Market Entry Through Networks : A Case Study of a Swedish SME

Abstract: Purpose – This study aims to look into how foreignness and outsidership affect the market entry of a SME and the individual firm's ability to access the correct network as well as look at which support structures are available for the individual firms entering into a new market. Theory/Design & Research Questions – By looking through the lens of Social Network theory, aspects of trust, legitimacy, nodes, foreignness and outsidership, this study has looked into the journey of a large hamburger chain in Sweden that has successfully entered into different markets outside of Sweden. The research questions explored were (i) how SMEs can overcometheir liabilities and leverage network connections to form strategic partnerships with other firms or organizations, and (ii) how centrality of nodes can be utilized by SMEs to gain access to valuable information and resources, and (iii) how intermediary networks can support SMEs in their efforts to enter new markets, and what policies and programs have proven effective in this regard. Methodology – The data was gathered using a non-probability sampling by conducting a semi-structured qualitative interview and was complemented with secondary sources from the company profile. Findings – Depending on the size of the firm the level of ability to access networks can differ. Smaller firms are more inclined to seek help from intermediaries compared to larger firms. Furthermore actors that are more central have been found to have a key role for firms entering foreign markets.