Resilience and Risk-averse Exporting Behavior: Case Studies on Sporadic Exports by Non-food MSMEs under Rumah BUMN Jakarta

Abstract

Abstract—There is observed demand for Indonesian non-food goods; however, data show that this sector continues to underperform. Among Indonesian MSMEs, a pattern of sporadic exporting behaviour has been observed to be the preferred method of internationalization. To investigate further, this study employs a qualitative approach to examine three Indonesian MSMEs, their sporadic exporting experiences, and the various factors that influence the decision to pursue gradual or sporadic exports. This study analyses three units of analysis: sporadic exports, resiliency, and risk-aversion, to examine the decision-making behind sporadic exports, the resiliency strategies employed by MSMEs, and the influence of risk aversion. This study finds that risk ultimately drives the decision to export sporadically, due to high costs and general inexperience. It is from said inexperience that MSMEs prefer gradual exports and “learning-by-exporting”. Resiliency is built through experience and by mitigating costs through intermittent, gradual exports to build solid foundational knowledge. Furthermore, the findings suggest that sporadic exports are a necessary, but ideally temporary, solution. To achieve regular exports, Indonesian MSMEs lack regular buyers and would benefit from well-designed government programs to mentor and financially support them.

Keywords—Indonesian MSMEs, Sporadic Exports, Resilience, Risk-Aversion, Case Study.