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.