Factors Affecting Variation in SMES' Export Intensity

Mohamad Revindo () and Christopher Gan ()
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Christopher Gan: Professor in Accounting and Finance, Faculty of Agribusiness and Commerce, Department of Finance and Business System, Lincoln University, New Zealand

No 201820, LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia

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 influence of export-exhibiting factors, export-inhibiting factors, and firm and owner characteristics on SMEs’ export intensity. The evidences were collected from 497 SMEs in seven provinces in Jawa, Madura and Bali regions. The findings show that SMEs’ export intensity is affected by some firm characteristics including firm age and total employees. Export intensity is also affected by some exhibiting factors including owners’ overseas and MNC/exporting firm 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 difficulties in overcoming informational and human resources barriers, distribution, logistics and promotional barriers, financial barriers, foreign government barriers, procedural barriers and price barriers. The policy and managerial implications of the findings are discussed.

Keywords: SMEs; —; internationalization; —; export; intensity; —; export; barriers; —; Indonesia (search for similar items in EconPapers)
JEL-codes: F23 L25 M13 M16 O17 (search for similar items in EconPapers)
Date: 2018-05, Revised 2018-05
New Economics Papers: this item is included in nep-ent, nep-int, nep-sbm and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:lpe:wpaper:201820

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