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Factors Influencing SMEs Engagement in Direct Export Activities

Author

Listed:
  • Mohamad D. Revindo

    (Research Associate, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta)

  • Christopher Gan

    (Professor in Accounting and Finance, Faculty of Agribusiness and Commerce, Department of Finance and Business System, Lincoln University, New Zealand)

Abstract

The benefits of trade liberalisation 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 market than their large counterparts despite various export assistance provision by the government. This study aims to investigate the factors influencing Indonesian SMEs decision and ability to engage in direct exporting activities. The evidences were collected from 271 exporting SMEs and 226 non-exporting SMEs in seven provinces in Jawa, Madura, and Bali regions. Logistic regressions were used to identify the distinct characteristics of exporting SMEs. The findings show that the exporters differ from non-exporters in firm and owner characteristics, perceived export barriers, participation in government export assistances and network relationships. The policy and managerial implications of the findings are discussed

Suggested Citation

  • Mohamad D. Revindo & Christopher Gan, 2017. "Factors Influencing SMEs Engagement in Direct Export Activities," LPEM FEBUI Working Papers 201711, LPEM, Faculty of Economics and Business, University of Indonesia, revised Jul 2017.
    • Handle: RePEc:lpe:wpaper:201711
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    File URL: https://www.lpem.org/repec/lpe/wpaper/WP201711.pdf
    File Function: First version, 2017
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    Cited by:

    1. Febrio Kacaribu & Alvin Ulido Lumbanraja & Mohamad Dian Revindo & Syahda Sabrina & Zehan Pricilia & Yeremia Natanael, 2018. "Recent Developments in Indonesia’s Macro-economy and Trade, Q1-2018," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 1-24, Juni.
    2. Mohamad D. Revindo & Christopher Gan, 2018. "Factors Affecting Variation in SMES' Export Intensity," LPEM FEBUI Working Papers 201820, LPEM, Faculty of Economics and Business, University of Indonesia, revised May 2018.

    More about this item

    Keywords

    SMEs - Firm Internationalisation - Export Decision - Export Barriers - Indonesia;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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