Identification of the key success factors of the internationalization of SMEs´operating in the field of engineering

Abstract

Purpose of the article: The small and medium enterprises (SMEs) are very important part of the Czech economy, the situation of SMEs is currently more difficult because of the economical crisis, therefore the increased attention is drawn to them. The paper is focused on the internationalization of SMEs, especially on identifying key success factors of small and medium-sized companies that do business in engineering industry. Scientific aim: The authors focused on the specification of the most important aspects of the internationalization of Czech engineering small and medium enterprises. Methodology/methods: Authors realized due to several years survey among various small and medium sized enterprises, that the internationalization process of SMEs in different fields have different characteristics, therefore, attention was particularly stiff in engineering. Based on a survey of engineering SMEs operating in foreign markets the authors tried to determine what is typical for a successful company, what are their common features and what could be generalized and recommend to other small and medium-sized enterprises. Findings: It was found that the most successful SMEs chose a direct export as an ideal form of entry into foreign markets. Furthermore, it was found that one of the key success factors of SMEs in the foreign market is the ability to adapt to foreign market, especially on price and product. From long-term perspective are the most successful small and medium engineering businesses, which maintain its market share through pricing policy tools. Conclusions: Based on a survey among SMEs, which operate in foreign markets, the finds examined whether firms that are successful on foreign markets, have some common features that could be generalized as determinants of success of the internationalization process in the engineering industry. Most of the SMEs, which in foreign markets successfully operating, there are a limited liability company, which as a form of entry into foreign markets have chosen direct exports. Research indicates that for success on foreign markets is not affected by the use of aids and subsidies, while one of the key success factors appear capable of adapting to foreign market. The most successful are those on foreign markets engineering SMEs that maintain or increase its market share through pricing policy tools. In the long run is important for SMEs, the fact that manufacturing firms in engineering put increasing emphasis on research and development, which becomes a competitive advantage.