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All Journal Gadjah Mada International Journal of Business
Natanael Waraney Gerald Massie
Universitas Indonesia
Economics, Econometrics & Finance

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Factors Affecting Propensity to Export: The Case of Indonesian SMEs Mohamad Dian Revindo; Christopher Gan; Natanael Waraney Gerald Massie
Gadjah Mada International Journal of Business Vol 21, No 3 (2019): September-December
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22146/gamaijb.41022

Abstract

The benefits of trade liberalization 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 markets than their larger counterparts, despite various export assistance provisions by their governments. This study aims to investigate the factors influencing Indonesian SMEs’ decisions and ability to engage in direct export activities. The evidence was collected from 271 exporting SMEs and 226 non-exporting SMEs in seven provinces in Java, Madura, and Bali. Logistic regressions were used to identify the distinct characteristics of the exporting SMEs. The findings show that the exporters differ from non-exporters in terms of their firms’ and owners’ characteristics, their perceptions toward export barriers, their participation in their national government’s export assistance program and network relationships. The academic, policy and managerial implications of the findings are discussed.
Co-Authors Chaikal Nuryakin Christopher Gan Revindo, Mohamad Dian