IMPACT OF GLOBALIZATION ON BUSINESS PERFORMANCE

The presented paper investigates the impact of globalization on business performance. The purpose of our research is twofold: first, we aim to classify and define the effects of globalization, and second we explore these effects and test the relationship between the globalization effects and the performance of exporting companies. In this context the research attempts to answer two questions: 1) in which way the globalization affects company performance, and 2) what is the difference in the relationship between global market opportunities and performance and between global market threats and performance. Structured questionnaire was used to collect the data from marketing and sales managers of companies from six economic sectors in Slovakia. Bivariate regression analysis was applied to study the size and direction of the global market opportunities and global market threats on overall business performance. We found that globalization can affect business performance both positively and negatively: while company performance is enhanced by increased market opportunities caused by globalization, it is braked by growing competitive threats. Therefore, managers must consider such double effects, and try to expand the opportunities, while turning threats into opportunities. Appropriate strategies such as CRM strategies, developing networks with other companies or plural management strategies must be carefully developed and implemented in order to minimize the threats from increased competition.