Influence of Market Awareness, Regulatory Compliance, Logistical Efficiency and Digital Marketing Innovation to Internationalization Barrier (A Case Study of Indonesian Batik Exporting Businesses)

Abstract

Indonesian batik SMEs possess a number of significant barriers in their efforts to compete at a global level, which thus constrains their internationalization potential. The main challenges comprise low market awareness, strict regulations compliance requirements, logistical inefficiencies, and a general lack of innovation in digital marketing. Using a quantitative analysis approach, this research gathered its data through structured surveys and statistical evaluations to identify the most relevant obstacles and their impact on export performance. The findings indicate that the four factors of limited market awareness, stringent regulations, logistical efficiency, and low digital marketing innovation are serious obstacles to the internationalization of batik SMEs. Among these, market awareness is the most strongly negatively related to export success. Therefore, the study calls for adaptive strategies that align traditional cultural values with modern global demands. An integrated understanding of local and global market dynamics, innovation, and sustainable practice is crucial for export performance improvement. This study provides a conceptual framework to understand the challenges faced by cultural SMEs, particularly in the batik industry, and seeks to contribute to the current literature.