Exploring the Factors Influencing the Export Performance of Manufacturing SMEs in Türkiye

Abstract

This study investigates the factors influencing export performance among manufacturing small and medium-sized enterprises in Türkiye. Situated at the intersection of Europe and Asia, Türkiye has increasingly prioritized exports as a central component of its economic development strategy, with particular emphasis on integrating small and medium-sized enterprises into global markets. Despite their importance to the national economy, many of these enterprises continue to face challenges in achieving sustained export growth.

Drawing on internationally recognized theories of internationalization, such as the gradualist Uppsala Model and Born Global Model, this study examines how firm-level characteristics, such as firm age and innovation capacity, are associated with export behavior. The empirical analysis is based on the most recent wave of the World Bank Enterprise Survey for Türkiye, which provides nationally representative firm-level data. The focus is placed exclusively on manufacturing firms to ensure sectoral consistency.

To capture the dual structure of the export decision process, a two-stage econometric approach is applied. A Probit model is used to estimate the probability of a firm participating in export activities, whereas a Tobit model assesses the intensity of export sales among exporting firms.

The results reveal that firm age, labor productivity, innovation activities, quality certifications, research and development investments, and website ownership are all statistically significant determinants of export performance. These findings indicate that enhancing innovation capabilities and digital presence, along with promoting internationally recognized quality standards, may strengthen the competitiveness of manufacturing enterprises in Türkiye’s export markets.

Keywords

• SMEs
• Export Performance
• Manufacturing Industry
• Probit
• Tobit

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