Multidimensional approach to the role of internal business factors in internationalization of manufacturing SMEs

Internationalization, as both import and export, represents spreading of business activity beyond the local (country) market, allowing small and medium sized enterprise to compete in domestic and foreign markets by lowering costs through accessing new suppliers, and/or by increasing revenue due to new market access. Through empirical analysis, this paper determines the effects of internal business factors on import and export activity of small and medium enterprise (SMEs). Used model is based on a strategic approach to internationalization, which defines internal business factors as firm size, enterprise age, business activity, innovation, and personal characteristics of entrepreneurs/managers. To test the hypotheses, empirical research was conducted in Croatian manufacturing SMEs.