Internationalization of Western Balkans small and medium sized enterprises: Analysis of environmental factors and factors of international competitiveness

Small and Medium sized Enterprises (SMEs) with an export potential face significant obstacles in gaining international competitiveness, due to the highly dynamic environment in which they operate. This study has evaluated the impact of environmental factors on international competitiveness of the Western Balkans SMEs by identifying the key pairs of environmental factors and factors of international competitiveness, which facilitate an increase in international competitiveness of these firms. The paper also studied the importance of strategic planning and decision making process in the Western Balkans SMEs. Research was based on a questionnaire conducted on the representative sample of SMEs in Serbia, Montenegro and Bosnia and Herzegovina in the period September 2008 - March 2009. The findings of the research indicate which significant environmental factors have an impact on gaining the international competitiveness of the Western Balkans SMEs, therefore offering sound basis for strategic positioning and further gaining of competitive advantage.