EXAMINING THE INFLUENCE OF GOVERNANCE AND REGULATION, DISTRIBUTION CHANNEL, AND PRODUCT VALUE ON THE EXPORT ACTIVITIES OF FOOD PRODUCT MSMEs IN WEST JAVA, INDONESIA

Abstract

Micro, Small, and Medium Enterprises (MSMEs), especially home industries, play a critical role in Indonesia’s economy by contributing significantly to employment, GDP, and local cultural preservation. Despite their rapid growth, their contribution to national exports remains disproportionately low, at only around 14–15%. This underperformance reveals untapped export potential, hindered by several challenges such as limited understanding of export governance, inefficient distribution strategies, and insufficient product value alignment with global consumer demands. Previous studies have often examined these variables: governance & regulation, distribution channels, and product value separately. This presents a research gap where an integrative, simultaneous analysis is needed to understand their combined influence on international market success. This study aims to address this gap by analyzing how these three factors collectively affect the ability of home-based MSMEs to enter and sustain themselves in global markets. Using a quantitative research method, data were collected through structured questionnaires distributed to MSME actors in the food sector across West Java. The data were analyzed using multiple linear regression to test both partial and simultaneous influences of governance and regulation, distribution channels, and product value on international market entry. The findings are expected to provide practical insights for MSMEs, policymakers, and supporting institutions to develop more comprehensive strategies that enhance export readiness, improve international competitiveness, and increase the global presence of Indonesian MSME products.