Thoughts for the internationalization of SMES in Ecuador and its institutional framework

Abstract

Due to their employment and the national GDP, SMEs’ relevance generates interest in promoting their growth through internationalization. From this scenario, its business structure is an advantage for internationalization, allowing greater adaptability to change. Through the Neo Institutional analysis, this research highlights the need to study the game rules that can affect SMEs as an essential factor for developing internationalization as a growth strategy based on the importance of institutions (formal and informal rules of the game) as part of that environment. The result of the investigation points to the conclusion that there would be a strong influence of the institutional environment or framework of the rules of the game in the low levels of internationalization of Ecuadorian SMEs. Therefore, it is necessary to promote actions that improve the said environment (an institutional amalgam of SMEs) and thereby reduce the transaction costs present in the internationalization process and promote a collaborative institutional environment that favors the appearance of incentives that positively affect the business climate for SMEs and, therefore, in their systemic competitiveness.