The Determining External Factor of Export Performance In Manufacture Industry

Fitrianingrum, Agustina (2020) The Determining External Factor of Export Performance In Manufacture Industry. DIMENSI, 9 (2). pp. 264-279. ISSN 2085-9996

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Abstract

Export Performance is one of the key indicators of national economic performance. Currently, the income per capita of Indonesian is US$3.005, which will be expected increasing up to US$13.000- 14.900 by 2025. This is a kind of opportunity and challenge to boost economies by international trade. Globalization and technology are important factors contributing to international business. Export performance at a firm-level becomes the indicator of competitiveness and business sustainability in the overseas market. It also describes how big the market share that they have. International business always has been dealing with 4Cs Risk Factors (Commercial, Currency, Culture, and Country Risk). These risks are including the internal and external factors of a firm level. The ability to dealing with the risks will improve the sustainability of a firm. This paper describes empirical evidence of how strong the legal and political aspect or country risk to supply chain performance as the driver of export performance. It also proposes the Socio-Technical System Theory to be implemented in the manufacturing of electrical and electronic companies that have orientation for exporting the product to sustain the business.

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