Export Incentives and International Entrepreneurship in Malaysian Firms

Abstract

This study explores Malaysian entrepreneurs' incentives to export when engaging in international business. The data gathered were based on a survey of 214 Malaysian manufacturing firms. Statistical analysis was carried out using one-way analysis of variance. With the exception of a ‘decline in the value of currency relative to foreign markets’, the results indicate no significant differences in the perceptions of exporters and non-exporters towards the various incentives to export. Thirteen of the export incentives tested in this study were deemed to be significant to Malaysian entrepreneurs. These were: reduction of tariffs in target countries; attractive export incentives provided by the home country government; the presence of export-minded management; expectation of economies of scale resulting from added volume of trade; favourable sales and profit opportunities in foreign markets; chance to diversify into new markets; receipt of voluntary orders from foreign buyers; availability of profitable ways to ship to foreign markets; eased product regulations in target countries; opportunity to reduce inventories; moves by domestic competitors to export; decline in the value of currency relative to foreign markets; and entry of foreign competitors into the domestic market.

Keywords

export incentives export marketing international entrepreneurship Malaysia

Get full access to this article

View all access options for this article.

References

Ahmed

Z. U.

Julian

C. C.

Baalbaki

Hadidian

T. V.

(2004), ‘Export barriers and firm internationalisation: A study of Lebanese entrepreneurs’, The Journal of Management and World Business Research, Vol 1, No 1, pp 11–22, accessed via Website: www.academyofworldbusiness.com/jomawbr.

Armstrong

J. S.

Overton

T. S.

(1977), ‘Estimating non-response bias in mail surveys’, Journal of Marketing Research, Vol 14, pp 396–402.

Barker

A. T.

Kaynak

(1992), ‘An empirical investigation of the differences between initiating and continuing exporters’, European Journal of Marketing, Vol 26, No 3, pp 27–36.

Beamish

P. W.

(1990), ‘The internationalisation process for smaller Ontario firms: A research agenda’, in Rugman

, ed, Research in Global Strategic Management, JAI Press, Greenwich, CT.

Bijmolt

T. H. A.

Zwart

P. S.

(1994), ‘The impact of internal factors on the export success of Dutch small and medium-sized firms’, Journal of Small Business Management, Vol 32, No 2, pp 69–83.

Cavusgil

S. T.

Zou

(1994), ‘Marketing–strategy performance relationship: An investigation of the empirical link in export market ventures’, Journal of Marketing, Vol 58, January, pp 1–21.

Central Bank of Malaysia (1999), Quarterly Economic Bulletin, Central Bank of Malaysia, Kuala Lumpur.

Chetty

(1999), ‘Dimensions of internationalisation of manufacturing firms in the apparel industry’, European Journal of Marketing, Vol 33, Nos 1/2, pp 121–142.

Czinkota

M. R.

Rivoli

Ronkainen

I. A.

(1992), International Business, 2 ed, Dryden Press, Forth Worth, TX.

10.

Douglas

S. F.

Craig

C. S.

(1983), International Marketing Research, Prentice-Hall, Englewood Cliffs, NJ.

11.

Globerman

(1986), Fundamentals of International Business Management, Prentice Hall, Englewood Cliffs, NJ.

12.

Gripsrud

(1990), ‘The determinants of export decision and attitudes to distant market: Norwegian fishery export to Japan’, Journal of International Business Studies, Vol 21, No 3, pp 469–486.

13.

Groves

(1990), Survey Errors and Survey Costs, John Wiley and Sons, New York.

14.

IMF (1995), Directions of Trade Statistics Yearbook, IMF Publication Services, Washington, DC.

15.

Johnson

J. L.

Cullen

J. B.

Sakano

Bronson

J. W.

(2001), ‘Drivers and outcomes of parent company intervention in IJV management: A cross-cultural comparison’, Journal of Business Research, Vol 52, pp 35–49.

16.

Julian

C. C.

O'Cass

(2002), ‘Examining the internal–external determinants of international joint venture (IJV) marketing performance in Thailand’, Australasian Marketing Journal, Vol 10, No 2, pp 55–71.

17.

Julian

C. C.

O'Cass

(2004), ‘The antecedents of export marketing performance: An Australian perspective’, Journal of Asia Pacific Marketing, Vol 3, Nos 2/3, pp 99–113.

18.

Kedia

B. L.

Chhokar

(1986), ‘Factors inhibiting export performance of firms: An empirical investigation’, Management International Review, Vol 26, No 4, pp 33–43.

19.

Lim

J. S.

Sharkey

T. W.

Kim

K. I.

(1991), ‘An empirical test of an export adoption model’, Management International Review, Vol 31, No 1, pp 51–62.

20.

McClelland

D. C.

(1987), ‘Characteristics of successful entrepreneurs’, Journal of Creative Behaviour, Vol 21, pp 219–233.

21.

Meredith

(1984), ‘U.S. multinational investment in Canadian manufacturing industries’, Review of Economics and Statistics, Vol 66, February, pp 111–119.

22.

Petersen

Welch

L. S.

Liesch

P. W.

(2002), ‘The Internet and foreign market expansion by firms: Theoretical questions and three predictions’, Management International Review, Vol 42, No 2, pp 207–221.

23.

Rugman

, ed (1990), Research in Global Strategic Management, JAI Press, Greenwich, CT.

24.

Sullivan

Bauerschmidt

(1990), ‘Incremental internationalization: A test of Johanson and Vahlne's thesis’, Management International Review, Vol 30, No 1, pp 9–30.

25.

Tenbelian

(2003), ‘Industry gets itself back on track: New measures revive ailing sector’, Lebanon Opportunities, January, pp 19–23.

26.

Terpstra

Sarathy

(1994), International Marketing, 6 ed, Dryden Press, Fort Worth, TX.

27.

Westhead

(1995), ‘Exporting and non-exporting small firms in Great Britain, a matched pair comparison’, International Journal of Entrepreneurial Behaviour and Research, Vol 1, No 2, pp 6–36.