Export Promotion Program, Export Dynamic Capability, and Export Performance of Micro, Small and Medium Enterprises in Indonesia

Micro, small, and medium enterprises (MSMEs) can significantly contribute to distributing the benefits of economic growth more equitably. However, their participation in the international economy through exports remains limited due to various factors, including a lack of knowledge about foreign markets, limited access to skilled labor, inadequate export strategy development, and restricted access to finance.

To address these challenges, governments worldwide have launched various initiatives to encourage MSME participation in exports. These initiatives encompass a range of Export Promotion Programs (PPE) that focus on providing information, training and education, export mobility, and financing. Effective PPE can positively impact MSMEs by enabling them to participate more actively in exports.

However, the implementation of PPE varies significantly across countries in terms of quality, coverage, quantity, and effectiveness. In some countries (Catanzaro & Teyssier, 2020; Chang & Webster, 2018), programs aimed at enhancing innovation have successfully supported the export strategies, competitiveness, and performance of exporting companies, outperforming other PPE initiatives. In contrast, in countries such as Peru (Malca et al., 2020), educational programs have not effectively assisted companies in their export activities.

This variability suggests that more efficient PPE programs need to be selected and prioritized, and both program planning and delivery processes must be continuously improved.

Therefore, based on the above background, this research aims to:
1) Assess the impact of the government's export assistance program on the export competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia.
2) Examine how the company's internal factors (export dynamic capability) moderate the influence of PPE on the company's export performance.