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How do domestic factors influence some small Norwegian entrepreneurial firms’ choice to primarily operate in international markets, rather than their domestic market from inception?

Hedenstad, Henriette; Helgesen, Elise Christine
Bachelor thesis
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2913609 (1).pdf (2.534Mb)
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https://hdl.handle.net/11250/2788613
Utgivelsesdato
2021
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Samlinger
  • Bachelor [678]
Sammendrag
The emergence of born globals (BGs), defined as firms that from, or near

founding obtain a substantial portion of total revenue from sales in international

markets, has increased during the past three decades. The phenomenon of such

firms that are heavily involved in exporting short time after establishment has

consequently received increased attention from scholars.

We identified a gap in the literature around how domestic factors influence BGs’

internationalization choices; previous research mainly focused on factors of the

foreign markets, and the firm’s internal factors. Based on this, we designed a

research question that reads as follows: How do domestic factors influence some

small Norwegian entrepreneurial firms’ choice to primarily operate in

international markets, rather than their domestic market from inception?

Initially, the thesis will present relevant literature for the topic of BGs. This

includes traditional internationalization theory, as well as a review of the existing

BG literature. Furthermore, the relevant research method and design are

presented. In the thesis, we used an exploratory design to gain a deeper

knowledge of how domestic factors influenced the BGs’ internationalization

choices. The method used in the thesis is a qualitative research method where we

obtained data through individual in-depth interviews. Two case studies were

selected: Platina Seafood Market, a firm in the seafood industry, and EpiGuard, a

firm in the medical technology industry. Both firms were established in the same

year and considered to be Norwegian BGs.

Prior to the in-depth interviews, an interview guide was designed to ensure

structure in the conduct of the interviews. The data obtained through the

interviews further formed the basis for the analysis.

Finally, relevant findings are discussed in the light of theory presented earlier in

the thesis, followed by a conclusion and recommendation section. We presented

three domestic factors which are argued to influence the BGs’ internationalization

choices. These were a lack of innovation adoption, large incumbents with market

power, and a small market size. Based on our analysis, we developed a model as

an attempt to fill the gap in the previous BG literature. This model illustrated how factors of the domestic market could make it difficult for small Norwegian

entrepreneurial firms to grow domestically, which consequently could lead them

to explore opportunities internationally. It is put an emphasis on the fact that such

factors should be seen in context with other external and internal factors, as the

choice to internationalize is characterized by complexity.
Beskrivelse
Bacheloroppgave i International Management fra Handelshøyskolen BI, 2021
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Handelshøyskolen BI

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