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SME Export Performance in Indonesia After the Crisis

Author

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  • Jan Wengel

    ()

  • Edgard Rodriguez

    ()

Abstract

Firms in export-oriented sectors with more exporters and more foreign investment, or firms with more access/use of credit, tend to export a higher share of their output, whether they are small or large. The latter points out that the benefits of size-neutral policies that improve the overall business and foreign investment climate and secure access to formal credit for all enterprises produce benefits for the entire economy. Small firms with higher use of machinery and higher use of domestic inputs displayed a higher likelihood to increase the share of their output exported. SMEs show rising productivity with access and use of appropriate production inputs. Decades of protective size-specific policies, such as the reservation scheme for SMEs still in place in Indonesia’s manufacturing may have distorted, more than supported, adoption of appropriate technologies among SMEs. These policies may need to be revisited and refocused on more size-neutral policies such as improved access to collateral or reduced cost of business registration and licensing. Copyright Springer 2006

Suggested Citation

  • Jan Wengel & Edgard Rodriguez, 2006. "SME Export Performance in Indonesia After the Crisis," Small Business Economics, Springer, vol. 26(1), pages 25-37, February.
    • Handle: RePEc:kap:sbusec:v:26:y:2006:i:1:p:25-37
    DOI: 10.1007/s11187-004-6491-y
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    Citations

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    Cited by:

    1. Zulfiqar, Salyha, 2012. "Analyzing the Input Output Relationship of Small and Medium Enterprises in Pakistan: An Econometric Approach," MPRA Paper 50069, University Library of Munich, Germany.
    2. Yothin Jinjarak & Paulo Jose Mutuc & Ganeshan Wignaraja, 2014. "Does Finance Really Matter for the Participation of SMEs in International Trade? Evidence from 8,080 East Asian Firms," Trade Working Papers 24047, East Asian Bureau of Economic Research.
    3. repec:bla:sajeco:v:87:y:2019:i:1:p:65-81 is not listed on IDEAS
    4. Willem Thorbecke & Biswa N. Bhattacharyay, 2012. "Role of Production Networks in Sustaining and Rebalancing Asia's Growth," CESifo Working Paper Series 3896, CESifo Group Munich.
    5. Parvaneh Shahnoori & Glenn P. Jenkins, 2019. "Valuation of the Quality Attributes of Online Banking Services by Small and Medium Enterprises Engaged in International Trade," South African Journal of Economics, Economic Society of South Africa, vol. 87(1), pages 65-81, March.
    6. Diana Sari & Quamrul Alam & Nicholas Beaumont, 2008. "Internationalisation of Small Medium Sized Enterprises in Indonesia: Entrepreneur Human and Social Capital," Working Papers in Business, Management and Finance 200801, Department of Management and Business, Padjadjaran University, revised Jan 2008.
    7. Hank Lim & Fukunari Kimura, 2010. "The Internationalization of Small and Medium Enterprises in Regional and Global Value Chains," Microeconomics Working Papers 22812, East Asian Bureau of Economic Research.
    8. repec:lpe:efijnl:201616 is not listed on IDEAS
    9. repec:pal:eurjdr:v:31:y:2019:i:3:d:10.1057_s41287-018-0167-y is not listed on IDEAS
    10. Adalgiso Amendola & Anna Maria Ferragina & Rosanna Pittiglio & Filippo Reganati, 2012. "Are exporters and multinational firms more resilient over a crisis? First evidence for manufacturing enterprises in Italy," Economics Bulletin, AccessEcon, vol. 32(3), pages 1914-1926.
    11. repec:eee:iburev:v:27:y:2018:i:5:p:993-1006 is not listed on IDEAS
    12. FERRAGINA, Anna Maria, 2013. "The Impact of FDI on Firm Survival and Employment: A Comparative Analysis for Turkey and Italy," CELPE Discussion Papers 127, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    13. repec:lpe:efijnl:201709 is not listed on IDEAS
    14. repec:bla:asiaps:v:6:y:2019:i:1:p:19-39 is not listed on IDEAS
    15. Pérez-Luño, Ana & Wiklund, Johan & Cabrera, Ramón Valle, 2011. "The dual nature of innovative activity: How entrepreneurial orientation influences innovation generation and adoption," Journal of Business Venturing, Elsevier, vol. 26(5), pages 555-571, September.
    16. Joseph LiPuma & Scott Newbert & Jonathan Doh, 2013. "The effect of institutional quality on firm export performance in emerging economies: a contingency model of firm age and size," Small Business Economics, Springer, vol. 40(4), pages 817-841, May.
    17. Nguyen, Thang V. & Le, Ngoc T.B. & Bryant, Scott E., 2013. "Sub-national institutions, firm strategies, and firm performance: A multilevel study of private manufacturing firms in Vietnam," Journal of World Business, Elsevier, vol. 48(1), pages 68-76.
    18. Jan ter Wengel & Edgard Rodriguez, 2006. "Productivity And Firm Dynamics: Creative Destruction In Indonesian Manufacturing, 1994-2000," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(3), pages 341-355.
    19. Elvira Velarde Lopez & Zochitl Araiza Garza & Anahi Garcia Moreno, 2014. "FIRM AND ENTREPRENEUR FACTORS AND THEIR RELATIONSHIP WITH ECONOMIC SUCCESS IN SME’s IN THE CENTRAL REGION OF COAHUILA, MEXICO,FACTORES DE LA EMPRESA Y DEL EMPRESARIO Y SU RELACION CON EL EXITO ECONO," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 7(5), pages 11-23.
    20. Celeste Varum & Vera Rocha, 2013. "Employment and SMEs during crises," Small Business Economics, Springer, vol. 40(1), pages 9-25, January.
    21. Tweneboah Senzu, Emmanuel & Ndebugri, Haruna, 2018. "Examining business performance of micro, small and medium scale enterprise through accounting records keeping; case study in Ghana," MPRA Paper 84022, University Library of Munich, Germany.
    22. 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.
    23. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    24. Parveneh Shahnoori & Glenn P. Jenkins, 2015. "Value of E-Banking to Small and Medium-Sized Enterprises," Development Discussion Papers 2015-09, JDI Executive Programs.

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