To Invest, or Divest, the Enternal Internationalization Question? : The impact of external factors on Swedish SMEs

Abstract: The purpose of this thesis is to provide the reader with a deeper understanding of what impact external factors could have on international active Swedish SME’s. Since these factors influence the firm throughout the internationalization process we will investigate how firms mitigates the impact of external factors at later stages in the internationalization process. Furthermore, we will investigate how companies prepare themselves when it comes to external factors. To conduct this research, we have decided to use a qualitative research approach so that we as researcher can receive a deeper understanding of the international business environment. The thesis will use the abductive research approach since we match the theory regarding external factors with the empirical findings.   The Literature review has been conducted to conclude theroies regarding external factors, internationalization, export performance and finally a theory regarding divestment. This has resulted in a conceptual framework, which show how the theories are linked to each other. The conceptual framework has later been used to analyze the empirical data. The empirical data has been gathered through four case companies, which has been presented in the chapther empirical findings.   The analysis includes a discussion that compares the differnces and similarities between the theoretical framework and the empirical findings. It also includes the differences and similarities between our respondents and their experience from external factors and its impact. The final chapter concludes the thesis with results from our resource questions and further includes implications, recommendations, limitations and suggestions for further research in this subject. The main theoretical implication is the filling of the research gap regarding external factors and their impatcs for Swedish SMEs. Furthermore, the thesis concluded that it would be beneficial for companies to develop a strategy to overcome the obstacles that come from external factors when a company is internationalized. Our thesis has concluded that it is better to be proactive to external changes rather than be reactive on the international market.