Financial Influences on Export Status of Small and Medium-Sized Enterprises in an Emerging Economy

37 Pages Posted: 29 Aug 2014

See all articles by Abu Ayob

Abu Ayob

National University of Malaysia (UKM) - Faculty of Economics and Management

Sveinn Vidar Gudmundsson

Toulouse Business School

Mohd Yaacob

National University of Malaysia (UKM)

Date Written: July 2014

Abstract

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

Suggested Citation

Ayob, Abu and Gudmundsson, Sveinn Vidar and Yaacob, Mohd, Financial Influences on Export Status of Small and Medium-Sized Enterprises in an Emerging Economy (July 2014). Available at SSRN: https://ssrn.com/abstract=2488441 or http://dx.doi.org/10.2139/ssrn.2488441

Abu Ayob

National University of Malaysia (UKM) - Faculty of Economics and Management ( email )

Bangi, Selangor 43600
Malaysia

Sveinn Vidar Gudmundsson (Contact Author)

Toulouse Business School ( email )

20, bd Lascrosses
Toulouse, 31068
France

HOME PAGE: http://www.tbs-education.fr

Mohd Yaacob

National University of Malaysia (UKM) ( email )

43600 Bandar Baru Bangi
Bangi, Selangor 06010
Malaysia

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