Table 2.

Independent and dependent variables

DeterminantsOperationalisation
SMEs characteristics variable as dependent variables
Firm ageThe natural logarithm of firm age (lnfage) is used in the models. Firm age is the number of years from the time the SME is established
Ethnicity: ethnicity-wise dummy variablesSix dummies for SMEs based on ethnicity are considered. They include East Asian, Europe, India, New Zealand, South America and South-East Asia
Sector-wise dummy variablesFour sector-wise dummies are considered. They include: services, logistics, hospitality and manufacturing
Owner ageThe natural logarithm of owner age (lnownage) is used in the models. Owner age is the number of years from the time the SME is established
GenderThe proportion of male to female entrepreneurs of the SMEs. (DV = 1 if male entrepreneur and 0 otherwise)
EmployeesEmployee is the natural logarithm of employees in the SMEs
Variables derived from the perceptions of respondents
Retained earningsRE is 1 if major source of financing is internal and 0 if it is debt
Borrowing accessDV = 1 if prime lending is from banks and 0 for venture capitalists/angel investors
Growth options in financingDV = 1 if it is internal financing and dv is zero if otherwise
CompetitionDV is 1 if competition is local and 0 if it is foreign
InnovationDv is 1 if innovation is objective to tackle risk and challenges and 0 if customer-oriented pricing strategies
RiskDv is 1 if risk is the reason for internationalising and otherwise 0
Expectation on governmentDv is 1 if expectations exist and 0 for no expectations
ComplianceDV is 1 if compliance is an issue and 0 for otherwise
ChoiceDV is 1 if they want to remain as domestic otherwise 0
ExperienceDV 1 if specific interest (experience/passion/independent) 0 if others
Lack of adaptabilityDV 1 in case of lack of adaptability and 0 if macro reasons
Business life cycle variables
Survival phaseDv is 1 if firm age is less than two years and 0 otherwise
Rapid phaseDv is 1 if the firm age is between two and five years and 0 otherwise
Maturity phaseDV is 1 if firm age is four–five years and 0 otherwise
Established phaseDv is 1 if firm age is above five years and 0 otherwise
Source: Own elaboration

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