Impact of export barriers on micro, small and medium enterprises internationalisation: an Indian perspective

Abstract

The paper investigates the managerial perceptions towards different export barriers influencing internationalisation of micro, small and medium sized firms (MSMEs) in an Indian context. A five-point Likert scale-based questionnaire was used to examine the different export barriers influencing the firm's internationalisation activity. Export barriers were classified as internal and external barriers, and either barrier sub-classified under three separate categories. Internal barriers include entrepreneurial, functional and marketing barriers, while external barriers included procedural, governmental and economic barriers. Export market competition, inadequate infrastructure, export market awareness and lower export subsidies were found to be major barriers influencing firm's internationalisation. Entrepreneurial barriers were strongly correlated to all other export barriers. The study has managerial and policy implications, and adds to the internationalisation barrier literature in Indian context providing insights from a traditional export oriented sector.