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Export Stimuli, Export Stages and Internationalization Pathways: The Case of Indonesian SMEs

Author

Listed:
  • Mohamad D. Revindo

    (Faculty of Agribusiness and Commerce, Lincoln University, New Zealand & Institute for Economic and Social Research, Faculty of Economics and Business, University of Indonesia (LPEM- FEBUI))

  • Christopher Gan

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

Abstract

Small and Medium-sized Enterprises (SMEs) in developing countries are still constrained to seize the opportunity of trade liberalization as compared to their large counterparts. It has been argued that effective efforts to foster SME export require clear understanding of the factors that stimulate them to export. This study investigates the export stimuli of 385 Indonesian SMEs at different export stages (pre-exporting and exporting) and different internationalization pathways (domestically established exporter and born-global SMEs). Three types of export stimuli are consistently identified as the most important in all sub-samples: the presence of foreign buyers, the confidence in the products and the aspiration to find alternative markets. By contrast, two types of export stimuli are consistently found as the least important in all sub-samples: government support and Indonesian diaspora communities. The academic and policy implications of the findings are discussed.

Suggested Citation

  • Mohamad D. Revindo & Christopher Gan, 2016. "Export Stimuli, Export Stages and Internationalization Pathways: The Case of Indonesian SMEs," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 62, pages 191-205, December.
  • Handle: RePEc:lpe:efijnl:201616
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    References listed on IDEAS

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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.

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    More about this item

    Keywords

    Export Stimuli; Small And Medium-Sized Enterprises (SMEs); Stages Of Exporting; Internationalization Pathways; Born-Global Enterprise; Indonesia;
    All these keywords.

    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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