Financial Influences on Export Status of Small and Medium-Sized Enterprises in an Emerging Economy
37 Pages Posted: 29 Aug 2014
Date Written: July 2014
The purpose of this study is to understand financial and behavioural influences on the export status of small and medium-sized enterprises (SMEs) in an emerging economy. In particular, we tested the direct effects of perceived costs, internal financial resources and external capital constraint on the export status of SMEs. We also tested the moderating effect of cost sensitivity on two types of perceived export costs. Survey data was collected from 356 SMEs in Malaysia and analysed using logistic regression. The results show that exporters perceive higher ongoing costs but lower initiation costs of exporting. They also perceive higher internal financial resources, fewer constraints in accessing external capital, and are more sensitive towards costs compared to non-exporters. Furthermore, we found that cost sensitivity moderates the relationship between perceived costs and export status.
Keywords: SME exports, export costs, perceived costs, cost sensitivity, internal resources, financial constraint
JEL Classification: C31, C83, M16
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