<p><strong>Title: </strong>The influence of network relationships in the internationalization of SMEs</p><p> </p><p><strong>Authors: </strong>Andersson, Arvid & Helander, Anna</p><p> </p><p> </p><p><strong>Tutor:</strong> Karlsson, Tomas</p><p> </p><p> </p><p><strong>Date:</strong> June, 2009</p><p> </p><p><strong>Background</strong>: The world has become globalized, resulting in a rapid increase in international trade. Also many SMEs actively internationalize. At the same time, networks are increasingly replacing traditional markets. In the internationalization process of SMEs it has through research been confirmed that firms are influenced by network relationships in their internationalization process.</p><p><strong>Problem</strong>: Choice of foreign market and market entry mode are crucial decisions SMEs make in their internationalization process. It has been found that network relationships affect SMEs in these decisions. However, the research within this area has been focusing heavily on knowledge-intensive SMEs. Scholars call for further research in relation to other industries, as well as a more specific investigation of what kind of different network relationships that affect choice of foreign market and of market entry mode.</p><p><strong>Purpose: </strong>The purpose of this thesis is to investigate how SMEs’ choice of foreign market and market entry mode is influenced by different types of network relationships.</p><p> </p><p><strong>Method: </strong>A multiple case study strategy was applied and four SMEs were included in the sample. Data was collected through semi-structured interviews, (three personal and one telephone interview), and complemented with secondary data. The respondents were the CEOs of the case firms. The collected data was categorized and each case firm was analyzed, followed by cross-case comparisons.</p><p><strong>Conclusion: </strong>The findings in this thesis show that all case firms had been affected by network relationships in the choice of foreign market and/or choice of market entry mode. Generally the findings conformed to a certain degree to previous findings concerning SMEs in knowledge intensive industries. Further, it was found that network relationship influence was more frequent in the choice of foreign market. In this decision, firms which had taken a proactive approach were mainly infuenced by strong and formal relationships. Firms taking a reactive approach were mainly influenced by weak and informal relationships. Concerning entry mode, it was only weak, informal relationships which had influenced the decision.</p><p> </p>

This study examined the different roles of social capital (i.e. efficacy, serendipity, and liability), network relationships, network closure and structure important to the internationalisation process of high technology International New Ventures (INVs). Although there has been a growing recognition of the role of social capital in the internationalisation process of firms, research into the three roles of social capital and their interrelation with network closure and structure is a research area that very few empirical studies exist. This study seeks to fill this gap by gaining rich insights into the internationalisation process of high technology INVs and by exploring the importance of strong and weak ties mechanism in early and later international market entries. In this study social capital is the sum of actual and potential resources that derive from network relationships. The study built on qualitative data collected from nine in-depth case studies of Greek and Scottish software INVs. The multiple semi-structure interviews were carried out in 2013 and 2014 with founders and CEOs. The material of the nine cases was used to understand and explain the internationalisation process and how social capital and network relationship influence it. The case material analysis proceeded from within case analysis to cross-case analysis in order to explore common patterns and differences across the cases. A theoretical framework based on the existing gaps was developed and tested in this research. This study contributed to the literature on International Business (IB), International Entrepreneurship (IE) and Social capital by exploring the evolution of social capital diachronically. A new type of INV was found: the niche market INV, which strategically uses its social capital to capture and exploit new opportunities in foreign markets. New insights are given to which role of social capital becomes more crucial in initial and later international market entries. This study found that the efficacy role of social capital played an important role both in initial and later stages of internationalisation. However, the serendipity role of social capital was more important for companies with many structural holes that did not have the necessary network relationships to bridge them. This study showed that Greek and Scottish entrepreneurs have different backgrounds; Greek entrepreneurs lack previous international work experience. It was found that virtual social capital in the digital era is becoming more and more important. A number of implications for management practice, policy and education are presented for developed markets firm managers and governments in the fields of IE and IB.

Title: The influence of network relationships in the internationalization of SMEs   Authors: Andersson, Arvid &amp; Helander, Anna     Tutor: Karlsson, Tomas     Date: June, 2009   Background: The world has become globalized, resulting in a rapid increase in international trade. Also many SMEs actively internationalize. At the same time, networks are increasingly replacing traditional markets. In the internationalization process of SMEs it has through research been confirmed that firms are influenced by network relationships in their internationalization process. Problem: Choice of foreign market and market entry mode are crucial decisions SMEs make in their internationalization process. It has been found that network relationships affect SMEs in these decisions. However, the research within this area has been focusing heavily on knowledge-intensive SMEs. Scholars call for further research in relation to other industries, as well as a more specific investigation of what kind of different network relationships that affect choice of foreign market and of market entry mode. Purpose: The purpose of this thesis is to investigate how SMEs’ choice of foreign market and market entry mode is influenced by different types of network relationships.   Method: A multiple case study strategy was applied and four SMEs were included in the sample. Data was collected through semi-structured interviews, (three personal and one telephone interview), and complemented with secondary data. The respondents were the CEOs of the case firms. The collected data was categorized and each case firm was analyzed, followed by cross-case comparisons. Conclusion: The findings in this thesis show that all case firms had been affected by network relationships in the choice of foreign market and/or choice of market entry mode. Generally the findings conformed to a certain degree to previous findings concerning SMEs in knowledge intensive industries. Further, it was found that network relationship influence was more frequent in the choice of foreign market. In this decision, firms which had taken a proactive approach were mainly infuenced by strong and formal relationships. Firms taking a reactive approach were mainly influenced by weak and informal relationships. Concerning entry mode, it was only weak, informal relationships which had influenced the decision.

The widespread and rapid internationalization of small to medium-sized enterprises (SMEs) in the healthcare sector is outpacing our efforts to understand the motives behind this phenomenon and the processes that propel it. This paper investigates the internationalization processes of Swedish SMEs that operate in the international healthcare markets. Based on interviews from five SMEs, the study seeks to understand why these SMEs internationalize, and how and in what way this internationalization process unfolds. By developing a conceptual model based on previous literature for SME internationalization, knowledge and networks, and the regulatory environment in which the SMEs operate, the findings are analyzed in the context of the healthcare industry. The research concludes that product approval regulations have a small influence on the internationalization process; instead establishing relationships with local key opinion leaders to create awareness and legitimacy was essential to successfully enter a new foreign market. A further key finding identified was that each market is characterized by different national praxis and contrasting views on patient treatment methods, which was recognized as a challenge among the case firms.

Social entrepreneurship, defined as entrepreneurial activities with a clear mission to create social value, is gaining increased influence and importance in the economy. Through combining a for-profit mindset with social objectives, social enterprises provide groundbreaking solutions to societal needs. The global presence and impact of social enterprises raise the importance of internationalization of this specific kind of enterprise. This is an area of inquiry that has gained limited attention in academia and empirical studies have been few. The purpose of the study is to investigate motives for internationalization of social enterprises and how these enterprises establish in foreign markets. The study consists of an empirical investigation based on a survey sample of 65 respondents and one background interview. The result shows that the main motive for internationalization of social enterprises is to alleviate social problems. Social enterprises have a distinct international character, show patterns of early and rapid internationalization and can be characterized as international new ventures with a distinct social mission. Networks affect motives as well as choice of entry mode of social enterprises. The most common mode of entry of social enterprises is to establish alliances or partnerships with foreign actors and the main target market is less developed economies.

Background: Following the ongoing globalisation, family businesses have been inclined to grow their businesses outside of their home markets. While academic attention has been devoted to family business internationalisation, it has mainly taken a family-focused perspective. Existing international business theories emphasise foreign market networks as facilitators for internationalisation, leaving home market networks under-researched. Purpose: This paper explores family business internationalisation by adopting an international business lens. The revised Uppsala model is used as the main frame of reference to understand how network relationships in the home market facilitate family business internationalisation. Method: The study is based on a qualitative design with an exploratory purpose and a grounded theory methodology, following a realist ontology and constructionist epistemology. Six in-depth semi-structured interviews with four family businesses were conducted. The use of grounded analysis allowed us to find patterns and explanations to ultimately develop a theory grounded in our findings. Conclusion: The benefits resulting from home market network relationships facilitate family business internationalisation. Predominantly, the acquisition of knowledge is a necessary step to gain resources family businesses are missing to internationalise. The conceptualisation of our theoretical model with the revised Uppsala model suggests an elaboration of the latter to include network resources and capabilities.

In this diploma thesis, I would like to present the purcharing netvork and financial analysis of individual articles of the network. The theoretical part provides a review of the interest groups financial analyses, methods and indicators of financial analysis and network economics. The practical part is evaluated the specific network of companies, the relations of the individual entities and the evaluation of the results of the financial analysis.