There is a growing consensus among policymakers and academics that internationalization
of domestic firms will create jobs and wealth, yet relatively
little is known about the incentives for small and medium enterprises (SMEs)
to undertake this process. I analyze the motivations of SMEs from Vietnam,
Indonesia and the Philippines to engage in exporting in the context of triangulation,
which considers the impact of the global economy, national economy,
and societal milieu on SMEs. I find that scarce demand in the home market
is positively and significantly correlated with exporting, while favourable
government incentives are less significant. Significant foreign demand and
existing parent–subsidiary relationships are important explanations for SME
exports from Vietnam, but not for Indonesia or the Philippines. These findings
suggest that national economies are currently more important than the global
economy for SME exports in Southeast Asia; my results call into question the
ability of governments to encourage SMEs to internationalize via exporting.