SME selection of international markets and choice of foreign entry modes: a case study of AB Älvsbyhus

Abstract: The purpose with this thesis has been to study SMEs’ internationalization.
The process, which SMEs go through when selecting international markets,
and what external and internal factors influence this selection have been
studied. Furthermore, SMEs’ choice of foreign entry mode has been studied
and what external and internal factors influence this choice. A case study
has been conducted on AB Älvsbyhus that is the market leader in the Swedish
woodhouse industry. The case study is based on the theory discussed in the
thesis which then is compared with AB Älvsbyhus actions. Our findings show
that AB Älvsbyhus internationalization behavior does not exactly match that
in theory. During our research study we also found that there has not been
laid sufficiently attention on companies which proactively initiate their
international activities. Our conclusion is that each and every company
must be analyzed individually on the basis of their specific prerequisites
and abilities, in order to gain a better understanding of the company’s
internationalization.