International Journal of Accounting, Auditing and Taxation

International Journal of Accounting, Auditing and Taxation ISSN: 2756-3634 Vol. 4 (4), pp. 001-013, April, 2017. © International Scholars Journals

Full Length Research Paper

Evaluating the impact of environmental factors on the international competitiveness of Small and Medium-sized Enterprises in the Western Balkans

Goran Andzelic¹, Vladimir Dzakovic¹, Bojan Lalic¹, Danica Zrnic¹ and Iztok Palcic²*

¹Faculty of Technical Sciences, University of Novi Sad, Trg Dositeja Obradovica 7, 21000 Novi Sad, Serbia.

²Faculty of Mechanical Engineering, University of Maribor, Smetanova ulica 17, 2000 Maribor, Slovenia.

Accepted 16 February, 2017

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.

Key words: International competitiveness, small and medium enterprises, strategic positioning environmental factors, Western Balkans.