Factors Affecting MSMEs Export In UP A Regional Study Of External And Internal Determinants

Abstract

newlineIn India, the Ministry of MSMEs classifies their enterprises based on turnover into the newlinefollowing categories-(i) Micro, up to and#8377;5 cr. (ii) Small, not exceeding and#8377;75 cr. and (iii) Medium newlinewith less than and#8377;250 cr. (Gazette of India, 2018). MSMEs can serve as driver of GDP and newlineemployment growth. It can also help in reducing income inequality since MSMEs with higher newlineexport intensity have smaller wage gaps compare to large firms. Since MSMEs are flexible newlineand have ability to customize and differentiate their product which give them comparative newlineadvantage over large firms in the dynamic market. MSMEs can acquire international market newlineeither through direct exporting or indirect exporting such as Piggyback exporting (Terpsta and newlineSarathy, 2000). Contemporary literature related to the internationalization of MSMEs firms newlinedoesn t focus on issues at the intra-national level, i.e., Regional Resource Base. The newlineResource-based view theory is used to understand the role of region in the performance of newlineExports. In recent times, resource base paradigms are becoming increasingly popular to study newlineexport performance. This theory suggests that firms gains and sustained competitive newlineadvantage by employing variable resources and capabilities that do not show elasticity in newlineSupply (Akhter and Robles 2006).