Internationalisation of Swedish SMEs : A Multiple-Case Study on How Swedish SMEs Can Expand to International Markets

Abstract: The need for Swedish SMEs to expand beyond their limited domestic market grows, spurred on by fading barriers to international trade. Often consisting mainly of engineers without marketing experience, the SMEs cannot afford to recruit expertise in internationalisation. The international business environment is complex, and attempting to internationalise through trial and error, often ends poorly. To remedy this, the objectives of this study has been: To explore and compare how Swedish SMEs expand to other markets. To identify which factors in this expansion pose the largest problems                          to Swedish SMEs. To assure that these objectives were fulfilled, two research questions were formulated: RQ1: What is the internationalisation pattern for Swedish SMEs? RQ2: What are the main problems encountered by Swedish SMEs when                                         expanding their market from domestic to international? The study has been exploratory and descriptive, taking a deductive approach. The research strategy has been multiple holistic case studies. Data was collected qualitatively through semi-structured interviews and analysed through within-case analysis and cross-case analysis. The main findings show that SMEs are increasingly strategic and systematic with time, and that advice given by the interviewed subject revolved around being strategic and systematic from an earlier stage. It also seems that SMEs are fairly systematic in market selection and customer acquisition, and that market entry occurs in many different ways. Furthermore, branding revolves around appearing trustworthy and “larger than they actually are.” Strategies for employer branding seems lacking in all but the most mature SMEs. Also, strong strategic partners are a valuable tactic for long-term success. The practical implications revolve around the importance of being systematic and strategic from the start, highlighting the importance of larger strategic partners, and focusing on relationships with customers, and what value the SME can offer them.