Globalization is a phenomenon that has become a paradigm for the world, it is important to note that SMEs need a transformation to survive in the market. Manufacturing SMEs in Guadalajara were analyzed, looking for the mechanisms that enable SMEs to become more competitive in a globalized business environment, and with big companies that have the resources to develop or innovate technology, improving their processes. A survey was applied, related on aspects of operations, including its dimensions; automation, reliability, personnel development and administrative control, as well as innovation variable, with dimensions: implementation changes, and innovation barriers.

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The dependent variable was competitiveness with the dimensions: financial performance, costs and technology use. The results show a higher correlation between technology development and automation, based on innovation and competitive impact in manufacturing SMEs. Keywords: Innovation; operations; competitiveness; SMEs manufacturing. Introduction At the beginning of the XXI century there is a new interest from the government, civil society and higher education institutions for the potential of SMEs, because they are favorable and contribute to the reorganization of production, and above everything, due to their impact on employment, on gross domestic product and on equity (.) The 1980s marked the beginning of a new period for SMEs in industrialized countries, which allowed them to come back and to increase the value of their role inside the process of their economic growth. In most cases, the State noticed such situation and added its efforts to stimulate and support those enterprises (.) According to in regards to competitiveness and the growth of SMEs, there is a scarce number of related research works, since large enterprises are the ones that are overall analyzed.