Issue 1, 2012

Shirokova G. V., Tsukanova T. V. The Impact of Domestic Institutional Environment on the Degree of Internationalization of SMEs from Transition Economies.

This article offers some analytical results of the study devoted to the estimation and analysis of the impact of domestic institutional environment factors on the degree of internationalization of SMEs from transition economies. The research is focused on a regulative pillar of institutional environment as one of its most important dimensions. We examine the role of such factors as tax rate, corruption, political instability, court system and business licensing and permits that are significant constituents of institutional environment influencing firm’s behavior. Empirical analysis is based on the dataset from the Business Environment and Enterprise Performance Survey (BEEPS) 2009 and is relied on multiple regression analysis. The findings highlight that tax rate and corruption have a negative impact on the degree of internationalization while political instability leads to the increase in this process. Keywords: SMEs, Internationalization, Institutional Environment, Transition Economies.

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