Family Ownership Type and the International Involvement of SMEs: Empirical Study of Agency Theory in East Java Indonesia

Abstract

This paper briefly draws the dimension of small, micro and medium enterprises' (SMEs) behavior in terms of internationalization strategy based on the ownership structure among SMEs in East Java. The finding is very interesting when there is no ownership structure variation, so the decision to choose international involvement could not be supported. Also, the scale determination is not becoming constraint of SMEs in East Java to involve internationally, especially thought export strategy. However, several aspects are considered to control the export behavioral dimension which is research and development (R&D) and sales, significantly. The result shows that there still are other elements except ownership type could impact internationalization strategy choices of SMEs in East Java.