Evaluating the impact of environmental factors on the international competitiveness of Small and Mediumsized Enterprises in the Western Balkans

Abstract

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 evaluates 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 studies the importance of strategic planning and decision making process in the Western Balkans
SMEs. Research is based on a questionnaire conducted on the representative sample of SMEs in
Serbia, Montenegro and Bosnia and Herzegovina in the period September 2008 to 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.