Motives for internationalization : Small companies in Swedish incubators and science parks

Abstract: In this paper we investigate small and young companies’ motives for internationalization. There are many reasons for companies to engage in foreign direct investment. This study is based on theories including four categories of internationalization drivers that motivate firms to establish themselves abroad. Theses categories consist of market, resource, efficiency, and strategic resources seeking motives. A fifth category was added in order to include network seeking motives. The survey was conducted using a web based questionnaire. The target population consisted of companies that are members of nine Swedish business incubators and science parks. E-mails were sent to representatives in the incubators and science parks and were then forwarded to the companies, asking them to participate in the study. We conclude that the member companies of Swedish incubators and science parks responded most positively to network and market seeking motives. We therefore regard the companies as network seekers and market seekers. Four motives were by the responders associated with the highest degree of importance. Two were in the category of network seeking motives: starting new collaborations and staying close to main client or supplier. The other two were in the category of market seeking motives: reaching new markets and limitations of the home market.