The process of internationalization has been one of the major areas of interest for researchers for over four decades. The phase that precedes internationalization for firms, known as the pre-internationalization phase, has also been of interest to study. Firms that are in this early stage of becoming international, are characterized by being active only in the domestic market but with intentions to expand. However, within this phase, little is known about the stimuli that affect firms to expand their operations to foreign markets. By combining the traditional theories of the drivers and barriers to internationalize, with the new theories concerning the entrepreneurial influence in small and young firms, this study serves to complement a particular research gap in the pre-internationalization phase. The purpose of this study is to describe the pre-internationalization phase of SMEs, analyze how drivers, barriers and entrepreneurial characteristics of managers affect the decision to internationalize and to contribute to a further understanding of the research gap in the preinternationalization phase. A deductive research approach and a qualitative research method have been chosen for this study. In this way, in-depth answers can provide understanding to a phenomenon that is still partly undiscovered. To increase understanding in a broader environment than within one organization the multiple case study design is used for this study. Therefore, three managers from different firms participated in interviews, which is the basis for the empirical data. When the empirical data is combined with relevant theories it provides a basis for the analysis where the effects of drivers, barriers and international entrepreneurship are evaluated. This analysis provides a foundation for the conclusion that it is a necessity to combine traditional and new theories, with further empirical research, to fully understand why young domestic small and medium-sized enterprises decide to internationalize. When these are put together, it is possible to establish that barriers that are neglected by entrepreneurs are seemingly small impediments, in comparison to the drivers to reach success and the entrepreneurial urge to expand.

The overall purpose of this thesis is to gain a better understanding of the internationalization readiness process of firms, by identifying and describing and its components. In order to reach the purpose of this thesis a case study of four Swedish SMEs has been conducted, namely: MaxiGrip AB, Playsay AB, Flano Design AB and KOTP. Face-to-face interviews were carried out with the main decision makers within the firms. The theoretical framework involves a description of different internationalization theories, such as the transaction cost approach, the traditional “stage” model, the network approach and the international entrepreneurship approach. Based on these four internationalization theories has the traditional “stage” model been chosen to function as a theoretical foundation for the analysis. In the analysis the theoretical framework is related to the results of the empirical study. The barriers faced by firms prior to internationalization are discussed and analysed, as well as theimportance of each barrier, resulting in internal barriers being regarded of greater importance. The decision maker’s role and influence during the process is described as highly influential. The key success factors enabling the internationalization readiness process of firms are identified and discussed, namely: vision and international outlook of decision makers, having a unique offering, the availability of time and vast industry knowledge. It is concluded that a firm is able to achieve internationalization readiness by fulfilling a certain criteria, which has been the result of the combination of both theory and empirical data. Resulting in the decision maker being at the center of the process. While, the internal stimuli of industry knowledge and product uniqueness are the two main influencers combined with time  and commitment. At last, both theoretical and managerial implications are presented, ending this paper with the limitations and suggestions for further research.

<p>DateMay 29th, 2009LevelMaster Thesis in International MarketingAuthorsShahid Kalim Khan: Körsbärsvägen 4b, LAG 218, 11423 Stockholm, Sweden Mob: +46 700641495 Email: iamkalim@gmail.comAdeel Asghar: Rum 235, Kallgatan 1 B, 63226 Eskilstuna, Sweden Mob: +46 700783841 Email: adeel1031@gmail.comTutorDaniel TolstoyTitleHow can marketing research help innovative SMEs in exploitation of international opportunities in their early internationalization? A Swedish Case StudyPurposeSMEs are well known for their innovative and risk taking approach. This study aims at providing them with a strategic framework or method to analyze the marketability of their products or services and exploit internationalization opportunities. It also focuses on helping them in reducing their risks linked with cross border business opportunities.Methodology/DesignThis research is performed through case study method. A new conceptual model has been developed by integrating relevant standard approaches within field of research. This model has been further explained by implementing it on case company (Widforss).ConclusionsThis study claims to make a significant and creative contribution to the field of SMEs internationalization through two theoretical models named as International SME Model of Innovation Exploitation (ISMIE) and Proactive International Entrepreneurship model (PIE). Both of these models use marketing research as key success factor. However, sufficient empirical evidences could not be provided due to limitations. Whereas, the practical contribution for the case firm named as Widforss industries is very evident.</p>

DateMay 29th, 2009LevelMaster Thesis in International MarketingAuthorsShahid Kalim Khan: Körsbärsvägen 4b, LAG 218, 11423 Stockholm, Sweden Mob: +46 700641495 Email: iamkalim@gmail.comAdeel Asghar: Rum 235, Kallgatan 1 B, 63226 Eskilstuna, Sweden Mob: +46 700783841 Email: adeel1031@gmail.comTutorDaniel TolstoyTitleHow can marketing research help innovative SMEs in exploitation of international opportunities in their early internationalization? A Swedish Case StudyPurposeSMEs are well known for their innovative and risk taking approach. This study aims at providing them with a strategic framework or method to analyze the marketability of their products or services and exploit internationalization opportunities. It also focuses on helping them in reducing their risks linked with cross border business opportunities.Methodology/DesignThis research is performed through case study method. A new conceptual model has been developed by integrating relevant standard approaches within field of research. This model has been further explained by implementing it on case company (Widforss).ConclusionsThis study claims to make a significant and creative contribution to the field of SMEs internationalization through two theoretical models named as International SME Model of Innovation Exploitation (ISMIE) and Proactive International Entrepreneurship model (PIE). Both of these models use marketing research as key success factor. However, sufficient empirical evidences could not be provided due to limitations. Whereas, the practical contribution for the case firm named as Widforss industries is very evident.