Factors preventing internationalization of small and medium sized enterprises: a case study in Eskişehir

Along with the rapid increase in global competition within the last thirty years, increasing the competitiveness of the Small and Medium Sized Enterprises (SMEs) has become a necessity. Yet, it is a prerequisite for the SMEs to enhance and broaden their cooperation facilities. Due to the developments in information technology and globalization since 1980s, economic and political barriers among countries have been abolished. This new situation led to the SMEs to access new markets so as to stand strong toward the market shocks and keep their market shares. There are few studies on the internalization of SMEs and the barriers they meet within the internalization process in Turkey. Taking into consideration the shares of the SMEs within the world economy and the important roles they play, the importance of relevant studies becomes apparent. The aim of this study is to define the problems and barriers on the internalization of the SMEs in Turkey and put forward proposals for solving them. The study comprises of four parts. In the first part of the study, the theoretical framework of the SMEs is introduced. In the second part, the internalization theories of the firms are examined. In the third and fourth part of the study, the internalization of the SMEs that are registered to the Eskişehir Chamber of Industry (ESO) is analyzed and the results of the field study that is done to define the problems of the SMEs are elaborated.