Managing the Thai smile : A minor field study exploring institutional impact on the strategic management of Swedish firms operating in Thailand

Abstract: Evidence has shown that internationalizing firms operating in emerging markets are facing institutional challenges different and more distinctive from those existing in developed markets. This requires firms to adapt their strategic management by taking institutional impact into consideration. Research providing knowledge on how to manage this issue is very limited, especially in the context of Thailand. This thesis aim to explore and provide knowledge about the institutional settings in Thailand and analyse how it impacts the strategic management of Swedish firms. “How do legal, political and cultural institutions impact the strategic management of Swedish manufacturing firms operating in Thailand?” This is a qualitative thesis which follows a deductive research approach. It takes an exploratory design, where semistructured interviews were conducted with five managers representing Swedish firms in Thailand. Political, legal and cultural institutions impact the strategic management of Swedish firms in different ways; the most evident challenges stemming from the legal institutions. It can further be concluded that it is of high relevance for firms to take the institution based view into consideration when formulating and implementing their strategies the Thai market, since it is easier to carry out intended strategies when possessing institutional knowledge International business;