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Preliminary communication

Determining the link between internationalization and business performance of SMEs

Mihaela Mikić orcid id ; University of Zagreb, Faculty of Economics and Business, Trg J. F. Kennedyja 6, 10 000 Zagreb, Croatia
Dinko Primorac ; University North, Trg dr. Žarka Dolinara 1, 48000 Koprivnica, Croatia
Goran Kozina ; University North, Trg dr. Žarka Dolinara 1, 48000 Koprivnica, Croatia

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Internationalization represents an expansion of economic activity beyond the domicile economy, and it is reflected by quantitative changes and more extensive geographical organization of economic activity. In this paper internalization is defined by all aspects of the international activities, including export and import activities. Particularly interesting aspect of internationalization represents the internationalization of SMEs which is still insufficiently explored. Analysis of internationalization in this paper is based on business strategy approach, i.e. internal and external business factors. The business success in this paper is examined using a multidimensional approach, i.e. various dimensions of business success: financial business and organizational performance. Results of analysis of conducted empirical research by multiple linear regression analysis confirmed that internationalization has a positive impact on business performance of SMEs. By integrating different types of connections and structural elements of internationalization and their quantitative examination of the small business sector, this paper thesis presents significant empirical contribution.


business performance, Croatia, internationalization, SMEs

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