2018

(Prasaran ini hanya tersedia dalam bahasa Inggris.)

Mohamad D. Revindo and Christopher Gan

Abstract:

Small and Medium-sized Enterprises (SMEs) are more constrained to participate in export market than their large counterparts despite various export assistance provision by the government. Extant literature on SME internationalization mostly focus more on how non-exporting SMEs can become exporters than on how exporting SMEs can sustain and expand their export. This study aims to investigate the  factors affecting SMEs’ export intensity with reference to the case of Indonesia. Fractional-logit regressions were used to identify the in?uence of export-exhibiting factors, export-inhibiting factors, and ?rm and owner characteristics on SMEs’ export intensity. The evidences were collected from 497 SMEs in seven provinces in Jawa, Madura and Bali regions. The ?ndings show that SMEs’ export intensity is affected by some ?rm characteristics including ?rm age and total employees. Export intensity is also affected by some exhibiting factors including owners’ overseas and MNC/exporting ?rm work experience, central government agencies’ assistance, network relationships with non-government actors, location, export market of choices and years of exporting. By contrast, export intensity is adversely affected by perceived dif?culties in overcoming informational and human resources barriers, distribution, logistics and promotional barriers, ?nancial barriers, foreign government barriers, procedural barriers and price barriers. The policy and managerial implications of the ?ndings are discussed.

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