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This study aims to analyse the role of internationalization process in mediating the effect of innovative behaviour and dynamic capabilities on export performance. This research uses descriptive research methods and data is collected with a structured questioner through survey of 138 Indonesia export-oriented Handicraft SMEs. Data were analysed using path analysis techniques. The results show the dynamic capability and internationalization has a partially and simultaneous influence both on export performance, while innovative behaviour has no influence on internationalization and export performance either partially or simultaneously.
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