Factors Driving Enterprises’ Internationalization in Asean-5

International Journal of Economics and Management Studies

© 2022 by SSRG - IJEMS Journal

Volume 9 Issue 7

Year of Publication : 2022

Authors : Muhamad Raihan Akhsal, Liyu Adhi Kasari Sulung, Hapsari Setyowardhani, Imo Gandakusuma, Hendro Prabowo

10.14445/23939125/IJEMS-V9I7P102

How to Cite?

Muhamad Raihan Akhsal, Liyu Adhi Kasari Sulung, Hapsari Setyowardhani, Imo Gandakusuma, Hendro Prabowo, "Factors Driving Enterprises’ Internationalization in Asean-5," SSRG International Journal of Economics and Management Studies, vol. 9,  no. 7, pp. 6-14, 2022. Crossref, https://doi.org/10.14445/23939125/IJEMS-V9I7P102

Abstract:

This study aims to determine the main factors that drive the internationalization of companies in Indonesia, Malaysia, the Philippines, Thailand, and Singapore. This study uses the balanced panel data random effect method with annual data for 2012-2019. The results of this study prove that the company's internal and external factors are important determinants of the company's internationalization performance. First, it was found that the company's performance, size, and growth of its intangible assets are the internal factors that most encourage the company's internationalization performance. Second, it is found that industry characteristics are the company's external factors that most drive the company's internationalization performance. Third, when viewed from both internal and external factors, the factors that most encourage the level of internationalization are the characteristics of the industry, especially the manufacturing industry. Thus, foreign sales of goods and services from ASEAN-5 are still dominated by manufacturing companies.

Keywords:

Internationalization, ASEAN-5, Internal factors, External factors.

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