Nowadays, the internationalisation process of companies is moved more and more in the core of daily business life. This process is eased by reduced costs facilitated by less tariff barriers among Europe, faster ways of communications like the Internet and appealing emerging markets. These days, nearly every company is involved in the internationalisation process.
When we have considered the internationalisation process of Swedish SMEs, we found it interesting to have a close look at their decision to change from an indirect exporting mode to a direct exporting mode within their internationalisation process. Our research shall point out the important factors which influence their decision to change or not to change from an indirect exporting mode to a direct exporting mode.
Therefore, in our research we have compared theories with empirical findings of seven conducted interviews in order to fulfil our purpose which is to increase the understanding of the internationalisation process of Swedish SMEs, especially the reasons why firms change or do not want to change from indirect to direct export modes. According to that we came up with the following problem formulation:
What are the influencing factors for Swedish SMEs to change or not to change their exporting modes?
By evaluating possible influencing factors concerning their value of similarity among case companies and their value of consistency between theories and empirical findings we could identify a couple of factors which influence a company’s export decision. We could develop a model for each case whether to change or not to change exporting mode. By that we could classify influencing factors by the value of consistency and similarity in order to identify the most valuable influencing factors.
Table of Contents
1. INTRODUCTION
1.1 BACKGROUND
1.2 PROBLEM DISCUSSION
1.3 PROBLEM FORMULATION
1.4 PURPOSE
1.5 LIMITATIONS
1.6 THEORETICAL RELEVANCE
1.7 PRACTICAL RELEVANCE
2. THEORY
2.1 INTERNATIONALISATION PROCESS OF A FIRM
2.1.1 Internationalisation process of SMEs
2.1.2 Internationalisation process theory: Uppsala Model
2.1.3 Internationalisation process theory: Network Model
2.2 THE TWO DIFFERENT WAYS OF EXPORTING
2.2.1 Indirect export
2.2.2 Direct Export
2.3 CHANGE WITHIN EXPORT MODES
2.3.1 Influencing factors putting forward to change exporting mode
2.3.2 Influencing factors putting forward not to change exporting mode
2.4 CONCLUSIVE THEORETICAL REMARKS
3. METHODOLOGY
3.1. SCIENTIFIC APPROACH
3.2 PREUNDERSTANDING
3.2.1 General Knowledge, Specific one and Personal attributes
3.3 RESEARCH APPROACH
3.4 TYPE OF RESEARCH
3.5 QUALITATIVE VERSUS QUANTITATIVE RESEARCH
3.6 DATA COLLECTION
3.7 SELECTION METHOD
3.8 EVALUATION CRITERIA
3.9 SUMMARY OF METHODOLOGY
4. EMPIRICAL DATA
4.1 GALVIN GREEN
4.1.1 Internationalisation process
4.1.2 Influencing factors putting forward to change exporting mode
4.1.3 Influencing factors putting forward not to change exporting mode
4.2 HAMMARPLAST AB
4.2.1 Internationalisation process
4.2.2 Influencing factors putting forward to change exporting mode
4.2.3 Influencing factors putting forward not to change exporting mode
4.3 LINDER AB
4.3.1 Internationalisation process of the company
4.3.2 Influencing factors putting forward to change exporting mode
4.3.3 Influencing factors putting forward not to change exporting mode
4.4 BERGKVIST-VÄXJÖ KB
4.4.1 Internationalisation process
4.4.2 Influencing factors putting forward to change exporting mode
4.4.3 Influencing factors putting forward not to change exporting mode
4.5 FLÄKT WOODS AB
4.5.1 Internationalisation process
4.5.2 Influencing factors putting forward to change exporting mode
4.5.3 Influencing factors putting forward not to change exporting mode
4.6 ACKURAT AB
4.6.1 Internationalisation process
4.6.2 Influencing factors putting forward to change exporting mode
4.6.3 Influencing factors putting forward not to change exporting mode
4.7 ABSTRACTA AB
4.7.1 Internationalisation process
4.7.2 Influencing factors putting forward to change exporting mode
4.7.3 Influencing factors putting forward not to change exporting mode
4.8 COMPILING SUMMARY OF THE EMPIRICAL DATA
5. ANALYSIS
5.1. INTERNATIONALISATION PROCESS
5.1.1 Internationalisation process of SMEs
5.1.2 Uppsala model
5.1.3 Network Model
5.2 THE TWO DIFFERENT WAYS OF EXPORTING
5.2.1 Indirect Export
5.2.2 Direct Exporting
5.3 CHANGE WITHIN EXPORT MODES
5.3.1 Influencing factors putting forward to change exporting mode
5.3.2 Influencing factors putting forward NOT to change exporting mode
5.3.3 Additional Comments on other influencing factors
6. CONCLUSION
6.1 INFLUENCING FACTORS PUTTING FORWARD TO CHANGE EXPORTING MODE
6.2 INFLUENCING FACTORS PUTTING FORWARD NOT TO CHANGE EXPORTING MODE
7. RECOMMENDATIONS
8. FINAL REMARKS
8.1 CRITICISM TO OUR WORK
8.2 SUGGESTIONS FOR FURTHER RESEARCH
9. REFERENCES
9.1 ARTICLES:
9.2 BOOKS:
9.3 WEBSITES
9.4 INTERVIEWS
Research Objectives and Key Themes
The primary objective of this thesis is to deepen the understanding of the internationalisation process of Swedish small and medium-sized enterprises (SMEs), with a specific focus on the decision-making rationale regarding changes from indirect to direct exporting modes. By comparing existing theoretical frameworks with empirical insights gained from seven selected Swedish manufacturing companies, the study aims to identify the critical factors that drive these firms to either transition towards more direct export modes or maintain their existing indirect strategies.
- Analysis of internationalisation theories (Uppsala and Network models) applied to SMEs.
- Distinction between indirect and direct exporting distribution channels.
- Identification of internal and external influencing factors for changing export modes.
- Evaluation of transaction cost considerations and "collective learning" in export decisions.
- Development of an empirical and analytical matrix to classify influencing factors based on consistency and similarity.
Excerpt from the Book
2.3 Change within export modes
Supposing that a firm has formerly chosen to entry a foreign market by indirect exporting problems can occur. Exporting Management Companies (EMC) for instance, are often characterised by small personal staffs and their lack of broad product knowledge. In this case, little attention to the products and insufficient marketing effort within foreign markets for suppliers’ products are the dissatisfying results (McNaughton, 2001). Bello and Williamson concluded already in 1984 that EMCs overcommit their limited resources and endanger the exporting endeavour of the supplier. Moreover, sometimes EMCs sell primarily through mail correspondence and neglect foreign visits in the targeted markets (Bello & Williamson, 1984). In addition to that, several analysts conclude that indirect export middlemen in general fail to satisfy the needs of the manufacturers. Indirect export middlemen tend to underestimate the competitive situation of the marketed products by serving inadequate resources and ineffective marketing (Cao, 1981).
In order to stay competitive in foreign markets, exporting companies are faced the situation to reconsider their previous taken decision in penetrating a foreign market. For companies having identified such a dissatisfying relationship with an independent intermediary (indirect export), the change to a direct export mode is a possible solution. However, weaknesses in such a middleman-supplier relationship are one of several influencing factors for exporting companies to reconsider and change their exporting modes (Rameseshan & Patton, 1994).
Summary of Chapters
1. INTRODUCTION: Outlines the background of SME internationalisation, defines the research problem, purpose, and the practical/theoretical relevance of the thesis.
2. THEORY: Presents theoretical perspectives including the Uppsala model, the Network model, and characteristics of indirect versus direct exporting modes.
3. METHODOLOGY: Details the scientific and research approach, qualitative data collection methods, and the evaluation criteria used for the case studies.
4. EMPIRICAL DATA: Provides in-depth case study summaries for seven Swedish SMEs, structured by their internationalisation process and specific export mode decisions.
5. ANALYSIS: Compares empirical findings from the case companies with theoretical frameworks, utilising analytical matrices to evaluate influencing factors.
6. CONCLUSION: Synthesises findings, provides a final model of influencing factors for changing or maintaining export modes, and answers the primary research question.
7. RECOMMENDATIONS: Offers actionable advice to Swedish SMEs based on the eight most valuable influencing factors identified in the research.
8. FINAL REMARKS: Discusses limitations of the study and suggests avenues for future research.
Keywords
Internationalisation process, Swedish SMEs, Indirect Export, Direct Export, Export Mode, Uppsala Model, Network Model, Influencing Factors, Competitive Advantage, Transaction Cost Analysis, Collective Learning, Market Entry Strategy, Export Channel, Strategic Alliance, Distribution.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on the internationalisation process of Swedish SMEs and the factors that influence their decisions to either switch from indirect to direct export modes or maintain their current distribution strategies.
What are the primary themes covered in the study?
Key themes include the differences between indirect and direct exporting, the relevance of theoretical models like the Uppsala and Network models in an SME context, and the impact of internal and external factors on export channel design.
What is the primary research question?
The research asks: "What are the influencing factors for Swedish SMEs to change or not to change their exporting modes?"
Which methodology did the authors employ?
The authors utilized a qualitative research methodology with a deductive approach, conducting seven in-depth case studies of Swedish manufacturing firms to collect primary data through semi-structured interviews.
What does the main body of the work address?
The main body details the theoretical background of firm internationalisation, the specific distribution channels available to SMEs, the empirical data gathered from seven companies, and a subsequent analysis comparing these findings to established theory.
Which keywords best characterize this thesis?
Key terms include Swedish SMEs, internationalisation process, indirect vs. direct export, export mode change, Uppsala Model, Network Model, and influencing factors.
Why is the Uppsala Model considered in the context of this study?
The authors use the Uppsala Model to describe the step-by-step pattern of institutional development, although they also critique its limitations when applied to the dynamic environments of modern Swedish SMEs.
What specific role do agents and distributors play for the companies studied?
Agents and distributors serve as independent intermediaries that companies use to enter foreign markets with lower resource commitment, often becoming a focal point in decisions regarding whether to move to direct control or stay indirect due to their market knowledge and established networks.
- Citar trabajo
- C. Brüggemann, Tobias/ Lassek, S./ Gence (Autor), 2004, A view on reasons for Swedish SMEs to change or not to change export modes in the internationalisation process, Múnich, GRIN Verlag, https://www.grin.com/document/25973
