Firm Size Related to Export Performance

Purpose: This paper provides an overview of exporting firms, as a special case SMEs of the Republic of Kosovo, that are exporters based on relevant academic literature. Empirical evidence reveals that most of the SMEs, have positive relations with some determinants as the number of employees. To verify whether exporting is the first step in the process of internationalization, the findings of this study are linked with related literature on exporting aspects. This also offers a more in-depth understanding of the relation between variables used in the study and export performance. Design/Methodology/Approach: The paper used quantitative data and face to face interviews with respondents. The descriptive statistics were calculated to give an overview of the distribution, mean and the standard deviation of the dataset. Internal consistency and reliability analysis on a Likert scale was performed using Cronbach’s Alpha coefficient. Findings: The firm size was shown to be highly statistically significant and positively related, indicating that the importance of economies of scale in the probability of being engaged in export is high. The obtained results from the conducted research on SMEs in Kosovo show that the dependency of managers’ education and training were corresponding with those attained when testing dependency of managers’ age and their international experience. Practical Implications: Development policy should be made towards the added value and growth of competitive competencies of SMEs in the domestic market and the external market, as well the process to take facilitating steps in exporting promotional activities. Agency for supporting SMEs should coordinate activities to improve the conditions for exporting enterprises by allowing access to public infrastructure. Originality/Value: This paper is summarized with some specific recommendations for the management of SMEs and for government institutions to improve export performance.