DETERMINING THE IMPORT DECISION VARIABLES AND THE BUYER-SUPPLIER RELATIONSHIP IN INTERNATIONAL MARKET: EVIDENCE OF INDONESIAN PRODUCTS

• Main Author: Rizki Febrianny, Ervyna
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41895
• Institution: Institut Teknologi Bandung

Export-import activities are important for our country to meet the needs and also to increase the company’s income. Export is one of the economic activities carried out by selling or removing goods from a country and sent to other countries. It does not matter what kind of goods and services and also how to be transported technically. Import is an activity of purchasing goods or services from one country sent to another country. Regarding export, Indonesia is a nation that has many potential natural as well as human resources that can be delivered across nations. Besides, indonesia’s geographic location is considered strategic which allows it to partner with not only countries in Asia Pacific but also the global players. Based on the Indonesian product chart from official website of Indonesian trade ministry from 2014 to 2018 show shat a fluctuated data is occurred. Another unbelievable recent situation is that Indonesia is still below its neighbouring countries that have less natural resources such as Malaysia, Vietnam, and Singapore in terms of export level. From these phenomenons, we want to know why these fluctuations occur and how to increase Indonesian exports in order to compete with neighbouring countries by looking at the buying behaviour of overseas buyers who have been collaborating with Indonesian suppliers. This study uses Smart-Partial Least Square (Smart-PLS) to find out what factors are significantly influenced Indonesian product exports and to see the linkages between those factors. Besides, this study also conducts interviews with experts to discover the validity of the quantitative result. The findings are essential for Indonesian exporters in maintaining their relationships with overseas buyers as well as increasing their export in the following years. Furthermore, they can also understand what kind of products that are potentially be exported abroad and they can also have insight on preventing possible obstacles that might arise for further exports.