"The Jungle Telegraph" : A qualitative case study about the challenges for Swedish B2B Small and Medium-size Enterprises when entering the Sub-Saharan market

University essay from Linnéuniversitetet/Institutionen för marknadsföring (MF)

Abstract: As developed markets have become saturated to a greater extent, companies have instead targeted emerging economies. In recent years, a substantial number of companies have recognized the opportunities in the Sub-Saharan market, which has led to an increasing number of foreign firms entering this market. Nevertheless, companies are still experiencing numerous challenges in relatively unexplored markets like the Sub-Saharan region. The purpose of this thesis is to investigate challenges for Swedish manufacturing small and medium-sized enterprises (SME) when entering the Sub-Saharan African market. Additionally, the thesis will examine how these challenges affect the entry modes as well as further market commitments. The aim is to provide a deeper understanding of the mechanisms that influence the choice of entry mode of SMEs in volatile environments. This study has adopted a qualitative research method with an abductive approach to allow for an elaborate and flexible research process. The empirical data have been collected from multiple cases, by conducting five semi-structured interviews. The outcome of this thesis demonstrates that the major challenges in the Sub-Saharan market are related to underdeveloped institutional frameworks. Although, by cooperating with institutional actors and providing valuable resources to the local environment, firms are able to relieve institutional pressures. Finally, innovation, adaptability, and flexibility are vital factors that influence the extent to which companies are able to commit to the Sub-Saharan market. 

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