Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically distant market

Arto Ojala

International Business Review, 2009, vol. 18, issue 1, 50-59

Abstract: Current research emphasizes the role of extant network relationships in the international development of small- and medium-sized enterprises (SMEs). Inevitably, these relationships are there, most likely, to provide linkages with and facilitate entry into psychically and geographically close markets. But what of firms entering psychically distant markets, for strategic reasons, as is usually the case with knowledge-intensive SMEs? Will existing network relationships remain important, and will they operate in a similar way. In this exploratory case study, in which eight Finnish software SMEs enter the Japanese market, the decision to enter these markets is found to be for strategic reasons rather than in order to follow network relationships. In addition, the way to enter these markets is not seen influenced by extant business relationships. It seems more reasonable to argue that the important relationships were actively utilized or developed to achieve the market entry, and were, in many cases, mediated relationships with non-profit government-owned consulting firms.

Keywords: Case; study; Finland; Internationalization; Japan; Knowledge-intensive; firms; Market; entry; Networks; Psychic; distance; Software; firms (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (80)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969593108001091
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:18:y:2009:i:1:p:50-59

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic
http://www.elsevier. ... me/133/bibliographic

Access Statistics for this article

International Business Review is currently edited by P. Ghauri

More articles in International Business Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().