Internationalization obstacles - A multiple-case study

Abstract: The purpose of this study is to increase understanding of how firms relate to the phenomenon of internationalization, in order to answer the questions of How do firms act when internationalizing? and what kind of barriers/deterrence do they perceive? and is culture considered a barrier? In terms of theory, a framework was constructed consisting of the internationalization phenomenon in combination with the industrial organization approach to entry deterrence and barriers (strategic and static entry barriers). Data was collected through qualitative semi-structured interviews in the context of a multiple-case study encompassing two firms. One of the firms was a virtual advisory firm, while the other a large packaging manufacturing MNC. We conclude that internationalization is not necessarily a rational process (especially for SMEs) and that deterrence from incumbent firms might not be a normal state. When it comes to barriers, it might be possible to become so big that you transcend barriers, while for SMEs recruiting the right representative in a country could constitute the main barrier. Culture was not seen as a major factor nor a barrier to internationalization, though it did hold greater influence on SMEs compared to large MNCs.