Background: Sweden and Germany are closely linked with one another, with cultural similarities, long history of trade and close geographic proximity. Germany is an attractive country for Swedish companies to establish in due to its central location in Europe and its position as Europe's biggest economy. The EU also makes Germany more attractive with the benefits that member states gain from their membership. There are cultural differences that can be difficult for Swedish companies to identify during their establishment.   Purpose: The purpose of this thesis is to examine the barriers to entry that Swedish start-ups face when entering the German market. To mitigate the barriers, strategies and preparations for a market entry is examined.  Method: The study was performed as a multiple case study conducted through a qualitative research strategy with an abductive approach. 11 semi-structured interviews were performed for the collection of empirical data.   Conclusion: The results of the study show that Swedish companies are affected by liability of foreignness, competition and culture in several ways. Respondents described the competition on the German market as fierce. They also emphasise the importance of research prior to market entry. Another aspect is the importance of the geographical location of establishment. Germany should not be seen as one big market but as several smaller ones. Knowledge in the German language is also very important for Swedish companies, especially for communicating with domestic German companies. The main cultural aspects are the language barrier, differences in business structure and formalities.

This thesis employs a random effects panel estimator to assess the relationship between Swedish outward foreign direct investment (FDI) stock and cultural distance for a panel of 75 countries covering the period 1998–2012. Cultural distance, operationalized by differences in Schwartz cultural orientations and gender equality, adds to the liability of foreignness and is hypothesized to have a negative impact on outward FDI stock. The theoretical underpinning for the hypothesis is based on a gravity model adapted to FDI, which shows that distance between countries reduces the amount of FDI that takes place between them. The results from the analysis provide partial support for the hypothesis as differences in some of Schwartz cultural orientations (harmony, embeddedness and egalitarianism) have a significant and negative effect on Swedish firms´ outward FDI stock. Moreover, differences in women´s economic rights are positively related to FDI, while no significant effects are found for differences in share of women in parliament.

Since the opening of formerly closed markets in Eastern Europe and China in the early 1990s, numerous firms have sought to capture the growth opportunities prevailing in the virgin but institutionally distant business networks in these countries. I claim that the entry process into an institutionally distant business network has been realised when the entering firm has reached an insidership position in the network. To advance this idea, the thesis introduces the overlooked medium-sized multinational exporter (MME) and answers the following overarching research questions: (I) how do MMEs establish insidership positions in institutionally distant business networks, and (II) what critical abilities are developed by MMEs in the process of entering an institutionally distant business network? To answer these questions, qualitative and quantitative methods have sequentially been mixed to first give an in-depth understanding of the empirical field, and second to verify and generalise some of the most central tentative findings. Empirically, the study reports from a case study of eight firms in the Baltic Sea Region and from an on-site survey of 203 Swedish firms with experience of entries in Eastern Europe and/or China. Five individual essays are presented—all designed to reflect different aspects of the institutionally distant network entry process. The findings are condensed in the cover of the thesis, where it is claimed that an insidership position is reached through three main phases: the Scouting phase, the Qualifying phase and the Shielding phase. Furthermore, it is found that that the most critical abilities developed through the institutionally distant network entry process is local experience-based knowledge of high specificity. It is shown that previous experiences, generated in different business networks in mature markets, are not useful in the network entry process in immature markets. As a consequence, there is reason to believe that the entering firm needs to develop unlearning abilities to replace obsolete or misleading experience.

Diss.Stockholm : Handelshögsk.

L'objectif de cette thèse est d'étudier le rôle des processus sociaux de légitimation sous-jacents au développement local des filiales de firmes multinationales (FMN) dans des environnements lointains du siège. Notre thèse explore la façon dont les filiales tentent de modérer les pressions simultanées issues de leur environnement d'accueil et de leur environnement organisationnel. À partir d'un cadre théorique institutionnaliste fondé sur une littérature pluridisciplinaire. nous étudions la nature des processus de légitimation de huit filiales de banques étrangères en Inde un contexte caractérisé par une forte «Liability of Foreignness» (i.e. LOF : handicap du fait d'être étranger). Nous identifions ensuite les pratiques organisationnelles mobilisées afin de réduire les tensions entre le «central» et le «local». Nos résultats suggèrent que les stratégies de légitimation des filiales -passives (isomorphisme, transfert), réactive (lobbying politique) et proactive (rhétorique)- varient avec le degré d'exposition à la LOF et l'intensité des pressions internes: certaines filiales recherchent un « ancrage local» prononcé tandis que d'autres filiales utilisent plutôt «l'ancrage mondial» en s'appuyant sur la légitimité du siège. Dans un second temps, la thèse développe une estimation de la performance organisationnelle d'une filiale de FMN, en lien avec son processus de légitimation dans l'environnement d'accueil. Les résultats suggèrent qu’un niveau« d'ancrage local» élevé est associé positivement à la performance externe de la filiale et négativement à sa performance interne, ce qui conduit la filiale et le siège à opérer des arbitrages entre performance externe et interne. / The aim of this thesis is to study the role of social processes of legitimation underlying MNE subsidiaries' loci development in distant environments from the headquarters. Our thesis explores how subsidiaries attempt to mitigat simultaneous pressures from both their host and their organizational environments. Using an institutionalist theoretical framework based on a multidisciplinary literature, we investigate the nature of the legitimation processes for eight subsidiaries of foreign banks in India, a context characterized by a strong «Liability of Foreignness» (i.e. LOF). We the identify the organisational practices mobilised in order to decrease the «central/local» tensions. Our results suggest that subsidiaries' legitimation strategies -passive (isomorphism, transference), reactive (political lobbying) and proactive (rhetoric)- vary along with their degree of exposure to the LOF and according to the intensity of internal pressures the face: certain subsidiaries seek a deeper “local anchoring” while other subsidiaries rely more on a “world anchoring” benefitting from the headquarters' legitimacy. In a second development, this thesis sketches an estimate of the organisational performance of an MNE subsidiary in relation to its legitimation process in the host environment. Our results suggest that a higher level of local anchoring' is associated positively with a subsidiary's external performance and negatively with its internal performance. This leads the subsidiary and the headquarters to arbitrage between external and internal performance.

Submitted by Ricardo Itapema de Castro Monteiro (ricardo.itapema@gmail.com) on 2018-09-20T22:41:48Z No. of bitstreams: 1 LOF_RM_Final 3.pdf: 277836 bytes, checksum: 5ea1c7ce5f9c454964e2958165915bca (MD5) / Approved for entry into archive by Simone de Andrade Lopes Pires (simone.lopes@fgv.br) on 2018-09-21T17:33:29Z (GMT) No. of bitstreams: 1 LOF_RM_Final 3.pdf: 277836 bytes, checksum: 5ea1c7ce5f9c454964e2958165915bca (MD5) / Approved for entry into archive by Isabele Garcia (isabele.garcia@fgv.br) on 2018-09-24T13:44:41Z (GMT) No. of bitstreams: 1 LOF_RM_Final 3.pdf: 277836 bytes, checksum: 5ea1c7ce5f9c454964e2958165915bca (MD5) / Made available in DSpace on 2018-09-24T13:44:41Z (GMT). No. of bitstreams: 1 LOF_RM_Final 3.pdf: 277836 bytes, checksum: 5ea1c7ce5f9c454964e2958165915bca (MD5) Previous issue date: 2018-08-20 / The accelerated growth of pharmaceutical market in Brazil, in the past ten years, attracted and intensified investments from multinational pharmaceutical companies. National companies also invested heavily. The industry matured and competition intensified. However, a company that operates in a foreign, new environment, driven by unfamiliar competitive forces generally encounters additional costs to operate. This phenomenal is called ‘liability of foreignness’ (LOF). Still, the foreign branch of a company may also have unique advantages due to their being foreign, the so called ‘asset of foreignness’ (AOF). Do these theoretical expectations hold in the Brazilian pharmaceutical industry? The paper employs panel data methodology with fixed effects on four regression models for a sample of 22 companies (11 Brazilian subsidiaries of multinationals and 11 national companies) from this industry. Moreover, the models utilized were proved by other researchers, in different markets segments and countries. The findings support the hypothesis formulated by these scholars and suggest the existence of “Liability of Foreignness”. / O crescimento acelerado do mercado farmacêutico brasileiro nos últimos dez anos atraiu e intensificou os investimentos de empresas farmacêuticas multinacionais. As empresas nacionais também investiram pesadamente. A indústria amadureceu e a concorrência se intensificou. No entanto, uma empresa que opera num ambiente estrangeiro, que é impulsionado por forças competitivas desconhecidas, geralmente se depara com custos adicionais para operar. Este fenômeno é chamado de "Liability of Foreigness" (LOF). Ainda assim, a filial estrangeira de uma empresa também pode ter vantagens exclusivas devido ao fato de serem estrangeiras, o chamado "Asset of Foreingnness" (AOF). Essas expectativas são evidentes na indústria farmacêutica brasileira? O presente trabalho emprega a metodologia de dados em painel com efeitos fixos em quatro modelos de regressão para uma amostra de 22 empresas (11 subsidiárias brasileiras de multinacionais e 11 empresas nacionais) desta indústria. Os modelos utilizados foram comprovados anteriormente por outros pesquisadores, em diferentes segmentos de mercado e países. As descobertas deste trabalho suportam parte das hipóteses formuladas por esses estudiosos e sugerem a existência do “Liability of Foreignnes”.

Submitted by Andre Nunes Fernandes (nf.anfernandes@gmail.com) on 2018-07-16T20:53:48Z No. of bitstreams: 1 Dissertação_TA_AndreNFernandes_FGV_VF_16072018.pdf: 3458661 bytes, checksum: caf980aaf795fc2244f0c84a491ceaa1 (MD5) / Approved for entry into archive by Simone de Andrade Lopes Pires (simone.lopes@fgv.br) on 2018-07-16T23:55:46Z (GMT) No. of bitstreams: 1 Dissertação_TA_AndreNFernandes_FGV_VF_16072018.pdf: 3458661 bytes, checksum: caf980aaf795fc2244f0c84a491ceaa1 (MD5) / Approved for entry into archive by Suzane Guimarães (suzane.guimaraes@fgv.br) on 2018-07-17T13:02:23Z (GMT) No. of bitstreams: 1 Dissertação_TA_AndreNFernandes_FGV_VF_16072018.pdf: 3458661 bytes, checksum: caf980aaf795fc2244f0c84a491ceaa1 (MD5) / Made available in DSpace on 2018-07-17T13:02:23Z (GMT). No. of bitstreams: 1 Dissertação_TA_AndreNFernandes_FGV_VF_16072018.pdf: 3458661 bytes, checksum: caf980aaf795fc2244f0c84a491ceaa1 (MD5) Previous issue date: 2018-06-13 / O setor bancário brasileiro nos últimos vinte anos passou por um processo de mudanças profundas com uma onda de fusões, aquisições e a entrada de novas instituições estrangeiras. O Liability da Foreignness (LOF) postula que as empresas estrangeiras tendem a estar em desvantagem em relação às empresas locais advindas da distância espacial, desconhecimento do ambiente local, discriminação enfrentada por empresas estrangeiras e restrições do país de origem. A teoria também postula a existência de vantagens para empresas multinacionais oriundas do seu tamanho, abrangência internacional e capitalização. O mercado bancário tem sido palco de uma forte competição aonde alguns bancos estrangeiros de varejo recentemente optaram por deixar o pais por conta de estarem em desvantagem. Com esta pesquisa buscamos evidências que esse LOF pode se manifestar em instituições financeiras através de um conjunto de variáveis que impactam nos seus indicadores de performance medidos através do seu ROA e ROE. Para medir essa evidencia analisamos uma amostra de 114 instituições, 57 nacionais e 57 estrangeiras. Os resultados dos retornos médios (ROE e ROA) da estatística descritiva estão em linha com a teoria do LOF, porém o modelo de análise da regressão do conjunto de variáveis e suas interações propostas que explicam as diferenças de performance para o mercado londrino não se mostraram aderentes para o mercado brasileiro. Buscamos testar como tentativa uma hipótese adicional através da introdução de uma variável relacionando o tempo de atuação da instituição no Brasil e se esta poderia explicar as performances medidas dos indicadores de ROA e ROE e respectivo LOF, e que também não se mostrou aderente. / The Brazilian banking sector in the last twenty years underwent a process of profound changes with a wave of mergers, acquisitions and the entry of new foreign institutions. The Liability of Foreignness (LOF) argues that foreign firms tend to be at a disadvantage relative to local firms as a result of spatial distance, lack of knowledge of the local environment, discrimination faced by foreign firms and restrictions of the country of origin. The theory also postulates the existence of advantages for multinational companies stemming from their size, international reach and capitalization. The banking market has been the scene of a strong competition where some foreign retail banks have recently chosen to leave the country because they are at a disadvantage. Studies seek evidence that this LOF can manifest itself in financial institutions through a set of variables that impact on their performance indicators measured through their ROA and ROE. To measure this evidence, we analyzed a base comprised of 130 institutions, 57 national and 57 foreign. The results of the mean returns (ROE and ROA) of the descriptive statistics are in line with the LOF theory, but the regression analysis model of the set of variables and their proposed interactions that explain the performance differences for the London market did not show suitable for the Brazilian market. We sought to test an additional hypothesis by introducing a variable involving the institution's time in Brazil and whether this could explain the measured performances of the ROA and ROE indicators and their LOF, and that was not adherent either.

Submitted by Luiz Bueno Beznos (luizbeznos@gmail.com) on 2018-07-13T15:56:42Z No. of bitstreams: 1 LuizBBeznos_Foreignness.pdf: 688998 bytes, checksum: 1ee9fe6feb920942bf6288ccd99bc5de (MD5) / Rejected by Simone de Andrade Lopes Pires (simone.lopes@fgv.br), reason: Prezado Luiz, Recebemos eu trabalho aplicado na biblioteca digital mas será necessários alguns ajustes: Estou encaminhando por e-mail os ajudes necessários. Por favor, faça as alterações e submeta o trabalho novamente. Atenciosamente, Simone Pires SRA. on 2018-07-16T19:58:21Z (GMT) / Submitted by Luiz Bueno Beznos (luizbeznos@gmail.com) on 2018-07-17T16:43:47Z No. of bitstreams: 1 LuizBBeznos_Foreignness.pdf: 691106 bytes, checksum: b41d682cebc955aac847c2930d1a7828 (MD5) / Approved for entry into archive by Simone de Andrade Lopes Pires (simone.lopes@fgv.br) on 2018-07-20T18:21:35Z (GMT) No. of bitstreams: 1 LuizBBeznos_Foreignness.pdf: 691106 bytes, checksum: b41d682cebc955aac847c2930d1a7828 (MD5) / Approved for entry into archive by Suzane Guimarães (suzane.guimaraes@fgv.br) on 2018-07-23T12:32:50Z (GMT) No. of bitstreams: 1 LuizBBeznos_Foreignness.pdf: 691106 bytes, checksum: b41d682cebc955aac847c2930d1a7828 (MD5) / Made available in DSpace on 2018-07-23T12:32:50Z (GMT). No. of bitstreams: 1 LuizBBeznos_Foreignness.pdf: 691106 bytes, checksum: b41d682cebc955aac847c2930d1a7828 (MD5) Previous issue date: 2018-06-13 / International management literature arguments that foreign firms operate under Liability of Foreignness (LOF). Several previous studies looked at LOF in banks, with contradictory results. Our study however is focused exclusively in the business of Sales and Trading of investment banks. We hypothesize this holds true for this business of investment banks, as the disadvantages of foreignness will be greater than advantages such as access to global markets. We looked at profitability for 87 domestic and foreign investment banks in Brazil for 27 quarters, using Pooled OLS as our statistical model. We found that there is indeed liability of foreignness. Testing characteristics that might mitigate LOF, we found that the smaller psychic distance and large home country economy can have a positive effect in foreign banks profitability. Surprisingly, experience does not appear to have a mitigating effect on LOF. / A literatura de administração internacional argumenta que empresas estrangeiras operam sob Liability of Foreignness (LOF). Vários estudos prévios abordaram LOF em bancos, com resultados contraditórios. Nosso estudo, entretanto foca exclusivamente na linha de negócios de Sales and Trading de bancos de investimento. Nossa hipótese central é de que existe LOF nesta linha de negócio dos bancos de investimento, e que as desevantagens de ser estrangeiro serão maiores que as vantagens. Nós analisamos a lucratividade de 87 bancos locais e estrangeiros no Brasil por 27 trimestres, usando Painel Empilhado como metodologia estatística. Os resultados indicam que realmente há LOF. Testando características mitigadoras deste LOF, encontramos indicativos que menor distância psíquica e maior economia no país sede podem ter um efeito positivo na lucratividade de bancos de investimento estrangeiros. Surpreendentemente, experiência não parece ter um efeito mitigador sobre LOF.

The purpose of this study was to explore key factors to consider for a Swedish Knowledge Intensive Business Services (KIBS) firm to successfully enter the Norwegian market, and examine how these factors compare to incumbent theories on foreign market establishment. The study is based on an interpretivist research design and utilizes qualitative methods in order to achieve the intended purpose. The empirics were gathered by a combination of methods, namely, an extensive literature review, a pilot-study, and a multiple-case study. The data gathering methods utilized in the pilot study were semi-structured interviews conducted with individuals with expertise in the KIBS environment, as well as participant observations. The pilot study resulted in a deeper understanding of the KIBS sector. The multiple-case study consisted of semi-structured interviews with Swedish KIBS firms that have entered the Norwegian market. The empirics have been analyzed and discussed in relation to existing literature. Consequently, several success factors and pitfalls have been identified that may aid an internationalizing firm, especially a Swedish KIBS firm entering the Norwegian market. The identified success factors were: Narrow your focus through relational embeddedness, Understand customer’s business, Educate customers, Become familiar with foreign laws, Be aware of network position, Exploit existing networks, Identify new relevant networks, Refresh and expand the network, and Ensure relational embeddedness with key actors. The identified pitfalls were: Underestimation of time and resources required, Lacking awareness of aggravating effects, Knowledge transfer problems, Failure of internally anchoring foreign ventures, Underestimation of the language barrier, Underestimation of differences in organizational structures, Underestimation of the cost of spatial distance, Underestimation of Patriotism, and Underestimation of loyalty to suppliers. Moreover, the study provided insights as to how the concepts of liability of foreignness and liability of outsidership might interplay, and thereby exert pressure on a firm's dynamic internationalization capabilities in the foreign market establishment process. As such, the need for firms and researchers to undertake a holistic view in order to avoid faulty conclusions has been discussed and visualized. / Syftet med denna studie var att utforska nyckelfaktorer för svenska KIBS-företag som vill expandera till den norska marknaden. Vidare analyserades det hur dessa faktorer relaterar till befintliga teorier inom marknadsetablering. Studien är baserad på en forskningsdesign där kvalitativa metoder används för att uppnå syftet. Empirin är insamlad via en kombination av metoder, nämligen en omfattande litteraturstudie, en pilotstudie och en flerfallsstudie. Datainsamlingsmetoderna som användes i pilotstudien var semistrukturerade intervjuer med personer som har erfarenhet inom KIBS-miljön och även deltagarobservationer. Pilotstudien resulterade i en djupare förståelse av KIBS-sektorn. Flerfallsstudien bestod av semistrukturerade intervjuer med svenska KIBS-företag som har expanderat till den norska marknaden. Empirin har analyserats och diskuterats i relation till befintlig litteratur. Utifrån analysen identifierades flertalet framgångsfaktorer samt fallgropar. Genom att belysa dessa faktorer underlättas internationaliseringen för företag, i synnerhet för svenska KIBS-företag som vill expandera till den norska marknaden. De framgångsfaktorer som identifierades var: Begränsa sin fokus genom relationell inbäddning, Förstå kundens verksamhet, Utbilda kunder, Bli bekant med utländska lagar, Var medveten om nätverksposition, Utnyttja befintliga nätverk, Identifiera nya relevanta nätverk, Uppdatera och utöka nätverket och Säkerställa relationell inbäddning med nyckelaktörer. Medan de fallgropar som identifierades var: Underskattning av tid och resurser, Bristande medvetenhet om försvårande effekter, Kunskapsöverföringsproblem, Misslyckande med att internt förankra utländsk satsning, Underskattning av språkbarriären, Underskattning av skillnader i organisationsstrukturer, Underskattning av avståndskostnader, Underskattning av patriotism och Underskattning av lojalitet mot leverantörer. Vidare har det argumenterats för att det finns ett samspel mellan koncepten liability of foreignness och liability of outsidership som sedermera sätter press på ett företags dynamiska internationaliseringsförmågor. Följaktligen har det även visualiserats samt diskuterats att företag och forskare bör vidta ett holistiskt synsätt för att undvika att dra felaktiga slutsatser i internationalseringsprocesser.

Submitted by Sin Eun Lee (leericardo75@gmail.com) on 2016-04-20T10:53:37Z No. of bitstreams: 1 SIN EUN LEE Com Ficha.pdf: 924928 bytes, checksum: 1490142e7d79b58bd3a2181a9cdac7af (MD5) / Approved for entry into archive by Ana Luiza Holme (ana.holme@fgv.br) on 2016-04-20T12:38:54Z (GMT) No. of bitstreams: 1 SIN EUN LEE Com Ficha.pdf: 924928 bytes, checksum: 1490142e7d79b58bd3a2181a9cdac7af (MD5) / Made available in DSpace on 2016-04-20T12:41:31Z (GMT). No. of bitstreams: 1 SIN EUN LEE Com Ficha.pdf: 924928 bytes, checksum: 1490142e7d79b58bd3a2181a9cdac7af (MD5) Previous issue date: 2016 / The aim of this research is to empirically test if the working capital management adopted by multinational companies can be altered in foreign market entries of complex countries like Brazil. Based on the results of a survey of 182 companies in the electro-electronics and machinery sectors in Brazil, tests were conducted to analyze the correlation between the decisions of companies to use factoring with psychic distance and elapsed time of operation in Brazil. Results led to a higher propensity in the use of factoring as an alternative tool for short-term financing by multinationals companies with a greater psychic distance and with less elapsed time of operation in Brazil. Research on international business suggest that greater psychic distance of multinationals companies increase the uncertainty and risks avoidance, thus leading to a higher demand in cash holdings. Depending on the elapsed time of operation in the foreign market, psychic distance can be shortened through a process of organizational learning / O objetivo desta pesquisa é testar empiricamente se a gestão de capital de giro adotada pelas empresas multinacionais em outros países se altera na internacionalização em países complexos como o Brasil. Baseado nas respostas a um questionário obtido de uma amostra de 182 empresas do setor eletroeletrônico, elétrico, e de máquinas e equipamentos do Brasil, testes foram conduzidos para encontrar correlação na decisão de uso de cessão de direitos creditórios com a distância psíquica e o tempo de experiência dessas empresas no Brasil. Resultados apontam a maior propensão no uso de cessão de direitos creditórios como ferramenta alternativa de financiamento de curto prazo pelas empresas multinacionais sediadas em países mais distantes psiquicamente e com menor tempo de experiência no Brasil. Estudos sobre finanças internacionais indicam que uma maior distância psíquica das empresas multinacionais aumenta a aversão a incertezas e riscos, e, logo, a necessidade de manutenção de maiores níveis de caixa. Dependendo do tempo de experiência das empresas no mercado estrangeiro, a distância psíquica pode ser minimizada por meio de um processo de aprendizagem organizacional.