Managing change is an important issue in today's business environment, which changes constantly. If the enterprise wants to survive, grow and increase profits it must change its strategies continuously. The need for change comes from two main premises: external environment and internal environment. From the external environment treated competitive forces as (rivalry among competitors, the power of buyers, power of suppliers, the threat of new products, the threat of new entrants), forces that are uncontrollable by the enterprise. Meanwhile, the interior environment is established in the organization, destined to fulfill any requests from external environment. The aim of this paper is to show the connection of industry factors and internal factors with organizational change and their impact on the performance of SMEs in eastern part of Kosovo. The methodology used in the paper is a combination of qualitative and quantitative data. Results of the research are processed data of 41 SMEs that implement their activity in the eastern part of Kosovo. These data were processed with the help of SPSS v 21. SMEs which make the change from domestic environmental needs and significantly increase their performance. A well-managed change helps SMEs to be more successful in relation to the competition.
