Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Indonesia SMES′ Internationalization Performance: The Roles of Institutional Context and Dynamic Capabilities

Author(s): Apung Sumengkar, Lily Sudhartio, Setyo Hari W, Amiruddin Ahamat

This study aims to assess the impact and interplay of Institutional Context, Dynamic Capabilities, both Owner Specific (Managerial) and Organizational Capabilities, and the performance of Indonesian exporting SMEs. We used quantitative techniques to collect data from the key analysis unit, which is Indonesia Small Medium Enterprises that are already exporting. We distributed structured questionnaires to more than 500 exporting Small Medium Enterprises from East Java, West Java, and Jakarta, Indonesia, and 135 SMEs responded. The important findings revealed that institutional environment, particularly government rules and network support, had a considerable impact on dynamic capacities. It has also been scientifically proved that the owner's ability to plan well and manage risk is critical in establishing dynamic organisational capabilities. Finally, the business performance of exporting SMEs has been shown to be directly influenced by institutional framework and intermediated by organisational dynamic capacities.

Get the App