Using Business Networks in the Internationalization Process for Small and Medium Enterprises

Abstract: Globalization in the business environment today is something that affects almost every firm around the world. It has given opportunities not only to multinational enterprises (MNE) but also to small and medium enterprises (SME). In this study SME food service firms has been one of the main subjects and we find it interesting to investigate their internationalization process in the globalized market. This has been investigated with the help of a network approach and the main purpose of the thesis is to gain a deeper understanding in how SMEs in the food industry use a network approach when going into the international marketplace. The study used a qualitative case study as research method and the data has been gathered and analyzed from an interview with the CEO and founder of a food service firm in Sweden. The findings from the study suggest that it is crucial for SME food service firms to use their networks when expanding internationally. Furthermore, it is important to have a well thought out expansion strategy, including agents in the target market extending to strong market research. Our findings also suggest that SME characteristics are not fully applicable for SMEs in the food service industry. In addition to above, the findings also suggest that internal factors, for example a global mindset, is the strongest force in stimulating firms in the food service industry to start an internationalization process.