Does internationalization moderate the effect of SMEs size, age, and other financial determinants on investment opportunities set? Evidence from Indonesia

Soesetio, Yuli; Rudhiningtyas, Dyah Arini; Sudarmiatin, Sudarmiatin; Mukhlis, Imam

doi:10.31106/jema.v18i2.10393

Cited by 3 publications

(3 citation statements)

References 47 publications

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“…Some of these advantages include access to new markets for products and services and easier access to local market advantages such as labor, shipping lines, and natural resources. The company's internationalization initiatives attempt to boost the firm's performance by expanding sales in new fields with the objective of creating new market shares (Soesetio, Rudhiningtyas, Sudarmiatin, & Mukhlis, 2021). Thus, the company will be more able to improve its competitiveness so that its performance can be increased.…”

Section: Internationalization Moderates the Relationship Of Fc And Fpmentioning

confidence: 99%

Mediating role of competitiveness between process innovation and financial performance: Internationalization moderation

Soesetio,

Soetjipto,

Handayati

et al. 2024

IJAEFA

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This study focuses on investigating the relationship between process innovation and financial success through firm competitiveness and the effect of internationalization as moderation on this association. Innovation becomes one of the most important parts for companies because it will create a competitive advantage and indirectly improve the company's financial performance. This study used a sample of 389 Craft Micro, Small and Medium Enterprises (MSMEs) in West Java, Indonesia. SEM Analysis Moment of Structural (AMOS) 24 is used to test the path and multigroup analysis during the data analysis process. The empirical evidence of this study indicates that process innovation and company competitiveness have a substantial positive relationship with the financial performance of MSMEs. Furthermore, efforts to improve the performance of MSMEs come directly from process innovation and business competitiveness. Indirectly, firm competitiveness does not mediate the connection between process innovation and financial performance. Besides, this study also found that internationalization significantly moderates the impact of firm competitiveness on financial performance. We use a sample of companies that include ultra-micro companies, where they are not yet familiar with a good financial recording system or an efficient production process. Therefore, craft SMEs must be able to make a good financial record (for accessing funds from banks) so they can transform into modern tools and optimize their process innovation by improving their production processes. Thus, SMEs can more easily reach international markets for better financial performance.

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Section: Internationalization Moderates the Relationship Of Fc And Fpmentioning

confidence: 99%

Mediating role of competitiveness between process innovation and financial performance: Internationalization moderation

Soesetio,

Soetjipto,

Handayati

et al. 2024

IJAEFA

View full text Add to dashboard Cite

show abstract

“…Therefore, SMEs deserve to be considered in the international market [24]. Internationalization also allows SMEs to survive amid intense competition [25]. SMEs in Indonesia are increasingly considering international expansion as a strategic option for sustainable growth [26].…”

Section: Followingmentioning

confidence: 99%

A Review of International Mode of Entry Strategies for SMEs in East Java

Aisyah

Mukhlis

Murwani

2023

JEMT

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The purpose of this research is to examine the internationalization of Small and Medium-sized Enterprises (SMEs) in East Java from both theoretical and practical perspectives. By analyzing existing literature and utilizing empirical data from earlier studies, this study seeks to deepen our understanding of the subject matter. The methodology of this study involves rigorous examination of the most recent theories and models, supplemented by empirical analysis of existing research on internationalization of SMEs. Various theories and models, ranging from classical to contemporary approaches, are explored in relation to the internationalization strategy of SMEs in East Java, and different entry modes for internationalization. The theoretical framework of this study is anchored on the resource-based view and network theory. This study uses content analysis of the latest theories and models coupled with empirical analysis of studies on the internationalization of SMEs that have been conducted. Several theories and models, both classical and new approaches, link the internationalization strategy of SMEs in East Java and several entry modes for internationalization. This theory is based on a resource-based view and network theory. The result of this study is East Java's SME internationalization strategy is hampered by various obstacles and issues, as per documented evidence. While the entry mode for internationalization hinges on networking, numerous SMEs in the region choose to network autonomously, as empirical data suggests. This study aims to provide policymakers, especially the government, with workable ideas for a long-term, proactive strategy to ensure the success of SMEs' internationalization in East Java. Empirical data proposes that limited knowledge about markets, trade regulations, communication barriers, financing, and transportation infrastructure supporting internationalization pose the most common challenges faced by SMEs in Indonesia. Consequently, the entry networking strategy mode is the key to independent internationalization for SMEs. This study contributes to a theoretical and practical review of SME internationalization mode entry strategies.

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“…The present study intended to investigate the impact of audit quality engaging audit firm size and industry specialization on the cost of equity capital (Soesetio et al, 2021;Sugeng et al, 2020). Persakis & Iatridis (2015) examined the impact of earnings management, audit quality, and financial crisis on the cost of capital in 18 developed countries classified into three groups according to the level of investor protection.…”

Section: Introductionmentioning

confidence: 99%

How does audit committee moderate the relationship between audit firm size, industry specialization, and the cost of equity capital? A comparison of the Ohlson and Capital Asset Pricing Model

Hutabarat

Arifin²,

Abrar³

2022

JEMA

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The purpose of this study is to examine the moderation effect of the audit committee on the linkages between audit firm size, industry specialization, and the cost of equity capital with firm size and financial leverage as a control variable. This study is one of few that compared the accuracy of Ohlson and Capital Asset Pricing Model in explaining the cost of equity capital and the moderation role of the audit committee. A sample of 123 manufacturing firm-year observations was drawn from Indonesian-listed companies for five years period (2016-2020). The results show that while the audit committees significantly moderate the negative relationship between firm size on the cost of equity capital, there is no significant evidence of the moderation role of the audit committee on the relationship between industry specialization and the cost of equity capital using the Capital Asset Pricing Model. On the contrary, the moderation role of the audit committees on the effect of industry specialization toward the cost of equity capital under Ohlson was supported in the study. Further, it found that the Ohlson has a better performance than the Capital Asset Pricing Model in explaining the cost of equity capital as the Ohlson measurement expressed the role of earnings per share which represent a more real rate of return.

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Does internationalization moderate the effect of SMEs size, age, and other financial determinants on investment opportunities set? Evidence from Indonesia

Cited by 3 publications

References 47 publications

Mediating role of competitiveness between process innovation and financial performance: Internationalization moderation

Mediating role of competitiveness between process innovation and financial performance: Internationalization moderation

A Review of International Mode of Entry Strategies for SMEs in East Java

How does audit committee moderate the relationship between audit firm size, industry specialization, and the cost of equity capital? A comparison of the Ohlson and Capital Asset Pricing Model

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