Internationalization of Romanian Small and Medium-Sized Enterprises (SMEs): Key Drivers, Barriers and Strategic Insights from a Monte-Carlo Simulation

Considering the increasingly globalized economy, the internationalization of small and mediumsized enterprises has become both an opportunity and a necessity. Despite the potential benefits, such as market diversification, economies of scale and enhanced competitiveness, many enterprises of this kind are facing significant challenges, which include resource constraints, regulatory and cultural barriers, and a lack of structured internationalization strategies. This study investigates the key drivers, barriers and strategic instruments that influence the international expansion of Romanian small and medium-sized enterprises, providing a data driven foundation for decision making. Through a Monte-Carlo simulation applied to a dataset of forty companies, part of the manufacturing industry, that activate in Romania, this research examines both internationalized and non-internationalized firms, highlighting the critical factors that facilitate or hinder global expansion. The findings indicate that small and medium-sized enterprises with well-defined strategic objectives, access to external networks and adaptive capabilities are more likely to exhibit a successful internationalization. Moreover, the study identifies the core concepts and essential instruments that can enhance firms’ global reach and mitigate internationalization risks. By integrating theoretical frameworks with empirical analysis, this research contributes to the academic discourse on small and medium-sized firms’ internationalization while offering practical insights for business practitioners. The structured approach of this study ensures a comprehensive understanding of the internationalization process, enabling Romanian small and medium-sized companies to navigate global markets more effectively.