(This guide is only available in English.)
Mohamad D. Revindo and Christopher Gan
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 large counterparts despite various export assistance provisions by the government. This study aims to investigate the factors influencing Indonesian SMEs' decisions and ability to engage in direct exporting activities. The evidence was collected from 271 exporting SMEs and 226 non-exporting SMEs in seven provinces in Java, 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.
