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The search for determinants of Kosovan Small and Medium Enterprises performance

Author

Listed:
  • Ajtene Avdullahi

    (Faculty of Economics, University of Mitrovica "Isa Boletini")

  • Avdullah Hoti

    (Faculty of Economics, University of Prishtina)

Abstract

The main purpose of this study is to identify determinants of SMEs performance, followed by the impact of Information Technology on SMEs profitability. By reviewing the existing literature and using the secondary data, this paper empirically investigates the determinants of SMEs growth in Kosovo; the fundamental obstacles faced by SMEs in Kosovo; the impact of Information Technology on SMEs performance and, it proposes strategies and measures to maximise Information Technology adoption from Kosovan SMEs. For the research purpose in this paper are used the secondary data gathered from Business Support Center Kosovo, who developed a survey from 500 SMEs in Kosovo. The combination of the variables related to entrepreneur, firm, business environment and IT adoption in a logit regression model suggest that entrepreneurs age, business age, introduction of any new method of marketing other than existing in the market for products/services during last three years from the firm are significant, whereas Internet use from SMEs resulted the most significant variable for SMEs profitability.

Suggested Citation

  • Ajtene Avdullahi & Avdullah Hoti, 2020. "The search for determinants of Kosovan Small and Medium Enterprises performance," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 9(2), pages 1-22, December.
    • Handle: RePEc:sek:jijoes:v:9:y:2020:i:2:p:1-22
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    References listed on IDEAS

    as
    1. Besnik A. Krasniqi, 2007. "Barriers To Entrepreneurship And Sme Growth In Transition: The Case Of Kosova," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 71-94.
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    4. Jesus Sosa & Andree Roy & Adriana Bautista, 2015. "Micro, Small And Medium Enterprises And Social Networks In Tourism Industry In Manzanillo, Colima, Mexico," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(1), pages 90-105, February.
    5. Jesus Sosa & Andree Roy & Adriana Bautista, 2015. "Micro, Small And Medium Enterprises And Social Networks In Tourism Industry In Manzanillo, Colima, Mexico," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(1), pages 78-92, February.
    6. Odd-Helge Fjeldstad & Ivar Kolstad & Knut Nygaard, 2006. "Bribes, taxes and regulations: Business constraints for micro enterprises in Tanzania," CMI Working Papers WP 2006: 2, CMI (Chr. Michelsen Institute), Bergen, Norway.
    7. McPherson, Michael A., 1996. "Growth of micro and small enterprises in southern Africa," Journal of Development Economics, Elsevier, vol. 48(2), pages 253-277, March.
    8. Vjosa Fejza & Hykmete Bajrami, 2019. "Marketing Analysis in the Water Production Sector in Kosovo. Case Study ?Dea Water?," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 7(2), pages 59-79, November.
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    More about this item

    Keywords

    Business obstacles; Entrepreneur?s related factors; Firm?s related factors; Information Technology; Internet; SMEs profitability;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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