Internationalization and performance of small and medium firms

GENERAL KNOWLEDGE Name and Surname: Öykü Özkandemir Field: Business Administration Programme: Master of Business Administration Supervisor: Yrd.Doç.Dr.Esra Karadeniz Degree Awarded and Date: Master- June 2004 Keywords: Internationalisation, SME's, Export Intensity ABSTRACT The main purpose of this study is to analyze and evaluate the importance of Small and Medium-Sized Enterprises (SME). It also explores the relationship between internationalization and the performance of SMEs. The second chapter covers the characteristics and importance of the SMEs in domestic economies and addresses the problems that these Enterprises have faced in their developmental stages. This chapter also draws attention to the fact that when SMEs increase their administrative capacity and utilize futuristic leadership methods, they in the meantime build up on their profitability rate in Turkish economy. The third chapter focuses on Foreign Trade, Foreign Direct Investment and the e- Commerce amongst SMEs. Whilst doing this, it reflects the globalisation degree of SMEs and proposes what Turkish SMEs need to do to catch up with the other globalizing enterprises all around the world. This chapter also reveals the place of Turkish SMEs in foreign trade and the percentage of foreign direct investment in the SMEs in Turkey. This study also sheds light on the factors that attract foreign investments, the types and benefits of e-commerce to SMEs as well as the problems that SMEs may face in consequence of e-commerce. The fourth chapter is an account of the internationalizing concept of SMEs, export as one of the paths to internationalization, export strategies and the relationship between these strategies and the performance of SMEs. The fifth chapter is an analysis of the place of Turkey in the internationalization process and the factors that affect it. It also explores whether there is any relationship between the levels of export intensity and foreign investment on the performance of SMEs. Based on the findings noted above, this research concludes that in Turkey, any increase in export intensity does not affect the profitibility rate of SMEs whatsoever.