Export incentives and international entrepreneurship in Malaysian firms

Zafar U. Ahmed, Prince Fahad Bin Sultan National University
Craig C. Julian, Southern Cross University
Abdul J. Mahajar, Universiti Utara Malaysia

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.